Transcript for:
Analyzing New York Reversal Trading Patterns

How's it going everyone? This video is going to be part two in my daily profile series and it will be focused on New York reversal. Now if you haven't already watched part one in this series, make sure to go check that out and that will be focused on London reversal.

Let's get into the PDF and get started. So here we are in the PDF and this is the sessions or the kill zones. So you can see we have Asia, London. New York am and then New York pm, right, we are going to filter that out to just focusing on London and then the New York am session, I will specifically be focusing on London and the New York am for the indices.

So what is the New York reversal? Well, it's going to be a candle that looks similar to this, we'll have an open high, low close, and then open low high close. How this differs from a London reversal is that London never reached a relevant PD array. So when it went open high into London, we never reached a PD array to form the reversal.

So then we go higher until New York to form the reversal. So here we are with a bullish New York reversal. And you can see London moves lower, never reaches a relevant higher timeframe level, we continue to retrace into New York where we reach that higher timeframe key level, then we have the change in the state of delivery, and then the move higher. Similarly, with the bearish New York reversal, London retraces In New York, we hit that higher timeframe key level, have the change in the state of delivery, and then we continue lower. So let's hop into TradingView to go over a few examples of this.

So here we are in TradingView, and the level I'm going to mark out here is this previous day low. That will be our sell side liquidity. If you notice here, London, we do reach lower and move higher, but we never reach a relevant higher timeframe level. As we get into New York, what happens?

well, we go and reach this higher timeframe level. So now what am I looking for a change in the state of delivery. So marking out the series of downclosed candles here, this would be our change in the state of delivery.

Let's see what happens. We fail to change the state of delivery here, which gives me the indication we're going to move lower to either make a new low, or at least down into this wick here and see what happens. Here we make a new low.

So now where is our new series of downclosed candles right here. You see how that also lines up with New York open or important time level. And now let's see what happens here we get the closure over.

So then I would be looking to frame a trade after we close over my stop could be on the low. But just looking to target all these failure swings up here doesn't really make sense in terms of risk to reward. So I'll put it at the bottom of this order block here. Let's see how this works And there we go, we continue higher taking out all these failure swings. So you can see if bullish, and with London, we just retrace lower into the higher timeframe level at New York, that is what frames the New York reversal.

And you can see, looking at all these highs up here, we have a bunch of low resistance liquidity to run through. That is how we get that aggressive move after the change in the state of delivery. Let's go ahead and look at another example.

So here we are with our next example. Let's go ahead and take a look. Here you can see in London, we do form that low. So that looks like a London reversal, right? But wait, let's look to the left a little.

We ever reach a higher time frame level. No, we are just creating more equal lows or more liquidity down here. So this is going to be a fake change in the state of delivery to then go run the lows again.

When should this occur? Well, ideally around the New York opening times. But now that we purge these lows down here, I'm looking left and what do I see? Failure swing, failure, swing, failure, swing, right?

So we have all these highs lined up here. Now what I can do is if I know what I'm going to be framing, I know currently the m 15 change in the state of delivery would be here, I can also go down to a lower timeframe to see what I see. Let's see what happens. Here we get another run lower.

There's no setup yet. Okay, here, you can see we sweep a low can't close below that's at new york open right so new york open makes the opposing move new york open would also be the order block that would be formed if we get a close over now with this close over i can look to take an entry my stop on the low and what am i targeting well you see all these failure swings here and up there so london and asia highs i could look to target there take some off here take some off at midnight with such a high r trade doesn't really matter where I take partials as long as it's over to our for me. Here we hit midnight, and we've run through that high there.

So you can see it looked like a London reversal, but we never engaged a higher time frame PD array. But then it is actually a New York reversal to go run out these highs. Let's go into another example.

So here we are with our next example. Let's go ahead and work this top down. What do you see here?

We're currently respecting the lower half of this wick, right? And the consequent encroachment of it. What do we notice here? We close back inside the previous candles high.

And what do we form? bearish reversal candle. So being bearish the next day, I want to see what? Open, high, low, close.

Let's go down to the 30 minute chart or the 15 minute chart to confirm this using daily profile. So here we open the new day. Let's see what happens in London, right?

That's what's important. Between two to five, do we see London form a high here for a London reversal to continue lower? No, we do not, right? It is just trading.

higher. So as we get into the New York session, let's see what happens. Make a move higher and we get displacement down. This series of up-closed candles here is a little messy. We can go out to the 30 minute.

Here we have a series of up-closed candles. Mark that out. That is our change in the state of delivery intraday or an order block. And what do we have resting here?

