Overview
Gold moves most during the London and New York sessions and reacts strongly to US data. This approach sets a daily bias, marks the Asian range and its liquidity, then waits for one of the main sessions to take that liquidity and break structure.
Objectives
- Trade with the higher-timeframe direction
- Use session liquidity as the trigger location
- Keep risk fixed per trade
Suitable market conditions
- Clear daily or four-hour structure
- Normal spreads
- No high-impact US release in the next 30 minutes
Tools and indicators
- Market structure
- Session ranges
- Fair value gaps
- Position size calculator
Market bias
Taken from the daily and four-hour structure: trade long only while the higher timeframe makes higher lows, short only while it makes lower highs.
Entry rules
- Mark the Asian session high and low
- Wait for London or New York to sweep the side against the bias
- Enter after a lower-timeframe break of structure back in the bias direction
Confirmation
- Close back inside the range after the sweep
- BOS on M5 or M15
- Reaction from a fair value gap or order block
Stop loss and take profit
- Stop beyond the sweep wick
- First target at the opposite side of the Asian range
- Further targets at higher-timeframe liquidity
Risk management
- Fixed percentage per trade
- Reduce size or stand aside around CPI, NFP and FOMC
- Maximum two attempts per session
Valid example
Daily bias bullish. London sweeps the Asian low, closes back inside the range, and breaks M5 structure upward. Entry on the pullback with the stop below the sweep.
Invalid example
Daily bias bullish, but London breaks the Asian low and keeps closing below it. That is a break, not a sweep, and the setup is cancelled.
Common mistakes
- Trading against the daily bias
- Entering on the sweep candle without structure
- Ignoring the economic calendar
Advantages
- Clear session timing
- Defined invalidation
- Works with the instrument's natural volatility
Limitations
- Few setups on quiet days
- News can invalidate structure quickly
- Requires being available at session opens
No strategy guarantees profit or a particular win rate. Test any approach on a demo account and size every trade from a fixed risk.