Closing London trades before NY session gets going

Regarding the major pairs I am seeing that is often best to close trades that have been taken in the London session before the NY session gets going properly. This especially if news announcements are to be made, which may increase the chance of price reversal.

I am wondering if it is always best to close before the NY session or just at certain times depending on the calendar?

Does anyone wonder if their positive trade not far from TP is going to take a sudden reversal when NY starts?

If this is true, and I am not saying that it is, then you could use it to your advantage.
Close your existing position and take profit.
Open a new position in the opposite direction using the original TP as your SL and maybe the original SL as TP

It's half truth

and it doesn't only work with New York....Generally around the open and closes of the major trading centers increase volatility and possibly new information is priced in the Markets.

you could use this to your advantage but the edge would still lie within you.

will you trade the sessions independently?
will you attempt to profit from the increase volatility?
will you use the current price to position for a reversal?
will you think that it's a hint of what is to come?

i tend to agree somwhat with redlion on this .

i only trade cable and have been staring at that pair for some six years .theres nothing set in stone regarding new york open or any open apart from fresh information and maybe a different mindset.

i have seen periods when london takes price up and newyork brings it back to londons open price but you dont see that same pattern for weeks again,i see it as nothing more than coincidence or a indecisive market .ive found that if price is climbing during london its just as likely to continue as it is to reverse and fall.unless there is a fundamental change in sentiment,fresh news ect.

the only thing i find usefull when a fresh market opens is to montor the price for new sentiment or profit taking from closing markets.

more often than not theres no effect whats so ever.

id say theres more reaction from the asian open due to the currencies from those regions.

if we look at london open after years of watching you get to reconize certain plays .especially if your concentrating on one pair.

an example was thursdays up move,london took price down 30 pips on cable against all related pairs.when price reached a major averaged price level and couldnt be taken below entry long was screaming at us.6 pip stop and price never looked back .newyork open had no effect not even a retracement .that move resulted in 150 pips to the upside

opens have some useful clues but nothing set in stone

At the open or close of a market you will experience some volatility. Sometimes a trend reversal. In most cases a W&R pattern (see: DiNapoli) will occur. As long as you keep an eye on the Fibonacci levels and the weekly and monthly pivots there is nothing to fear of, as long as you place your stoploss at a safe distance. I do not believe in fundamentals, because they are short lived and turn out to be noise in the market. Happy trading!

This is all good info and I am thinking that whether there is news to come out in NY or not there is 50/50 chance of price reversing in NY at some point. Therefore it may be best to close any trades in profit (or around break even) that have been taken over the shorter time frames and leave in daily trades that have a safer SL.

if you trade a off a higher time frame like daily of 4 hour this wont be an issue for you. looks like you use tight stops.

What you are saying is just some kind of pattern recognition. It works sometimes and it does not work at other times. Just think about it, if trading the market is that easy, everyone will be doing it.

Moreover, you did not mention anything about time frame. When you said price reversal, what time frame are you referring to? A price reversal on a M15 chart might not register much on a H1 or H4 chart.

In any case, whatever method you intend to use, make sure you have it in your trading plan AND make sure you follow your plan. In trading, consistency in execution and risk management are the keys. You cannot control the market. You can only control your actions.

Yes regarding time frames, I am referring to M15 up to maybe H4 but certainly H1. I tend to place my SL below half way working off strong daily candles and this seems pretty safe when left in the NY session.