In the previous lesson, we learned how to identify Liquidity and distinguish between Buy Side Liquidity (BSL) above relevant highs and Sell Side Liquidity (SSL) below relevant lows.
That naturally leads to the next question:
If there are many highs and lows on a chart, which ones should we prioritize?
Within the Xcelerate Trade strategy, two of our first reference levels are the High of the Day (HOD) and Low of the Day (LOD).
In general market terminology, High of the Day refers to the highest price reached during a trading day, while Low of the Day refers to the lowest.
These levels can continue to change as the day develops.
Within our strategy, however, we use a specific convention.
For the London setup, we identify the highest and lowest prices formed during our defined pre-London reference period. Once London opens, we keep these two levels fixed and continue to label them HOD and LOD throughout our analysis.
This distinction is important.
Whenever we refer to HOD and LOD in the Xcelerate Trade strategy, we mean these fixed pre-London reference levels, not a continuously updating high or low later in the day.
They give us something every structured analysis needs: a clear place to begin.
Why Do We Use HOD and LOD?
In Lesson 2, we learned that orders often cluster around obvious highs and lows.
Above a relevant high, we may find Buy Side Liquidity created by orders such as Sell Stop Losses and Buy Stops.
Below a relevant low, we may find Sell Side Liquidity created by Buy Stop Losses and Sell Stops.
HOD and LOD give us two specific Liquidity references to prioritize before the London session begins.
Within our framework:
Above HOD → Buy Side Liquidity (BSL)
Below LOD → Sell Side Liquidity (SSL)
This does not mean price must reach either level.
It does not mean HOD automatically becomes a Sell.
And it does not mean LOD automatically becomes a Buy.
They are reference levels and part of our filtering process.
Before we can use them correctly, however, we need to understand how the Xcelerate Trade strategy organizes the session windows around them.
The Time Reference Used in the Strategy
Session timing matters because HOD and LOD are defined relative to specific periods of the trading day.
Throughout the strategy examples, we use the Xcelerate reference schedule shown below:
Asia reference window: 20:00–03:00;
London open: 03:00;
primary analysis and execution window: 03:15–05:00;
New York session: 09:30–16:00.
The examples provided in the Academy use UTC-4 as their displayed reference.
However, UTC offsets and the relationship between major market sessions can change seasonally because different regions do not always change their clocks on the same dates.
For that reason, do not assume that UTC-4 applies permanently throughout the year.
When applying the strategy to a different period, use the session settings and time reference provided by the Academy for the period being analysed so that the Asia reference window, London open and strategy window remain correctly aligned.
Consistency matters here.
If the session boundaries shift on the chart, HOD and LOD can also be marked incorrectly.
The Asia Reference Window
For the Xcelerate Trade strategy, 20:00-03:00 in our reference schedule is the Asia reference window used to establish the pre-London HOD and LOD.
This is a strategy-specific analysis window.
It should not be interpreted as a universal definition of the entire Asian trading session.
Its role in our process is clear: build context before London.
How the Trading Day Begins
The first part of our trading day is used to establish that context.
During the Asia reference window, price develops the initial highs, lows and Liquidity areas that we will observe before London.
We are not looking to execute trades during this period.
We are preparing the chart.
At 03:00 in our reference schedule, London opens.
This gives us an important distinction:
The day begins by building context. Our search for a trade begins with London.
The first stage is observation, not execution.
When Do We Mark HOD and LOD?
Before the London open, we identify two extremes.
We look for:
the highest price formed during our defined pre-London reference window;
the lowest price formed during the same period.
Within the Xcelerate Trade strategy, these become our:
HOD - High of the Day
LOD - Low of the Day
At the London open, the levels are fixed.
From that point onward, we do not move HOD or LOD simply because price later creates a new high or low.
This is one of the most important details in the lesson.
We deliberately preserve the pre-London extremes as stable reference points so that we can observe what price does when the active session begins interacting with the Liquidity around them.
Therefore, within our strategy:
HOD = highest price of our defined pre-London reference window
LOD = lowest price of our defined pre-London reference window
These are the definitions we will use throughout the Xcelerate Trade strategy.
