Time ▾ Price ▴ Research: ICT Kill Zones

Showing posts with label ICT Kill Zones. Show all posts

Thursday, February 26, 2026

All Five ICT Entry Models Explained | JadeCap

The majority of traders lose money because they enter the market at the wrong time. In this breakdown, I will explain the exact entry models I utilized to generate over one million dollars in just two years, analyzing each one step by step. Although I have been trading for 14 years, it was only in the last few that I truly refined my strategy. It took nearly a decade for me to achieve consistency; consequently, I am sharing my experience and knowledge here to help you shortcut your own journey toward becoming a profitable trader.

ICT Entry Models: Premium/Discount—Liquidity Raids—Fair Value Gaps—Order Blocks—Breaker Blocks.

I. Premium and Discount

The first entry model is the fundamental concept of premium and discount. We utilize the Fibonacci retracement tool to define our specific trading range by anchoring it to a swing low and a swing high if we are bullish, or a swing high and a swing low if we are bearish. This allows us to identify the 50% equilibrium level, as well as the deep discount and premium zones.

Discount, Equilibrium, and Premium Zones: S&P 500 (1 hour candles).

After establishing these swing points, we wait for a retracement beyond the 50% threshold—into discount for buys or premium for sells—before hunting for an entry. Our objectives are typically a Fibonacci extension outside the range or the range high/low. In a bullish scenario, we wait for price to dip into the discount zone before targeting the previous high or a specific Fibonacci extension. Conversely, in a bearish scenario, we target the previous low or the extension.

Discount, Equilibrium, and Premium Zones: EURUSD (15 minute candles).

Regarding execution, candle confirmation is not strictly necessary. For instance, within a bullish range, any area below the 50% mark is considered a discount and serves as a favorable entry point. This model is particularly effective for limit orders, allowing traders to execute without being anchored to their screens. We enter long via a buy limit and place the stop loss outside the range. Because a setup is not technically invalidated until the initial swing point is breached, your stop loss should remain at that level to avoid being "chopped up" by price volatility.

II. Liquidity Raids

This entry model identifies zones where "smart money" is likely accumulating positions: liquidity raids, commonly known as "Turtle Soup." First, we identify the specific liquidity pool we expect to be raided, such as a Previous Weekly High (PWH), Previous Daily Low (PDL), or session-specific levels like the Asian range.

Liquidity Raids: EURUSD (5 minute candles).

A common mistake among novice traders is entering the market the moment a level is penetrated. Instead, we wait for a candle to close back inside the range. We look for a strong rejection followed by a close above or below the previous swing point. Only then do we enter, placing our stop loss beyond the newly created swing high or low. This ensures a superior risk-to-reward ratio, as it allows the market to signal an actual intent to reverse rather than forcing us to catch a "falling knife."

III. Fair Value Gap (FVG)

The Fair Value Gap (FVG) is a three-candle pattern where the second candle is so impulsive that the wicks of the first and third candles do not meet, leaving an imbalance, a "gap." We wait for the market to rebalance by trading back into this zone.

Bullish Fair Value Gap: EURUSD (15 minute candles).

Ideally, the entry should be executed as price moves against the desired order flow. If we are looking to go long, we buy while price is actively dipping into the gap. While many traders demand extra confirmation, the most effective entries often occur when the market looks visually "weak," as this is where you secure the best pricing.

Stop-loss placement can be aggressive (at the gap's edge) or conservative (at the high/low of the first candle). I recommend the conservative approach to give the trade sufficient room to breathe.

IV. Order Blocks

An order block is a down-closed candle prior to a move higher or an up-closed candle prior to a move lower. High-probability order blocks are those paired with an FVG. When an FVG rests immediately above or below an order block, it validates the level as a high-probability zone for institutional activity.

Order Blocks and Breaker Blocks: Gold (5 minute candles).

We enter as the market retraces into that order block, anticipating a rejection. For instance, if several consecutive candles form an order block that aligns with an FVG, the bodies of the subsequent candles should respect that level.

V. Breaker Blocks

The breaker block combines liquidity concepts with order blocks. It is an order block formed prior to a raid on liquidity that is subsequently broken by a decisive move. If price sweeps liquidity and then aggressively trades through the original order block, that level transitions into a "breaker." We enter on the retracement back into the breaker's range.

Breaker Block: EURUSD (5 minute candles).

Stop-loss placement can be complex; I tend to favor a conservative placement because breakers can produce deep wicks that may stop out aggressive traders before the trend resumes. Often, a breaker overlaps with a fair value gap; in such cases, you might utilize the 50% equilibrium of the gap or the high/low of the original order block to set your invalidation point.

Every ICT Entry Model in 23 Minutes.

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Ultimately, whether you are utilizing premium/discount, liquidity raids, or gaps, success depends on proper stop-loss placement and trade management. A stopped-out trade does not necessarily mean the setup failed—it often suggests the stop loss was too aggressive for the market's inherent volatility.

Reference:
JadeCap (2025) - Every ICT Entry Model in 23 Minutes. (video)

A Secret to Liquidity Sweeps.

