Chapter 3 lesson 3 - Daily Expansion & Killzones Flashcards
What is a key characteristic of how the low of the week forms?
The low of the week will always weep a low before price expands.
What is 1 way we can expect Monday and Tuesday to trade if the weekly bias is bullish.
If the weekly bias is bullish, and price is consolidation above a discount PD array, then there’s a high probability that Price could run Monday’s low on the Tuesday, and trade into the PD array before expanding higher.
What are the killzones?
The kill zones are specific time frames where price action is likely to expand.
When do the killzones occur?
London open kill zone - 2am - 5am
London lunch - 5am - 7am - typically referred to as no mans land cos no one wants to trade in this time slot.
New York open kill zone - 7am - 10am
Why is trading at 3pm not ideal?
The bond markets close at 3pm, which will result in flat price action for Forex. Indices can still be traded as they’re not based on interest rates.
What’s significant about the NY killzone?
The NY killzone is likely to put in the high of the day to cap the range of the day.
What’s significant about the London killzone?
The London killzone is likely to put in the low of the day , which is often referred to as the Judas swing. The Judas swing is a false move to catch traders off guard. It’s generally a false swing to induce traders into short positions on a bullish day.
