ICT Killzones and Pivots: Time Zones and Pivots

Introduction

The ICT Killzones and Pivots indicator is a tool designed to help traders identify key time zones in financial markets, known as Killzones. These zones correspond to the most active sessions in global markets, such as the Asian, London, and New York sessions. During these periods, markets tend to show higher volume and volatility, which can provide unique trading opportunities.

In addition to marking the time zones, the indicator plots important pivots within each of these sessions. The pivots are generated based on the highs and lows reached during each Killzone, providing critical reference points for making informed trading decisions.

This indicator is ideal for traders operating in timeframes of 1 hour or less. If a higher timeframe is selected, the indicator will display a warning message asking the user to adjust to an appropriate timeframe to ensure proper functioning.

Indicator Objective

The main objective of the ICT Killzones and Pivots is to highlight the time zones where markets tend to have higher activity and volatility. These zones, known as Killzones, are key to identifying possible trend changes, price breakouts, or important consolidations in the market.

Each Killzone is associated with one of the main global financial market sessions: Asia, London, and New York. Within each session, the indicator identifies and marks the highs and lows reached, providing reference levels that can act as dynamic support and resistance.

In addition to the Killzones, the indicator also plots pivots based on price crossings with the high or low levels of previous sessions. These pivots can be used to validate breakouts, consolidations, or trend reversals, offering traders valuable information for making more precise decisions.

The ICT Killzones and Pivots is specifically designed for traders who operate in intraday or short-term timeframes, as its accuracy depends on the correct identification of key levels in timeframes of 1 hour or less.

Explanation of Time Zones (Killzones)

The ICT Killzones and Pivots indicator divides the market into three main time zones, or Killzones, each corresponding to a key session of the global markets: Asia, London, and New York. These Killzones help identify periods of greater volatility in each session by highlighting the highs and lows reached within these timeframes.

Below is a description of each zone and how it functions:

1. Asia (ASIA Zone):
   • Operating Hours: from 02:00 to 06:00.
   • Description: The Asian session is the first Killzone highlighted by the indicator. During this time window, the highs and lows of the price reached between 02:00 and 06:00 are plotted. These levels serve as reference points that can act as support or resistance zones for future price movements. The levels are displayed on the chart with a blue rectangle.
2. London (London Open Zone):
   • Operating Hours: from 08:00 to 11:00.
   • Description: This Killzone marks the opening of the London session, one of the most important due to its high trading volume. The indicator plots the highs and lows of the price during this session, highlighting them with a red rectangle. These levels can indicate important confluence areas for traders who operate breakouts or consolidations.
3. New York (New York Zones):
   • New York AM: from 15:30 to 17:00.
   • New York Lunch: from 18:00 to 19:00.
   • New York PM: from 19:30 to 22:00.
   • Description: The New York session is divided into three parts: the morning session (AM), the lunch hour (Lunch), and the afternoon session (PM). Each of these subzones allows for more precise identification of critical points in each segment of the American session. The levels of these zones are highlighted on the chart with rectangles of different colors: green for the AM session, yellow for the Lunch session, and purple for the PM session.

These Killzones provide a clear visual framework for traders who seek to trade based on the opening and closing phases of the most important sessions in the global market. Identifying the highs and lows within each Killzone can provide valuable opportunities for strategies based on breakouts, consolidations, or trend reversals.

Recommended Timeframe

The ICT Killzones and Pivots is designed to be used in timeframes of 1 hour or less. If a higher timeframe is selected, the indicator will display a warning message to inform the user that they need to adjust the timeframe for the indicator to properly show the Killzones.

Indicator Functionality

The ICT Killzones and Pivots uses a series of key features to mark the time zones and critical levels within these sessions:

• High and low zones: Each Killzone plots the highs and lows of the price during the corresponding session. These levels are drawn as rectangles of different colors according to the session (blue for Asia, red for London, green for New York AM, yellow for New York Lunch, and purple for New York PM).
• Segments and pivots: When the price crosses the previous high or low levels of a session, lines are drawn to highlight these pivots. These lines act as dynamic support and resistance during the current session, providing entry or exit points depending on market conditions.
• Day limits and reset: The indicator automatically resets at the start of each new trading day or at the close of the American session, ensuring that the plotted price levels are accurate and up-to-date for the new trading day.

Indicator Customization

The ICT Killzones and Pivots is highly customizable, allowing traders to adjust several parameters according to their needs. The customization options include:

• Opening and closing hours of sessions: The indicator allows modification of the opening and closing hours of the Asian, London, and New York sessions. These times can be adjusted to match local trading hours or according to the trader’s preferences.
• Display of the New York lunch session: Through the ShowNylch parameter, it is possible to enable or disable the display of the New York lunch session, allowing for greater control over the zones to be highlighted on the chart.

Indicator Usage

The ICT Killzones and Pivots is especially useful for traders who want to operate during the most volatile sessions of the market. Identifying the highs and lows within each Killzone can serve as a reference for making decisions based on:

• Price breakouts: Trading based on price breakouts when it crosses the pivot levels generated by the indicator.
• Trend reversals: Taking advantage of possible market turns at key levels, where the price may reverse after reaching significant support or resistance.

Suggested Strategies

1. Pivot Breakouts: Traders can trade breakouts when the price crosses the pivot levels marked in each Killzone. This strategy is especially useful during session openings, where volume tends to increase.
2. Reversals at extremes: The highs and lows of the Killzones often act as important support and resistance areas, making it easier to identify potential reversals or consolidations at these levels.

Configuration in ProRealTime

Below is the source code for the indicator in ProRealTime, ready for use and customization. The schedules and colors of the zones can be modified directly from the configurable variables at the top of the code.

Conclusion

The ICT Killzones and Pivots is a powerful visual tool designed for traders who want to take advantage of market movements within the main time zones of the Asian, London, and New York sessions. Thanks to its customization capabilities and the clarity of the levels generated, this indicator is ideal for both intraday strategies and traders who prefer to operate during specific sessions of the day.

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