ICT: FVG and zones
Lesson 20 of 39 in the course “Crypto”. Free, with animations and a quiz.
Sessions and killzones
ICT (Inner Circle Trader) is a set of ideas from a popular trading educator, close to SMC. It splits the trading day into sessions: Asia, London, New York. Killzones are the first hours of London and New York, when the most trading happens. The picture shows it: while sessions overlap, liquidity is highest and moves are stronger.
How to read the times in the picture
The times in the picture are in UTC, the world reference time that all time zones are counted from. Example: in the UTC+3 zone, 12:00 UTC is 15:00 local time. Session borders are approximate and shift by an hour when Europe and the US switch to daylight saving time. Sounds tricky, but it is simple: convert the sessions to your city once.
Check yourself
- What is an FVG?
Correct answer: A gap between candles 1 and 3 after an impulse. An FVG is a stretch price flew through with almost no trading. In ICT, price often returns to fill it. - Where does ICT look for buys?
Correct answer: In discount, the lower half of the range. Discount is below the middle of the range, where price is cheaper relative to the whole move. Premium is above the middle, the zone for sells. - Killzones are...
Correct answer: High-liquidity hours: London and New York. Killzones are the first hours of London and New York. That is when the most trades and the strongest moves happen.