A 6-step framework for identifying and entering reversal trades. Introduced to me by Frank369 (formerly Zeussy), whose work on reversal structure is worth studying seriously. The sequence is the structure - how each step gets applied is defined by the individual trader over time. I found this video as part of his 2025 mentorship that helped me put the missing pieces together and had that aha moment we’re all looking for.
For new traders, this may look overwhelming or daunting. But if you submit to time, study, tape reading and practice, you will get there.
Before You Start - Check the Calendar
Economic Calendar Check
The Pre-Flight Filter
Before running the sequence, check for high-impact events (FOMC, NFP, CPI) in your session. Price in the lead-up to red-folder events distorts from normal delivery - levels that should hold often don't. The events themselves act as liquidity injections, moving price aggressively before settling. Always wait for price to normalize before engaging the sequence. When in doubt, sit out.
When trading indices, filter by USD currency and red and orange impact folders.
The 6 Steps
Work through the steps in order. Each one builds on the last. If a step doesn’t confirm, the sequence pauses - no forced trades.
HTF IOF
High Time Frame Institutional Order Flow
Start with the big picture. What's the narrative on the higher time frames? Is the market in a sell model or buy model? This sets the direction for everything that follows.
DOL
Draw on Liquidity
Where is price being pulled toward? Identify the target - previous session levels, unfilled imbalances, key levels acting as magnets for institutional order flow.
POI
Points of Interest
Where do you expect price to react? This is different from the DOL - the draw is the destination, the POI is where the turn happens. This is your sniper zone.
TOI
Times of Interest
When is the reversal most likely? Time matters more than price. Specific macro windows and manipulation cycles give you the "when" to match your "where." See market sessions and macro times in the sidebar.
SMT
Smart Money Time
Look for confirmation. Divergence between correlated assets signals that smart money is positioning. No divergence, no confirmation - patience pays here.
CSD
Change in State of Delivery
The trigger. Price physically shifts direction - structure breaks, opposing imbalances form, breakers confirm. Everything before this was preparation. This is where you act.
Inception to Terminus - Repeat
How to Use This
Work through the steps in order. Each one builds on the last. If a step doesn’t confirm, the sequence pauses - no forced trades.
If something isn’t clicking, come back to Step 1. Most issues trace back to an unclear HTF read or a weak DOL. The later steps can’t compensate for a shaky foundation.
The steps and sequence are consistent. How they apply in practice - which sessions, which timeframes, how entries are sized - is personal and evolves with the trading.
Concept pages are updated as the methodology is refined. The framework is stable - the details are personal and evolve with the trading.