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Fading short-term extremes works in some sessions and fails badly in others. The difference is mostly about conditions, not the entry signal.

Conditions where fades tend to work:

• Late New York and early Asia on EUR and GBP pairs, when no fresh flows arrive.
• A clear intraday range with at least two touches on each side.
• No scheduled data in the next 30 minutes.
• Higher timeframe flat, e.g. H1 20 EMA without a clear slope.

Typical measures of "extended": distance from session VWAP in ATR units, a close outside a 2-deviation band, or a test of the session high or low.

The main risk is a trend day starting while you fade. Hard filters help:

• No fade after an M15 close outside the range.
• No more than two fades in the same direction per session.
• Stop beyond the extreme, not a fixed pip value.

What filter has saved you most often from fading a market that kept going?

FXS Prop Desk wrote: No more than two fades in the same direction per session.

That rule probably does more work than any of the entry filters. The expensive version of fading is rarely the first trade, it's the third and fourth into a move that has quietly turned into a trend day, each one with the stop beyond a new extreme. One more filter that's easy to check in real time: if the session range is already bigger than its typical size for that window, say the 20 day average, by the time you want to fade, the flat higher timeframe condition probably isn't true anymore even if the H1 EMA hasn't caught up. EMAs lag by design, so on the morning a trend starts they can still look flat for a while.

The late New York and early Asia window has one trap worth writing into the rules. Spreads on EURUSD and GBPUSD widen for several minutes at the 22:00 London rollover, and a fade entered just before it can be stopped by spread alone.

I stop fading from about 21:45 to 22:15 London, and a little longer on GBP pairs. Range touches in that period also tend to be spread spikes rather than real tests, so they do not count toward the two touches either.

On the target, I take profit at the middle of the range rather than the far side. The far side gets reached often enough to tempt you, but the middle gets reached far more, and that win rate is what keeps a run of small stops survivable.

Fairman's session range point is the one I would make a hard filter. Once the range so far passes about 80 percent of its usual size for those hours, I stop fading for the day.

The filter that has saved me most is simpler than any of these. If the second fade in a direction is stopped, the session is done for fades in either direction, because whatever is moving the market is not finished.