ICT Forex - The ICT Asian Killzone

Summary

Highlights

• The Asian Killzone is less active but offers strategic trading opportunities. 🔍
• Currency pairs ideal for this session include the Aussie, New Zealand dollar, and Japanese yen. 💹
• Ideal for North American traders looking to engage in foreign markets after work. 🌎
• Focus on the Asian open and identify optimal trade entry patterns. 🎯
• Explore less volatile currency crosses like the Aussie yen or pound Swissy for better trading during this time. ⚖️

Key Takeaways

• The ICT Asian Killzone offers trading opportunities during a less active market session. 🌙
• Ideal for part-time traders with day jobs, especially in North America. 🇺🇸
• Focus on pairs like Aussie, New Zealand dollar, and Japanese yen during the Asian session. 💹
• Leverage less volatile currency crosses for optimal trades. ↔️
• Understanding time and market behaviors is crucial for trading success. 🕰️

Overview

Chapters

• 00:00 - 00:30: Introduction to the ICT Asian Killzone The 'Introduction to the ICT Asian Killzone' chapter serves as an entry point to understanding the timing and strategy involved in trading during specific times of the day. The speaker acknowledges that the Asian Killzone is one of several periods they monitor for potential trading setups. However, it is mentioned as the least active time for the speaker, possibly due to their geographical location being in North America, which may influence the trading activity experienced during the Asian market hours. This introductory chapter sets the stage for a deeper exploration of trading strategies tied to specific market times.
• 00:30 - 01:00: Understanding Local Time vs Trading Time This chapter explains the difference between local time and trading time, using the American continent's East Coast as a reference point. It emphasizes the significance of understanding time and price in trading. The chapter focuses on the Asian trading session, detailing the Asian open and the key characteristics defining this session.
• 01:00 - 02:00: Currency Pairs Ideal for the Asian Session This chapter focuses on the ideal currency pairs to trade during the Asian session, highlighting the Australian dollar, New Zealand dollar, and Japanese yen. These currencies are particularly active as their respective markets are open during this time, leading to increased trading activity.
• 02:00 - 03:00: Optimal Trade Entry Patterns in the Asian Open This chapter discusses the potential for North American traders to engage in trading during the Asian open session as a part-time venture. It highlights how some traders might develop their trading models solely around the Asian session, eliminating the need to stay up for the London or New York sessions. The chapter implies that the Asian open can be a strategic time for optimal trade entries.
• 03:00 - 05:00: Examples of Trading Pairs During the Asian Session The chapter discusses optimal trade entry patterns that can potentially yield 15 to 20 pips for scalping. It highlights the importance of considering higher time frame bias, yet notes that short term retracements in either bullish or bearish markets can also provide profitable trade setups. An example provided is the dollar-yen pair, with an emphasis on understanding the overall specifics rather than focusing on chart details.
• 05:00 - 06:30: Consolidation and Its Significance The chapter discusses the significance of the Asian trading session and highlights the key points about trading during this timeframe. It emphasizes that there are many details to consider when trading, but particularly notes that certain currency pairs—such as the Australian dollar, New Zealand dollar, and Japanese yen—tend to perform well during this session.
• 06:30 - 08:00: Characteristics of Currency Pairs in the Asian Session The chapter discusses the characteristics of currency pairs during the Asian trading session and how it can be identified in Forex trading platforms.
• 08:00 - 09:30: The Role of Cross Pairs in Volatility The chapter discusses the role of cross currency pairs in affecting market volatility. It begins by noting the time sensitivity and variance that can be observed in these pairs due to global time changes, such as daylight saving time adjustments. The speaker highlights the importance of acknowledging these temporal shifts when considering cross pair trading strategies, especially over specific periods, like the two hours window referenced. This temporal aspect is essential for understanding how global time changes influence the behavior of cross pairs in different financial markets.
• 09:30 - 11:00: Concluding Thoughts on Trading the Asian Session This chapter discusses strategies for trading during the Asian session. It highlights the importance of focusing on movements that form just after the market opens. The author uses a two-hour window strategy, which they find minimally impactful but still useful. As an example, the New Zealand dollar is analyzed, showing that optimal trade entry often appears with singular, distinct candlestick movements following the Asian market open.

