Chapter 3 lesson 6 - New York session Flashcards
How can we expect the New York session to trade, in relation to the London session?
New York can either continue the move after London’s Judas swing, or it can reverse.
What determines whether New York continues the move, or reverses?
We need to use the PD array matrix to determine whether New York will continue or reverse.
We need to check where price has traded to, in relation to the PD array matrix, up until the New York open.
In a bearish example, if the London session moved price from the premium to the discount zone, then we can expect the trajectory to continue in the New York session.
If the London session did not move price from a premium to a discount, then, in the New York session, we can expect price to reverse into the premium zone, and then move down to a discount zone.
Under what conditions can we expect the NY session to continue the London move after the Judas swing?
When the Judas swing is completed in the London session. This occurs when price moves into a higher time frame PD array, and price reacts off the PD within the London session, in line with the daily bias, then we can expect the trend to continue in the NY session.
Under what conditions can we expect price to revers in the NY session?
When the Judas swing is not completed in the London session.
This occurs when price moves into a higher time frame PD array, and price does not react off the PD array in line with the daily bias, in the London session, then, in the NY session, we can expect price to reverse to the London high/low before moving in line with the daily bias.
Another likely scenario is that price trades just above/below the higher timeframe PD array in the London session. When this happens, we can expect price to quickly trade into the HTF PD array in the NY session, before reacting and moving in line with the daily bias.
What else should we expect if we’re expecting a continuation of the London session?
When we’re expecting a continuation of the London session, we need to expect a retracement, most likely into a PD array formed during the London session.
This retracement can be expected between 8:15 to 8:45 NY. It’s best to hunt for the continuation setup between 8:30 and 9:00.
