For a few weeks I've been observing that the H4 candles just before the opening of London (type 6-8am UTC)
For a few weeks I've been observing that the H4 candles just before the opening of London (type 6-8am UTC)
Yeah, I noticed it too, it looks like they're sweeping stops just before the strong session, then the price stabilizes and the real trend starts, very suspicious.
It's not manipulation, it's liquidity getting ready for the market.
That which you describe is typical behavior of what some call liquidity sweet. Market makers seek to clear orders before releasing the movement. I use it in favor.
And not only on H4. In M15 and M30 you also see those sweeps before London opens with force. I frame those candles and use them as fake-out zones.
It just doesn't take into account the transition between sessions. Asia closes, London prepares, and all that generates erratic movements. It's normal.
Yes, but when that normal behavior appears 8 out of 10 days, it's no longer a coincidence, or you don't know what institutional front running is.
I see it as an opportunity: if you know that it is manipulation, take advantage of it. It will work the opposite of the first wick and I went out with 15-20 pips. Easy.
That sounds nice in theory, but in practice they eat you alive if you don't have SL well put. It's not that easy to operate against those movements.
I programmed a script to mark all H4 candles from 4am to 8am UTC and there's a very high correlation between those fuses and intraday reversal zones. I mean, you're not crazy.
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