Failure swings from Asia and London. So I could look to take a trade here with either my stop on this high or above the order block. and then targeting this low for 2.65 r let's see how that works out you can see midnight offering support here and what just opened 8 30. so if we're going to get this move back up i'd like to see it at 8 30 making an opposing run to form a new order block right there what do we see well we get we hit rtp after getting tagged in but we also form a new order block so let's see what happens here right we wanted to take another trade or just let it go we'll just see how it works out you see how it's also lined up with 830 and midnight.

So we have quite a few overlapping confluences. And there we go, right. So that would be our propulsion block.

It's an order block built off an order block. But I hope you can see how we went through, we realized it wasn't a London reversal, because London is continuing higher. This important level we hit was forming the wick, right on the daily chart, you can see we didn't have a wick prior to that.

And we reach in to this previous range here. So then we use that to frame trades lower, getting the New York reversal for a continuation lower. Let's go through a couple more examples.

So in this next example here, we're going to be talking about framing a trade off of external liquidity and the continuation that follows. You can see here we have a range, and here is the range high, and then we can consider any of these for the range low, but I will use the most current swing low here. So dropping down to the next day, let's see what we can use with daily profile on this high. So here we are.

with the 15 minute chart. Let's see what happens. But here in London, what happens? Well, we sweep out this low and form a low, though likely to continue where continue higher to this high. And so now you can see New York open makes an opposing run continues higher.

And now we're taking all the liquidity from that previous day's high. Now, what do we get an aggressive move out, and then back into the range? What is this?

a change in the state of delivery. So if I wanted to play the reversal day here, we have the buildup of low resistance liquidity down here, we have session lows. So I could look to take an entry here, my stop above the order block, target to our right in here. And let's see if this works out.

You can see we didn't get tagged in before it went. And that is okay. Now, since that is the reversal day, let's go back out to the daily. Now what do we notice out here on the daily chart? You can see we had a range.

We swept out one side of that range. We have low resistance liquidity resting here. As you can see, we have previous day's lows lined up.

And then this candle is a bearish reversal candle. And where does it close? Inside previous day's high.

So with that all put together, I'm anticipating an open, high, low close. So let's drop down to the 15-minute chart to confirm this. Down here on the 15-minute chart, I want to go through London.

and see what it did. So looking at London, did it form any significant high to trade off of in New York? No, we actually swept London's high here. So I'm anticipating what a New York reversal as I'm still bearish.

So as I come into the New York session, what times am I looking at? 830, 930, 10. Right. So what happens at 830? 830, you can see we get manipulation up and then we displace and close lower. Now there's a lower time frame entry in there.

TradingView just doesn't let me go back lower on that time frame. But you can also see what happens with the 15 minute chart here once we close below. What do we see? Well, we'd want to see previous day low taken as well as these lows here.

So let's see how that works out. And there we go. And if you notice, 830 offers an entry, 830 manipulation, 930 continuation, similar to London and New York. What happens at 930 here?

Well, you can see with this wick, New York makes an opposing run up to sweep out some of these highs. That's a lower time frame order block formation to then continue lower. and we take out these lows so we form our open high low close and if we let this play out what happens we get more of a continuation lower and we come back inside the range to close so let's take a look at one more final example so here we are on the hourly chart or es and what do we see well we see we have a reversal here we also had smt at these highs and we have low resistance liquidity resting here and then we have an order block here right this swept out all these lows into the gap, displacement and close over. Now, if you want to really refine this down, what can you see? Well, you can see from this high here, go ahead and mark it out to this low, there's a gap, right?

What does that mean? That means that there is a higher time frame imbalance right here. So with that idea in mind, let's drop into the charts and kind of combine two different profiles. So as we drop down to the 15 minute chart here, let's see what London does. You can see with London, we take out this previous high.

Now we have an up close candle here, let's go ahead and zoom in. And so if we get a closure below here, that is a change in the state of delivery for London to trade off of in New York, I might be saying, why am I looking for this for a New York reversal video? Well, let's just take a look here. So we are getting that continuation lower off of London's range, right. But what happens is we reach our timeframe objective, right?

So fixing our time here, I had it on the wrong setting. You can see 830 was the manipulation up New York, we get a manipulation down, that's what the wick is, right, and move down and then back up. So this is actually a London reversal, but then can also be framed as a New York reversal.

So let's see, right here, New York makes the opposing run lower into the objective, then we close over. So this order block entry in here would be valid to target where the highs, right? We have equal highs up here.

So looking at something like this, how does it work out? There it goes, right? So this is just one example from the previous video that I wanted to expand on. But you can see we hit the higher time frame objective, and that is used to frame a New York reversal higher. I hope you found this video helpful.

If you did, please consider liking and subscribing, and I'll see you guys in the next one. Have a good one.