ICT Daily Profile - London Reversal / New York Continuation

Introduction

In this tutorial, we will explore the London Reversal and New York Continuation strategies, often referred to as ICT Classic Buy Day and ICT Classic Sell Day. These concepts are vital for traders looking to align their daily bias and validate their trading setups. By understanding these strategies, you can enhance your trading performance and decision-making process.

Step 1: Understand Killzones

• Definition: Killzones are specific time frames during the trading day when price movements are typically more volatile.
• Key Killzones:
  • London Killzone: Usually from 3 AM to 11 AM GMT.
  • New York Killzone: Generally from 8 AM to 12 PM GMT.
• Practical Tip: Monitor these periods closely as they are crucial for identifying potential reversals or continuations.

Step 2: Learn About the London Reversal

• Concept: The London Reversal occurs when the market reverses direction after the initial London session move.
• Types of London Reversals:
  • Bullish London Reversal: Indicates a potential upward shift in price.
    • Look for bullish candlestick patterns or significant support levels.
  • Bearish London Reversal: Indicates a potential downward shift in price.
    • Look for bearish candlestick patterns or significant resistance levels.

Step 3: Identify Bullish London Reversal

• Indicators:
  • Look for price action showing higher lows or bullish engulfing candles.
• Entry Point: Consider entering a long position once confirmation is observed.
• Stop Loss: Set a stop loss below the recent swing low to manage risk.

Step 4: Identify Bearish London Reversal

• Indicators:
  • Look for price action showing lower highs or bearish engulfing candles.
• Entry Point: Consider entering a short position once confirmation is observed.
• Stop Loss: Set a stop loss above the recent swing high to manage risk.

Step 5: Analyze Real-World Examples

• Throughout the video, multiple examples illustrate the concepts of London Reversal.
  • Pay attention to the different market conditions and how they influence the setups.
  • Look for patterns that recur across different scenarios for better understanding.

Step 6: Implement the New York Continuation

• Concept: The New York Continuation occurs when the market continues in the direction of the established trend from the London session.
• Indicators:
  • Confirm the trend direction and look for continuation patterns such as flags or pennants.
• Entry Point: Enter trades that align with the New York session movement.
• Stop Loss: Place your stop loss strategically to minimize potential losses.

Conclusion

Understanding the London Reversal and New York Continuation strategies can significantly improve your trading decisions. By focusing on killzones, identifying reversal patterns, and analyzing real-world examples, you can align your trading bias effectively. As a next step, consider practicing these strategies in a demo account to gain confidence and refine your skills.