When Do We Begin Looking for Trades?
London may open at 03:00 in our reference schedule, but we do not immediately begin executing positions.
The first minutes after a major session open can produce fast price movement and rapidly changing market conditions.
For this reason, the Xcelerate Trade strategy introduces a Session Filter.
We allow the first 15 minutes after the London open to pass.
Our primary window for looking for valid setups is:
03:15-05:00 in the reference schedule used in these examples.
The sequence is therefore:
00:00-03:00 → Build context and define HOD/LOD
03:00 → London opens
03:00–03:15 → Observe; no execution
03:15–05:00 → Begin looking for valid setups
Notice the wording:
looking for valid setups.
Reaching 03:15 does not give us permission to trade.
It means the Session Filter is satisfied.
Time is one filter.
HOD and LOD provide another part of the context.
Price still needs to show us what the strategy requires next.
Marking HOD and LOD on the Chart
For this part of our analysis, we use the 5-minute timeframe (M5).
M5 gives us enough detail to identify the relevant price extremes clearly while keeping the structure readable.
The first step is to organise the chart.
We recommend marking each trading day with a vertical line so that the beginning of a new day is immediately visible. It is also useful to mark the London open.
This allows us to see, at a glance:
what happened before London
and
what happened after London opened.
In TradingView, these visual elements can be saved as templates so that the same structure can be applied consistently across charts.
The specific colours are not important.
Consistency is.
Identifying HOD
Look at all price action inside the defined pre-London reference window.
Find the highest price reached before the London open.
Mark that price with a horizontal line and label it:
HOD
Once London opens, the line remains fixed:
Identifying LOD
Now find the lowest price reached during the same reference window.
Mark it with a horizontal line and label it:
LOD
Again, once London opens, the level remains fixed.
The daily sequence should be immediately visible:
Context → Fix HOD/LOD → London Open → Wait → Begin Analysis
How Do We Check That the Levels Are Correct?
When you first begin marking HOD and LOD, it is normal to hesitate between nearby highs or lows.
If the structure is difficult to read on M5, temporarily move to a higher intraday timeframe, such as 15M or 1H, to make the pre-London structure easier to see.
Then return to M5 and place the lines precisely on the highest and lowest prices formed inside the defined reference window.
The higher timeframe is being used only to improve visual orientation.
It does not change the definition of HOD or LOD.
With practice, this becomes much faster.
Eventually, these should be among the first levels you recognize when preparing the chart.
Why Do These Levels Matter?
HOD and LOD are not important simply because one is high and the other is low.
They matter because they are clear reference points around which orders may be concentrated.
Above HOD, traders holding Sell positions may have protective Stop Losses. Other participants may have Buy Stop orders waiting for a breakout.
That creates potential Buy Side Liquidity.
Below LOD, traders holding Buy positions may have Stop Losses, while other participants may have Sell Stop orders waiting below the low.
That creates potential Sell Side Liquidity.
This connects directly to what we learned in Lesson 2.
The same technical discipline applies here.
We do not claim that every move through HOD or LOD proves that an institution deliberately targeted those orders.
We observe something simpler and more useful:
HOD and LOD are clear reference levels. Orders may be concentrated around them. When price reaches them, we pay attention to what happens next.
How Do We Use HOD and LOD in the Strategy?
Once HOD and LOD are fixed and our valid strategy window begins, we observe how price interacts with them.
Within the Xcelerate Trade process:
if price takes HOD, we can begin evaluating a potential Sell scenario;
if price takes LOD, we can begin evaluating a potential Buy scenario.
The word evaluating is essential.
The Liquidity event allows us to move to the next stage of analysis. It does not give us permission to execute immediately.
This is where the terminology we are building throughout Chapter VI becomes increasingly useful.
HOD and LOD form part of our filters.
Once the relevant filters are satisfied, we begin looking for confirmations.
Only after the required confirmations are complete do we move toward execution.
Filters → Confirmations → Execution
We are still building the first part of that process.
Mistakes to Avoid
HOD and LOD become simple to identify once the process is familiar, but a few mistakes can change the analysis completely.
