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ICT Market Maker Primer Course

ICT Forex – Trading The Key Swing Points

Michael J Huddleston

This teaching is going to be specifically dealing with: Trading the key swing points.

What swing points are going to be teaching in this module?

• The Asian open

• The London open
• The New York open
• The London close

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Engineering the daily range:

The Asian open:

1) Obviously, I teach with “power three” that: the general rule of thumb is - the Asia is a
consolidation then London increase the high or the low of the daily range and then New York is part
of the expansion and finally London close creates the higher low of the day (or the opposite end of
the range that's formed in London). But not always is that the case, In some instances the Asian open
will create the daily high or low.

As seen here in this example, the low of the day is formed during the Asian open and then the high
is formed in the London session.

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2) Conversely as I mentioned in the beginning this is a typical “power 3 scenario” where we have
consolidation in Asia then when it's bullish we create the low of the day and then it expands
throughout the rest of the day.

London open:

1) As I teach with power three London open can create the low or high of the day. In this example
here you can see the London session creates the very low, lower than it was at the beginning of the
trading in Asia.

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2) London can be part of a retracement when the Asian session creates the low of the day. So, the
way we're going to use this information is: “If Asia creates a low or high of the day (in this example
creates a low) and starts to run and expands outside of the Asian range, this drop down in London is
typically going to be a retracement of the initial leg or impulse leg of the intraday move. If we're
bullish we're going to assume that Asia creates the low and we're retracing down into an optimal
trade entry and that could be a long-setup.” So the London open can be a part of the move that occurs
and originates from the Asian open.

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New York open:

1) New York open can create the high or low the daily range as well. As you can see, there's an
example of the market staying in a consolidation then drops down and when you have to assume that
“we would be bearish this particular day” but there may be a big news event that comes out and it
creates a run on liquidity. we can see that price running above these equal highs during news, creating
the New York open raid on liquidity that makes the high of the day and the market trades lower as a
result.

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2) The New York open can be part of a retracement from the London open. Here in this example we
see the low formed in London then creates an impulse swing to trade back down into the New York
open, then NY open creates a nice retracement and then rallies above. Price creating the high of the
day later on during a New York and overlap of London close. This the classic scenario, this is what
I teach and have taught for years this is the easiest setup when we want to trade the New York open.
The swing point takes place during NY open: we'd have to assume that we were bullish beforehand
- and then the daily low has to be formed - and shows a clear impulse swing during the London
session - then retraces during the London lunch - going into New York open. We can see the turning
point or swing point that would be traded rather handsomely. This is a bullish scenario, it would just
as equally effective if it was London getting a high of the day - then it trades lower during the London
session - then retraces up – and into New York session creating a retracement which is a classic

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continuation on the bearish idea or down close premise for a daily range on your particular market
and expansion going towards London close. So, everything we're showing here just can be done in
Reverse.

London close:

1) London close can be the high or low of the day typically if you are bullish and London's created
the low of the day or Asia create the low of the day then London closed tends to be the opposite end
of the range. It doesn't always close to high or low into the range but generally as a rule of thumb I
believe that it will serve you well. In other instances it can create the high of the day when it's been
a rangebound, as you can see here the market was in a large consolidation & we have equal highs

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market runs up during London close takes those highs and creates the actual high of the day and then
trades lower. This could be done in Reverse, this could have easily been equal lows down in a
rangebound market and price could have eventually drop down to get the equal lows and making the
low of the day

2) London close can be a reversal point from a longer-term perspective. As we see here the market
has been trading higher during the London close time period. During the London close time market
makes a reversal on a Friday and then next week the following week it opens trades in consolidation
and begins to move lower and moves significant lower on the following week’s Tuesday. So, London
close can act as a reversal.

Notes on: ICT Forex – Trading The Key Swing Points| Karan Banik