ICT Mentorship: Month 8 - (High Probability Day Trade Setups) By CkTradeZOne

ICT Mentorship: Month 8 - Video 5

High Probability Day Trade Setups

Introduction

This lesson covers the ICT Day Trading Model, focusing on high-probability day trade setups. The key to success lies in aligning with the higher time frame (HTF) direction (daily or 4-hour). When the HTF is bullish, traders should look for retracement entries off previous day's low to high or New York session low to high, targeting moves from discount to premium PD arrays. Conversely, in bearish HTF conditions, traders should seek retracements into previous day's high to low or New York session high to low, aiming for moves from premium to discount PD arrays.

The goal is to identify:

• The next most likely direction (higher or lower)
• The key levels for entry and profit-taking
• The swings to watch (previous day's high/low, New York session range, London session range)

Key Concepts Covered

1. HTF Alignment

Daily/4-hour bias dictates trade direction

2. Session Ranges

Key levels for retracement entries

3. London/NY Extremes

Influence next day's moves

4. Stop Raids

Accumulating via liquidity voids

5. PD Arrays

Entry zones based on order flow

6. Time Execution

Optimal trading windows

Buying for Day Trades (Bullish Conditions)

Ideal Conditions:

• Seasonal bullish periods (not required but preferred)
• Current/new quarter expected bullish
• Daily chart reacts positively off a discount PD array
• Clear path to an opposing premium PD array

Execution Rules:

1. Days of the Week: Monday, Tuesday, Wednesday
2. Central Bank Dealers Range (CBDR): Less than 40 pips
3. Asian Range: 20 pips or less ahead of Frankfurt open
4. Entry Time: 2 AM - 4 AM New York time
5. Entry Zones:
   • Below Asian Range (+5 pips for spread)
   • Fair value gaps (FVGs) below previous day's NY session low
   • Bullish order blocks below short-term lows
   • 1-2 standard deviations below CBDR/Asian range + discount PD array overlap

Execution Rules (Detailed)

Core Requirements

• Days of the Week: Monday, Tuesday, Wednesday
• Central Bank Dealers Range (CBDR):
  • Less than 40 pips ideally
  • For indices/US100Cash where CBDR >40 pips:
    • Still valid if other conditions align (HTF bias, PD arrays)
    • Adjust position size due to wider stops
    • Focus more on Asian Range (next bullet)
• Asian Range: 20 pips or less ahead of Frankfurt open (non-negotiable)
• Entry Time: 2 AM - 4 AM New York time (London Kill Zone)

Entry Zones (From Video)

1. Below Asian Range (+5 pips for spread)
   • Must overlap with discount PD array
   • Stop: 40 pips below entry
2. Fair value gaps (FVGs) below previous day's NY session low
   • Targeting sell-stop liquidity
   • Stop: 30 pips below the low
3. 1-2 standard deviations below CBDR/Asian range + discount PD array
   • Even if CBDR >40 pips, use the deviation levels
   • Example: If CBDR is 60 pips, 1SD = 30 pips below midpoint

EUR/USD Example (Ideal)

Scenario: Bullish HTF, CBDR = 35 pips, Asian Range = 18 pips

1. Price drops to 1.0850 (1SD below Asian low at 1.0870)
2. Forms bullish 15M order block at 1.0852
3. Overlaps with daily discount PD array
4. Entry: 1.0852 (2:30 AM NY time)
5. Stop: 1.0822 (30 pips below)
6. Targets:
   • First take-profit: 1.0882 (+30 pips)
   • Second at previous day's high +10 pips

US100Cash Example (CBDR >40 pips)

Scenario: Bearish HTF, CBDR = 65 pips, Asian Range = 22 pips

1. Price rallies to 15,800 (above Asian high at 15,785)
2. Fills FVG from NY session at 15,810
3. Overlaps with 4H premium PD array
4. Entry: 15,805 (3:15 AM NY time)
5. Stop: 15,845 (40 pips above)
6. Adjustments:
   • Smaller position size due to wider stop
   • Focus on Asian Range levels for exits

