In practice
The Asian session is usually the quietest part of the forex day, so price tends to settle into a box. Traders mark its high and low before London opens, because stops build up on both sides while the market waits.
A common plan is to wait for London to push through one side, then look for a reversal back inside if the higher-timeframe bias points the other way. The opposite side of the range becomes the first target.
What to watch for
Sometimes London breaks out of the range and keeps going, with no fake move at all. A very wide Asian range also means much of the day's movement may already be done.
Related terms
3 terms- KillzoneICT's windows when big moves are most likely: London 2-5 am and New York 7-10 am, New York time.
- Judas swingThe early false move of the session, against the day's real direction, that runs stops before reversing.
- Liquidity sweepPrice wicking through an obvious high or low to take the stops, then closing back inside and reversing.