Friday, July 18, 2025

Simple ICT Day Trading Strategy That Works Every Day │ JadeCap

This trading strategy focuses on entering positions based on significant daily highs and lows, utilizing ICT's "Power of Three" framework—accumulation, manipulation, and distribution. With this approach, I earned $4.5 million and I’m here to show you how simple it can be:

» Do not trade if the market has already hit the target high/low. «

The Key is to target historical levels beyond just the last 24 hours and to use the New York midnight open for optimal entry points. By staying committed to the market direction from the previous day and timing your trades around key sessions like New York or London (ICT Kill Zones), you can capture manipulation moves for more favorable risk-to-reward ratios.

» I’m here to show you how simple it can be. «

Now, I'll walk you through the three-step process I use to achieve results every day:

1.) Identify Key Levels: Determine the previous daily high or low as the target based on bullish or bearish conviction from prior day’s close.
2.) Assess Market Context: Confirm the market is trading below the previous daily high (for bullish trades) or above the previous daily low (for bearish trades) to avoid chasing price.
3.) Apply Power of Three:

Accumulation: Identify a range (e.g., Asian or London session) where orders build up.
Manipulation: Look for a temporary move against the expected direction (e.g., bearish move in a bullish setup) to trap traders.
Distribution: Enter trades as the market moves toward the target high/low, ideally near the midnight open for better risk-to-reward.

E-Mini S&p 500 Index Futures (4 H-chart), July 17, 2025.

Entry and Risk Management:

Enter trades on lower time frames (e.g., hourly) using setups like fair value gaps, order blocks, or liquidity raids that align with the high time frame direction.
Place stop losses logically (e.g., at 50% of a Fair Value Gap or below a key level).
Exit trades based on time (e.g., end of a 4-hour candle) or when the target is reached, avoiding overnight holds for futures.

Avoid Common Pitfalls:

Do not trade if the market has already hit the target high/low.
Avoid setups misaligned with the high time frame direction.
Trade smaller or not at all if the market has expanded in your direction before entry.

Reference:

JadeCap (July 9, 2025) - The EASIEST Way to Trade ICT in 2025. (video)

JadeCap (June 28, 2025) - This Stupid Simple Trading Strategy Works Everyday (Proven). (video)

JadeCap (2025) - Intraday Liquidity & Volatility Model.

Thursday, July 11, 2024

Common Intra-Day Stock Market Patterns & Setups | Cory Mitchell

The US stock market has certain patterns, based on the time of day. These patterns, or tendencies, happen often enough for professional day traders to base their trading around them. One tendency is that the stock market can become less volatile, flatten out, and see less volume in and around the New York Lunch Hour. Many day traders stop trading about half an hour to an hour before this slowdown kicks in and don't trade again until well after the lunch hour, when volatility and volume pick up again.

9:30 (EST/EDT) : The stock market opens, and there is an initial push in one direction.

Opening Range Breakout (ORB) Strategies.

9:45 : The initial push often sees a significant reversal or pullback. This is often just a short-term shift, and then the original trending direction re-asserts itself.

Six Intraday Templates and Trading Setups for the S&P, Nasdaq and Dow Jones.

10:00 : If the trend that began at 9:30 is still in play, it will often be challenged around this time. This tends to be another time where there is a significant reversal or pullback

True Open, 6 Hour Cycle, 90 Minute Cycle, and 22.5 Minute Cycle.

11:15 – 11:30 : The market is heading into the lunch hour, and London is getting ready to close. This is when volatility will typically die out for a couple hours, but often the daily high or low will be tested around this time. European traders usually close out positions or accumulate a position before they finish for the day. Whether the highs or lows are tested or not, the market tends to "drift" for the next hour or more.

11:45 – 13:30 : This is lunch time in New York, plus a bit of a time buffer. Usually, this is the quietest time of the day, and often, day traders like to avoid it.

ICT Silver Bullet Setups.

13:30 – 14:00 : If the lunch hour was calm, then expect a breakout of the range established during lunch hour. Often, the market will try to move in the direction it was trading in before the lunch hour doldrums set in.

14:00 – 14:45 : The close is getting closer, and many traders are trading with the trend, thinking it will continue into the close. That may happen, but expect some sharp reversals around this time, because on the flip side, many traders are quicker to take profits or move their trailing stops closer to the current price.

ICT Time Macros.

15:00 and 15:30 : These are big "shakeout" points, in that they will force many traders out of their positions. If a reversal of the prior trend occurs around this time, then the price is likely to move very strongly in the opposite direction. Even if the prior trend does sustain itself through these periods, expect some quick and sizable counter-trend moves.

Time must be divided into quarters for a proper interpretation of market cycles.

As a day trader, it is best to be nimble and not get tied to one position or one direction. It can be very hard to hold a trade for very long between 3 p.m. and the close. The last hour of trading is the second most volatile hour of the trading day. Many day traders only trade the first hour and last hour of the trading day.

15:58 – 16:00 : The market closes at 16:00. After that, liquidity dries up in nearly all stocks and ETFs, except for the very active ones. It's common to close all positions a minute or more before the closing bell, unless you have orders placed to close your position on a closing auction or "cross."

Big News Events can throw a wrench in these tendencies, resulting in big trends, reversals, or movement through the lunch hour or other times that would be uncommon without some sort of external catalyst.