Updating HOD and LOD After London Opens
Within our strategy, HOD and LOD are defined using the pre-London reference window.
Once London opens, they remain fixed.
If price creates a new high later in the session, we do not move HOD to that new high.
If price creates a new low, we do not move LOD.
Remember: this is an Xcelerate Trade convention designed to preserve stable reference levels for the setup. It differs from the generic market meaning of a continuously updating High or Low of the Day.
Treating HOD or LOD as an Entry Signal
Taking HOD allows us to begin evaluating a potential Sell scenario.
Taking LOD allows us to begin evaluating a potential Buy scenario.
The confirmations still need to appear before we consider execution.
Marking the Wrong Extreme
We are looking for the absolute highest and lowest prices inside the defined pre-London reference window, not a nearby swing that simply looks visually attractive.
If necessary, use 15M or 1H to orient yourself, then return to M5 for precise placement.
Looking for Trades During the Context-Building Period
The Asia reference window has a specific role:
it builds context and gives us the reference extremes.
We are not using it as our execution window.
Keeping the roles of each period separate makes the strategy easier to apply consistently.
A Practical Example
Suppose London opens at 03:00 according to our reference schedule.
Before the open, we have already identified and fixed:
HOD;
LOD.
We do nothing during the first 15 minutes.
At 03:20, price moves higher and trades through HOD.
At this point:
the Session Filter is satisfied because we are inside the valid strategy window;
HOD has been taken;
the Buy Side Liquidity associated with that reference level has been reached.
Do we execute a Sell?
No.
We have reached the point where we are allowed to begin evaluating a Sell scenario.
The market still needs to provide the confirmations required by the strategy.
If those confirmations do not appear, there is no trade.
The same logic applies on the opposite side.
If price trades below LOD during our valid window, we can begin evaluating a Buy scenario, but the Liquidity event itself is not the Entry.
At this stage, you are not expected to understand what happens inside the confirmation stage.
That is intentional.
You already understand the beginning of the sequence:
HOD → Liquidity taken → begin evaluating a Sell scenario
Later lessons will fill the space between that Liquidity event and the Entry.
Just as the three lines in Lesson 1 gradually gained meaning, the missing steps in this image will become clear as we continue building the strategy.
Your Turn
Open TradingView and work exclusively on identifying HOD and LOD.
Do not look for trades yet.
Choose a market you regularly follow and review at least the previous 5–10 trading days.
For each day:
mark the beginning of the Asia reference window;
mark the London open;
identify the highest price formed during the pre-London reference window and label it HOD;
identify the lowest price formed during the same window and label it LOD;
mark the beginning of the analysis window at 03:15 in the reference schedule;
observe what happened after London opened;
note whether HOD, LOD, both, or neither were taken.
Then ask yourself:
Did I identify the levels using only information available before London opened?
Did I keep them fixed afterward?
Was Liquidity taken during the valid analysis window?
If you have access to the Academy practice screenshots, identify HOD and LOD yourself before comparing your markings with the examples.
Do not worry about whether a Buy or Sell would have won.
Do not search for CHoCH or any other confirmation that we have not formally learned yet.
For now, the objective is narrower:
Open the chart and know exactly where your two reference levels are.
Repeat the exercise until identifying them becomes almost automatic.
Xcelerate Trade Perspective
A chart contains countless highs and lows.
Our strategy does not need all of them.
It needs reference points with a defined role.
This is why HOD and LOD matter.
They transform the broad concept of Liquidity into something more structured. Instead of scanning every high and low and wondering which one deserves our attention, we begin the London setup with two predefined reference levels.
But those levels are still only part of the filter.
We do not predict that London must take HOD.
We do not predict that London must take LOD.
And when one of them is taken, we do not assume that price must reverse.
We wait for the market to show us the next piece.
This is how the strategy continues to develop:
first we define where we are interested; then we wait for evidence; only then do we consider execution.
Our framework is becoming more specific:
Session Filter → Liquidity Filter → Confirmations → Execution
With our trade structure, Liquidity framework and pre-London reference levels now connected, the next step is to understand the environment in which those levels are tested, including what happens around market openings and important news.