Chapter 3 lesson 4 - London session

Question 1

When does the algorithm reset?

Answer 1

At midnight, New York time. This is called IPDA true day, cos the price delivery algorithms day starts at midnight.

Question 2

Why is the midnight opening price important?

Answer 2

When you are bullish, and you look to trade the London session, wait for price to run below the midnight price.

This is the true overbought and oversold for London.

Question 3

What are the 3 key data points for a good buy setup in the London session?

Answer 3

There must be some consolidation in the Asia range.
The Asian low must be swept.
The midnight opening must be swept.

The above can be reversed for sell setup.

Question 4

Where does smart money buy?

Answer 4

Smart money buys beneath old lows. They pair their long positions with retail shorts positions. They also like to accumulate their longs beneath the midnight open.

Question 5

Why is the asian range significant?

Answer 5

We use the asian range to gauge where the judas swing beneath the midnight price can go to.
It also advisable to pair the asian range with a discount PD array that price can trade into.
This helps you create a narrative of where the end of the range is likely to form.