ICT New York Reversal Strategy: London & NY AM Sessions-[TFlab]

The New York Reversal Strategy is a core ICT (Inner Circle Trader) methodology concept used by professional traders to identify high-probability price reversals during key market sessions.
This forex education strategy focuses on market structure shifts between the London and New York sessions, allowing traders to capitalize on optimal entry points with strong risk-reward ratios.

How Does the New York Reversal Work?
The New York Reversal occurs when:

1. The London session fails to reach a higher timeframe key level (support/resistance or liquidity zone).
2. Price then extends into this level during the New York session before reversing.

This setup appears in two primary scenarios:

1. Bullish New York Reversal
London Session – Price declines but does not reach a key higher-timeframe level.
New York Session – Price finally hits the level and reverses bullishly.

2. Bearish New York Reversal
London Session – Price rallies but fails to reach a key higher-timeframe level.
New York Session – Price finally tests the level and reverses bearishly.

Key Steps to Trade the New York Reversal Strategy
Step 1: Identify Higher Timeframe Key Levels

1. Locate daily/weekly support/resistance or liquidity zones (PD Highs/Lows).

Step 2: Analyze London Session Price Action

1. Did price fail to reach the key level? (This sets up the reversal potential.)

Step 3: Watch for Market Structure Shifts (MSS)

1. Look for Change in Character (CHoCH) or Break of Structure (BOS).

Step 4: Enter at Confirmation

1. Use Fair Value Gaps (FVGs) or Order Blocks (OBs) for precise entries.

Step 5: Manage Risk & Take Profit

1. Stop Loss: Place beyond the nearest FVG/OB.
2. Take Profit: Target previous swing points or liquidity zones.

New York Reversal Examples
Example 1: Bullish Reversal (EUR/USD 5M Chart)

1. London Session: Price declines but stops short of a key daily support.
2. New York Session: Price dips further, taps the level, and reverses up.
3. Entry: Long after bullish MSS & FVG confirmation.

Example 2: Bearish Reversal (Oil 5M Chart)

1. London Session: Price rallies but does not reach a key daily resistance.
2. New York Session: Price extends higher, hits resistance, and reverses down.
3. Entry: Short after bearish MSS & OB confirmation.

Critical Considerations for Success
Key Reversal Times: 8:30 AM, 9:30 AM, 10:00 AM EST (New York Kill Zone).
Optimal Timeframes: Use 15M or lower for precise entries.
Risk Management: Stops should be placed beyond FVGs/OBs.

Conclusion
The New York Reversal Strategy is a powerful ICT-based approach for trading reversals in forex, commodities, and indices. By combining:
Higher timeframe key levels
London-New York session analysis
Market Structure Shifts (MSS)