Pattern Selection Guide - Based on Previous Day NY

🎯 Why Previous Day NY Matters

The New York session is the last major session of the trading day. How it closes sets the tone for the next day's Asian open and often determines the overall market bias.

Key Concept: Smart money positions are established during NY session. The direction and strength of NY close tells you what institutional traders are thinking.

Your Edge: By analyzing previous day NY, you can anticipate which patterns are most likely to play out, giving you a significant advantage.

🌳 Quick Decision Tree

STEP 1: Check Previous Day NY Close

Question: Did previous day NY close strong UP, strong DOWN, or range-bound?

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STEP 2: Observe Asian Session

Question: Did Asian continue the direction, reverse it, or consolidate?

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STEP 3: Identify Pattern Match

Action: Match the combination to one of the 16 patterns below

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STEP 4: Enter During London or NY

Execution: Trade the pattern during the appropriate kill zone

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Scenario 1: Previous NY Closed DOWN

When yesterday's NY session closed bearish, these patterns become active

What This Tells You:

Sellers were in control at end of day
Expect gap down or bearish continuation in Asian
High probability of reversal if selling was extreme
Watch for liquidity sweeps below yesterday's low

PATTERN #1A

Classic Reversal (Bullish)

75% Success

Prev NY down → Asian consolidates → London reverses up → NY continues up. Best Trade: Buy London breakout above Asian range.

PATTERN #3B

Gap Fill and Reversal (Bearish)

65% Success

Prev NY down → Asian gaps down → London fills gap up → NY reverses down. Best Trade: Sell after gap fill completes.

PATTERN #4A

Liquidity Sweep (Bullish)

70% Success

Prev NY made low → Asian tests → London sweeps below → NY rallies. Best Trade: Buy after liquidity sweep completes.

PATTERN #11A

Momentum Fade (Bullish)

63% Success

Prev NY exhaustion → Asian weakens → London fades → NY reverses up. Best Trade: Buy when selling clearly exhausted.

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Scenario 2: Previous NY Closed UP

When yesterday's NY session closed bullish, these patterns become active

What This Tells You:

Buyers were in control at end of day
Expect gap up or bullish continuation in Asian
High probability of reversal if buying was extreme
Watch for liquidity sweeps above yesterday's high

PATTERN #1B

Classic Reversal (Bearish)

75% Success

Prev NY up → Asian consolidates → London reverses down → NY continues down. Best Trade: Sell London breakdown below Asian range.

PATTERN #3A

Gap Fill and Reversal (Bullish)

65% Success

Prev NY up → Asian gaps up → London fills gap down → NY reverses up. Best Trade: Buy after gap fill completes.

PATTERN #4B

Liquidity Sweep (Bearish)

70% Success

Prev NY made high → Asian tests → London sweeps above → NY sells off. Best Trade: Sell after liquidity sweep completes.

PATTERN #11B

Momentum Fade (Bearish)

63% Success

Prev NY exhaustion → Asian weakens → London fades → NY reverses down. Best Trade: Sell when buying clearly exhausted.

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Scenario 3: Previous NY STRONG UP

When yesterday's NY session had strong bullish momentum

What This Tells You:

Very strong bullish conviction
Expect continuation across multiple sessions
Asian likely to gap up and continue
London may pause but NY usually continues

PATTERN #2A

Strong Momentum Continuation

80% Success

Prev NY strong up → Asian gaps/continues → London pauses → NY continues. Best Trade: Buy pullback during London or NY breakout.

PATTERN #6A

Full Trend Day

85% Success

All sessions aligned bullish. Rare but extremely powerful. Best Trade: Buy every pullback, trail stops, add to winners.

PATTERN #13A

Triple Session Alignment

82% Success

Perfect alignment of all sessions. Multi-day trend quality. Best Trade: Scale in across all sessions, wide stops.

PATTERN #14B

Complete Reversal Day (Against)

58% Success

Strong up reversed completely. Rare major reversal. Best Trade: Sell if Asian confirms full reversal.

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Scenario 4: Previous NY STRONG DOWN

When yesterday's NY session had strong bearish momentum

What This Tells You:

Very strong bearish conviction
Expect continuation across multiple sessions
Asian likely to gap down and continue
London may pause but NY usually continues

PATTERN #2B

Strong Momentum Continuation

80% Success

Prev NY strong down → Asian gaps/continues → London pauses → NY continues. Best Trade: Sell pullback during London or NY breakdown.

PATTERN #6B

Full Trend Day

85% Success

All sessions aligned bearish. Rare but extremely powerful. Best Trade: Sell every pullback, trail stops, add to winners.

PATTERN #13B

Triple Session Alignment

82% Success

Perfect alignment of all sessions. Multi-day trend quality. Best Trade: Scale in across all sessions, wide stops.

PATTERN #14A

Complete Reversal Day (Against)

58% Success

Strong down reversed completely. Rare major reversal. Best Trade: Buy if Asian confirms full reversal.