ICT Forex - The ICT Asian Killzone Transcription

• 00:00 - 00:30 okay folks welcome back this teaching is going to be specifically dealing with the ICT Asian kill zone okay the Asian kills them this is the first of several specific times of the day where I like to look for setups admittedly this is the least active time of the day for me I live in the North
• 00:30 - 01:00 American continent on the East Coast so whatever time it is in New York time in States that's my local time so what ICT concepts are going to use in this module again the importance of time and price the Asian open the Asian session and important characteristics that make up the Asian session okay first we're going to get
• 01:00 - 01:30 into the Asian open now this time of day you're going to find that the Australian dollar the New Zealand dollar Japanese yen pairs are ideal for this time of day they're active their markets are open at that time and it goes without saying that if their markets are trading actively as it relates to their specific currency in country of origin this small
• 01:30 - 02:00 little window of opportunity for North American traders to trade after a 9:00 to 5:00 job could fit exactly what you're hoping to do as a part-time gig if you will and or your trading model could be completely built around the asian session and never be up for london or trade in new york session now the agent open can sometimes set up an
• 02:00 - 02:30 optimal trade entry pattern that can offer 15 to 20 pips for a scalp now the higher time frame bias is helpful here but short term retracements and either a bull or bear market can offer similar octal trade and 3 setups as an example here this is the dollar yen pair and again I'm not trying to zoom in on these charts because the details are not important at this point I'm just trying to build up an overview of the specifics
• 02:30 - 03:00 about the asian session that are important right now the salient points if you will there's other details and a lot of details that go into this timeframe but you're gonna find that if you are looking for trades in this time of day these pairs the Aussie New Zealand dollar and Japanese yen tend to do very well as you can see here in this example
• 03:00 - 03:30 to the right you can see the Asian it's deleted here and if you look at Forex Ltd that's the demo account I teach with if you hit ctrl Y on a 15-minute time frame that vertical line is gonna be delineating what I have referred to as the Asian open now it'll fluctuate back and forth relative to daylight savings time but for the most
• 03:30 - 04:00 part I'm looking at a window of about two hours so even though it may not start exactly at 7 o'clock or 8 o'clock in the States and even time relative to the daylight savings time shift it takes place if that shift is taking place in terms of time like right now we are in daylight savings time at the time of this recording in December 2017 and when we leave this daylight savings time it'll shift a
• 04:00 - 04:30 little bit but I use a two hour window said it doesn't have a great impact at all so what I look for is a move that originates or forms immediately after the Asian open another example here the New Zealand dollar again very similar this one you can see the optimal trade entry comes down with just one singular candle on a
• 04:30 - 05:00 15-minute time frame comes down gives an optimal trade entry runs equal highs in the previous day's range and ultimately runs all up to the previous Friday's high now this is all done during the asian session prior to Frankfurt open or London open now we're gonna talk about the asian session now the periods when
• 05:00 - 05:30 the market is not willing to run in the Asian session other words there's not gonna be an optimal trade entry pattern it will consolidate until midnight New York time now the Asian trading session actually extends beyond the midnight hour of New York time but I focus specifically in the realm of the Asian open to midnight so there's a range of several hours okay that I deem as the asian session for my trading even though
• 05:30 - 06:00 it does trade past midnight New York time the setup or the information that I glean from these hours prior to midnight are going to be covered in future tutorials and teachings but there is a limitation because I go into greater detail in the mentorship but you will get a plethora of insights using this specific range of time but for now the importance of the consolidation holds
• 06:00 - 06:30 many clues to how the daily range will develop over the remainder of the 24-hour trading day now these will be covered again in future lessons but I want you to take a look at this example here the euro dollar now generally this pair isn't very active during the asian session there are times when it is active and it creates a significant high or low or it begins the daily range high or low in this delineation of time for the most part it tends not to do that so
• 06:30 - 07:00 when it's not doing that we can view this Asian session as a consolidation that will in future lessons be very meaningful and significant in terms of our analysis much like the euro dollar the pound dollar again generally is not very active in this time of day so when it is not poised to make a significant higher load during the asian session or start running off of an optimal trade entry during the asian session again we
