We understood the importance of how the daily timeframe plays before. Creating a stage for us and narrating that main DOL for us. Making sure that that process is aligned for us. Now we want to take. Here we want to learn and emphasize the concepts of spotting London highs/lows, what we want to figure out from there is whether it will become a high probability buy/sell day

There can be so much information out there that it is easy to get lost. Many people will struggle and have no idea where to start from. So here we will focus to go into the deeper framework of our analysis and highlight the important foundational parts which will lead to our trade execution.

I always begin analyzing from the weekly down, which is why we look at the diÉerent states that we havewith timeframes. Such as FEEL/FLOW/FLUX state that some of you might be familiar with. The biggest mistake I see majority of traders is focusing on the lower timeframes. That is the most dangerous thing traders can do in that sense.

“Weekly/daily direction + DOL in sync with 60 framework will give you those explosive intraday moves.”

These type of trades are the easiest most high probable, simply due to everything being aligned correctly. It will be the trades that give you an immediate reaction to price right after your entry. This is due to the fact that these areas will be pressure points. Where liquidity picks up directly. Here you can lock in 50-70 pips usually, as they set the stage for us. Once you get a feeling for these trades it will help you master your eagerness to try and tackle the lower timeframes.

Daily Timeframe

In essence, when we see a daily expansion, data-driven analytics have shown that the expansion can vary from 100 to 200 pips, depending on market conditions. We must understand that if we notice a market protraction on our lower timeframes shortly after the New York Midnight Open, which occurs during the London Open 'Killzone,' it usually forms against the anticipated direction.

Above you can see how that daily stage can translate into the next day delivery of price. Where price happens to tap into liquidity, run buyside, and expand lower in the first half of the day. All of the best opportunities will happen when the phase 3 kicks in after London forms the HOD. We have covered this concept, but this will help you visualize exactly what is happening inside the daily candle during the London open.

So, let’s take it to the next step. Ideally, we want to now start identifying that phase 2 movement. The market protraction that goes against our DOL, our stage. Essentially, after having collected quite theamount of data, we don’t want that phase to be greater than a certain number of pips.

In our system, we don’t want that to be more than 30 - 40 pips, this will be expanded later. But for now, it’s about the fractality. If we see that a normal daily candle expansion would be 150 pips or so, then the market protraction in that case would be roughly 1/5 of the daily candle, which is good, healthy. If let’s say the protraction was 30 pips.

This doesn’t mean that a protraction cannot be 50-60 pips, but that is usually a sign that something is oÉ with the price delivery. In this scenario, if our DOL is lower, and we are faced with a market protraction of more than 50-60 pips, this would imply that it is not a standard sell side delivery day. High probability gets thrown out the window then. Best bet would be to observe the markets or look for LTF scalp plays.

“Ideal number of pips would be 30 pips then for our phase two -> Protraction in daily candle.”