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London Session High/Low Strategy

Trade London ranges — intermediate difficulty

📊 intermediate 📍 The strategy is designed for trading during the London and New York sessions, fo

Strategy Overview

The London Session High/Low strategy uses the price range formed during the London trading session as key reference levels for entries during the New York session. It has two behavioral setups: Zone Respect and Break and Retest. The strategy is rooted in the concept that institutional orders placed during London don't disappear when the session ends, creating a self-reinforcing dynamic. This strategy is suitable for highly liquid futures instruments with strong institutional participation during London hours.

Market Context — When This Strategy Works

The strategy is designed for trading during the London and New York sessions, focusing on highly liquid futures instruments such as NQ, ES, YM, and Gold futures. It is most effective during trending or directional days when London establishes a clear move and New York extends or retests it.

Overview of the Strategy

The London Session High/Low strategy is a session-based support and resistance approach that utilizes the price range formed during the London trading session as key reference levels for entries during the New York session. It belongs to the broader ICT (Inner Circle Trader) / Smart Money Concepts lineage, presented here in a stripped-down, entry-level form.

Uses the London session range as a reference for New York session entries
Based on the concept that institutional orders during London hours create meaningful reference levels

Core Logic: Why Session Ranges Matter

Global financial markets run 24 hours, but volume concentrates in three windows: Tokyo, London, and New York. The London session carries the highest probability of a large directional move in any given 24-hour period. Institutional orders placed during London don't disappear when the session ends, creating a self-reinforcing dynamic.

Volume concentrates in Tokyo, London, and New York sessions
London session has the highest probability of a large directional move

Session Times Reference

The strategy involves identifying the London Session Range and drawing resistance and support zones based on the highest and lowest points of the session. The zones are then extended rightward to remain visible during New York session hours.

Identify the London Session Range
Draw resistance and support zones
Extend zones rightward for New York session

Instruments and Markets

The strategy is built for highly liquid futures instruments with strong institutional participation during London hours, including NQ, ES, YM, and Gold futures. Micro contracts are ideal for small accounts as they are 1/10th the size of the full contracts.

NQ, ES, YM, and Gold futures are primary focus
Micro contracts (MNQ, MES) are suitable for small accounts

Chart Setup and Indicators

The strategy uses a session time highlighter as the only indicator. No oscillators, moving averages, volume tools, or VWAP are used. The entire system is pure price action with manually drawn zones.

Session time highlighter is the only indicator used
No other indicators are required

Entry Rules

Identify the London Session Range and draw resistance and support zones
Wait for price to tag either the London Resistance Zone or the London Support Zone
Determine the scenario: Zone Respect / Rejection or Break and Retest
Enter on the close of the MSS candle or the open of the next candle
Use a 1-minute chart for entry criteria

Exit Rules

Take profit at the nearest recent swing in the trade direction
Secondary take profit at the opposite London extreme
Consider using a trailing stop or a time-based exit

Risk Management

Risk per trade: 1% of account size
Position size formula: Contracts = (Account Size × Risk %) ÷ (Stop Distance in ticks × Tick Value)
Stop trading after 2 losing trades in a session or a 2-3% account drawdown
Never add to a losing position

Key ICT Concepts Used

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