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EURUSD Kill Zone [Plazo Sullivan Roche Capital]

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EUR/USD Kil Zone

Core Logic: Navigating the New‑York Kill‑Zone

The EUR/USD Killzone is designed to exploit repeatable patterns that occur during the overlap of the London and New‑York trading sessions. Research shows that the New‑York “kill zone”—roughly 07:00–09:00 EST—produces the most dramatic moves in EUR‑ and USD‑linked currency pairs

During this window, large institutions often sweep out liquidity resting above or below the Asian and early‑London session extremes, triggering sharp reversals before a new intraday trend emerges. This is in contrast to the single pre-market sweeps occuring for GOLD/

This modeul uses ICT/Smart Money Concepts to read these patterns and waits for three confirmations before signalling a trade:

Liquidity Sweep & Rejection. Price must spike beyond the combined Asian and early‑London range and then reject that area (a sharp wick and opposite‑coloured candle), signalling that stops have been cleared. The module defines the Asian range from 00:00–05:00 EST and the London range from 02:00–05:00 EST, following the guideline that overlapping sessions produce the greatest volatility


Market Structure Break. It then waits for the 5‑minute price to close beyond the most recent swing high/low (pivot), confirming that a genuine shift in order flow has occurred rather than a simple stop‑run.

Fair‑Value‑Gap (FVG) Re‑Test. Upon the break, the script records the high and low of that 5‑minute “displacement” candle and defines a fair‑value gap—the imbalance between buyers and sellers. Rather than entering immediately, it sets a virtual limit order at the 50 % level of this gap. A trade is only triggered once price retraces to this mid‑point, providing a high‑probability, high‑reward entry.

These three filters help avoid common pitfalls when trading kill zones, such as false breakouts and news‑driven whipsaws. The indicator also monitors higher‑timeframe bias (4‑hour and daily charts) using 50‑ and 200‑period moving averages to gauge whether the intraday signal aligns with the broader trend.

Feature Set

The indicator provides a suite of visual and analytical tools to support disciplined trading:

Session Range Mapping: automatically draws the Asian (00:00–05:00 EST) and London (02:00–05:00 EST) session highs and lows, making it easy to see when price sweeps these levels.

Kill‑Zone Monitoring: a built‑in timer isolates the 07:30–09:00 EST window and limits the indicator to one trade per session to avoid over‑trading.

Pivot‑Break Detection: uses 5‑minute swing highs/lows to confirm that order flow has shifted before looking for entries.

Fair‑Value‑Gap Re‑test: defines an FVG from the displacement candle and waits for a 50 % retrace before triggering a signal. This improves risk‑to‑reward by entering at a discount (for longs) or premium (for shorts).

Higher‑Timeframe Dashboard: displays bullish/bearish/neutral biases on the 4‑hour and daily charts, plus a confidence rating (0–2) indicating how many of these timeframes agree with the signal direction.

Alerts: optional alerts can be configured for buy‑only, sell‑only or either‑direction signals.

Best Practices for Use
Align with Major Volatility Windows. The indicator is most effective during the New‑York kill zone. Avoid trading outside this window, and be aware of high‑impact news (e.g., FOMC announcements) that can distort price action

Check Higher‑Timeframe Bias. Use the dashboard to ensure the intraday signal aligns with the 4‑hour and daily trends. For instance, a long signal that aligns with a bullish daily bias carries higher conviction than one going against it.

Manage Risk Responsibly. Even with multiple filters, no strategy is foolproof. Use stop‑loss orders just beyond the liquidity sweep and size positions appropriately.

Combine with Fundamental Awareness. Check your economic calendar for European and U.S. data releases. If an important release occurs during the kill zone, consider standing aside or reducing risk.

Back‑test and Forward‑Test. Always validate the strategy across different market conditions and broker feeds. Pay attention to how spreads, volatility and news events influence the indicator.

Use as Part of a Toolkit. Consider combining the indicator with other confirmation tools such as momentum oscillators, volume analysis or price‑action patterns to refine entries further. Smart‑Money Concepts often use confluence, not a single signal.

What's in It for You?

The EUR/USD Liquidity Sweep Indicator distils institutional concepts—liquidity hunts, market‑structure shifts and fair‑value gaps—into an intuitive, automated tool. By waiting for a retrace into the displacement candle’s imbalance, it helps capture trades where risk‑to‑reward is skewed strongly in your favour. The dashboard encourages you to trade with the higher‑timeframe trend, and built‑in alerts ensure you never miss an opportunity.

In volatile kill‑zone environments, discipline and patience are vital. This indicator enforces both: it tracks session ranges, confirms structure, waits for a retrace, and triggers only when multiple conditions align. Coupled with sound risk management and your own judgement, it can become a cornerstone of a high‑probability trading plan.

Always remember that markets evolve. Continue to refine the indicator and your strategy as you gather more experience and data. The learning journey never ends, but this tool is designed to accelerate it.

Penafian

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