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Scenario 5: Previous NY RANGE BOUND

When yesterday's NY session was choppy or consolidating

What This Tells You:

Indecision in the market
Volatility contraction - expansion coming
Watch for breakout patterns
Asian or London will likely pick direction

PATTERN #8A/8B

Accumulation Breakout

72% Success

Range bound → Asian quiet → London accumulates → NY breaks out. Best Trade: Buy/Sell NY breakout with tight stops.

PATTERN #10A/10B

Range Expansion Day

70% Success

Tight range → Asian breaks → London extends → NY confirms. Best Trade: Trade direction of initial break.

PATTERN #12A/12B

Session High/Low Retest

68% Success

Range set → Asian consolidates → London tests → NY breaks. Best Trade: Trade successful retest or break.

PATTERN #15A/15B

Consolidation Breakout

76% Success

Multi-day coil → Breakout across sessions → Strong follow-through. Best Trade: Trade direction of break, swing trade setup.

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Scenario 6: Previous NY REVERSAL or BREAKOUT

When yesterday's NY session had major reversal or broke key levels

What This Tells You:

Potential trend change or major move
Watch for continuation or failed move
High volatility expected
Either strong follow-through or reversal coming

PATTERN #5A/5B

Double Reversal Pattern

60% Success

Prev NY reversed → Asian continues → London reverses again → NY confirms. Best Trade: NY reversal after London pullback.

PATTERN #7A/7B

Failed Breakout Reversal

68% Success

Prev NY breaks → Asian extends → London fails → NY reverses hard. Best Trade: Trade strong reversal after failure.

PATTERN #9A/9B

News Reaction Pattern

55% Success

Pre-news bid → Asian anticipates → London spikes → NY settles. Best Trade: Wait for spike to settle, trade real move.

PATTERN #16A/16B

Full Cycle Reversal

66% Success

Capitulation/Euphoria → Final move → Stabilize → Recovery/Decline. Best Trade: Buy/Sell after extreme emotion exhausted.

🔍 Pattern Comparison Tool

Confused between similar patterns? Here's how to choose:

⚔️ Pattern #4 vs Pattern #17

Pattern #4 - Liquidity Sweep

✓ Asian creates range
✓ LONDON does the sweep
✓ Sweep during London session
✓ Reversal starts in London/NY

Use when: London opens and THEN sweeps

Pattern #17 - Asian Sweep & Reverse

✓ ASIAN does the sweep
✓ ASIAN does the reversal
✓ Sweep before London opens
✓ London continues the move

Use when: Sweep happened BEFORE London opens

Quick Check: Look at price when London opens (06:00 UTC). Already swept and reversed? = Pattern #17. Still in range? = Pattern #4 likely.

⚔️ Pattern #1 vs Pattern #5

Pattern #1 - Classic Reversal

✓ Single reversal in London
✓ Asian ranges quietly
✓ One directional change
✓ 75% success rate

Use when: Clean single reversal expected

Pattern #5 - Double Reversal

✓ Two reversals (London + NY)
✓ Asian ranges/builds position
✓ Return to original direction
✓ 60% success rate

Use when: Choppy/indecisive market

Quick Check: Strong trend? = Pattern #1. Choppy/ranging? = Pattern #5 more likely.

⚔️ Pattern #2 vs Pattern #6

Pattern #2 - Strong Momentum

✓ Accelerating move
✓ Each session adds momentum
✓ Can have small pullbacks
✓ 80% success rate

Use when: Strong news or breakout

Pattern #6 - Full Trend Day

✓ Relentless directional move
✓ All sessions align perfectly
✓ Minimal/no pullbacks
✓ 85% success rate (rare!)

Use when: Major events or strong catalyst

Quick Check: Small pullbacks? = Pattern #2. No pullbacks at all? = Pattern #6 (rarer).

⚔️ Pattern #8 vs Pattern #10

Pattern #8 - Accumulation Breakout

✓ Longer accumulation (hours)
✓ London breaks range
✓ Institutional positioning
✓ 72% success rate

Use when: Range for several hours

Pattern #10 - Range Expansion

✓ Tight compression (narrow)
✓ London/NY explosive break
✓ Volatility expansion
✓ 70% success rate

Use when: Very tight range, coiling

Quick Check: Normal range width? = Pattern #8. Extremely tight range? = Pattern #10.

💡 Pro Tips for Pattern Selection

1. Context is King: Always check higher timeframes (4H, Daily) to understand the bigger picture.

2. Combine Signals: Use multiple confirmations - previous NY direction + Asian behavior + order flow.

3. Probability Stacking: Higher probability patterns (75%+) should get more size and confidence.

4. Know Your Patterns: Master 2-3 patterns first before trading all 16. Quality over quantity.

5. Journal Everything: Track which patterns work best for your trading style and timezone.

6. Market Conditions: Some patterns work better in trending markets, others in ranging markets.

7. News Awareness: Major news can override patterns. Check economic calendar daily.

8. Risk Management: Never risk more than 1-2% per trade, regardless of pattern confidence.