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How to Trade the Key Market Swing Points
- 7:00GMT - 9:00GMT is the standard London Open kill zone.
- Look for USDX SMT divergence when expecting turtle soup stop raids.
- 10:00GMT is a time where a Judas Swing is usually expected.. it helps you get in sync with the high or low that was formed during London Open.
- Never try to buy a low in a down trend or sell a high in an uptrend.
- London Open commonly sees a Judas Swing happen.
- A Judas Swing will form at least once in every 24 hour trading session.
- You can look for a Judas Swing at New York Open to attempt to get in sync with the daily trend.
- There are going to be days when you just shouldn't be trading. You do not need to trade every single day.
- If you don't know what is going on in the market, then sit on the sidelines. There is nothing wrong that. Wait for things to clear up a bit before taking a trade.
- Sell short when price is above the daily open and buy long when price is below the daily open. This is a gold mine. Combine it with using Judas Swings and directional bias.
- You should avoid trading for the day after 18:00 GMT.
- 15:00 GMT - 17:00 GMT is the London Close kill zone.
- When a Judas Swing forms around a recent swing high or swing low and starts in the other direction and you are already in the trade, that should give you the confidence to stay in the trade.
- The Asian Range is 0:00-5:00 GMT even though Asia trades beyond that time. It is the consolidation range that is used as reference points on where stops might be placed by the street money.
- Z days/search & destroy days will always start off like a profitable day. The London Open trade will pay you most of the time, but it will not give you that huge range. If price starts working the opening price again, then just get out of the trade and stop trading for the day.
- When swing highs and swing lows form on the daily chart, you should always look to anticipate a move in the direction of the swing point. Trade this bias on the candle after the 3rd one in the 3 bar pattern.
- The first week of every month tends to be choppy and thus we only day trade during the first week of the month.