Market WindowLondon/NY overlaps | After extended trends
Risk/Reward1:3 to 1:5
Best InstrumentsNQ (best)
Frequency1-2 high-quality setups per week
ProbabilityHigh-Probability Reversal
The Philosophy (The Why)
This strategy captures the moment institutions flip bias. Institutions exit trends by distributing into retail breakout traders. Once inventory is offloaded, price reverses sharply. This creates high R:R opportunities for traders who can identify the shift.
Mechanical Signature (The Setup)
Price sweeps a major high or low, then fails to continue. A market structure shift confirms control has changed. Entry occurs on FVG retracement after the shift.
Step-by-Step Execution (The How)
Identify Extended Trend: Look for markets that have moved significantly in one direction with multiple impulses.
Wait for Sweep: Price sweeps a major swing high/low, triggering retail breakouts and stops.
Confirm Structure Shift: Price fails to continue and breaks previous market structure in opposite direction.
Entry on FVG: Enter on retracement into the Fair Value Gap created during the initial reversal impulse.
Tight Stop: Stop just beyond the swept level. Invalidation is immediate and clear.
Risk & Management (The Math)
RR ranges 1:3 to 1:5. Stops are tight. Invalidation is immediate. Frequency: 1–2 high-quality setups per week.
Master This Strategy
📹 YouTube Video Link Goes Here
(Insert your curated video link)
Firm's Note: The best reversals happen after extended trends when institutions need to exit large positions.
Prop Firm Angle
This is a home-run strategy best used selectively. Perfect for recovery days or controlled aggression.