ICT Market Maker Primer Course - 04 - The ICT Asian Killzone.srt

Last modified by Drunk Monkey on 2021-06-10 06:18
1 00:00:06,990 --> 00:00:11,670 ICT: Okay folks, welcome back. This teaching is going to be specifically dealing with the ICT, Asian Killzone.
2 00:00:18,480 --> 00:00:30,090 Okay, the Asian kill zone. 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
3 00:00:30,150 --> 00:00:40,740 of the day for me. I live in the North American continent on the east coast. So whatever time it is in New York time, states, that's my local time. So what ICT
4 00:00:40,740 --> 00:00:57,270 concepts are going to use in this module. Again, the importance of time and price, the Asian open asian session and important characteristics that make up
5 00:00:57,270 --> 00:01:12,870 the asian session. Okay, first, we're gonna get into the Asian open. Now, this time of day, you're gonna find that the Australian dollar, the New Zealand
6 00:01:12,870 --> 00:01:25,890 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 their markets are
7 00:01:26,010 --> 00:01:38,880 trading actively as it relates to their specific currency and country of origin.  This small little window of opportunity for North American traders to trade
8 00:01:38,880 --> 00:01:50,580 after a nine to five 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
9 00:01:50,580 --> 00:02:03,150 around the asian session, and never be up for London or trade in New York session. Now the Asian open can sometimes set up an optimal trade entry pattern
10 00:02:03,570 --> 00:02:13,920 that can offer 15 to 20 pips for a scalp. Now the higher time frame bias is helpful here. But short term retracements in either a bull or bear market can
11 00:02:13,920 --> 00:02:25,830 offer similar optimal trade entry setups. As an example, here, this is the dollar yen pair. And again, I'm not trying to zoom in on these charts, because
12 00:02:25,860 --> 00:02:37,560 the details are not important. At this point. I'm just trying to build up an overview of the specifics about the asian session that are important right now,
13 00:02:37,890 --> 00:02:51,090 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're looking for trades
14 00:02:51,090 --> 00:03:03,360 in this time of day, these pairs, the Aussie New Zealand dollar, Japanese yen, tend to do very well. As you can see here, in this example to the right, you can
15 00:03:03,360 --> 00:03:17,700 see the agent open is delineated 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 timeframe, that
16 00:03:17,700 --> 00:03:30,690 vertical line is going to be delineating what I refer to as the Asian open. Now, it'll fluctuate back and forth relative to daylight savings time. But for the
17 00:03:30,720 --> 00:03:42,210 most part, I'm looking at a window of about two hours. So even though it may not start exactly at seven o'clock or eight o'clock in the states in the evening
18 00:03:42,210 --> 00:03:52,260 time, relative to the daylight savings time shift that takes place. If that shift is taking place in terms of time, like right now we are in daylight
19 00:03:52,260 --> 00:04:04,980 savings time at the time of this recording in December 2017. In when we leave this daylight savings time, it'll shift a little bit but I use a two hour window
20 00:04:04,980 --> 00:04:23,940 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
21 00:04:23,940 --> 00:04:33,510 New Zealand dollar, again, very similar. This one, you can see the optimal trade entry comes down with just one singular candle when a 15 minute timeframe comes
22 00:04:33,510 --> 00:04:45,660 and gets an optimal trade entry runs equal highs in the previous day's range and ultimately runs all the way up to the previous Friday's high. Now this is all
23 00:04:45,660 --> 00:05:03,990 done during the asian session prior to Frankfurt open or London open. Now we're talking about the asian session. Now, the periods when the market is not willing
24 00:05:03,990 --> 00:05:12,840 to run in the asian session hours, there's not gonna be an optimal trade entry pattern, it will consolidate until midnight New York time. Now, the Asian
25 00:05:12,840 --> 00:05:18,360 trading session actually extends beyond the midnight hour of New York time. But I focus
26 00:05:18,390 --> 00:05:31,200 specifically in the realm of the agent open to midnight. So there's a range of several hours, okay, that I deem as the agent session for my trading, even
27 00:05:31,200 --> 00:05:42,810 though it does trade, past midnight, New York time. The setup or the information that I gleaned from these hours prior to midnight, are going to be covered in
28 00:05:42,840 --> 00:05:53,880 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
29 00:05:53,910 --> 00:06:04,020 this specific range of time. But for now, the importance of the consolidation holds many clues to how the daily range will develop over the remainder of the
30 00:06:04,020 --> 00:06:12,330 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,
31 00:06:12,510 --> 00:06:22,530 this pair isn't very active during the asian session, there are times when it is active and it creates a significant higher low or begins the daily range higher
32 00:06:22,530 --> 00:06:36,270 low in this delineation of time. For the most part, it tends not to do that. So when it's not doing that, we can view this asian session as a consolidation that
33 00:06:36,270 --> 00:06:49,590 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
34 00:06:49,590 --> 00:06:59,970 very active in this time of day. So when it is not poised to make a significant higher low during the asian session or start running off of an optimal trade
35 00:06:59,970 --> 00:07:10,080 entry. During the asian session, again, we would anticipate that particular time of day to be in a consolidation. And again these consolidations will be very
36 00:07:10,080 --> 00:07:13,110 significant to us in future teachings.
