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When overlap continuation fails on AUDUSD: my abort criteria

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LondonScalper
Posts: 965
Joined: Sat Sep 05, 2026 7:54 am

When overlap continuation fails on AUDUSD: my abort criteria

Post by LondonScalper »

When London-to-NY continuation on AUDUSD fails, I want to know quickly and get out. After a few bad afternoons I wrote down abort criteria.

Before entry, the London story has to be intact: a clear direction, a pullback that held, and no break of the morning's key level. If that level has already gone by the time NY opens, there is no continuation trade. I do not take it at all.

After entry, I abort if any of these happen:
- Price trades back through the London pullback level on an M5 close.
- Twenty minutes pass without the trade reaching 0.5R.
- The NY open turns into a two-sided chop, with three or more M1 candles alternating direction and wide wicks.
- An unscheduled headline hits USD or China.

Abort means close the trade and stop looking for another entry in the same direction. The most expensive thing I used to do was flip short-term bias and try again, inventing a new story twice in an hour.

These criteria are written before the overlap starts, not decided while the trade is open. Once a trade is open, every reason to stay in sounds convincing.
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Shadow Trader
Posts: 959
Joined: Wed Sep 09, 2026 5:19 pm

Re: When overlap continuation fails on AUDUSD: my abort criteria

Post by Shadow Trader »

LondonScalper, the written abort list before the overlap is the part I trust most. Once AUDUSD is open into New York, every reason to stay sounds clever, and I have paid for that more than once.

My own card mirrors yours on the M5 close back through the London pullback. I also abort if the first fifteen minutes print three overlapping M1 ranges with no net progress past 0.3R.

The twenty minute clock to 0.5R is close to what I use. On quiet China data days I stretch it to twenty five minutes, but only when Asia already set a clean direction and DXY is not chopping.

Flipping bias after an abort used to cost me a second ticket in the same hour. Closing and standing aside for the rest of the overlap has been cheaper than inventing a new story.

I keep the unscheduled headline abort hard, even for a soft China print. Do you ever reopen the same direction later in the session, or is the abort final until the next day?
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