Trading plan for ICT kill Zones

Welcome to another episode! If you're executing trades at random times during the day, you're missing out on something crucial: timing. In this article, we'll introduce a powerful trading plan based on ICT kill zones. We'll explain the London kill zone and how to leverage this knowledge to your advantage. You'll learn to read price action and market structure like a pro.

So, what exactly are kill zones? They are specific times of the day where liquidity floods into the market. This creates excellent trading opportunities. In this article, we’ll focus specifically on strategies for the London Kill Zone.

Let’s get into it. First, open TradingView. Select the indicators tab and find the WR Market Sessions indicator by Leviathan. After adding it, adjust the settings. Uncheck Tokyo, New York, and Sydney sessions. Set the London session to close at 13:00. Now, we can see the London Kill Zone clearly on the chart.

But why mark the London session? It’s unique! When this session starts, there's a surge of liquidity. Currency pairs like Euro, Pound, Swiss Franc, and Gold see active trading. New participants join the market, creating different price movements compared to the Asian session. The high and low of the day often form during this time, making it prime for high probability trades.

Traders selling here set their stop losses above this wick, creating liquidity above this level. When the London Kill Zone begins, the price initially goes higher, grabbing that liquidity before dropping to target the liquidity below the day’s low.

New trends and structures form from this influx of new traders. When the London Kill Zone begins, watch for liquidity sweeps. These high-impact movements often indicate a shift.

Be on the lookout for fake outs. They happen when price breaches a structural level but quickly returns. If the market breaks cleanly through, it signals a potential momentum shift.

Next, we’ll analyze the chart when the London Kill Zone begins. We’ll start on the 1-hour chart to identify the market direction. From there, we’ll pinpoint key levels and swings that might cause price rejections.

As the Kill Zone starts, we’ll zoom into the 15-minute chart to mark liquidity areas. Look for the day’s high and low formed in the Asian session. We typically see a few patterns during the Kill Zone. In one scenario, the price sweeps liquidity and continues in the higher time frame's direction.

Now, let’s go through some real chart examples. On the Pound Dollar 1-hour chart, we spot an uptrend. The market breaks structure levels, confirming strong buying pressure. We’ll identify this market as bullish and seek long opportunities.

When we zoom into the 15-minute chart, we’ll mark vital liquidity zones. An optimal trade setup might involve pushing price below the day’s low to grab liquidity before moving upwards again.

An aggressive entry could occur after a fake-out while a conservative approach would wait for a clearer signal.

On the Pound Yen 1-hour chart, we see a strong uptrend facing resistance. This gives us a bearish bias. In the 15-minute view, large candles and fair value gaps indicate bearish momentum.

We can spot the day’s high with liquidity above it, but the market has ample liquidity and an unmitigated order block. This is our chance to go short aligned with the downtrend.

Remember to be patient. If a trade doesn’t align with your plan, pass on it. Trading isn’t about volume; it’s about quality. Waiting for the right high-quality trades is crucial.