37 00:07:18,750 --> 00:07:29,910 Okay, 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
38 00:07:29,910 --> 00:07:42,030 of day. The US dollar tends to consolidate until midnight New York time, which frees crosses like Aussie yen, pound Ozzy, and many other pairs that cross with
39 00:07:42,030 --> 00:07:53,700 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,
40 00:07:54,090 --> 00:08:01,290 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
41 00:08:01,290 --> 00:08:12,390 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 it best. So I don't
42 00:08:12,390 --> 00:08:23,670 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 or what you should like, based on what I
43 00:08:23,670 --> 00:08:36,780 say I like so my opinion or my personality doesn't suit well for these times a day. Like these are my These are my family hours, okay, or, as you know, my
44 00:08:36,780 --> 00:08:46,620 Twitter hours after after market hours. But if you are a working class hero, and you can't be watching the markets intraday during the London and or New York
45 00:08:46,620 --> 00:08:57,600 session, and 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,
46 00:08:57,750 --> 00:09:07,860 and many times you can catch anywhere between 20 and 50 pips, not every single day, but a couple times a week, you can find scenarios like that in the crosses.
47 00:09:08,160 --> 00:09:17,940 So now, with this understanding, we can look at an example like the Aussie yen Here you see a beautiful example of how we have equal lows, the previous trading
48 00:09:17,940 --> 00:09:31,530 day, late New York, and there was an optimal trade entry. So where it runs 20 pips below the New York session lows all the way down to a perfect symmetrical
49 00:09:31,530 --> 00:09:42,210 20 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
50 00:09:42,210 --> 00:09:53,970 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,
51 00:09:54,240 --> 00:10:04,020 the dollar yen unit New Zealand dollar, those types of pairs, but you're going to be getting a Drag sometimes because of the dollar index, you get much more
52 00:10:04,050 --> 00:10:18,090 volatility by having a couple with a cross number, it's like a euro or the pound swissy, something like that, where you have a lot more volatility, because of
53 00:10:18,090 --> 00:10:32,190 the cross nature of the pair, and it's not being held back, or limited by way of the dollar index. Okay, speaking on the pound swissy. You can see this one here
54 00:10:32,520 --> 00:10:45,930 is a 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
55 00:10:46,380 --> 00:11:00,780 we're seeing these trades form prior to London's volatility. And we're also seeing it outside the scope of in New York. So over the evening hours of the
56 00:11:00,780 --> 00:11:08,220 North American continent where everyone sits down at dinner and sits down with family time and watches TV, or whatever they do, I don't really consume a lot of
57 00:11:08,220 --> 00:11:20,700 TV. But whatever the normal American feeling is dealing in those hours, if you have the opportunity to look at the marketplace at the agent session, there's
58 00:11:20,700 --> 00:11:30,240 about two, sometimes three hours where you can really dial in and get a setup.  And many times it's going to come in the form of the cross. So anything that's
59 00:11:30,240 --> 00:11:41,580 not coupled to $1, 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
60 00:11:41,580 --> 00:11:51,270 do a lot of movement, because they're their countries are active, you know, their markets are open at that time. And even though they're smaller markets,
61 00:11:51,870 --> 00:12:02,130 they do start the financial day. Now, I'm going to agree on one thing, we're going to agree that the financial day starts at midnight, New York time,
62 00:12:02,459 --> 00:12:12,899 because right now, the dollar is still the reserve currency, whether you want to accept that or believe in it, that's just the way it is. What I view is the key
63 00:12:12,899 --> 00:12:24,719 point of the day is midnight, New York time. So if we can look for that small little window of opportunity between the agent open and midnight, that's a sweet
64 00:12:24,719 --> 00:12:34,349 spot for crosses. Now, there are times in the day, like in London or New York where a cross can move. And that's going to be done by manipulation with the
65 00:12:34,349 --> 00:12:46,229 dollar. This time of day, the dollar is usually quiet. So we're not going to see a lot of manipulation by way of $1. So all the movement is going to be done by
66 00:12:46,229 --> 00:12:57,119 using the crosses. So if you look for a strong currency against a weak currency during this time of day, and you get an optimal trade entry pattern, you'll get
67 00:12:57,119 --> 00:13:09,299 many times a wonderful opportunity to trade during a typical slow period of the 24 hour banking cycle. So hopefully you found this teaching insightful. If you
68 00:13:09,299 --> 00:13:16,649 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
69 00:13:16,649 --> 00:13:18,089 you good luck and good trading