An Asia session breakout followed by a US session reversal is essentially a switch between two liquidity regimes. The Asian session builds a range in low volatility; the US session uses high liquidity to exploit and manipulate those price levels. To filter false signals, you need a filtering framework based on time sequence and price logic.
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Three Filters for Entry Signals
The following signals should be applied in order when making entry decisions. Treat the Asian session high and low as the day's 'anchor.' These filters can be automated with TradingView scripts.
Signal 1: The first London breakout — treat it as a 'test,' not a trend
The Asian session (default UTC 00:00–08:00) usually has a narrow range and forms a reference zone. After the London open (08:00 UTC), price often breaks the range high or low. This is a classic liquidity grab known as a 'Judas Swing.'
Filter logic: If you chase the first London breakout right away, you can easily get caught buying the high of a false breakout. This signal alone is not a reason to enter. Instead, wait for price to pull back after the breakout and retest the broken level. Check whether that level now acts as support or resistance before considering an entry.
Signal 2: A US session 'trap' against the Asian range
The New York session (about 13:30–20:00 UTC) has deep liquidity. If price makes a clear move during London, but shows opposite momentum after the New York open, watch for a 'trap' pattern.
Filter logic: When US session price fails to continue the London trend and quickly reverses back inside the Asian range, this often means 'confirmation failed and a reversal is starting.' At this point, do not follow the London breakout direction. Consider a trade in the opposite direction.
Signal 3: Cross-session control shift — when 'Asia sells, US buys' changes
Track the directional contribution between the Asia and US sessions. This can help judge whether the market structure is turning.
Filter logic: Watch for a shift in cross-session control. For example, when the market changes from 'Asia sells, US buys' to 'Asia sells, US sells,' it may mean the US session is no longer absorbing selling the way it did before. This is a possible trend reversal warning.
Risk reminder: During weekends and major global news events, market liquidity can be extremely low and order book depth drops sharply. In thin trading periods, place limit orders much farther away than usual to handle possible disorderly price moves.
How to Practice This Filtering Framework
Step 1: Define the Asian range On your chart, clearly mark the highest and lowest prices of the Asia session (for example UTC 00:00–08:00). This is the core reference for filtering.
Step 2: Record the US session opening signal Mark whether the US session (for example 13:30–20:00 UTC) shows 'trap' behavior, meaning price quickly pulls back inside the Asian range. If price closes inside the Asian range, that is a strong reversal signal.
Step 3: Enter only after combined filtering Only after signal 2 (trap confirmation) appears, combine it with signal 3 (control shift confirmation) to decide direction and timing. If the US session makes a trap and closes inside the Asian range, and directional indicators show weaker US absorption, you may consider a reverse trade.
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Common Tools Reference
TradingView offers many community scripts to help identify these structures. For example, 'MERIDIAN - Session Intelligence Engine' has built-in session switches and breakout alerts for crypto assets, and recommends enabling signals for all three sessions for BTC/ETH. Similarly, 'IFVG Pro v7 KAIROS Edition' can track reversal setups after session liquidity is swept, and provides JSON webhook signals for automated trading.
