ICT Mentorship Core Content - Month 08 - Defining The Daily Range
Understanding the ICT Day Trading Model
Introduction to the Daily Range
- The lesson focuses on defining the daily range within the context of the ICT day trading model, specifically for April 2017.
- Emphasis is placed on understanding both retail and interbank trading days, highlighting their differences.
Key Timeframes in Trading
- The instructor explains how to access period separators in MT4 by holding down control and tapping 'Y', which helps visualize time frames.
- A clear distinction is made between retail trading hours and interbank trading hours, stressing that high probability trades should reference interbank standards.
Understanding Asian Range and Kill Zones
- The Asian range begins at midnight Eastern Standard Time (EST) and ends at a specified time; this will be elaborated upon later in the course.
- The London Kill Zone starts at 1 AM EST and concludes at 5 AM EST, with further details promised in future lessons.
- The New York Kill Zone runs from 7 AM to 10 AM EST, marking critical times for trade setups.
True Day Definition
- The "true day" for interbank trading starts at midnight EST and ends at 3 PM EST, establishing a framework for analyzing price movements throughout this cycle.
- Specific examples are provided using a chart from April 3rd, 2017, illustrating how precise timing correlates with market behavior.
Analyzing Price Movements
- Observations are made about turning points in price during specific time windows, indicating algorithmic patterns related to time rather than randomness.
- Notable events such as the CME open at 8:20 AM are highlighted as significant moments where price action can be anticipated based on historical data trends.
Understanding the Kill Zones in Trading
Overview of Kill Zones
- The speaker discusses the significance of specific time windows known as "Kill Zones" for trading, particularly highlighting a window from 1 AM to 5 AM.
- A notable high forms at 5 AM during the London Kill Zone, which is crucial for traders to observe.
New York Session Insights
- Within the New York Kill Zone, a short-term high is identified, with a low forming at 8:20 AM coinciding with the CME open.
- The low established during this session leads into consolidation and trades off this low towards what is referred to as the New York close.
Understanding True Day Close
- The term "New York close" refers to what the speaker calls "True Day Close," which spans from midnight to 3 PM New York time.
- This timeframe is significant because it encompasses market influences related to bond closings and interest rate impacts on currency markets.
FOMC Influence on Market Movements
- The last hour of trading (2 PM - 3 PM NY time) captures movements associated with FOMC events such as interest rate announcements.
- Generally, major price movements related to these events conclude by 3 PM, framing daily ranges including open, high, low, and close.
Practical Application for Traders