Kill Zones

Kill zones are really liquidity events. Many different market participants often come together and act around these events. The activity itself may be event driven (margin calls or options exercise related activity), portfolio management driven (buy-on-close and asset allocation rebalancing orders) or institutionally driven (larger players needing liquidity to get filled in size) or a combination of any/all three. The point is, this intense cross current of activity at a very specific point in time often occurs near significant technical levels and trends established coming out of these events often persist until the next Kill Zone in approached/entered.

Specifically, there are three Kill Zones and each has its own importance/significance.

1. Asian Kill Zone (1900 - 2300 EST) Considered the "institutional" zone, this zone represents both the launch pad for new trends and also too a reloading area from the post American session. It is the start of a new day (or week) for the world and as such it makes sense this zone will often set the tone for the rest of the world's trading day. Since it is very wide (4 hours) one should pay attention to the Tokyo open (2100 EST) the Beijing open (2120 EST) and the Sydney open (0650 EST previous day).

2. London Kill Zone (0200 - 0400 EST) Considered the center of the financial universe for more than 500 years, Europe still carries a lot of influence within the banking world. Many larger players use the Euro session to establish their positions. As such, the London open often sees the most significant trend establishment activity through any given trading day. Indeed, it has been suggested 80% of all weekly trends are established through Tuesday's London Kill Zone.

3. New York Kill Zone (0830 - 1030 EST) The United States is still by far the world's largest economy and so by default New York's open carries a lot of weight and often comes with a big injection of liquidity. Indeed, most of the world's trade-able assets are priced in US dollars which gives even more significance to political and economic activity within this region. Because it comes relatively late in the globe's trading day, this Kill Zone often sees violent price swings within it's first hour leading to the time tested adage "never trust the first hour of North American trading.

Additional notes:
It has become apparent these Kill Zones are evolving over time and the course of world history. Since the end of the second world war, New York has slowly encroached on London's place as the global center for commercial banking. So much so through the later part of the 20th century New York was considered indeed, the new center of the financial universe. With the end of the cold war that leadership seems to have shifted back toward Europe and away from The United States. Additionally, Japan has slowly lost its former predominance within the global economic landscape while Beijing's has risen dramatically.

Only time will tell how these kill zones will evolve given each region's ever changing political, economic and socioeconomic influences.

Trading Notes:
If you have specific levels of interest odds are the bigger players have the same levels too. If it is indeed a solid level, look for price to trade to your level through the kill zone because the zone is a liquidity event where the bigger players can find enough size to get their big orders filled.

Try to avoid taking positions heading into Kill Zones and look for confirmation of your levels coming out of the event. For the more advanced trader, look to take positions on those level hits through the zone but understand higher time frame players often have far deeper pockets then day traders and can endure far more volatility then us little guys.

Thanks for the contribution to @CRInvestor and @ICT_MHuddleston
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// Created by https://www.tradingview.com/u/oscarvs @ 18 October 2014 | @theoscarvs
// Inspired by @ICT_MHuddleston concepts and @CRInvestor courses, code based on @ChrisMoody scripts
// https://github.com/oscarvs/bitcoin-killzones
// Time sessions are directly sync from exchange/tv data (Change manually if you need to adjust DST Daylight saving time)

study(title="Bitcoin Kill Zones v2 [oscarvs]",shorttitle="Bitcoin Kill Zones v2", overlay=true)
timeinrange(res, sess) => time(res, sess) != 0

// **** Checkboxes and custom Session
iKZNY = input(true, title="New York Kill Zone")
iOpenKZLondon = input(true, title="London Open Kill Zone")
iCloseKZLondon = input(true, title="London Close Kill Zone")
iAsiaKZ = input(true, title="Asia Kill Zone")
KZNY = input('1230-1430', type=session, title="New York Kill Zone")
LondonOpenKZ = input('0600-0800', type=session, title="London Open Kill Zone")
LondonCloseKZ = input('1500-1700', type=session, title="London Close Kill Zone")
AsiaKZ = input('2300-0300', type=session, title="Asia Kill Zone")

iRealOpenSessionAlertBar = input(true, title="Real Open Session Alert Bar")
NYOpenAlertBar = input('1330-1345', type=session, title="New York Open Session")
LondonOpenAlertBar = input('0700-0715', type=session, title="London Open Session")
LondonCloseAlertBar = input('1545-1600', type=session, title="London Close Session")
AsiaOpenAlertBar = input('0000-0015', type=session, title="Asia Open Session")

