Three things London can do
London can sweep an Asia extreme and reverse, break an Asia extreme and keep going, or never leave the Asia range at all. All three are common. The playbook classifies what happened from price, after the candles close, instead of starting the day with "London always reverses".
- Sweep and reversal: trades beyond an Asia extreme, closes back inside, then displaces the other way.
- Breakout and continuation: closes beyond an Asia extreme with a strong body and holds.
- Inside day: stays within the Asia range; no reference level is in play.
One day: Asia range, London and New York
Reading the first move
The first push out of the Asia range is information, not a signal. A wick through the Asia high that closes back below is a possible sweep. A strong close above it is a possible breakout. Neither is confirmed until the next candles show a reclaim plus displacement, or acceptance.
Align with the 4H bias. A sweep of the Asia low in a bullish 4H fits the preferred direction; the same sweep in a bearish 4H is a countertrend idea and is blocked unless you have deliberately enabled countertrend setups.
London sweeps the Asia high
When London ends
Once London closes, its own high and low become new reference levels for New York. A setup that has not reached entry candidate by the end of the execution window expires; it does not carry over.
Bullish example
- 14H bias is bullish and the Asia low is marked.
- 2During London, price trades below the Asia low.
- 3Within the reclaim window a candle closes back above it.
- 4A bullish displacement candle follows.
- 5Stop below the sweep low plus a buffer, target at the Asia high or PDH, and only if reward-to-risk is at least 2:1.
Bearish example
- 14H bias is bearish and the Asia high is marked.
- 2During London, price trades above the Asia high.
- 3A candle closes back below it within the reclaim window.
- 4A bearish displacement candle follows.
- 5Stop above the sweep high plus a buffer, target at the Asia low or PDL, with at least 2:1 reward-to-risk.
What confirms it?
- A reclaim close back inside the Asia range, then displacement in the 4H direction.
- For continuation: a strong close beyond the range that holds for the acceptance window.
- Everything happens inside the London window.
What invalidates it?
- Price closes back beyond the swept level after the reclaim.
- The move happens outside the enabled execution window.
- No displacement arrives within the allowed number of bars: the setup expires.
Common mistakes
- Deciding before the open that "London will sweep Asia and reverse".
- Entering on the first wick through the Asia high or low.
- Taking the countertrend side of a sweep without enabling countertrend mode.
- Carrying an unfinished setup into the next session.
Replay exercise
- In replay, choose five past weekdays and stop each one at the London open.
- For each day, write down in advance what would confirm a sweep and what would confirm a breakout.
- Step forward and classify London as sweep and reversal, breakout and continuation, or inside day.
Quick quiz
Pick an answer to see the explanation. Nothing is saved.