Definition
"The price action prior to the Frankfurt open or London opening can be very indicative of the future intraday price movement"
"There is a stillness in price many times right before the intraday directional impulse price swing"
"When we have a directional bias you can use this Asian range to build or frame a context or story line to the markets likely intentions"
Chris Lori Attribution
"The Asian range notice it does not say ICT Asian range I did not create this or author this concept"
"I actually learned about this from Chris Laurie"
"He taught about the Asian range many times in free teachings so it's not like I'm taking anything away from him"
"Chris Laurie has a lot of good price action study and his methods while they are not mine there's some similarities to what Chris does but I'm going to show you what I took away from him this is the only thing I really learned from Chris Laurie really"
Structure & Time Window
Time Definition
"The range begins at 7:00 p.m. New York time and it ends at midnight New York time"
"Chris Laurie had his Asian Range pushed beyond midnight if my if memory serves me correct I believe he had 12:30 a.m."
"To me the financial markets really begin at midnight New York time"
Range Dimensions
"The height of the range is the highest high between 7:00 p.m. to midnight in New York time to the lowest low between 7:00 p.m. and midnight New York time"
"The width of the range is obviously the duration of 7:00 p.m. to midnight New York time"
Midnight Algorithm Reset
"Soon as we cross over midnight time in New York we are in fertile ground for price movement"
"What we're banking on is the midnight opening price that's what sets the algorithm it goes through it goes to a reset if basically if you if you want to think of it like that"
"Midnight is when HIPAA the interbank price delivery algorithm resets and then it it attacks open liquidity or the open flow which would be the order table of the agent range and below the agent range"
Market Sentiment Building
"During this range what's actually happening is there's orders that are coming in and they're stacking up above the market and below the market relative to that range and it's also building up a market sentiment"
"This compression of market participation starts to build up closer and closer and closer until we get to midnight in New York"
Bullish Setup Sequence
Critical Prerequisite
"You have to first see Asian range low break then a buy stock can be placed at the Asian range high if you do this before the Asian range low is taken you will get burned you will get stopped out you will send me email saying doesn't work I'm telling you there's rules here and it just gave them to you"
Tight Consolidation Requirement
"What you're looking for what sets up the opportunity if you will for the particular trading day is if we have a very narrow consolidated range between 7:00 p.m. and midnight or what would be deemed as the Asian range so if we have a very narrow consolidation there that sets up a huge possibility of the algorithm going into a trending model"
Entry Points
"When price returns back to the Asian range high we can anticipate institutional buying"
"We'd like to see this element here and then this here no problem we don't need to get that and we don't need to be a part of this movie or okay we wouldn't wait for price to come back down and touch the Asian range high"
"Right there is where institutional buying is going to step in why are they doing that because the initial range that was set between 7:00 p.m. and midnight midnight is when HIPAA the interbank price delivery algorithm resets"
Bearish Setup Sequence
Entry Points
"When it's in a tight narrow consolidation we're gonna be looking for some measure of manipulation if you will on price action so what we're going to doing is waiting for a break in the Asian range low and then when price trades back up to it we're going to be anticipating institutional selling"
"The real move is running above the asian range high after the buys have been put in then taken out driven back up again why because short sellers that we're lucky enough to try to sell short at the top of this channel or trading range they're making money here they're not going to be allowed to be profitable they run on their stops which would be a buy stop run above these highs that's where you're looking to be a seller"
Two Entry Methods
"Selling above the Asian range high when we're bearish best scenario especially if you have the centering that's been outlined here"
"The low risk confirmation trade is wait for the Asian range low the break and then trade back up to it and then we can sell there"
Opening Price Concept Evolution (1994)
"This is what I used to do okay this is how I actually traded and I was doing this since 1994"
Pre-Asian Range Method
"I would get the opening price at midnight okay and that opening price is seen here right there and all I do is draw that opening price out all the way out until 11 o'clock in the morning New York time"
"The reason why I would draw it out to 11 o'clock in the morning New York time is because that would be the end of the morning trend for the S&P 500 okay so that there's a reason for that hour"
Bullish Opening Price Application
"If we are looking for a bullish scenario and I'm gonna just make the case that we would be expecting a higher Aussie dollar here I want to see price initially drop down below that opening price because I want to be buying below the opening price"
"The understanding is is I want to figure out what Larry Williams said he couldn't do as a teacher I took it as a challenge as a student that that's what I'm gonna look for I'm gonna figure that out and this is what my interpretation of how to do that very thing was seen in price action"
Bearish Opening Price Application
"If we're bullish it's going to go below that opening price to seek liquidity and then go higher and spend the rest of the day going higher when it's bearish it'll go above the opening price at midnight to reach for liquidity and then move lower for several hours going into London closed or New York open"
