London Sweep into NY FVG Fill
Description
A classic ICT-style setup where London session liquidity is swept, then NY session opens and fills the resulting fair value gap. High-probability reversal play when all conditions align.
Market Conditions
- Higher timeframe is trending— Check 1H or 4H for clear direction
Setup Sequence
- 1
Price sweeps London session low
Liquidity is taken below the London low, trapping sellers
- 2
Bullish displacement candle closes above the FVG
FVG forms and gets filled as price reverses
Entry Trigger
Stop Placement
Management Rules
- •Move stop to breakeven after 1R
Common Mistakes
- •Entering before the sweep is complete
Fix: Wait for the displacement candle to fully close
Frequently Asked Questions
What is the London Sweep into NY FVG Fill setup?
It's a trading strategy where the price dips below a key low during the London session, then bounces back up during the New York session. Traders look for this bounce to fill a 'fair value gap,' which is basically a price zone that was skipped over too quickly.
What is a fair value gap (FVG)?
A fair value gap is a price range where the market moved so fast that it left a gap or empty zone. Think of it like skipping a step on a staircase. The market often comes back to 'fill in' that gap later.
What does it mean when price 'sweeps' the London low?
A sweep happens when the price briefly dips below the lowest point set during the London trading session. This move often triggers stop-losses from other traders, and then the price reverses back up. That reversal is what this strategy looks to take advantage of.
When do I enter the trade?
You enter after a strong bullish (upward) candle closes above the fair value gap. You can either enter right when that candle closes or set a limit order at the middle point (50%) of the fair value gap to get a better price.
Where do I place my stop-loss?
Place your stop-loss just below the lowest point of the candle that swept the London low. If the price goes back down to that level, it means the setup didn't work as expected, and it's safer to exit the trade.
What is the most common mistake traders make with this setup?
The biggest mistake is entering the trade too early, before the sweep is fully done. You should always wait for the strong bullish candle to completely close above the fair value gap before entering. Jumping in too soon can lead to unnecessary losses.
Why is this considered a high-probability setup?
It's considered high-probability because it combines multiple signals at once: a liquidity sweep, a price reversal, and a fair value gap fill. When all three line up together, there's a stronger chance the trade will go in your favor compared to relying on just one signal.
Do I need to watch both the London and New York sessions?
Yes. The London session is where you watch for the price sweep of the low. The New York session is where you look for the reversal and the fair value gap to be filled. Both sessions play an important role in making this setup work.
