After a huge trend day yesterday, how I'm approaching the London open today

[Fairman]

After a huge trend day yesterday, how I'm approaching the London open today

yesterday was one of those one directional days on EURUSD. It barely pulled back all session, and I only managed a small piece of it because I was fading it early. Today I'm trying not to let that bother me.

After a huge day, the next one is often messy. Price either continues with less energy, or it reverses a chunk, or it goes sideways. I don't know which, so my plan is to wait and see what London does for the first hour before I make any assumption.

I've marked yesterday's high and low, the close, and the Asian range. If London breaks the Asian range and holds, I'll look for pullbacks in that direction. If it gets to yesterday's extreme and fails, I'll look for a fade. If it just chops, I'll take the morning off.

The main thing today is not to try and make up for what I missed yesterday. That's the surest way to take a bad trade.

[Fairman]

Something I keep in mind after a big trend day is where yesterday closed relative to its range. If it closed right at the extreme, there is often a bit of follow through early the next day before anything else. If it closed back off the extreme, that tells me some of the move was already being taken back late in the session. Neither is a rule, but it changes which scenario I lean toward when London opens. I still wait for the first hour like you said before acting on it.

[Fairman]

The point about not letting yesterday bother you is the important bit. After missing most of a big move, I have caught myself trying to make up for it the next day by being early on everything. That is exactly the wrong mindset on what is usually a messy day. Treating it as a fresh session with its own levels works better. If today turns into another trend day, I would rather join late with a clean pullback than guess early because I am annoyed about yesterday.