ICTProTools | ICT Insight - Time & Price Zones

2024년 12월 6일

🚀 INTRODUCTION

The Time and Price Zones indicator builds upon the foundational concepts of ICT (Inner Circle Trader) and Smart Money Concepts (SMC). These methodologies analyze the behavior of institutional traders (known as "smart money") by focusing on liquidity, key price levels, and market timing.

Liquidity refers to areas with high concentrations of pending orders (stops, take-profits, entries) in the market. Large institutions efficiently need to execute their massive orders without causing excessive slippage. To achieve this, they strategically create and exploit liquidity pools by driving the price toward areas where retail traders cluster their positions.

Then, through "liquidity grabs" or "stop hunts,” institutions accumulate or distribute positions at optimal prices. This strategy allows them to fill large orders with minimal market impact, typically clearing out retail traders' positions before the price reverses.

This indicator helps traders apply these principles by merging time-based and price-based analysis tools for better market understanding. By combining high-impact sessions like Kill Zones with pivotal price markers such as Previous Highs and Lows, traders can see where institutional activity intersects with liquidity pools, improving their decision-making.

This powerful combination allows users to monitor market dynamics in real time, helping them spot sentiment shifts and identify crucial turning points more effectively.


💎 FEATURES

Kill Zones

Kill Zones are critical periods of the trading day characterized by heightened institutional activity, resulting in increased liquidity and significant price movements. By recognizing these zones, you can strategically focus your efforts on the most advantageous moments for trading.

The Asian Session, which runs from 5 PM to 1 AM New York time, serves as an essential liquidity provider before the onset of more volatile trading periods. This session is intricately linked to the Smart Money Tool (SMT - See below), as the highs and lows established during this period provide foundational liquidity levels. You can set alerts when these levels are breached, allowing you to stay informed without constant chart monitoring and make timely trading decisions.

Transitioning into the London Kill Zone from 2 to 5 AM New York time marks the beginning of the European session, often associated with increased volatility. Following this, the New York Kill Zone, occurring from 7 to 10 AM, sees significant overlap between the London and New York sessions, where liquidity flows intensify and frequently correlate with notable price reversals. Finally, the London Close from 10 to 12 PM signifies the end of the European session, often ending the day with a retracement in the daily range.

Thanks to the timezone you can select relative to a region, Kill Zones will automatically adapt to time changes throughout the year and between different brokers, ensuring accurate Kill Zone timings without manual adjustments.

Incorporating our advanced Kill Zones indicator into your trading strategy gives you unparalleled insights and enhanced functionality. With integrated alerts for breaches of key levels, you can stay informed and ready to act without the need for constant chart monitoring, allowing you to focus on executing your trading strategies effectively.

We can see on this chart the identified Kill Zones during the trading day on EURUSD, including the Asian Session in gray, which tends to consolidate slightly (creating liquidity), the London Kill Zone in orange, which tends to move fast, often taking Asian quickly, the New York Kill Zone in green, with always a lot of movements, and the London Close in blue, seeming rather to retrace.

The midline indicates the 50% mark of the session, serving as a reference point for potential price reactions. Additionally, the highs and lows established during the Asian Session are linked to the Smart Money Tool (SMT) and can trigger alerts when breached. Here, you could have received an alert when Asian Low (marked AL) and Asian High (marked AH) were swept.

Previous & Open Levels

Previous and Open levels are key elements in ICT methodology, showing important price points from major timeframes (Daily, Weekly, Monthly). These levels (Previous High, Low, Open, and their separators) help traders understand price dynamics and anticipate market shifts.

The Previous levels connect directly to the Smart Money Tool (SMT - See below) as they provide foundational liquidity levels. In ICT methodology, previous are levels where many traders place their Stop Loss, thus creating liquidity. This helps you understand potential market reactions and whether prices will likely continue their trend or reverse.

You’ll be instantly notified whenever the price interacts with any of these Previous levels. This means you can stay informed about critical market movements without the need to monitor your charts constantly.

The indicator also displays Opening prices and includes separators for daily, weekly, and monthly levels, offering a clear market overview.

Open levels can act as simplified indicators of Premium and Discount Zones. To be above the opening price can be considered as the Premium Zone, where the market offers higher prices, typically suitable for selling opportunities. Conversely, to be below this price can be considered as the Discount Zone, where prices are relatively lower, offering potential buying opportunities.

These visual elements help you identify crucial market zones that reflect both past price action and current market dynamics.

Our indicator offers you the exclusive ability to integrate the True Day Range, as described by ICT. Based on institutional logic, this concept defines the trading day starting at 00:00 New York time. You can adapt this flexible feature to match your trading style and analysis needs.

