ICT (Inner Circle Trader) Killzones refer to specific time frames within the 24-hour forex trading cycle that are considered significant for traders. These time frames are based on the teachings and concepts propagated by "The Inner Circle Trader," a pseudonym for a trader who shares educational content on forex trading.
The idea behind ICT Killzones is to identify periods during the trading day where there is a heightened probability of market turns or where there is an increased potential for high liquidity moves. These periods are particularly relevant for those trading the major currency pairs. Sonarlab integrates these pivotal ICT Killzones in their complimentary Session Indicator, equipping traders with this insightful tool for free.
This encompasses the initial hours of the Asian trading session. At this juncture, liquidity might be on the leaner side, enabling traders to evaluate the price's range motion.
This Killzone is activated around the commencement of the London session – a cornerstone of the global forex market. The opening heralds the entry of numerous institutional traders, setting the stage for potential volatile shifts in price.
Mirroring the London open's essence, the outset of the New York session can usher in notable volatility. Given the U.S.'s pivotal role in the forex arena, its market onset can markedly steer price actions.
This phase coincides with the London trading session's winding down. By this phase, the market usually factors in major European news events, which can lead to trend deviations or retractions.
Forex enthusiasts often harness ICT Killzones to refine their strategies, leveraging these moments of probable high liquidity. However, like all trading tenets, it's crucial to employ rigorous risk management and avoid overly depending on a solitary strategy.
ICT Killzones refer to specific time frames within the 24-hour forex trading cycle identified by The Inner Circle Trader. These periods are considered pivotal for traders as they spotlight moments of potentially increased liquidity or market turns. There are typically four core ICT Killzones: The Asian Range, The London Open, The New York Open, and The London Close.
ICT Killzones highlight periods in the trading day when there is a higher probability of market activity and potential turnarounds. Recognizing these periods can help traders position themselves for significant market moves, be it due to increased liquidity or major market players entering or exiting trades.
In addition to the ICT Killzones, Sonarlab's Session Indicator offers visual representations of major Forex trading sessions like Asian, London, and New York. It also showcases open levels, including daily, weekly, and monthly opens, aiding traders in identifying potential liquidity levels and providing a comprehensive time-based framework.