Phases I - Market Cycles

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Theory

When it comes to understanding market cycles, my favorite is to be in sync with Wall Street, IE -> NEW YORK time, so UTC -4. / UTC -5.


This allows us to remain native to New York open/close sessions. Let’s move directly onto the specific times where you will be looking for liquidity before jumping into market cycles;


  • -  Highs/lows of our Asia session; between 08;00 PM - 00;00 AM NY TIME

  • -  Highs/lows of our London session; between 02;00 AM to 05;00 AM NYTIME

  • -  Highs/lows of New York session; between 07;00 AM to 10;00 AM NY TIME

  • -  Highs/lows of the Equity open; 09;30 AM NY TIME


Now that we got that out of the way let’s begin with market cycles, which is closely linked with delivery.


Let’s begin with the daily range that we like to focus on. It's a light concept, not too significant, but will open your eyes when you see the occurrence repeat day after day.
The daily range for us is from 12;00 AM (midnight) to 03;00 PM.


Daily ranges play with purpose, as we mentioned quite a lot. Price either delivers bullish/bearish or consolidates. Each of these plays having a purpose for your HTF narrative, in this case the weekly which we mentioned.


We will dive into sessions later with more in-depth details.


But let me introduce you to the first one.


“From NY midnight onwards our daily range begins. We expect during London, EU session, at the start to run liquidity. Creating either the Low or High of the day. (LOD/HOD) at the start of the session. Then during NY, we expect a retracement/continuation which runs from 11;00 - 12;00 creating the opposite side of the range. If we create the LOD/HOD during the London open, we can then expect that during NY noon, 11;00 AM - 01;00 PM NY time, the opposite side of that range to form, so the high/low on the other side.”


Majority of the volume that displaces is in-between the London and NY overlap. Remember that.