Mastering ICT’s Daily Range Strategy: Key Notes for All Traders - Month 8 Core Content Paid Version by CkTradeZone

Mastering ICT's Daily Range Strategy

For Both Beginners & Advanced Traders: This complete guide covers entry rules, avoidance zones, and key notes to trade like institutions.

1. Retail vs. Interbank Trading Day

❌ Retail Trading Day (Flawed Approach)

• Uses MT4's default 24-hour separators (Ctrl + Y)
• Problem: Misaligned with institutional liquidity flows

✅ Interbank Trading Day (Correct Approach)

• Follows bank algorithms and true liquidity windows
• Key Benefit: Aligns your trades with smart money movements

2. Key Time Windows & Their Importance

Time Zone	New York Time	Why It Matters
Asian Range	8PM – 12 AM*	Sets initial liquidity (often range-bound)
London Kill Zone	1 AM – 5 AM	Major highs/lows form (institutional participation)
New York Kill Zone	7 AM – 10 AM	Volatility spikes (CME open at 8:20 AM critical)
London Close	10 AM – 12 PM	Institutional rebalancing (reversals/breakouts)
True Day Close	3 PM	Final moves (bond market closes)

*Note: Asian session typically ends ~4 AM NY time, but ICT marks it as 24-hour reference.

3. How & Where to Enter Trades

✅ Entry Rule #1: London Kill Zone (1 AM – 5 AM NY)

• Look for: Break of Asian Range High/Low → Momentum continuation
• Why? Big banks trade heavily here creating strong trends

✅ Entry Rule #2: New York Kill Zone (7 AM – 10 AM NY)

• Focus on 8:20 AM (CME Open) → Often reversal/acceleration point
• Example: Price stalls at 8:20 AM → Expect swing

4. When to Avoid Trading

❌ London Lunch (5 AM – 7 AM NY)

Low volatility, choppy price action. Only trade clear breakouts.

❌ Overlapping News (2 PM NY FOMC)

Erratic price spikes → false breaks, slippage. Wait until 3 PM.

5. Key Notes for All Traders

Final Checklist Before Trading

• ✔ Are we in a Kill Zone? (No → Wait)
• ✔ Is there clear S/R or Order Block? (No → Avoid)
• ✔ Is CME Open (8:20 AM NY) causing reaction? (Yes → Trade)

Pro Tip: Bookmark this guide and practice marking these times on your charts for 1 week before live trading.

How to Trade: Buy & Sell Signals

✅ Buy Signal Conditions:

• London Kill Zone (1AM–5AM NY): Look for bullish reversal patterns (e.g., double bottom, hidden divergence) after Asian range breakout.
• New York Kill Zone (7AM–10AM NY): Buy if price holds above 8:20 AM CME open with increasing volume.
• London Close (10AM–12PM NY): Enter long if price bounces from institutional VWAP or key support.

❌ Sell Signal Conditions:

• London Kill Zone: Sell if price rejects Asian range high with bearish candlestick patterns (pinbar, engulfing).
• New York Kill Zone: Short when price fails to break 8:20 AM high and shows order block rejection.
• London Close: Sell if price breaks below morning low with strong downside momentum.

Pro Tip: Always wait for confirmation (close beyond key level or 2–3 consecutive candles in direction) before entering trades.

Where to Buy/Sell: Key Levels

🔹 Optimal Entry Zones:

• Asian Range Breakouts: Enter at retests of broken highs/lows with reduced spread.
• London Kill Zone: Trade at institutional order blocks (previous day's high/low).
• 8:20 AM CME Open: Enter on pullbacks to liquidity pools near this time.

🔹 Profit Targets:

• 1:1 Risk-Reward: First target at recent swing point.
• 2:1 Risk-Reward: Previous session's high/low or fair value gap.
• Runner Positions: Hold partial position until 3 PM NY close if trend is strong.

🔹 Stop-Loss Placement:

• Buy Trades: Below nearest swing low or Asian range low.
• Sell Trades: Above nearest swing high or London session high.

What to Avoid: Common Pitfalls

⚠️ Critical Mistakes Retail Traders Make:

• Trading Outside Kill Zones: Avoid trades between 5AM–7AM NY (London lunch) and 12PM–3PM NY (low liquidity).
• Ignoring CME Open: Never enter trades 5 minutes before/after 8:20 AM NY without confirmation.
• Overleveraging: Risk ≤1–2% per trade—volatility spikes during Kill Zones can trigger stops.
• Fading Strong Trends: Don't counter-trade during FOMC events (2PM NY) or clean breakouts.

