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Killzones

The document outlines the concept of 'kill zones' in trading, which are specific time windows during the trading day that offer high volatility and better trading opportunities. It details four main kill zones: the Asian, London, New York, and London Close kill zones, each with their own characteristics and ideal trading pairs. Understanding these time frames can enhance short-term trading strategies by capitalizing on market movements during these periods.

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0% found this document useful (0 votes)
298 views18 pages

Killzones

The document outlines the concept of 'kill zones' in trading, which are specific time windows during the trading day that offer high volatility and better trading opportunities. It details four main kill zones: the Asian, London, New York, and London Close kill zones, each with their own characteristics and ideal trading pairs. Understanding these time frames can enhance short-term trading strategies by capitalizing on market movements during these periods.

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h14433247
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© © All Rights Reserved
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A kill zone in ICT's teachings refers to specific time windows

during the trading day when the market is most volatile and
provides better trading opportunities. These time windows are
crucial for short-term trading strategies like scalping. Trading
during these kill zones increases the chances of getting a move
in the market due to their volatile nature.

The Asian killzone


The London killzone
The New York killzone
The London close killzone
The Asian killzone

• 8pm - 12am EST


• Typically the least active time for the day
• Best pairs to trade during this session : AUD,NZD,JPY pairs
• The Asian open can sometimes set up an optimal trade entry pattern that can offer 15 to 20 pips for a scalp.
• The Higher Timeframe bias is helpful here - but Short Term retracements in either Bull or Bear Markets can offer similar OTE
Setups.
Most of the time EU isn't very active in the Asian session, they tend to consolidate, there are times when it is active and it creates a
significant high or low or it begins the daily range high or low but for the most part it tends not to do that. This is same for the GBPUSD.
The Asian Session Characteristics

- The pairs that are not coupled with the USD or Crosses are
most active during this time of day.

- The USD tends to consolidate until Midnight New York time.


Which frees Crosses like: AudJpy, GbpAud or many other
pairs that Cross with the busy currencies of this time of day.

- There will be much more OTE setups in the Crosses in this


time of day over any other time or Trading Session. If you
are a Cross Trader... this will be a rich time of day for setups.
The london killzone

The London Open

The EUR & GBP pairs are ideal for this time of day.
The London Open frequently setup an Optimal Trade Entry Pattern that can offer a 25-50 pip scalp.
The Key Times to monitor are 2:00 am to 5:00 am New York time. This is the ideal ICT London Killzone.
Most of the times the London kill-zone creates the high or low of the day
The London Session

The Price Action during the London Session sees the highest probability of a large directional move in the 24 hour day.

The London Trading Session actually extends beyond the 5:00 am hour to 7:00 am in New York time.

The London Session sees the highest volume of order execution than any other Trading Session.

If there is no reaction in the London session, then chances are we can experience highly volatile New York session.

If there is a lot of movement in the London session then we could witness slow New York session
The London Session Characteristics

The London Session typically creates the Low of the day when the market is primarily Bullish and the High of the day when Bearish.

When the Market is poised to trade Higher on the Daily timeframe - we can focus on the London Session to post the Low of the Trading
Day. If the Daily is poised to trade Lower - we can focus on the London Session to post the High of the Trading Day.
The Newyork killzone

The New York Open

The Major pairs are ideal for this time of day.


The New York Open frequently setup an Optimal Trade Entry Pattern that can offer a 20-30 pip scalp.
The Key Times to monitor are 7:00 am to 10:00 am NY time. This is the ICT New York Killzone.
The New York Session

The Price Action during the New York Session sees a consistent round of Economic News Releases.
The New York Trading Session actually extends beyond the 10:00 am hour to 12:00 pm in New York time.
The New York Session Characteristics

The New York Session typically has two potential scenarios - Continuation of London's Move or a complete Reversal on the daily
direction.

When the daily is in a clear one sided momentum - it is easiest to look for confirmation of that direction in the London Price Action. If
London agrees with the Daily bias - we can anticipate New York to post a continuation setup. Reversals require more insights.
The london close killzone

The London Close

The London Close is a particular time of day that usually ends the opposite end of the daily range.
The Major pairs are ideal for this time of day.
The London Close frequently setup an Optimal Trade Entry Pattern that can offer a 10-20 pip scalp.
The Key Times to monitor are 10:00 am to Noon NY time. This is the ICT London Close Killzone.
If we are expecting a bullish day most of the time the high of the day is formed during the London close and vice versa
Characteristics Of London Close

London Close can create continuation points for swings that trade well into the New York afternoon hours.

Other times - The London Close can also be a Reversal Point for Price and what had been the direction of the day or week - can change
during London Close.
Summary
Asia

=> 8:000-120:00 pm NY time

• Valid only when price consolidates in a range

• If the daily bias is Bullish and we took the low in LOKZ look for longs. Touching just the bottom of the range or creating equal lows

doesn't validate the entry criteria

• If the daily bias is Bearish and we took the high look for shorts

• Real move happening in London

•If missed the entry then wait for NYKZ to start and mark the liquidity pocket available/happened in LOKZ

• Aggressive moves after daily close (Asia Hours) tend to get reversed around London/US

Hours.

• Aggressive moves early in the week tend to get reversed later in the week.
LOKZ

=> 02:00-05:00 NY time

• Highest probability of creating High of the day when market bearish / Low of the day when market bullish

• Highest volume and volatile movement

• The PA during London Session sees the highest probability of a large directional move in the 24h day

• 5 am to 7 am = "London launch period" = NOT to be traded

• If the price is trending in London session we might see a quite NY session and vice-versa

• If the price is consolidate in London session highest probability is we see a trending move in

NY session

• High probability to see PO3 2 am to 7 am NY time

• If price doesnt revert in London we can expect the big move will be in NY

• If daily range has not exceeded its 5 day ADR - Expansion Day
NYKZ

=> 07:00-10:00 am NY time, extends to 12:00 pm

• Use NY to mitigate a loss from London/Asia

• Easiest time to trade because of overlap. The secret is what happened in London.

• Not every pair has to have a setup in New York BUT every NY open has to have a setup in 1 or more pairs /USD

• The PA during NY Session sees a consistent round of Economic News Releases - sometimes predictable sometimes not

• 12 am to 1 pm = "NY launch period" = NOT to be traded

• Continuation of London's Move with a small pullback or a complete reversal on the daily direction

• When the daily is in a near one sided momentum = it is easiest to look for a confirmation of that direction in the London PA. If London

agrees with the Daily bias - we can anticipate NY to post a continuation setup. Reversals require more insights
LCKZ

=> 10:00 - 12:00 NY time

• Time-frame for entry search: 5m

• Smaller and faster moves compared with the open KZ (a 5 minute OTE Setup, very short term moves, 15m POls for TPs)

~ Retracement off the High of the day on Bullish days OR Bounce of the Low of the day on Bearish days

• LOKZ bounce play

• Consolidation - Asia put the low - market rally untill London Close where it reverted into the close.

• High in Asia - price starts to dump untill London Close.

• London Close can create continuation points for swings that trade well into the NY afternoon hours. Other times - London Close can

create continuation.

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