When overlap continuation fails on AUDUSD: my abort criteria
Posted: Tue Oct 06, 2026 1:35 pm
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.
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.