Focus Instead On: Price action at key times, order flow alignment, and institutional accumulation/distribution patterns.

Asian Trading Session (12AM - 12PM NY Time)

The Asian session sets the initial range and liquidity for the trading day. Institutions use this time to accumulate positions.

✅

Focus On:

• Price action around 3AM-5AM NY (Tokyo/London overlap)
• Break/retest of previous day's high/low
• Small ranges (10-15 pips in major pairs) - look for false breaks

❌

Avoid:

• Trading breakouts before London open (1AM NY)
• Overreacting to small moves (Asia often retraces)
• Ignoring the 12AM NY open price

Pro Tip: The high/low of Asian range often becomes support/resistance for London session.

London Kill Zone (1AM - 5AM NY Time)

The most volatile session where institutions execute large orders. Often sets the day's high/low.

✅

Focus On:

• 1AM-2AM NY - First liquidity sweep
• 4AM-5AM NY - London fix flows
• Rejection of Asian range extremes

❌

Avoid:

• Trading 5AM-7AM NY (London lunch lull)
• Fading strong breakouts without confirmation
• Ignoring CME futures open (8:20AM NY) influence

Pro Tip: 80% of days will make their high or low during London Kill Zone - wait for confirmation.

New York Kill Zone (7AM - 10AM NY Time)

Where London and NY traders battle for control. Perfect for momentum trades.

✅

Focus On:

• 8:20AM NY (CME open) reversals
• Retests of London session extremes
• Break of Asian range midpoint

❌

Avoid:

• Entering after 10AM NY (liquidity dries up)
• Ignoring FOMC events (2PM NY)
• Trading against the 3PM NY close trend

Pro Tip: The first 30 minutes after NY open often reverses London's direction - wait for the fakeout.

8:20 AM NY (CME Open) Reversal Strategy

Mastering Institutional Turning Points in US100Cash (Nasdaq 100)

Why 8:20 AM NY is Critical

The 8:20 AM New York time marks the official open of the CME (Chicago Mercantile Exchange), when institutional traders adjust positions. For US100Cash, this often creates:

• Liquidity runs (stop hunts) before reversal
• Sharp price rejection from key levels
• High-probability reversal setups with 2:1+ risk-reward

📌 Long (Buy) Reversal Setup

Bullish Reversal Conditions

• Price tests Asian range low (12AM-5AM NY) before 8:20 AM
• Bullish divergence on 5-minute chart (RSI/MACD)
• 8:20 AM candle shows long wick rejection or engulfing pattern
• Volume spike on reversal candle

Entry: Buy on close above 8:20 AM candle high (confirmation).
Stop Loss: Below lowest low of last 30 minutes or Asian session low (1.5-2% risk).
Take Profit:

• TP1: Previous resistance (1:1 risk-reward)
• TP2: London session high (2:1 risk-reward)

⚠️ Avoid If:

• Major economic news at 8:30 AM (e.g., NFP, CPI)
• Price is in strong downtrend on 1H chart
• CME open candle shows no wick (continuation likely)

📌 Short (Sell) Reversal Setup

Bearish Reversal Conditions

• Price tests Asian range high (12AM-5AM NY) before 8:20 AM
• Bearish divergence on 5-minute chart (RSI/MACD)
• 8:20 AM candle shows short wick rejection or engulfing pattern
• Volume spike on reversal candle

Entry: Sell on close below 8:20 AM candle low (confirmation).
Stop Loss: Above highest high of last 30 minutes or Asian session high (1.5-2% risk).
Take Profit:

• TP1: Previous support (1:1 risk-reward)
• TP2: London session low (2:1 risk-reward)

⚠️ Avoid If:

• Pre-market futures are gap up >1% (bullish bias)
• Price is in strong uptrend on 1H chart
• CME open candle is too large (>0.8% range)

🔑 Pro Tips for CME Open Reversals

Focus On:

• 8:15-8:25 AM NY window for liquidity sweeps
• Align with higher-timeframe trend (e.g., trade longs only if daily chart is bullish)
• Watch pre-market volume in US100 futures (low volume = higher reversal probability)

Risk Management:

• Never risk >2% of account on CME open trades
• Adjust position size if average true range (ATR) is >1.5x normal
• Close 50% at TP1 and trail stop for remainder

BASICS What is Average True Range (ATR)?

