ICT Daily Profile - New York Reversal

Summary

This video continues the daily profile series by breaking down the New York reversal pattern and showing how it differs from the London reversal. Through multiple TradingView examples, the creator demonstrates how to identify key higher-timeframe levels, understand changes in the state of delivery, and recognize when London has failed to reach a valid premium or discount array. The video teaches viewers how to anticipate New York session reversals, frame precise entries using order blocks and liquidity, and target logical price objectives. It offers practical, step-by-step guidance for applying these concepts to intraday index trading.

Takeaways

• 😀 New York Reversal is a trading strategy focusing on price action and liquidity during the New York AM session, particularly after the London session.
• 😀 The strategy involves observing the price action in London and waiting for key higher time frame levels to be reached during New York, which trigger reversals.
• 😀 A bullish New York Reversal occurs when London price moves lower but does not hit a significant higher time frame level, which is later reached in New York, triggering a reversal upwards.
• 😀 A bearish New York Reversal occurs when London price moves higher but fails to reach a relevant level, then reverses during New York as it hits that level and continues downward.
• 😀 Understanding and identifying 'Change in the State of Delivery' is crucial for confirming reversals. This is typically marked by a series of candles indicating a shift in market sentiment.
• 😀 Open High Low Close (OHLC) candles are essential for spotting reversals, providing a clear market pattern to look for in both bullish and bearish setups.
• 😀 The New York AM session is key for framing trades, as it typically triggers movements that capture liquidity sweeps at important price levels.
• 😀 Key price levels such as previous day highs and lows can serve as liquidity zones. Identifying these levels during London or New York provides high-probability entry points.
• 😀 Order blocks, which are areas where price has made a significant move in one direction, can be used to frame entries. These blocks help confirm where reversals are likely to occur.
• 😀 The strategy combines multiple tools like session kill zones, liquidity analysis, and price action shifts to help traders identify and enter high-probability trades based on the New York reversal concept.

Q & A

What is the focus of the 'New York Reversal' concept in trading?

The 'New York Reversal' concept focuses on identifying price action patterns that occur around the New York session. Specifically, it looks for price reversals after the London session that are triggered by reaching key higher time frame levels, followed by a change in the state of delivery.

How does the New York Reversal differ from the London Reversal?

The New York Reversal differs from the London Reversal in that London never reaches a relevant higher time frame level, and thus the reversal occurs only when price reaches that level during the New York session. In contrast, the London Reversal occurs within the London session itself, without this higher time frame level being reached.

What is the key characteristic of a New York Reversal candle?

A New York Reversal candle typically has a specific structure: open-high-low-close or open-low-high-close, indicating that price has reached a higher time frame key level, followed by a change in the state of delivery.

Why is it important to identify the change in the state of delivery?

The change in the state of delivery is important because it signals that price action has shifted direction after reaching key support or resistance levels. This shift often marks the point of a reversal and can help traders identify profitable entry points.

What role does liquidity play in the New York Reversal strategy?

Liquidity plays a crucial role in the New York Reversal strategy, as the reversal often occurs when price sweeps through liquidity zones, such as equal lows or highs, and then reverses. This process helps clear out trapped positions before the new trend is established.

How does the timing of the New York session impact the reversal?

The timing of the New York session is critical because it often sets the stage for the reversal. Key time points like 8:30, 9:30, or 10:00 are important for watching price action and entry setups. These times are when price typically starts to move more aggressively after the London session has ended.

What is the significance of the higher time frame PD array in the context of a New York Reversal?

The higher time frame PD (Price Delivery) array is significant because it provides key levels that price targets during a New York Reversal. These levels act as areas where price can reverse or consolidate, serving as confirmation for the reversal pattern.

What are 'failure swings' and how do they influence trade decisions?

'Failure swings' refer to price movements where price fails to break a previous high or low, indicating a potential reversal. Traders look for these failure swings as signs that the market is reaching exhaustion in a certain direction and is preparing to reverse.

What time frame is used to confirm the New York Reversal, and why?

The 15-minute (M15) chart is commonly used to confirm the New York Reversal. It provides a good balance between detailed price action and a broader perspective, allowing traders to identify the reversal after significant moves during the London session.

Can the New York Reversal strategy be used on all markets?

Yes, the New York Reversal strategy can be applied across different markets, including indices, forex, and commodities. However, it is especially effective when trading liquid markets where price action is more predictable and influenced by major session openings like London and New York.