By incorporating our advanced Previous levels indicator into your trading arsenal, you gain powerful insights and enhanced functionality.

The chart above displays key Previous and open levels on EURUSD, including the Month, Week, and Day lines, along with separators for enhanced clarity. All levels are based on the True Day Range Mode. The notes indicate significant price points, highlighting how the price interacts with these important levels, which helps us to understand it…

We can start with the biggest liquidity, the Previous Month. In this example, we can see the PMH, and the price seems to have used this level as a reversal point. The PM levels are indeed significant liquidity zones. We can observe the creation of wicks that interact with this level, signaling a liquidity grab.
Following this, the price drops quickly before rebounding, creating a liquidity range, that will probably be liquidated then… This is why it rises again to form what is now the PDH (Previous Day High), using it as liquidity (inducement) while using the PWH (Previous Week High) as a rebound level. The PWH is indeed a High Resistance (HR) area since there is only a few liquidity at this point thanks to the liquidity grab. The price has no reason to move higher.
Looking ahead, we can forecast that the price may continue its decline, potentially targeting lower liquidity levels. There is likely additional liquidity beneath the current range, particularly near the PDL (Previous Day Low) and PWL (Previous Week Low).
Additionally, we can note that at this point, the price was above the D.O.P (Daily Open) and W.O.P (Weekly Open), areas where selling would be more favorable. The price reacts significantly around these levels, creating large wicks, demonstrating their importance.

SMT Dashboard (Smart Money Tool)

The Smart Money Tool (SMT) is a powerful concept within the ICT methodology that enables you to compare various assets based on liquidity uptake from significant price levels.

By utilizing the SMT, you can analyze any asset, whether it’s a currency pair, stock, cryptocurrency, or other financial instruments. The dashboard helps you identify the strongest and weakest assets by analyzing their interactions with critical liquidity levels and identifying divergences, including those related to the Previous Month, Previous Week, Previous Day, and Asian Session Highs and Lows. By doing so, he identifies the most bullish symbol. It will therefore tend to rise more easily, or at least fall less, than the other one.

The SMT includes alert functionality that notifies you whenever a new SMT is created or has changed, allowing you to stay informed about which asset is currently the strongest. This means you can react promptly to market changes without constantly monitoring your charts.

Additionally, since the SMT relies on the Previous levels, it is influenced by the selected mode, whether based on traditional Previous levels or the True Day Range. This flexibility ensures that you are using the most relevant information available for your trading decisions. Asian High and Asian Low levels are also calculated according to the schedules configured in the Kill Zones section.

In summary, the Smart Money Tool displays the strongest and weakest assets based on liquidity uptake, providing you with clear information on which asset to prioritize, so you can maximize your potential profits. By incorporating this concept into your approach, you align your decisions with prevailing market dynamics, offering you unparalleled insights and features tailored to enhance your trading strategy.

This chart displays the Smart Money Tool (SMT) dashboard on the GBPUSD symbol, which compares the liquidity uptake for EURUSD and GBPUSD pairs. The indicator shows that both Previous Month's and Week's High and Low were taken for both pairs. However, the Asian High (AH) has been breached on GBPUSD but not on EURUSD, while the Asian Low (AL) has been taken by EURUSD. As a result, GBPUSD is identified as the stronger asset, indicating that traders should focus on buying opportunities with GBPUSD rather than EURUSD. This analysis helps traders prioritize the best symbol for their strategies based on the most relevant liquidity divergences.

✨ SETTINGS

• Kill Zones: Customize the display options for the Asian (with lines), London, New York, and London Close Kill Zones. Configure timezone options, midlines, and color preferences.
  
• Previous & Open Levels: Adjust how Previous High/Low levels, Open and separators are displayed. Select between Classic or True Day Range Mode based on your trading preferences.
  
• SMT: Choose the correlated assets for the SMT comparison and select which liquidity (Monthly, Weekly, Daily, Asian) to use and display. Configure settings like liquidity sweeps and strongest pair emojis.
  
• Alerts: Configure alerts for key events such as the Asian High/Low or Previous Levels liquidity sweep, and SMT divergences.
  

🎯 CONCLUSION

The Time and Price Zones indicator offers a practical and insightful approach to market analysis by combining major principles of ICT and Smart Money Concepts into a cohesive tool. It empowers traders to understand key price levels, liquidity dynamics, and institutional activity with ease. By helping traders avoid being the liquidity of the market and instead align with institutional flows, the indicator can significantly enhance performances. While its features provide a valuable edge, it’s essential to remember that none should be used on its own and many more factors go into being a profitable trader.


✅ HOW TO GET ACCESS

Check the Author’s instructions below to get instant access to this indicator & our Premium Tools.