ATR measures how much price moves on average, showing volatility. It adapts to changing conditions better than fixed pip counts.

Example (US100Cash):
- Normal ATR (14): 120 points
- High Volatility: 200 points
- 66% higher movement → reduce position size

STRATEGY Adjusting Position Size with ATR

Step-by-Step Guide:

1. Baseline ATR: Use 14-period on daily chart
2. Compare Current ATR: If >1.5x normal, reduce size by 30–50%
3. Adjust Stops: Stop Loss = 1.5x Normal ATR
4. Scale Targets: Aim for 2x ATR instead of 1.5x

US100Cash Example:
- Entry: 15,000, Normal Stop: 14,880 (120 pts)
- High ATR (200 pts):
  • Size down 40%
  • Stop: 14,800
  • Target: 15,400

⚠️ ATR Trading Pitfalls to Avoid

• During News: ATR may spike 2–3x — wait for calm
• Fixed Stops: May get hit in high ATR days
• Overtrading: More volatility doesn't mean better chances

✅ ATR Trading Success Factors

• Track ATR Ratios: Example: atr(14)/sma(atr(14),20)
• Match with Kill Zones: ATR spike at 7–10 AM NY often signals a move
• Use Limit Orders: Helps avoid slippage when ATR is high

📌 CME Open Reversal (US100Cash) – ICT Price Action Only

Setup Rules (From Video)

• Price Tests Asian Range Extremes: - Before 8:20 AM, price should touch Asian range high/low (12AM-5AM NY).
• 8:20 AM Candle Reaction: - Look for wick rejections or engulfing patterns at this exact time.
• Liquidity Confirmation: - Price should sweep previous highs/lows (stop hunts) before reversing.

Entry: - Long: Price closes above 8:20 AM candle high after testing Asian low. - Short: Price closes below 8:20 AM candle low after testing Asian high.

Stop Loss: - Beyond the nearest swing point or Asian range extreme.

Take Profit: - First target: Opposite side of Asian range (1:1 R:R). - Second target: London session high/low (2:1 R:R).

📅 When to Trade (Based on Video)

Key Time Windows:

• Asian Range (12AM-12AM NY): Watch for breakouts/breakdowns
• London Kill Zone (1AM-5AM NY): Best for reversal trades
• New York Kill Zone (7AM-10AM NY): Focus on momentum
• 8:20 AM NY (CME Open): Critical inflection point

📍 Where to Enter

From the Video:

• At Kill Zone Boundaries: "Look at the turning points at Kill Zone boundaries"
• CME Open (8:20AM NY): "Price rallies away from 8:20 AM line - not randomness"
• London Close (10AM-12PM NY): "London close makes the low of the day"

1-Minute Chart Entry: Wait for price to confirm direction at key times with 3 consecutive candles in the same direction.

🛑 Stop Loss & 🎯 Take Profit

Stop Loss Rules:

• Place SL beyond nearest swing high/low
• For longs: Below Asian range low
• For shorts: Above London session high
• Always 1-2% risk per trade

Take Profit Rules:

• First TP at 1:1 risk-reward
• Second TP at next Kill Zone boundary
• Final TP at 3PM NY close for runners

🔍 What to Focus On

From the Video:

• "Look at the high that forms at 5AM (end of London Kill Zone)"
• "Low forms at 8:20AM CME open"
• "London close makes the low of the day"

Key Patterns:

• Price reactions at Kill Zone boundaries
• Order blocks at session opens
• Liquidity grabs near CME open

🚫 What to Avoid

Critical Mistakes (From Video):

• "Folks that are using my free tutorials waiting for 2 o'clock, 3 o'clock, 4 o'clock - this is not the actual Kill Zone"
• "Between London and New York Kill Zones - London lunch - generally no major moves"
• Trading FOMC events (2PM NY) without understanding bond market closure impact

Remember: The institutional day ends at 3PM NY when bonds close - don't trade late-day noise.

