Last Updated on March 29, 2025 by Arif Chowdhury
As a seasoned Forex trader since 2015, I’ve discovered that the pre-New York session offers golden opportunities most traders miss.
But why should you care about this specific time window?
Because this is when the big money makes its move.
What Is The Pre-NY Liquidity Sweep? 💰
The pre-NY liquidity sweep happens in the hours before New York opens (usually 6-8 AM EST).
This is when institutional traders hunt for liquidity by pushing price into areas where retail stop losses and take profits cluster.
According to a 2023 Bank for International Settlements report, approximately 28% of daily forex volatility occurs during these transition periods between major sessions.
Smart money isn’t random – they’re systematic predators.
They need your liquidity to execute their massive positions.
Why This Strategy Works So Damn Well 🎯
Most retail traders get crushed during these sweeps.
I used to be one of them.
Then I realized something critical: these movements are predictable if you know what to look for.
The pre-NY sweep is the setup.
What happens afterward is where the real money is made.
Studies show that after a liquidity sweep, price reverses in the intended direction about 73% of the time.
That’s better odds than most trading strategies ever achieve.
The 4-Step Pre-NY Liquidity Sweep Strategy 📊
Step 1: Identify Liquidity Pools
Look for areas where stop losses likely cluster:
- Just beyond obvious support/resistance levels
- Below recent swing lows (for bullish setups)
- Above recent swing highs (for bearish setups)
- Around major psychological levels (1.3000, 1.2500, etc.)
These are the hunting grounds for institutional traders.
Step 2: Observe Price Action During Pre-NY Hours (6-8 AM EST)
Watch for aggressive pushes into these liquidity areas.
The movement will often be:
- Quick
- Violent
- Often with increased volume
- Typically happening between 6:30-7:30 AM EST
Step 3: Wait For Confirmation
Never trade the sweep itself!
Wait for reversal confirmation:
- Rejection candlestick patterns (pin bars, engulfing)
- Volume dropping after the sweep
- Price closing back inside the previous range
- Key technical indicators showing divergence
Step 4: Execute With Precise Entry and Risk Management
Enter after confirmation with stops below/above the sweep’s extremes.
Target the origin of the sweep or the next significant level.
Your risk-to-reward should be at least 1:2, preferably higher.
How I Automated This High-Precision Strategy 🤖
After years of trading this strategy manually, I realized something:
The patterns repeat with mathematical precision.
That’s why I developed a portfolio of 16 specialized trading algorithms that capitalize on these exact patterns across EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Each bot is designed to identify these liquidity sweeps on H4 timeframes and capture the big 200-350 pip moves that follow.
The results? My backtesting across 20 years of data shows consistent profitability even during the most volatile market conditions.
Want to see these algorithms in action? Check out my advanced trading EA portfolio that I’m currently offering completely FREE.
Critical Tips For Maximum Accuracy 🎯
- Trade the major pairs only – they show the clearest patterns
- Use the H4 timeframe for setup identification, H1 for entries
- Trade only when two sessions overlap for increased liquidity
- Be patient – only take the highest probability setups
- Track your results – this strategy has measurable patterns
Common Mistakes to Avoid ⚠️
Jumping in too early before confirmation.
Placing stops too tight (institutions will hunt these).
Ignoring the broader market context and fundamentals.
Trading during major news events when patterns become unpredictable.
The Broker Factor: Don’t Overlook This 🏦
Your broker can make or break this strategy.
You need:
- Tight spreads during the pre-NY session
- Fast execution with minimal slippage
- Deep liquidity during volatile sweeps
I’ve spent years testing dozens of brokers to find those that provide the optimal conditions for this strategy.
Check out the best forex brokers I’ve personally tested that meet these strict requirements.
Final Thoughts
The pre-NY liquidity sweep strategy isn’t just another trading method – it’s a window into how the market actually works.
It’s about understanding the predatory nature of institutional money and using it to your advantage.
Start small.
Focus on one pair.
Perfect your execution.
And remember – this isn’t about catching every move, it’s about catching the right moves with precision.
If you want to skip the learning curve, my trading EA portfolio might be exactly what you need to start capturing these moves automatically.
The market reveals its intentions every single day – you just need to know where to look.