What New York AM brings
New York adds a new wave of participants and, on many days, scheduled US economic data. Volatility often picks up around the open. That makes it a useful window, and also one where fast moves through levels are common and need strict confirmation.
New York AM can continue a clean London trend, reverse a London move that ran into a higher-timeframe level, or rotate back into the middle of the day's range. None of these is the "normal" outcome.
Breakout in London, rotation in New York
Levels for New York
By the time New York opens you have the Asia high and low, the London high and low, PDH and PDL. A London breakout that held becomes a level to retest. A London sweep that reversed leaves an extreme that New York can come back to. The optional New York PM range from the previous day can be added as a reference, but it is not an execution window unless you turn it on.
New York AM rejects a break of the Asia high
Continuation versus reversal
Continuation in New York usually looks like a retest of the London breakout level that holds, followed by displacement in the same direction. Reversal looks like a sweep of London's extreme with a close back inside and displacement the other way. If neither appears, the answer is no trade.
Bullish example
- 1London broke above the Asia high and held (accepted).
- 2In New York AM price pulls back to that level.
- 3The retest holds and a candle closes back up away from it.
- 4Bullish displacement confirms; the stop goes below the retest low, the target at the next high.
Bearish example
- 1London pushed above a level, but New York AM trades above London's high and closes back below.
- 2A bearish displacement candle follows within the window.
- 34H bias is bearish, or countertrend mode is enabled and labelled.
- 4The stop goes above the sweep high, the target at the next level down, with enough reward-to-risk.
What confirms it?
- A retest that holds, then displacement, for continuation.
- A sweep of the London extreme with a reclaim close, then displacement, for reversal.
- Both happen inside the New York AM window.
What invalidates it?
- The retest closes back through the level.
- The move starts and finishes during a scheduled news spike you chose to avoid.
- The window ends before confirmation.
Common mistakes
- Assuming New York always continues London, or always reverses it.
- Chasing the first fast candle after the open.
- Using the New York PM range as an execution window without enabling it.
- Forgetting that London levels change once London ends.
Replay exercise
- In replay, find a day where London broke out of the Asia range.
- Stop at the New York open and mark London's high and low.
- Step forward and note whether New York retested and continued, swept and reversed, or ranged.
Quick quiz
Pick an answer to see the explanation. Nothing is saved.