1. Establish Higher Timeframe Bias 4H & 1H
Objective: Determine the daily market direction before taking any lower-timeframe entry.
4-Hour & 1-Hour Analysis: Check institutional order flow and location:
Are we overall Bullish (reaching for higher Buy-Side Liquidity / Premium FVGs)?
Are we overall Bearish (reaching for lower Sell-Side Liquidity / Discount FVGs)?
Rule: Only trade in the direction aligned with the higher timeframe bias.
2. Session Setup (Asian Range Marking)
Step A: Identify the Asian Session Range (00:00 – 07:00 UTC or 19:00 – 00:00 NY time).
Step B: Draw horizontal lines at the exact Asian High and Asian Low. These represent key liquidity pools (Buy-Stop and Sell-Stop clusters).
3. The London Session Liquidity Grab (Judas Swing)
Time Window: London Open / Kill Zone (typically 02:00 AM – 05:00 AM NY time / 07:00 – 10:00 UTC).
The Sweep (Manipulation):
For a Bullish Setup: Price drops lower during London open to sweep below the Asian Low (taking Sell-Side Liquidity).
For a Bearish Setup: Price spikes higher during London open to sweep above the Asian High (taking Buy-Side Liquidity).
Note: This initial move is an engineered false breakout designed to trap retail traders.
4. Entry Execution (5\text{m} Timeframe)
Switch to the 5-Minute Chart once the liquidity sweep occurs:
Market Structure Shift (MSS): Wait for price to reverse sharp in the opposite direction, breaking the most recent 5\text{m} swing low (for short) or swing high (for long).
Inverted Fair Value Gap (iFVG): Look for an existing or newly formed Fair Value Gap that gets broken and inverted (i.e., a bullish FVG that gets failed and closed below becomes a resistance zone, or vice versa).
Execution: Enter the market limit or market order when price retraces into the iFVG zone.
5. Risk & Profit Management
Stop Loss (SL):
Place the SL a few pips above the highest point of the London sweep (for Shorts) or below the lowest point of the sweep (for Longs).
Take Profit (TP):
Primary Target: The opposite Asian level (if Asian Low was swept, target the Asian High, as shown in your chart screenshot).
Secondary Target: Next external liquidity pool or 4H & 1H PD Array
