Handoff between London and New York: where structure often resets

[Shadow Trader]

The overlap between London and New York is one of the most active periods of the day, but it is also a transition. London often establishes a direction early, then as New York opens, volatility increases, news can hit, and the early move is frequently retraced or extended. I treat the hour before New York open as a time for caution, because spreads can widen slightly and liquidity gets repositioned. What I watch is whether New York sweeps the London high or low. If London made a clear low and New York opens and runs below it, then closes back above with displacement, that is a classic reversal context in a bullish bias. If New York breaks the London low and holds beneath it with strong closes, London was probably the fake and the real move is down. Either way, I wait for the sweep and a clear structure break before acting. I avoid trading right at the opening minutes of New York, since the first few candles are noisy. The map is the London range, and the trade is the reaction at its edges.

[FXS HongKong Scalper]

Checking if the New York open takes out the London high or low is a good approach. The hour before the New York open often has US data, which can reset structure quickly. I avoid new entries in the 15 minutes around major US releases, then look for the sweep and reversal after the dust settles.