Kill zones are specific time windows during the trading day when institutional activity peaks and the most significant moves occur. ICT identifies four main kill zones: Asian session (20:00–00:00 ET), London Open (02:00–05:00 ET), New York Open (07:00–10:00 ET), and London Close (10:00–12:00 ET). Trading only during kill zones improves probability.
Asian session: establishes the range. London Open: high-volatility breakout of Asian range. New York Open: highest volume session, often reverses London. London Close: institutional positioning close, profit-taking. Macro timing: :00 and :30 minute marks for institutional entries.
Trade London Open breakout of the Asian range, NY Open reversal setups after London extension, London Close retracement entries, Focus on macro time entries (:00 and :30 marks within kill zones)
Close trades before the next kill zone transition, Time-based exits at the end of the kill zone, Move to break-even if price hasn't moved within the first 30 minutes of the kill zone
Kill zones themselves define the timeframes — primarily 1M-15M for entries within the KZ window
You don't need to trade every kill zone. Pick one (e.g., NY Open) and become an expert at it. Kill zones filter out the choppy, low-volume hours where most retail losses occur.
Institutional candles (also called displacement candles or impulse candles) are large-bodied candles with little to no wicks that represent strong institutional activity. They break through structure and create FVGs. The characteristics of these candles — body size, wick ratio, volume — reveal where institutions are committing capital.
The Power of Three is an ICT concept describing the three-phase cycle that institutional traders use within each session or candle: accumulation, manipulation, and distribution. During accumulation, smart money builds positions quietly. Manipulation creates a false move to trigger retail stops and generate liquidity. Distribution is the real directional move where institutions deliver price to their target, profiting from the liquidity gathered during manipulation.
A Fair Value Gap is a three-candle pattern where the wicks of candle 1 and candle 3 do not overlap, creating an imbalance or gap in price. FVGs represent areas where price moved so aggressively that there was insufficient opposite-side liquidity. Price tends to retrace into FVGs before continuing, making them excellent entry zones.
Mitigation blocks are price levels where institutional traders return to 'mitigate' or close out prior losing positions before continuing in the new trend direction. When smart money takes a position that initially moves against them, they mark the level for re-entry — when price returns, they close the losing trade at break-even and add to their new directional position. This creates a powerful support or resistance zone.