"We're gonna be looking for price movement above the opening price that's what I'm looking for here okay now I learned early on that these levels these double tops they were fake outz"
"If we see this time of day this is midnight and we're bearish we have equal highs in here right away I want to know there's going to be a rally above the opening price and I extend that out in time about love o'clock in the morning New York time and any time price trades above that opening price and it's inside of a kill zone that means the London or New York open kill zone if it trades above that opening price I will look to go short"
Buy Stop / Sell Stop Contingent Orders
Understanding Stop Orders as Entry Mechanism
"Buyers that want to break out above this consolidation are going to buy want to stop with a protective cell stop below the low short sellers want to sell on a stop and use a protective buy stop above the high"
"Sell stops gentlemen you understand them as a protective basis or mechanism to protect your long position if there is no long position and you place a sell stop it's going to put you in short and that's what I'd be expecting to see happen here"
Bullish Buy Stop Entry
"As soon as it starts to break down after midnight and it goes back to back down below the opening price I immediately add a buy stop to half the position I want to trade at this point here so in other words if my full position down here was say ten standard Lots I would go in with a buy stop at five standard Lots right here so that way at worst case scenario if I don't get my fill here and it reverses if you will and runs real quick for these highs it'll put me at least half the position I wanted to get on down here so half of something is better than nothing"
"If I either did not have the guts to do that or I missed the opportunity sometimes I would wait for a specific price it wouldn't get there and then it would take off if I saw a reversal or potential reversal I would look at the high rate but right before the drop down in here you can see there was a small little segment of price action right before that drop down I would put a buy stop right there"
Contingent Order Automation
"A contingent order that would be if I'm filled with your broker for cancer order basically if we have a parent contingent order suggesting they who buy on a stop if that stock gets filled if it happens then we would place a sell stop below this low at some specific price level and you could leave that in the marketplace and go to sleep and don't even worry about watching all this stuff okay"
Bearish Sell Stop Entry
"If I miss the opportunity to get in okay and and the Swiss franc is looking to go lower I'm gonna place a sell stop a little swing low right before the rally above the opening price with the expectation that if this order fails it will place a protective buy stop above the high + 3 pips"
Practical Rules & Guidelines
Stop Loss Guidance
"I think personally with a stop loss of anything less than 10 pips is just ludicrous it's stupid okay because Begley is from a retail brokers standpoint you're inviting them to take your stock it's just way it is"
"You don't have to have less than 10 pip stop losses to do very well"
"My stop-loss will be about 35 to 40 pips and I would go to sleep and be comfortable with that ok I would have an 80 pip take profit on the full position"
Weekly Profit Objectives
"That would be 5 pips over my weekly objective which is 75 pips I'm always aiming for fifty seventy five pips only for a weekly objective once I do that I'm done trading I don't do anything else"
"If I wake up and the markets already moved 80 pips I'm done for the week and I didn't do anything but sleep in the whole process"
Stop Loss Management
"I do not trail stops I do not have a mechanism that trails my stop-loss slower because I don't think it should be done okay I teach taking partials is the better way to go and leave your stop-loss where you initially put it manage the risk from taking partials and then slowly move it down after New York trading starts"
"If you're gonna get a big grain today like we see here you want to trail the stop-loss after New York has done its retracement"
Manual Chart Drawing Advice
"Just put the asian range on and paint them manually I know you all want indicators and pop this up and empty for this and empty for that physically draw them in spend some time in the charts get intimate with price action because it's going to teach you a lot more"
"I had well session with printed charts so I would print out charts and I would do all these things by hand and a ruler and a magic marker and highlighter that's the stuff I used to do and then I'm convinced that's what made me good at it"
"Being lazy about this okay what you're really saying is is I don't really have time to really study it just give me the lipstick on the chart and then there it is you will not get the same level of appreciation or understanding if you short cut it draw the levels on as I taught"
Bias Requirements
"The storyline is what are we gonna do after midnight which is this vertical line here what's the storyline where are we going to go"
"The range itself doesn't produce anything magical but if you have a storyline behind what price should be doing that particular day it is unbelievably helpful"
"You have to have a bias on the day and do not change gears based on all this little movement here you have to stick to what your analysis is calling for our time frame is going to go lower"
"You're not gonna get a daily bias that's accurate every single day so don't let me paint that picture for you but I can be in the upper 90s in terms of my probabilities and directional bias if you can get just 65 to 70 percent accuracy with or with your bias and then wait for conditions like I'm showing you here adding time of day kill zones daily bias focusing was the Asian range we've already looked at power three it builds the entire model for the daily range"
Study & Review
Click each card to reveal the answer (direct quotes from transcript)