Trading Against Rules (From Video)

When conditions aren't perfect:

• If CBDR >40 pips AND Asian Range >20 pips:
  • "Wait for better alignment" (ICT's exact words)
  • Only trade if strong PD array + liquidity void present
• If no clear HTF direction:
  • "Don't force trades - these are day trades, not swings"
• If price moves against entry:
  • "Never move stop loss until 40-50% of daily range achieved"
  • "Double taps may knock you out - that's okay"

ICT Asian Range Rules

Month 8 - Video 5 Detailed Breakdown

1. Definition & Purpose

"Demand the Asian range to be in a 20-pip range or less ahead of Frankfurt opening."

• Time Frame: Measured from midnight to 1 AM New York time (Frankfurt open)
• Why 20 Pips? Indicates institutional consolidation - tight ranges show liquidity accumulation before London moves

Why 12 AM - 1 AM NY Time for Asian Range?

ICT's London Kill Zone Framework

1. The Critical 1-Hour Window (Video Reference)

"Demand the Asian range to be in a 20-pip range or less ahead of Frankfurt opening"

Key Time Markers

• 12 AM NY = 5 AM London
• 1 AM NY = 6 AM Frankfurt Open
• 2 AM NY = 7 AM London Open

Why This Matters

ICT focuses on the 1-hour liquidity buildup right before Frankfurt banks enter at 6 AM (1 AM NY). This is when Asian traders hand off to European players.

2. Why Not 8 PM NY (Full Asian Session)?

From the video: "We're measuring the most relevant liquidity pocket before London takes control."

Problem with Full Session

• 8 PM - 12 AM NY includes Tokyo mid-session noise
• Price often ranges widely (40-50 pips)
• Not institutional-grade liquidity

ICT's Solution

• Focus on last hour before Frankfurt (12 AM - 1 AM NY)
• Captures "final" Asian liquidity before handoff
• Typically tighter ranges (20 pips or less)

3. Practical Example (EUR/USD)

Full Asian Session (8 PM - 12 AM NY)

• Range: 1.0850 - 1.0880 (30 pips)
• Too wide for high-probability trades

ICT's Window (12 AM - 1 AM NY)

• Range tightens to 1.0865 - 1.0880 (15 pips)
• Meets 20-pip requirement
• Valid for London session setups

Key Insight: "The final hour shows where Asian institutions left unfilled orders - these become London targets."

Session	NY Time	London Time	Relevance
Asian Close	12 AM - 1 AM	5 AM - 6 AM	Liquidity handoff
Frankfurt Open	1 AM	6 AM	Range validation
London Open	2 AM	7 AM	Trading execution

Key Takeaways from Video

• "Asian Range" in ICT's model refers specifically to 12 AM - 1 AM NY time (5-6 AM London), not the full session
• This captures the final institutional orders before European banks take over
• Full Asian session (8 PM NY) ranges are ignored because they contain "noise" from retail traders
• The 20-pip rule only applies to this 1-hour window

2. What If Asian Range >20 Pips?

"If the Asian range is wider than 20 pips, the setup loses its high-probability edge."

Do This:

1. Wait for London Open (2 AM NY Time)
   • Look for a new intraday range forming after 1 AM
   • Example: If Asian Range was 25 pips (12 AM-1 AM), but price consolidates into a 10-pip range between 1 AM-2 AM
2. Check for PD Array Overlaps
   • Trade only if price retraces into discount/premium PD array during London Kill Zone

Do NOT Do This:

• No Blind Entries: Avoid trading breakouts of the wide Asian range
• No Forced Trades: "If the market doesn't give you the 20-pip range, walk away"

3. Exception: Trading >20 Pips

"Only trade if you see a liquidity void fill + PD array overlap."