ICT's IPDA Trading Model: Complete Guide

Mastering Institutional Price Delivery Algorithm Trading

1. What is IPDA?

IPDA (Interbank Price Delivery Algorithm) is ICT's framework for identifying institutional order flow and high-probability trade setups based on:

• Time-based liquidity (Kill Zones, CME Open, London Close)
• Institutional reference points (daily highs/lows at specific times)
• Algorithmic price behavior (repeating patterns tied to banking hours)

Key Idea: Banks and hedge funds trade in predictable time windows, creating reliable setups for retail traders.

2. Where & How to Use IPDA?

Markets to Trade

Forex (EURUSD, GBPUSD) Indices (US100, SPX500) Commodities (Gold, Oil)

Timeframes

Best: 15M, 1H, 4H Day Trading: 5M

3. Key IPDA Time Windows

Zone	Time (NY EST)	What Happens?
Asian Range	12:00 AM – 5:00 AM	Consolidation, false breakouts
London Kill Zone	1:00 AM – 5:00 AM	Major highs/lows form here
New York Kill Zone	7:00 AM – 10:00 AM	Strong trend continuations/reversals
CME Open	8:20 AM NY	Sharp reversals (Nasdaq, SPX)
London Close	10:00 AM – 12:00 PM	Institutional repositioning

4. Step-by-Step Trade Examples

EURUSD in London Close Kill Zone

1. Wait for 10:00 AM NY Time (London Close starts)
2. Check if price is at a key level (support/resistance)
3. Look for rejection candles (pin bars, engulfing)
4. Enter on confirmation (break of structure)
5. Stop Loss: Beyond recent swing
6. Target: Previous Kill Zone extreme

US100 at CME Open (8:20 AM NY)

1. Watch 7:00-8:20 AM NY (New York Kill Zone)
2. If price drops into 8:20 AM, watch for reversal
3. Enter long on bullish confirmation
4. Stop Loss: Below 8:20 AM low
5. Target: London session high (1:1 or 1:2 RR)

5. Key IPDA Trading Takeaways

✅ Trade in Kill Zones

Most moves happen in London/NY sessions

✅ CME Open = Reversal Hotspot

Especially for indices

✅ London Close = Stop Hunts

Fade false breaks

✅ Follow Institutional Flow

Banks trade at these times

Pro Tip:

Backtest these times on your charts — you'll see how often highs/lows form at 5 AM NY (London close), 8:20 AM (CME Open), and 10 AM-12 PM (London Close).

ICT IPDA Trading Examples: US100Cash & EURUSD

Key Concepts from the Video

• Asian Range: Midnight - 5:00 AM NY Time
• London Kill Zone: 1:00 AM - 5:00 AM NY Time
• New York Kill Zone: 7:00 AM - 10:00 AM NY Time
• London Close Kill Zone: 10:00 AM - 12:00 PM NY Time
• CME Open: 8:20 AM NY Time (critical reversal point)
• IPDA True Day: Midnight - 3:00 PM NY Time

Example 1: US100Cash (Nasdaq) Trade

New York Kill Zone & CME Open Strategy

Context: Price often reacts at the CME Open (8:20 AM NY Time) within the New York Kill Zone.

Trade Setup:

1. Observation: Price rallies into London Kill Zone (1:00-5:00 AM), peaks near 5:00 AM.
2. New York Session: Pullback into 7:00-10:00 AM zone; forms swing low at 8:20 AM (CME Open).
3. Entry: Buy break of 5-minute candle high post-8:20 AM.
4. Stop Loss: Below 8:20 AM low.
5. Target: London session high or 1:2 risk-reward.

Rationale: Institutional activity at CME Open aligns with IPDA's algorithmic liquidity patterns.

Example 2: EURUSD Trade

London Close Kill Zone Reversal

Context: "London close makes the low of the day" (10:00 AM - 12:00 PM NY Time).

Trade Setup:

1. Observation: Downtrend into New York Kill Zone (7:00-10:00 AM) stalls.
2. London Close (10:00 AM-12:00 PM): Price bases at 10:30 AM, starts rallying.
3. Entry: Buy retest of breakout level (15-min high) with volume.
4. Stop Loss: Below London Close low.
5. Target: New York Kill Zone high or 1:3 R:R.

Rationale: Institutional repositioning during London Close drives reversals (per ICT’s IPDA framework).

Summary

Both examples leverage time-based liquidity and institutional order flow from ICT’s IPDA model. Focus on Kill Zones and CME Open for high-probability setups.