Overlap fade after a one-way London morning: rules that keep me honest
Posted: Thu Sep 17, 2026 1:29 am
One-way London mornings create the urge to be clever at the overlap.
Sometimes fading exhaustion works; often you are fading strength into US participation. My honesty rules: fade only if London impulse shows clear exhaustion into a level, spreads are normal, and I have a tight invalidation. No fade because I missed the move. No fade into US data. No fade because the P&L wants balance.
If the first fade attempt fails, the idea is done for the day — I will not average into a trend dressed as mean reversion. I would rather take a small continuation pullback with the trend than invent an overlap fade to feel smart.
Journal tag: "overlap fade" versus "overlap continuation". Mixing them without a tag makes the review useless by Sunday.
If I cannot point to the exhaustion level on the chart before entry, I do not have a fade — I have a wish.
Sometimes fading exhaustion works; often you are fading strength into US participation. My honesty rules: fade only if London impulse shows clear exhaustion into a level, spreads are normal, and I have a tight invalidation. No fade because I missed the move. No fade into US data. No fade because the P&L wants balance.
If the first fade attempt fails, the idea is done for the day — I will not average into a trend dressed as mean reversion. I would rather take a small continuation pullback with the trend than invent an overlap fade to feel smart.
Journal tag: "overlap fade" versus "overlap continuation". Mixing them without a tag makes the review useless by Sunday.
If I cannot point to the exhaustion level on the chart before entry, I do not have a fade — I have a wish.
- Do you fade one-way London into the overlap?
- What exhaustion signal do you trust?