Eight reversals that can be effectively trade
- Previous day’s high - raid buy stops & reverse
Knowing the conditions that leads to a raid on buy stops of the PDH
- Previous day’s low - raid sell stops & reverse
- Intra week high - raid buy stops & reverse
Think of the weekly market profiles, tuesday can create a false high or a false decline
- Intra week low - raid sell stops & reverse
- Intermediate term high - raid buy stops & reverse
Last week high or a couple weeks ago
Longer term, again look at the purpose and whats the stoyline behind it? Is it pairing up those others to exit longs, or is going up there to engineer liquidity to put people on the wrong side and take that out to then take off? Not every old high is going to be 1 to go short at. Are going to continue? Or are we going to reverse because above that high is a HTF filled PD array, or are we going above that high after a long uptrend where logical profit taking will be met?
- Intermediate term low - raid sell stops & reverse
Last week low or a couple weeks ago, or previous month.
- New York session reversals
Generally its a continuation of what was established in London, but there are instances that London rallies up and New York reverse and takes out Londons low of the day, that occurs when New York trades up into a HTF premium array. Vice versa for the opposite side ofc.
- London close reversals
Everything from New York reversals applies to this, but also intraday on large range days (A day that has exceeded the 5 day ADR) when it rallies on a large range day we can anticipate a reversal during London close and it could provide an intraday scalp. ICT likes to only do this when ADR has been exceeded by 1.25 or 1.3%. He doesnt like it when it was a small range day or when it didnt really explode to 1 side
London open judas
New York open judas
Asia judas
London close judas on particular days
Its all the same stuff, by itself theyre pretty useless but if they trade into a PD array it becomes very high probability
How to know if the low/high will get swept and it just wont run further?
By itself it doesnt work, there has to be other things that blend well, there has to be more context
When were looking for a market reversals
- a clear indication it wants to go the opposite direction
Trading previous days highs and lows
Trading Intra-Week Highs
Trading Intra-Week Lows
Trading intermediate term high & low reversals
New York session reversal
London Close reversals