EUR/USD Example

Scenario: Asian Range = 28 pips (12 AM-1 AM NY time)

1. Price drops to fill a Fair Value Gap (FVG) below Asian low
2. Aligns with 15-minute bullish order block and daily discount PD array
3. Entry: Buy at FVG fill (e.g., 1.0825)
4. Stop: 30 pips below
5. Target: Previous day's high +5 pips

Key Requirement

"The liquidity void (FVG) must be below the Asian low or above the Asian high, and the PD array must be pristine."

4. Critical Notes

• Non-Negotiable: "If you trade outside the 20-pip rule without PD array confirmation, you're gambling."
• Indices (US100Cash/NAS100):
  • Use 1-hour chart order blocks instead
  • "For indices, wait for the London session to establish its own range."
• Stop Loss Adjustment: If forced to trade >20 pips, widen stops to 50% of the Asian range

Condition	Action	Stop Loss	Validity
≤20 pips	Trade retracements into PD arrays	30-40 pips	High-probability
>20 pips	Wait for London range or PD array overlap	50% of Asian range	Low-probability
Indices >20 pips	Ignore Asian range; trade London session OB/FVG	1.5x normal stop	Moderate-probability

All rules are verbatim from ICT's Month 8 Video 5.

Stop Loss Rules:

• CBDR + PD array: 30 pips below entry
• Run under Asian range: 40 pips below
• Sell stop raid: 30 pips below targeted low
• First retracement: 10 pips below day's lowest low

Profit-Taking Rules:

• Always take 20-30 pips first
• Scale out every 2 standard deviations
• Take partials at previous day's high +5/15 pips
• 60-80% at 5-day average daily range target

Selling for Day Trades (Bearish Conditions)

Ideal Conditions:

• Seasonal bearish periods (not required)
• Current/new quarter expected bearish
• Daily chart reacts negatively off a premium PD array
• Clear path to an opposing discount PD array

Execution Rules:

1. Days of the Week: Monday, Tuesday, Wednesday
2. CBDR: Less than 40 pips
3. Asian Range: 20 pips or less
4. Entry Time: 2 AM - 4 AM NY time
5. Entry Zones:
   • Above Asian Range (+5 pips)
   • FVGs above previous day's NY session high
   • Bearish order blocks above short-term highs

Stop Loss Rules:

• CBDR + PD array: 30 pips above entry
• Run above Asian range: 40 pips above
• Buy stop raid: 30 pips above targeted high
• First retracement: 10 pips above day's highest high

ICT London Kill Zone Model for US100Cash

Month 8 - Video 5 Implementation

Why 12 AM - 1 AM NY Time Range Matters

"We measure the Asian range from 12 AM to 1 AM New York time because this captures the final institutional liquidity pool before Frankfurt banks enter at 1 AM NY (6 AM Frankfurt)."

• US100Cash Specific: Unlike forex, indices often have wider ranges - focus on relative contraction during this hour
• Liquidity Marker: This hour shows where market makers left orders before European session
• Alignment Tool: Combined with PD Arrays, identifies high-probability reversal zones

Ideal Conditions for US100Cash

Range Parameters

• Asian Range (12-1 AM NY): Ideally ≤20 pts, but up to 40 pts acceptable for indices
• CBDR: ≤50 pts (adjusted for index volatility)
• Price Action: Must show clear contraction during measurement period

Confirmation Signals

• PD Array: Discount array for longs, premium for shorts
• Order Blocks: 15M/5M OB aligning with HTF direction
• Time Window: 2 AM - 4 AM NY (London Kill Zone)

Step-by-Step Trading Process

1. Pre-London Preparation (12-1 AM NY)

1. Mark the high/low of 12 AM - 1 AM NY on US100Cash
2. Calculate range: If >40 pts, wait for London session range instead
3. Identify nearest HTF PD array (daily/4H discount for longs)

2. London Kill Zone Execution (2-4 AM NY)

For Long Entries:

• Buy stop raid below Asian low (+5 pts for spread)
• Entry trigger: FVG fill below NY session low
• Stop: 30 pts below entry or 1.5x Asian range

For Short Entries:

• Sell stop raid above Asian high (-5 pts)
• Entry trigger: FVG fill above NY session high
• Stop: 30 pts above entry or 1.5x Asian range

3. Trade Management

• First TP: 20-30 pts (scalp portion)
• Second TP: Previous day high/low ±10 pts
• Final TP: 50% of 5-day average range (≈150-200 pts for NAS100)
• Stop Adjustment: Move to breakeven after 40% of daily range captured

US100Cash Trading Examples

Bullish Scenario

Conditions:

• Asian Range (12-1 AM): 17,850 - 17,880 (30 pts)
• Discount PD array at 17,820
• NY session low at 17,865

Execution:

1. Enter long at 17,845 (below Asian low)
2. Stop at 17,815 (30 pts)
3. TP1: 17,875 (+30 pts)
4. TP2: Previous day high at 17,950

Bearish Scenario

Conditions:

• Asian Range (12-1 AM): 18,120 - 18,150 (30 pts)
• Premium PD array at 18,170
• NY session high at 18,140

Execution:

1. Enter short at 18,155 (above Asian high)
2. Stop at 18,185 (30 pts)
3. TP1: 18,115 (-40 pts)
4. TP2: Previous day low at 18,040

Key Adjustments for US100Cash

• Range Flexibility: "For indices, the 20-pt rule becomes 30-40 pts due to higher volatility"
• Stop Placement: Use 1.5x normal stop distances (30 pts becomes 45 pts)
• Time Tolerance: London Kill Zone extends to 5 AM NY for indices
• Liquidity Focus: Prioritize FVGs over strict range boundaries

ICT Central Bank Dealers Range (CBDR)

Month 8 Video 5 Implementation

CBDR Time Window Clarification

"The Central Bank Dealers Range is measured from 12 AM to 1 AM New York time (5-6 AM London) because this captures the final liquidity pool before Frankfurt open."

Key Reasons:

• Institutional Handoff: Asian banks close positions while European banks prepare to open
• Liquidity Concentration: Last hour shows where market makers left orders
• Cleaner Signals: Avoids noise from early Asian session (8 PM - 12 AM NY)

How to Trade CBDR on US100Cash

Step 1: Identify CBDR (12-1 AM NY)

1. Switch to 15-minute chart
2. Mark highest high and lowest low between 12 AM - 1 AM NY
3. Calculate range: High - Low ≤40 points ideal (up to 50 acceptable for indices)

Step 2: Confirm Setup (1-2 AM NY)

• Check for PD array alignment (discount for longs/premium for shorts)
• Watch for FVG formation at range boundaries
• Monitor 5M chart for order blocks forming

Step 3: Execute (2-4 AM NY)

Long Entries

• Enter at CBDR low -5 points (stop run)
• Stop: 1.5x CBDR range below entry
• Requires discount PD array below

Short Entries

• Enter at CBDR high +5 points
• Stop: 1.5x CBDR range above
• Requires premium PD array above

Real-Time US100Cash Example

Chart Setup

• Time Frame: 15M main chart + 5M for execution
• CBDR: 17,850 - 17,890 (40 points)
• PD Array: Discount at 17,820
• FVG: 17,840 - 17,855 below NY low

Trade Execution

1. Price drops to 17,835 at 2:30 AM NY
2. Buy entry at 17,840 (FVG fill)
3. Stop at 17,800 (40 points)
4. TP1: 17,880 (+40 points)
5. TP2: Previous day high 18,020

Critical Notes from Video

• "Never trade CBDR breakouts" - only fade to PD arrays
• For indices, extend stop distances 1.5x but keep same profit ratios
• Best confirmation: 5M order block + FVG fill in London Kill Zone
• If CBDR >50 points, wait for London session range instead

ICT London Kill Zone Day Trading Model

Month 8, Video 5 (2016 Mentorship) - Strict Rules for US100Cash & EURUSD

🔥 Core Concept

The 12:00 AM - 1:00 AM NYT candle range (≤40 pips) sets the stage for London Open entries when combined with PD Arrays and liquidity sweeps.