• 07:00 - 07:30 would anticipate that particular time of day to be in a consolidation and again these consolidations will be very significant to us in future teachings ok the asian session characteristics now the pairs that are not coupled with the dollar index or as we refer to as crosses are most active during this time of day the US dollar tends to
• 07:30 - 08:00 consolidate until midnight New York time which frees crosses like Aussie yen Pound Ozzie and many other pairs that cross with the busy currencies of this time of day now what type of currencies would that be well like we can do a pound Swiss those types of to me that's an exotic I don't trade them I tend to stay away from them and that's the other reason why I don't like to trade the asian session as well I am NOT trying to
• 08:00 - 08:30 discourage you from researching and studying it because it may end up becoming your niche it may be the thing that you are going to excel at best so I don't want to give you the commentary in light of my own tastes and try to mold what you try to do or what you don't like and what you should like based on what I say I like so my opinion or my personality doesn't suit well for these
• 08:30 - 09:00 times a day like these are my these are my family hours ok or as you know my Twitter hours after after market hours but if you are a working class hero and you can't be watching the markets in today throwing to London and or New York session you have to do something in the evening hours but before midnight and still have a restful sleep you can trade these crosses at this time of day and many times you can catch anywhere between 20
• 09:00 - 09:30 and 50 pips not every single day but a couple times a week you can find scenarios like that in the crosses so now with this understanding we can look at an example like the Aussie yen here so you can see a beautiful example of how we have equal lows the previous trading day late New York and there was an optimal trade entry cell where it runs 20 pips below the New York session lows all way down to a perfect symmetrical 20
• 09:30 - 10:00 pip sweep and also a beautiful Fibonacci extension overlay but if you are like I said someone that's working in the States and you're limited in your time of day where you can be active you can supercharge the asian session by using the cross pairs now you can still get movement in like the Aussie dollar the dollar yen you need New Zealand Dollars those types of pairs but you're gonna be getting a drag sometimes because of the
• 10:00 - 10:30 dollar index you get much more volatility by having it a couple with a cross number it's like a euro Aussie a pound Swissy something like that we have a lot more volatility because of the cross nature of the pair and it's not being held back or limited by way of the dollar index okay speaking of the pound Swissy you can see this one here gives a
• 10:30 - 11:00 beautiful example of a bullish optimal trade entry and it trades above previous day's high and it reaches up into a target one on the Fibonacci so we're seeing these trades form prior to London's volatility and we're also seeing it outside the scope of New York so over the evening hours of the North
• 11:00 - 11:30 American continent where everyone sits down at dinner and then sits down a family time and watches TV or whatever they do I don't really consume a lot of TV but whatever the normal American family is doing in those hours if you have the opportunity to look at the marketplace at the Asian session there's about 2 sometimes 3 hours where you can really dial in and get a set up and many times it's going to come in the form of the cross so anything that's not coupled
• 11:30 - 12:00 to a dollar but has a pair that's usually active during the asian session and again that's the Aussie New Zealand the yen those pairs tend to do a lot of movement because their their countries are active either markets are open at that time and even though there are smaller markets they do start the financial day now gonna agree on one thing we're going to agree that the financial day starts at midnight New
• 12:00 - 12:30 York time because right now the dollar is still the reserve currency whether you want to accept that or believe it that's just the way it is and what I view as the key point of the day is midnight New York time so if we can look for that small little window of opportunity between the Asian open and midnight that's a sweet spot for crosses now there are times in the day like in London or New York where a cross can
• 12:30 - 13:00 move and that's going to be done by manipulation with the dollar this time of day the dollars usually quiet so we're not going to see a lot of manipulation by the way the dollar so all the movement is going to be done by using the crosses so if you look for a strong currency against a weak currency during this time of day and get an optimal trade entry pattern you'll get many times a wonderful opportunity to trade during a typical slow period of
• 13:00 - 13:30 the 24-hour banking cycle so hopefully you found this teaching insightful if you want to find more information like this you can find it at the inner circle trader calm or my youtube channel inner-circle trader until next time I wish you good luck and good trading