Most traders see this: Price breaks out of the Asian session range and they jump in, only to get reversed.
What's really happening: You're not watching a
breakout; you're watching a
liquidity hunt. Banks use the low-volume Asian session to build a range. At the London open, their first order of business is to run the stops placed just above the highs and below the lows of that range. This is not the start of a new trend; it's a trap.
The Insight:
- The First 15 Minutes of London is a Trap. The initial push is often a fakeout.
- The Real Move happens in the opposite direction once the stops are cleared.
How to Trade It (The ICT Way):
- Mark the Asian Range High and Low.
- At the London Open (2:00 AM NY Time), WAIT.
- Watch for a "wick" or a clear break above the high or below the low.
- Do not chase. Instead, prepare to trade the reversal back into the range or a continuation in the opposite direction once the true institutional flow begins.
This is called a "Liquidity Grab." I map these daily setups for my members. If you want to see the exact levels we're watching today, DM me 'ASIANRANGE'.
