Forex Strategy | London Session

Summary

In this video, the creator shares a trading strategy used during the London session, focusing on key concepts like sweeping the Asian high/low and understanding fair value gaps. The strategy is demonstrated through multiple examples, including trades on Monday, Tuesday, and Wednesday, with insights on when to look for reversals versus continuation trades. The creator also discusses a loss on Friday and emphasizes the importance of higher time frame analysis in successful trading. Finally, the creator offers a course with mentorship to help others become professional traders and pass funded accounts, alongside a bullish prediction for the upcoming week.

Takeaways

• 😀 The strategy focuses on trading during the London session, typically from 8:00 a.m. to 12:00 p.m. GMT.
• 😀 A key technique is to look for a sweep of the Asian high or low, indicating potential market movement.
• 😀 The speaker emphasizes the importance of understanding the Asian session’s structure for catching profitable trades.
• 😀 The strategy uses a combination of liquidity sweeps, fair value gaps, and market structure to determine trade entries.
• 😀 While waiting for the sweep of the Asian high/low is ideal, it's possible to catch trades earlier by recognizing strong market reactions.
• 😀 The speaker stresses the value of understanding higher time frame analysis to align trades with overall market trends.
• 😀 A successful trade involves targeting the Asian high after a reversal or continuation setup, depending on market conditions.
• 😀 The strategy also accounts for reversals, which can happen after sweeping liquidity in both bullish and bearish markets.
• 😀 Losses are an inherent part of trading; the speaker explains their loss on Friday and highlights the importance of not getting discouraged.
• 😀 The speaker promotes their trading course, which includes mentorship and aims to help traders understand both higher and lower time frames, as well as technical patterns.
• 😀 The speaker's prediction for the upcoming week is a bullish market trend, citing the daily candle’s close and previous price action as factors.

Q & A

What is the main strategy discussed in the video?

The main strategy discussed involves trading during the London session, specifically focusing on the sweep of the Asian high or low, and using the structural liquidity and fair value gaps to predict price action. This is used to catch reversals or continuation trades based on market behavior.

What does the term 'sweep of the Asian high or low' mean in trading?

In trading, a 'sweep of the Asian high or low' refers to the price action where the market moves to take out the highest or lowest points established during the Asian session. This sweep often indicates a shift in market sentiment, and traders look for it as a sign of potential reversal or continuation.

What are fair value gaps, and why are they important in this strategy?

Fair value gaps refer to price levels where there is a significant imbalance in the market, often caused by a rapid move in price. In the strategy, traders look for these gaps to be filled, and the price is expected to move toward these levels, making them an important tool for predicting future price action.

Why does the speaker use the Asian range indicator in their trading?

The speaker uses the Asian range indicator to identify the range of price action during the Asian session, which helps them recognize key levels such as the Asian high and low. These levels are then used to guide their trades in the London session, as they often provide important signals for reversals or continuation.

What is the importance of higher time frame analysis in trading?

Higher time frame analysis is crucial because it provides a broader view of the market's direction. Without understanding the higher time frame trend, traders risk entering trades that go against the overall market momentum, which can lead to losses. The speaker emphasizes the importance of aligning trades with the higher time frame analysis.

What is a 'change of character' and how does it impact trading decisions?

A 'change of character' refers to a shift in price action where the market breaks previous structure, such as a new high or low. This indicates a potential shift in market sentiment, signaling that the trader can enter a position based on this new direction.

Why was the trade on Friday a loss, according to the speaker?

The trade on Friday was a loss because, although the speaker's analysis indicated a bullish bias and they followed their strategy, the market did not behave as expected. Despite seeing signs of a reversal, the trade was stopped out, highlighting that not every trade will be successful.

What role does news play in the speaker's trading decisions?

The speaker mentions that they avoid trading when there is news, as news events can cause significant volatility and unpredictability in the market. For example, on Thursday, the speaker did not take a trade because they believed there was news affecting the market.

What prediction does the speaker make for the following week?

The speaker predicts a bullish market next week, based on the strong rejection seen in the current week's price action and the closing of a daily fair value gap. The speaker believes the market will push higher, targeting previous highs.

How does the speaker address the challenges of learning to trade?

The speaker emphasizes that trading involves much more than just a strategy; it requires understanding concepts like change of character, fair value gaps, and market structure. They mention that learning to trade effectively takes time and that their course offers comprehensive training, including mentorship to help traders succeed.