For weeks I've been seeing very rare patterns just at 9:00 (London time)
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For weeks I've been seeing very rare patterns just at 9:00 (London time)
I noticed it too. The typical opening spike that looks like it's designed to sweep everyone away. I stopped operating that time precisely because of that. Something smells rotten.
If you're skipping the stops, adjust your entrance and stop crying.The market is not designed for you.
I think there's a mixture of overopening orders and a lack of momentary liquidity that generates those peaks. I, too, was affected, but now I operate only after 10:00 and everything is much cleaner.
I use a breakout strategy on M5 right in the opening of London and I'm going for luxury. The trick is to know when not to enter. If you expect confirmation, you save the scares.
Open London has always been volatile, and if you don't have an adapted system, you're better at backgammon.
So what did they expect? Institutionals play rookie-stops. This is a game of wolves. If you go in without knowing, you’re dinner.
Well, it's not to get aggressive either, we've all been swept away once, the important thing is to learn how to identify those cheating moves, the volume usually rats it out.
Exactly. I combine order blocks with visible liquidity and since I do they no longer catch me in those sweeps. It’s a matter of adjusting the focus and being patient.
The funny thing is that many see manipulation where there is only a lack of structure in its operation. Learn to read the context, do not blame the market.
A lot of theory and a little graphic. Why don’t you go up captures with the movements you say are manipulation? So you can analyze something useful.
Good idea. Here I leave a catch of GBPUSD this morning. Just at 9:01 he made a brutal wick of 25 pips and returned to the starting point in 3 minutes. Is that noise or sweep?
Confirmed. I did the same with EURJPY. It was as if they swept the SLs just above the Asian maximum and then... total reverse. Very clear manipulation for me.
Hey, and won't it be better to avoid operating right at that time? Sometimes the best trade is not to enter. In my case, I put alerts and wait for the reaction. If there is real intention, I come in later.
That's the key. I use a rule: if the price makes a wick above 15 pips in less than 2 minutes, I don't operate in the next 10 times. That saved me many times from open London chaos.
The behaviour of the market during the opening of London is not new, but increasingly sophisticated. The concept of "handling" is often misunderstood: it does not necessarily imply that there is a malevolent entity behind it, but movements obey the logic of liquidity capture. Large institutional operators need volume to execute their orders, and the most efficient way to achieve it is to provoke artificial movement that triggers stops and hasty entries of retail operators. During the first few minutes of London, the market usually reacts to the pending orders accumulated since the Asian session. That’s where the perfect conditions are created for what some call "fakeouts" or "traps." That’s why, more than avoiding that time, it is advisable to understand it: to observe how the main pairs behave, detect the liquidity zones, and see if the price returns to them after the initial spy. That subsequent reaction is usually more reliable to find an entry. One tool that has significantly improved my analysis in that time slot is the volume comparison between sessions. Measure the delta between the Asian opening and the London opening allows to anticipate when a movement has real intention, or only lower noise5.
Thank you for taking the time to write this, very useful and well structured.
Interesting approach, but I still think operating at that time is a Russian roulette.
Really, thank you for sharing so much detail. You gave me a new way of looking at that time slot.
Don't you think you're overanalyzing? Sometimes a simple mobile media works better than all that.
Thanks for the tips on volume and delta, I'm gonna try that this week.
Do you have a template with those indicators you mention? I’m interested in replicating your analysis.
Thank you for this clear explanation. It helped me to see the London session from a completely different perspective.
I do not agree with you. While there is manipulation, many times these movements are caused by the accumulation of orders and not by institutional intent.
I've been trying to figure out why I've always been taken out in the first few minutes of London and now it makes a lot more sense.
Don't you think using frames as low as M1 or M5 can generate a lot of noise and false signals?
The concept of volume delta between sessions is something I've never considered.
Thank you for so much clarity. The part about stops and liquidity opened my eyes.
Could you develop more on how to identify liquidity zones? I find it hard to see them clearly on the chart.
You say the opening of London is predictable, but I see that every day is different. Isn't it too risky to look for patterns where there aren't?
Thank you for sharing your experience so generously. You are really saving me a lot of headaches.
Your approach seems logical to me, but how do you handle the inflated spread that's just in the first few minutes?
Thanks for the economic calendar, I always overlooked it and ate some tremendous surprises.
What you're saying about not reacting but being selective is just what I needed to hear.
Don't you think relying so much on institutional action can make us forget the basics of technical analysis?
You mention the initial moves as a trap, but how do you know when it's a trap and when it's a real breakup?
Thank you, your words about discipline came to me just as I was starting to operate out of anxiety.
Thanks for the advice on waiting for confirmation, that cost me a lot of SL in London.
Thank you for mentioning the difference between noise and intention. That changes everything.
Have you tried combining this approach with real order flow or just use estimated volume?