okay folks welcome back this is the last volume volume 3 of mastering high probability scalping and this is dealing specifically with previous day bank liquidity runs all right for some of you this is gonna be a little bit of a rehash but it's necessary so my dispose of this whenever I refer to power 3 what I'm referring to is the three components that make up generic price action that's the accumulation phase where long or short positions are accumulated then a manipulation stage where price goes the opposite direction to what the intended future direction will actually be and then there's an arranged expansion and then a distribution we use this concept is when the daily bias is bullish we're gonna be confirming the London session was in fact bullish that means did we see a measure of bullishness after a attempt to go lower was rejected and price has seen a rally this would be enough for me coupled with the daily bias being bullish then you said leave wait until 7:00 a. m. New York time to stock your long entry between 7:00 a.
m. and 9:00 a. m.
New York time typically the setup will form after 7:00 a. m. New York time you're going to be waiting for a price retracement lower New York session will retrace typically from a swing high intraday that was formed for the daily high or a short-term high during the London session ideally you wanna be selecting retracements of at least 20 pips are lower if no retracement of 20 pips forms by 9:00 a.
m. walk that means cut they don't try to take any trades if you are exceedingly bullish if you see a retracement of 10 to 15 pips sometimes this is enough during this key time of day or a optimal train entry long you if it does form enter on the 62 percent retracement fib as it drops lower you expect price to retest the high of the day or the previous day's high and then look for targets one two and symmetrical price swing on the FIB as you see here's an example and I have a vertical line here this is delineating seven o'clock in the morning New York time or the beginning of the New York session and price creates a bounce in the pre New York session but it's an exceedingly large retracement and I'll talk more about that when we mentioned how the time or anticipate reversals but after 7:00 a. m.
which is that vertical line we have a retracement of 20 pips actually it's a little bit more than 20 pips here but this is a really good set up but price trades down into the optimal trade entry and a beautiful market run you now looking at power 3 again we're looking at the accumulation phase in this case would be the accumulation of short positions in a manipulation phase where a price runs up higher during London knocking out individuals that would already be short and putting those individuals on the wrong side trying to glue long and then a nice move lower if we see this occurring while at the same time the daily bias is bearish this is good and again to confirm them on the session being bearish we want to see price move above the opening price at midnight New York time if that occurs and price rejects that goes lower and trades 25 to 30 pips lower at least minimum for the London session that would indicate at least the expectation that New York sessions should present a continuation idea or bearishness now obviously you want a little bit more movement beyond 30 pips or so for the London session but nonetheless you want to see that if you're staying up and you don't want to trade London teaching primarily the New York session for the scalping model but if you see the reasons that would justify a bearish London session that means again primarily with an open at midnight New York time and attempt to rally and rejecting that and trading significantly off that now again what's significant yeah 30 pips or more and going into the New York session I want to I want to dissapoint criteria when are we waiting for 7:00 a. m. New York time to stock our short position between 7:00 a.
m. and 9:00 a. m.
New York time it usually will form after 7:00 a. m. New York time really waiting for a retracement New York session will typically retrace from a swing low now what's swing low the swing low that was formed in the London decline the initial decline once it starts to retrace when we were looking for a price to move higher ideally when we selecting retracements of at least 20 pips or more as it retraces higher if their retracement of 20 pips forms by 9:00 a.
m. we're gonna be cutting bait or basically walking and we'll be looking for another opportunity the following day if it does form we're looking to enter at the 62% recent level as rallies up again important that we want to be selling short as price goes higher we'll be anticipating an expecting price to retest the low of the day or the previous day's low and or targets one two and eventually symmetrical price swinging on the fit here's an example here and again the vertical line delineates the 7 a. m.
marker for the New York session so immediately after that we were gonna be on watch for a retracement higher of at least 20 pips now again if you're having very strong convictions about the market being very bearish you can anticipate a optimal trade entry form at 15 pips or so you can get real aggressive if you're gonna 5-minute chart and take 10 pip retracements if you're extremely bearish but that's gonna be for folks that have done this for a while and has developed a measurable amount of experience I guess I'm looking for the word that would best suit it but experience is going to dictate that but to avoid false setups it's better to wait for at least the 20 pips move higher in this case for a short frost little trade injury but the key is waiting for a 20 pip rally after 7:00 a. m. New York time while the New York session is anticipating a continuation lower of what was seen in London so in other words if we're looking for bearishness to continue from a weak sell-off in overnight trading in London we'll be looking for a retracement after 7:00 a.
m.