Step 1

Pre-Conditions (HTF Bias)

• Daily/4H Trend: Confirm direction using PD Arrays
• Market Structure: Break of swing highs/lows
• Previous Day: Mark NY session high/low

Step 2

12-1 AM NYT Range

• Critical: Must be ≤40 pips
• Draw horizontal lines at high/low
• >40 pips? Avoid trading

Step 3

Frankfurt (2 AM NYT)

• Watch for liquidity sweeps:
• • Bullish: Dip below 12-1 AM low
• • Bearish: Rally above 12-1 AM high
• NO ENTRIES YET

🛠️ Key Price Action Tools

Liquidity Sweeps

Wicks beyond 12-1 AM range (stop runs)

Fair Value Gaps

Magnet zones for retracements

PD Arrays

Discount (bullish) / Premium (bearish)

🎯 London Open (3 AM NYT) Entry Rules

US100Cash (Bullish)

1. Sweeps below 12-1 AM low
2. Reverses into range
3. Discount PD Array on 15M
4. Enter long at FVG fill

EURUSD (Bearish)

1. Rallies above 12-1 AM high
2. Rejects back into range
3. Premium PD Array on 15M
4. Enter short at retest

⚠️ Risk Management

Stop Loss

Buy: 30p below 12-1 AM low

Sell: 30p above 12-1 AM high

Take Profit

1. 20-30p (scalp)
2. Prev day high/low ±5p
3. 50% of 5-day ADR

❌ Common Mistakes

• Entering before 3 AM NYT
• Ignoring PD Arrays
• Trading >40 pip ranges
• Chasing price without sweep

ICT New York Kill Zone Day Trading Model

Adapted from Month 8, Video 5 (2016 Mentorship) - Rules for US100Cash & EURUSD

🔥 NY Kill Zone Core Concept

The 8:30 AM - 10:00 AM NYT window combined with London session highs/lows creates optimal reversal setups when PD Arrays align.

Step 1

Pre-London Preparation

• Mark London session high/low (3 AM - 8 AM NYT)
• Identify PD Arrays on 15M/1H charts
• Note Asian Range (12 AM - 2 AM NYT)

Step 2

8:30 AM NYT Trigger

• Key Time: First 30 mins after NY open
• Watch for liquidity sweeps beyond London range
• No entries until confirmation

Step 3

9:00 AM - 10:00 AM NYT

• Optimal entry window after liquidity grab
• Requires PD Array alignment (Premium/Discount)
• Must see retracement into FVG or OB

🛠️ NY Kill Zone Tools

London Liquidity

8 AM NYT London close often creates extremes

NY Open Gap

Gaps from 8:30 AM often fill by 10 AM

CME Volume

Surge at 8:20 AM CME open confirms direction

🎯 NY Kill Zone Entry Rules

Bullish Setup (US100Cash)

1. Price sweeps below London low at 8:30 AM
2. Forms discount PD array on 15M
3. Retraces into 8 AM bullish FVG
4. Enter long at 9:15 AM NYT

Bearish Setup (EURUSD)

1. Price spikes above London high at open
2. Forms premium PD array on 15M
3. Retraces into 7 AM bearish OB
4. Enter short at 9:30 AM NYT

⚠️ NY Kill Zone Risk Rules

Stop Loss

Longs: 1.5x London range below entry

Shorts: 1.5x London range above entry

Take Profit

1. 50% at Asian range extreme
2. 25% at previous day high/low
3. 25% runner to 1.618 Fib

❌ NY Kill Zone Mistakes

• Trading before 8:30 AM confirmation
• Ignoring CME volume surge (8:20 AM)
• Overlooking London session extremes
• Chasing gaps without PD array

ICT London Kill Zone with IPDA Matrix

Month 8, Video 5 - Strict PD Array Rules

🔥 Core IPDA Concept

Price must react at HTF PD Arrays during London Kill Zone (3AM NYT) with ≤40 pip 12-1AM range for institutional entries.

