ICT Trading: Mastering the New York Continuation Model

Introduction to ICT and Smart Money Concepts

In the world of forex trading and day trading, ICT Trading (Inner Circle Trader) and Smart Money Concepts (SMC) have gained popularity for their focus on institutional trading behaviors. These strategies emphasize price action, market structure, and liquidity to help traders align with the "smart money" — the moves of large institutions. One powerful setup within these frameworks is the New York Continuation Model, which capitalizes on price movements during the New York Session, often following a London Reversal. This blog explores how to trade the New York Continuation Model using ICT and Smart Money Concepts.

What is the New York Continuation Model in ICT?

The New York Continuation Model is a trading strategy that focuses on price continuations during the New York Killzone Session (typically 7:00 AM to 10:00 PM EST). It often follows significant price action in the London Killzone Session (2:00 AM to 5:00 am EST), where a London Reversal — a price movement that reverses direction — sets the stage for a continuation in New York. Traders use the Daily Profile to analyze these sessions, identifying key levels like order blocks and liquidity zones to anticipate market moves.

Key Elements of the Model

• Market Structure: Understanding highs, lows, and trend directions to confirm continuation patterns.

• Order Blocks: Areas where institutional orders are placed, acting as support or resistance.

• Kill Zones: High-volatility periods, such as the New York Session (7:00 AM to 10:00 AM EST), ideal for trading.

• Liquidity: Targeting areas where stop orders or retail trader positions are likely to be triggered.

How to Identify New York Continuation Setups

To trade the New York Continuation Model, follow these steps:

1. Analyze the London Session: Look for a London Reversal, where price expands in one direction before reversing. For example, a bullish reversal occurs when price declines in London but then moves higher, confirmed by a Market Structure Shift (MSS).

2. Check the Daily Profile: Use multiple timeframes (daily, 4-hour, 1-hour) to identify liquidity raids or Fair Value Gaps that indicate potential continuation.

3. Focus on the New York Session: During the New York Kill Zone (7:00 AM to 10:00 AM EST), watch for price to continue the trend established in London, often after a small pullback.

4. Use Order Blocks: Identify order blocks on higher timeframes to confirm entry points for continuation trades.

Common Mistakes to Avoid

• Ignoring Market Structure: Failing to analyze highs and lows can lead to misinterpreting continuation signals.

• Trading Outside Kill Zones: Avoid low-volatility periods, as the New York Continuation Model thrives on high liquidity.

• Overlooking London Session Context: The London Reversal is critical for setting up the continuation, so always analyze it first.

Example: Trading the New York Continuation Model

Imagine trading EUR/USD. During the London Session, price declines but reverses upward, forming a Market Structure Shift. As the New York Session begins, you identify an order block on the 1-hour chart where price previously consolidated. You enter a buy trade during the New York Kill Zone when price retests this block, targeting the next liquidity zone. This setup leverages Smart Money Concepts to align with institutional moves.

Conclusion

The New York Continuation Model is a powerful ICT Trading strategy that combines Smart Money Concepts with price action analysis. By understanding market structure, order blocks, and kill zones, traders can capitalize on price continuations during the New York Session. Start by analyzing the London Reversal and using the Daily Profile to identify setups, and always trade during high-liquidity periods for the best results. Explore more ICT and SMC strategies to enhance your forex trading skills!

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