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ICT Kill Zone PDF

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1K views

ICT Kill Zone PDF

Uploaded by

AKSHAHUL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ICT Kill Zones

Definition.

ICT Kill Zones refer to specific time periods when trading


volume and market volatility are at their peak. These windows provide
ideal trading opportunities, allowing traders to capitalize on the
increased market activity to maximize their profits.

Explanation.

We all know forex market operates 24 hours a day but not all hours
offer the same volatility and trading opportunities. To fix the issue & to
save traders time, Michael Huddleston also known as ICT, introduced
the concept of ICT kill zones which refers to hot trading hours in the
forex markets with most volatility & profitable trading opportunities.

To understand and trade using ICT kill zones, you should first set your
time zone to New York local time UTC-4 and in case of day light saving
UTC-5 as we will be using New York local time to explain ICT kill
zones.

It is important to mention here that you should also have


understanding of ICT Optimal Trade Entry – OTE Pattern before diving
deep into ICT kill zones.

Kill Zones Division.


ICT kill zones are divided into four periods listed below.

(I) ICT Asian Kill Zone (08:00 PM – 10:00 PM)

(II) ICT London Kill Zone (02:00 AM – 05:00 AM)

(III) ICT New York Kill Zone (07:00 AM – 09:00 AM)

(IV) ICT London Close Kill Zone (10:00 AM – 12:00 PM)


All four ICT kill zones have their own characters & unique reasons for
volatility. We will be explaining each of them with examples below.

ICT Asian Kill Zone

The ICT Asian Kill Zone is the first strategic period in the forex market,
focusing on the Australian Dollar (AUD), New Zealand Dollar (NZD), and
Japanese Yen (JPY). These pairs are most active during this time, while
the US Dollar often consolidates.

Characteristics of the Asian Kill Zone

Timing: Between 8:00 PM and 10:00 PM

Higher Time Frame Bias: Helpful for identifying trends, but short-
term retracements (bullish or bearish) can also provide optimal
trade entries

Scalping Opportunities: Often sets up trades that can yield 15-20


pips

Cross Pairs: Most setups involve cross pairs due to US Dollar


consolidation.

Example:

In the provided AUD/JPY five-minute chart with a bullish daily bias,


the price retraced to the optimal trade entry level at 0.786. A buy
trade was executed, targeting the previous high, successfully
delivering 25 pips.
ICT London Kill Zone

The ICT London Kill Zone starts with the opening of the London
session and experiences the highest trading volume compared to
other sessions. The Euro (EUR) and British Pound (GBP) are the most
actively traded pairs during this period.

The London session often sees the most significant directional moves
within a 24-hour period.

Characteristics of the London Kill Zone:

Timing: Between 2:00 AM and 5:00 AM.


Higher Time Frame Bias: Useful for identifying trends.
Directional Trades: Often sets up trades that can yield more than
30 pips.
Bullish Days: Price typically grabs the Asian high and then creates
the high of the day before declining.
Bearish Days: Price typically grabs the Asian low and then creates
the low of the day before rising.

Example:

In the provided GBP/USD chart with a bearish daily bias, the price took
the high of the Asian session, shifted market structure downward, and
retraced to the optimal trade entry level at 0.5. This provided a sell
opportunity, targeting the previous session's low, and successfully
delivered 40 pips.

The chart is on the next page.


ICT New York Kill Zone

ICT New York kill zone is the opening time of New York session and
during this period of time pairs coupled with US dollars are important
to watch and trade.

Characteristics of the New York Kill Zone:

Timing: Between 7:00 AM and 9:00 AM.


Higher Time Frame Bias: Useful for identifying trends, but short-
term retracements (bullish or bearish) can also provide optimal
trade entries.
Retracement to London Range: The New York session often
retraces to the London trading range, setting up trades that can
yield 30-40 pips.
High Volatility and Volume: Due to the overlap between the London
and New York sessions.

Example:

In the provided USD/CAD chart with a bearish daily bias, the price
retraced to the London range during the New York Kill Zone. This
created a selling opportunity at the optimal trade entry level of 0.786,
successfully delivering 40 pips.
ICT London Close Kill Zone

The ICT London Close Kill Zone occurs when the London session
closes, typically a less volatile period. During this time, prices often
retrace to their daily range, offering optimal trade entry setups.

Major pairs involving the US Dollar are ideal for trading during this
period.

Characteristics of the London Close Kill Zone:

Timing**: Between 10:00 AM and 12:00 PM.


Scalping Opportunities**: Can offer five-minute optimal trade entry
(OTE) setups, yielding 15-20 pips.
Bullish Days**: After making the high of the day, the price retraces
back to the daily range.
Bearish Days**: After making the low of the day, the price retraces
back to the daily range.

Example:

In the provided GBP/USD chart, after making the high of the day, the
price retraced back to the daily range during the London Close Kill
Zone. This created a sell opportunity at the optimal trade entry level
of 0.618, successfully delivering 20 pips.

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