Kardec Trader explains a swing failure setup: enter long when price breaks below the previous day's higher low then closes back above it. Place your stop below the new low and target the previous day's high. The strategy uses session liquidity patterns to anticipate New York session trades.
I typically have homework lessons for my students. Basically wait for a rate of the previous day's higher low. Well, let's say we have the daily low here and then we get a run below that previous day's low. You're not going to do anything until we get a closure back above the low. So that's our swing failure. And then you're going to place a long position. Your stop loss is going to go below the newly created low. And then you might just target the previous day's high. We can go a little bit deeper than that and think about session liquidity. We have Asian range liquidity and then we have London range liquidity. In an uptrending market, we're typically not going to take out the previous day's bottom. This might be Asia or we might have Lond session. Let's say London session actually ranged both of them range. We don't get a raid on either of them. Then. Typically what I'm looking for in New York is a raid one the other way. When I come to New York, if both sides of the range have been taken out, I'm anticipating consolidation on a classic buy day. What I want to see is usually the Asian range low or the London low be taken out before it goes higher.