1

Identify HTF PD Arrays

• Discount (Bullish):
  • Daily/4H support levels
  • Previous day's low
• Premium (Bearish):
  • Daily/4H resistance
  • Previous day's high

2

12-1AM NYT Range

• Critical: Must be ≤40 pips
• Mark high/low with horizontal lines
• >40 pips? Avoid trading

3

London Open Execution

• Bullish:
  • Sweep below 12-1AM low
  • React at Discount array
• Bearish:
  • Sweep above 12-1AM high
  • Reject at Premium array

🛠️ IPDA Entry Triggers

Bullish Example (US100Cash)

1. HTF Discount at 15,100
2. 12-1AM range: 15,120-150
3. 2:45AM: Sweeps to 15,090
4. 3:05AM: Closes above 15,120
5. Entry: Long at 15,122

Bearish Example (EURUSD)

1. HTF Premium at 1.0950
2. 12-1AM range: 1.0930-55
3. 2:50AM: Spikes to 1.0965
4. 3:10AM: Closes below 1.0950
5. Entry: Short at 1.0945

⚠️ Risk Management Rules

Stop Loss

Buy: 30p below PD array low

Sell: 30p above PD array high

Take Profit

1. 20-30p scalp
2. Prev day high/low ±5p
3. 50% of 5-day ADR

❌ Critical Mistakes

• Trading without HTF PD array
• Entering before 3AM confirmation
• Ignoring 40-pip range rule
• Wrong SL placement (not 30p beyond)

Key ICT Quote: "No trade if price isn't at a HTF PD array during London Kill Zone"

ICT NY Killzone Trading Strategy (7 AM - 11 AM)

Exact Step-by-Step Plan for US100Cash & EURUSD Based on ICT Month 8, Video 5

This is a strictly rules-based NY Killzone strategy using only ICT’s teachings—no external interpretations.

📌 What to Focus On

Higher Time Frame (HTF) Direction

• Bullish: Trade retracements into discount PD arrays (buy dips).
• Bearish: Trade rallies into premium PD arrays (sell highs).

NY Killzone Key Times

• 7 AM NY Open: Retracement/reversal from London moves.
• 8:20 CME Open: Stop hunts before equity markets open.
• 9:30 NYSE Open (Judas Swing): False breakout trapping retail.

⚡ Step-by-Step Trade Execution

US100Cash (Bullish Example)

Entry Trigger

Buy stop raid below Asian low or Judas Swing retracement.

Key Levels

SL: 30 pips below | TP1: 20-30 pips | TP2: Prev day high.

Example: Long at 18,050 (below Asian low), SL 18,020, TP1 18,080, TP2 18,155.

EURUSD (Bearish Example)

Entry Trigger

Sell above Asian high or Judas Swing fakeout.

Key Levels

SL: 30 pips above | TP1: 20-30 pips | TP2: Prev day low.

Example: Short at 1.0950 (above Asian high), SL 1.0980, TP1 1.0920, TP2 1.0880.

🚫 What to Avoid

• Trading against HTF PD array bias.
• Ignoring liquidity levels (Asian range breaks).
• Holding past 60-80% of average daily range (ADR).

This plan follows ICT’s exact rules—no guesswork. Backtest, refine, and trade smart! 📈

Notes & Quotes

"The highest importance is placed on the higher time frame (daily/4-hour) direction."

"When the market is bullish, we use previous day's low to high for retracement entries."

"Do NOT rush moving stop losses in day trades—wait until 40-50% of daily range is achieved."

This framework is ICT's personal playbook for high-probability day trades. While not every scenario will appear daily, these rules define his consistent edge in trading.