7.27 Strategy: The New York Session Reversal

The global Forex market operates in sessions: Sydney, Tokyo, London, and New York. By far the most volatile and heavily manipulated period occurs between 3:00 PM and 5:00 PM East African Time (EAT). This is the 'Overlap Window' where the London session is closing out its positions while the Wall Street (New York) session is simultaneously waking up and injecting massive liquidity.

The New York Session Reversal strategy is designed to capitalize on the exact moment US banks deliberately reverse the trend established by London earlier in the morning.

Between 10:00 AM EAT and 2:00 PM EAT, observe what the London session did. Did they push EUR/USD aggressively higher by 60 pips? Draw a box identifying the absolute high and low of the London session. This establishes your daily framework.

Around 3:00 PM EAT (or 3:30 PM depending on Daylight Saving Time), New York banks enter the chat. Instead of continuing the London trend, they will often execute a rapid, fake-out spike in the *same* direction as London to trigger retail breakout traders and hunt stop losses. This fake spike is famously known in SMC circles as the 'Judas Swing'.

You do not trade the Judas Swing. You wait for it to happen, sweep the liquidity above the London High, and then aggressively collapse back below the London High level. Once the 15-minute candle closes violently in the opposite direction (e.g., a massive Bearish Engulfing candle rejecting the highs), you enter a Market Sell order.

Your Stop Loss goes exactly 10 pips above the tip of the Judas Swing wick. Your Take Profit target is the exact opposite side of the London session (the London Low), capturing the entire intraday reversal.