Forex Price Action Analysis with GBP/USD London Session

Key Concepts and Strategies

Market Structure and Price Action

• Sell-Side Liquidity: Observed initially with a shift and displacement to the upside.
• Shift in Market Structure: Transition to the upside observed, suggesting potential buying opportunities.

Trading Analysis

• Time Frames:
  • 2:50 AM to 3:10 AM macro timeframe is crucial.
  • Trading within reclaimed BSC (Buy Side Continuation) and Fair Value Gap.
• Buy Side Liquidity: Focus on accumulation after market structure shift.

Trading Decisions and Tools

• Fair Value Gap (FVG): Used to identify buying opportunities.
• Premium Arrays: Targeting low-hanging fruit objectives initially.
• Stop Loss: Placed strategically, e.g., lower half of an inversion fair value gap.

Execution and Strategy

Trades Initiated

• Initial Buy: In the reclaimed bullish fair value gap.
• Take Profit Levels: Adjusted as price moves into another fair value gap (Cy).

Key Objectives

• Low-Hanging Fruit: Aimed at partials and rebalancing as the price moves.
• Continuous Delivery: Algorithm aims for higher prices regardless of market pressure.
• Partial Exits: Taken as price approaches specific liquidity pools.

Observations and Notes

• Algorithm Performance: Demonstrated via demo/paper trading.
• Range Expectations: Presently small ranges due to economic conditions but expected to change.

Conclusion

• Market Patience: Advised due to current small ranges.
• Session End Strategy: Partial exits and limits set for realistic range expectations.

Final Remarks

• The algorithm and strategies discussed are shown to work despite small Forex trading ranges currently.
• Future expectations include increased volatility with global economic changes, necessitating patience.

• Note: All trading examples given are within a demo/paper trading environment. They are for educational purposes, reflecting on strategies applicable in real market scenarios.