// **** Logic
sessToUse = iKZNY == 1 ? KZNY : '0000-0000'
sessToUse2 = iRealOpenSessionAlertBar == 1 ? NYOpenAlertBar : '0000-0000'
sessToUse3 = iOpenKZLondon == 1 ? LondonOpenKZ : '0000-0000'
sessToUse4 = iRealOpenSessionAlertBar == 1 ? LondonOpenAlertBar : '0000-0000'
sessToUse5 = iCloseKZLondon == 1 ? LondonCloseKZ : '0000-0000'
sessToUse6 = iRealOpenSessionAlertBar == 1 ? LondonCloseAlertBar : '0000-0000'
sessToUse7 = iAsiaKZ == 1 ? AsiaKZ : '0000-0000'
sessToUse8 = iRealOpenSessionAlertBar == 1 ? AsiaOpenAlertBar : '0000-0000'

// *** Apply custom rules
bgPlot = (iKZNY == 0 ? time(period) : time(period, sessToUse)) 
bgPlot2 = (iRealOpenSessionAlertBar == 0 ? time(period) : time(period, sessToUse2)) 
bgPlot3 = (iOpenKZLondon == 0 ? time(period) : time(period, sessToUse3)) 
bgPlot4 = (iRealOpenSessionAlertBar == 0 ? time(period) : time(period, sessToUse4)) 
bgPlot5 = (iCloseKZLondon == 0 ? time(period) : time(period, sessToUse5)) 
bgPlot6 = (iRealOpenSessionAlertBar == 0 ? time(period) : time(period, sessToUse6)) 
bgPlot7 = (iAsiaKZ == 0 ? time(period) : time(period, sessToUse7))
bgPlot8 = (iRealOpenSessionAlertBar == 0 ? time(period) : time(period, sessToUse8))

//**** Plot as background
bgcolor(iKZNY and bgPlot > 0 ? red : na, transp=90) 
bgcolor(iKZNY and iRealOpenSessionAlertBar and bgPlot2 > 0 ? red : na, transp=70) 
bgcolor(iOpenKZLondon and bgPlot3 > 0 ? green : na, transp=90) 
bgcolor(iOpenKZLondon and iRealOpenSessionAlertBar and bgPlot4 > 0 ? green : na, transp=70) 
bgcolor(iCloseKZLondon and bgPlot5 > 0 ? olive : na, transp=90) 
bgcolor(iCloseKZLondon and iRealOpenSessionAlertBar and bgPlot6 > 0 ? olive : na, transp=70) 
bgcolor(iAsiaKZ and bgPlot7 > 0 ? orange : na, transp=90) 
bgcolor(iAsiaKZ and iRealOpenSessionAlertBar and bgPlot8 > 0 ? orange : na, transp=70) 


I just published a version of this script that prints the kill zones a day in advance, and weekends.
+8 응답
@pequet, check you pm
pequet Cryptonite_trader
for a message from you? because there is none.
@pequet, try now
pequet Cryptonite_trader
now there is one. you could just have messaged me you know :)
+1 응답
If only regular traders would trade Bitcoin, then it would make sense to apply Forex kill zones to Bitcoin. But for example the entire crash down to $275 happened during a weekend, while no classic broker was sitting on his desk.
+4 응답
ChartArt ChartArt
Overall thank you for creating this awesome script :)
ChartArt ChartArt
Your script ignores weekends, while Bitcoin trades 24/7/365 and Forex trades only from Monday to Friday. Here is the crash using your script:

+1 응답
oscarvs ChartArt
sadly I can't chart weekends directly (pinescript) because TV use regular sessions (mon-fri)... but, I think is good to use killzones only during "market" hours... maybe next version we can add more data as Bitcoin grows.
+1 응답
oscarvs ChartArt
yes :) I think bitcoin is building his own rules/killzones, so, maybe this is a good start. check out london open/close, those are powerful liquidity events.

zoom out a little the chart and you can see how important was that 30k wall on monday london Open... after that $275 weekend... is REALLY interesting.