The content in this blog should not be considered as financial advice, but rather as a personal opinion.
Trading Killzones explained – How to trade them
The Killzones are periods of intense market activity where the price action is at its most volatile. This volatility can lead to significant price movements, which provide traders the opportunity to make profits.
- What are Killzones?
- Asia Killzone
- London Killzone
- NY Killzone
- How to trade Killzones
What are Killzones?
Killzones are the times where it is the most optimal to execute your trade. These are considered high probability trades due to the fact that trading volume is high during these times. There are 3 main ones that you need to pay attention to.
Asia Killzone
The Tokyo session (often synonymous with the Asian session) officially starts at 12:00 AM UTC and runs until 9:00 AM UTC. The killzone typically refers to the first few hours of this session, usually from 11:00 PM to 2:00 AM UTC, when the market is most active.
- Characterized by consolidation – Generates liquidity for both London & NY
During the Asian Kill Zone, traders can often find optimal trade entry patterns. Killzones are segments of a session with higher trading volumes and price fluctuations.
The “Asia Session” consists of two sessions: “Sydney” and “Tokyo
London Killzone
The London session officially starts at 8:00 AM UTC and runs until 4:00 PM UTC. The killzone typically refers to the first few hours of this session, usually from 7:00 AM to 10:00 AM UTC, when the market is most active.
- Highest probability to create the high/low of the day
- Highest probability to create a large one directional movement
One of the distinctive characteristics of the London Killzone its:
It’s tendency of creating the LOW of the Day in BULLISH markets and the HIGH of the Day in BEARISH markets
The London session overlaps with both the Tokyo and New York sessions, leading to increased trading activity and liquidity.
New York Killzone
The New York session officially starts at 1:00 PM UTC and runs until 9:00 PM UTC. The killzone typically refers to the first few hours of this session, usually from 12:00 PM to 3:00 PM UTC, when the market is most active.
- Price moves are influenced by news
- Either continues the London movement or reverses it
The NY Killzone is a trading strategy that integrates price and time.
Focusing on certain time intervals with high volatility.
Enables traders to identify reference points like Fair Value Gaps (FVG) or Order Blocks (OB)
How to trade Killzones
- Choose for either London or NY Killzone for trading
- Figure out the trend, is it bullish or bearish?
- Find a HTF Orderblock, FVG or Breaker
- Wait for price to reach it, in line with Killzone times
- Go to a LTF TF and execute your trade
- ALWAYS mark the Killzones you are trading
- Find a PATTERN between them, make your LEVELS
- Mark Stop Loss and Take Profit in every trade you are taking
- Identify the Market Structure of every Killzone
SOURCES
CryptoSoulz
ChatGPT