London Session Trading Secrets: How Smart Money Sets the High & Low of the Day

Jasper Osita - Market Analyst

2025-08-12 12:08:58

The Market’s Daily Blueprint

If you could predict where the day’s high or low will form, how much easier would trading be?

Here’s the secret most retail traders miss: on many days, the high or low of the entire trading day is formed during the London session.

This isn’t a random coincidence. It’s part of a repeatable market structure:

Asia builds the trap.
London triggers the trap and sets the day’s boundary.
New York exploits the boundary to deliver the true move.

Once you understand this, you’re no longer reacting to the market - you’re anticipating the day’s playbook before it unfolds.

Why London Controls the High & Low of the Day

London dominates global FX volume, moving billions before New York even opens.

Volume Surge: Over 35% of daily forex transactions occur during London.
Liquidity Grab: Late Asian session highs/lows are loaded with stops, perfect for manipulation.
Institutional Agenda: London’s move isn’t random - it’s designed to set up New York’s expansion or reversal.

Reality Check: The market is dynamic. Not every single day’s high or low is born in London.
On days with heavy New York news or unexpected macro catalysts, the extreme might be set later.
However, when London does set it, those moves are, if not most of the time, explosive - delivering some of the cleanest and fastest runs of the week.

In Smart Money Concepts, this is where the “Manipulation” phase happens in the daily Accumulation → Manipulation → Distribution cycle.

Higher Timeframe Bias – Your Filter for the Day’s High or Low

Before the London open, check:

Daily & H4 bias: Are we trending bullish or bearish?
If bullish → London is more likely to set the low of the day early, then run higher.
If bearish → London is more likely to set the high of the day early, then sell off.

This one filter eliminates half of the fake-outs that catch retail traders off guard.

The London Session High/Low Playbook

1. Asia = Accumulation

Price consolidates, creating a tight range of highs and lows.
Liquidity builds above and below these levels as retail traders place stops.

2. London = Manipulation (High/Low of Day Formation)

London sweeps one side of the Asian range to grab liquidity.
This sweep often becomes the day’s high (in a bearish day) or low (in a bullish day).
A false breakout traps traders in the wrong direction, while institutions load positions for the real move.

3. New York = Distribution (The True Move)

With liquidity collected in London, New York pushes price toward the opposite end of the range.
This move can be aggressive, often with clean displacement and FVG setups for entries.

Pro-Tip: This is best analyzed in a lower timeframe like the 15-minute timeframe.

Key Time Windows for Spotting the Day’s High or Low

2:00–3:00 AM London Time: Liquidity sweep and trap move - this is often where the day’s high or low is formed.
3:00–5:00 AM London Time: Main expansion confirms whether the sweep was the high or low.
5:00–7:00 AM London Time: Pause or pullback before New York continuation.

How to Trade London’s High/Low of the Day Setup

1. Identify Bias: Higher timeframe trend direction = your clue on whether London will set the high or the low.

2. Mark the Asian Range before London opens.

3. Wait for the Sweep: Do not enter until London runs one side of the range. Since our overall price action on a higher timeframe is bullish, we look for a sweep of low then a reversal to the upside.

4. Look for Entry Models: Range Breakout + FVG Entry

5. Target Opposite Side of the Range: Ride the move in the true direction with the high or low locked in with minimum 2R multiple.

Best Pairs to Trade During the London Session

Not all pairs respond to London liquidity patterns with the same consistency. To maximize probability, focus on pairs with high European and cross-session participation:

EUR/USD – The world’s most traded pair, with deep liquidity and strong reaction to both Eurozone and US data.
GBP/USD – Known for sharp London moves due to heavy UK market participation and frequent GBP news releases.
EUR/GBP – Strong session reaction driven by European interbank flows.
GBP/JPY – Highly volatile; London moves are often explosive due to GBP and JPY liquidity shifts.
EUR/JPY – Reacts well to European market opens and carry trade flows.

Why these pairs?

They are directly impacted by London market opening flows.
Many have tight spreads during this session, making them favorable for intraday execution.
They align perfectly with the “London sets the high/low” playbook because they’re influenced by both European and Asian liquidity flows.

The Stage Illusion

Think of London as a magician’s misdirection.

They draw your attention to one hand (the sweep), while the real trick is happening in the other hand (the true move). Once you know where to look, the trick stops working on you.

Common Mistakes Traders Make

Entering during the sweep instead of waiting for confirmation.
Trading against higher timeframe bias.
Assuming every day’s high or low is set in London - on high-volatility news days, New York can override.

Final Thoughts

The high or low of the day is not a random event - it’s a deliberate part of the daily cycle.

While London won’t claim this title every single day, when it does, the resulting move is often one of the cleanest and fastest you’ll see.

Once you learn to recognize the setup, the rest of the day becomes a calculated chess match instead of a guessing game.

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This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

ผู้เขียน

Jasper has been in the markets since 2019 trading currencies, indices and commodities like Gold. His approach in the market is heavily accompanied by technical analysis and of course, supported by fundamentals. He has a background in trading proprietary firms and has been teaching students how to navigate themselves in the markets from basic to advance concepts.

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ราคาเป็นตัวบ่งชี้เท่านั้น

London Session Trading Secrets: How Smart Money Sets the High & Low of the Day

The Market’s Daily Blueprint

Why London Controls the High & Low of the Day

Higher Timeframe Bias – Your Filter for the Day’s High or Low

The London Session High/Low Playbook

1. Asia = Accumulation

2. London = Manipulation (High/Low of Day Formation)

3. New York = Distribution (The True Move)

Key Time Windows for Spotting the Day’s High or Low

How to Trade London’s High/Low of the Day Setup

1. Identify Bias: Higher timeframe trend direction = your clue on whether London will set the high or the low.

2. Mark the Asian Range before London opens.

3. Wait for the Sweep: Do not enter until London runs one side of the range. Since our overall price action on a higher timeframe is bullish, we look for a sweep of low then a reversal to the upside.

4. Look for Entry Models: Range Breakout + FVG Entry

5. Target Opposite Side of the Range: Ride the move in the true direction with the high or low locked in with minimum 2R multiple.

Best Pairs to Trade During the London Session

The Stage Illusion

Common Mistakes Traders Make

Final Thoughts

Start Practicing with Confidence - Risk-Free!

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