Thread by @tr_tradingfx

How to trade a LOKZ reversal.

[A THREAD]🧵

1) What is LOKZ ?

To start from the beginning for those who don't know, the LOKZ or "London Kill Zone" is the manipulation phase where the price seeks significant liquidity to prepare for the London move.

It usually occurs around 03:00 to 05:00 NY time.

Sometimes, the market may undergo an initial manipulation before LOKZ.

So, avoid getting caught and wanting to enter too early; you risk being the next liquidity that LOKZ will target.

Example⬇️

2) Setup description✍️

- Asian high or low sweep
- First manipulation before LOKZ
- LOKZ manipulation at 03:00
- PDH Sweep
- Bearish Ordeflow with displacement (M5)
- MSS or QM (M5)
- Enter to a FVG or Breaker M5
- Target 2R

3) What are the significant liquidity to be sought before a LOKZ Reversal ?

Asian High & Previous Day High for a bearish reversal.

Asian Low & Previous Day Low for a bullish reversal.

Target Asian or low that has not been taken.

Of course, it often happens that the price doesn't always take these two liquidity before turning around, often due to an SMT or other factors.

It's up to you to know how to best anticipate the reversal.

In the case of Euro, you can correlate it with DXY.

Example of a Bearish LOKZ reversal✍️

- Asia High swept
- PDH swept
- Bearish ordeflow M5
- LOKZ manipulation into fvg M5

Here we have all our confirmations except an M5 MSS to indicate a real change in structure, but the price has no reason to come back higher.

Setup of a Bullish LOKZ reversal ⬇️

It's exactly the same thing here, whether it's for the liquidity, the target, or the execution.

Here, that's all for this thread.

I hope it helped you. Feel free to RT so that others can see it and even follow me @tr_tradingfx for more content.

Have a great weekend, everyone ! 👑