Master the ICT Asian Range Forex Strategy

Ever feel like the market is waiting for you to place your trade just so it can sprint in the opposite direction? You set a perfect buy order at the London open, only to watch price dive 20 pips, hit your stop loss, and then rocket 100 pips toward your original target.

You aren't crazy, and you aren't alone. You've just been 'hunted.'

In the world of ICT (Inner Circle Trader) concepts, this isn't bad luck—it's a predictable market mechanic called the Judas Swing. By the end of this guide, you’ll stop being the liquidity and start trading alongside the institutions. We’re going to master the ICT Asian Range, the blueprint that defines how the rest of your trading day will likely unfold.

Defining the Asian Range

Before we can trade the range, we have to define it. In the Forex market, the Asian session (Tokyo) is generally characterized by lower volume and consolidation. While the big banks in London and New York are asleep, the market tends to drift sideways, creating a neat 'box' of price action.

The Timing is Everything

For the ICT Asian Range strategy, we focus on a specific window: 20:00 to 00:00 EST (New York Time).

Why this window? This is the core of the Asian session. During these four hours, price usually carves out a high and a low that retail traders begin to view as 'support' and 'resistance.'

Marking Your Levels

Open your charts (the 15-minute timeframe is best for this) and draw a box from 20:00 to 00:00.

• Asian High: The highest wick reached during this period.
• Asian Low: The lowest wick reached during this period.

Pro Tip: Use a session indicator on TradingView to automate this. It saves time and prevents manual errors when calculating daylight savings shifts.

The Psychology of the Range

Why does this range matter? Think of the Asian Range as a 'liquidity trap.' Because the market is moving sideways, retail traders start placing 'Buy Stop' orders above the Asian High and 'Sell Stop' orders below the Asian Low.

Large institutional players—the 'Smart Money'—need a massive amount of liquidity to fill their large positions. To buy 500 million Euros, they need 500 million Euros worth of people selling. Where is the easiest place to find those sellers? Right below the Asian Low, where thousands of retail stop-losses (which are sell orders) are sitting.

By understanding liquidity concepts, you realize the Asian Range isn't just a consolidation; it's a gas station where the market stops to refuel before the big move in London or New York.

The Judas Swing: Identifying the Fake-out

This is where the magic happens. The Judas Swing is a false move that occurs at the start of the London session (around 02:00 - 03:00 EST).

Imagine the overall daily trend for EUR/USD is bullish. The 'Smart Money' wants to buy, but they want to buy at a discount. At the London open, they will push price down to sweep the Asian Low.

To an untrained trader, this looks like a 'breakout' to the downside. They enter short. Their stop losses are now sitting just above the recent high. The institutions then reverse the price, hitting those stops and fueled by that liquidity, the real move to the upside begins.

Example: If the Asian Low is 1.0850, a Judas Swing might push price down to 1.0842 (just 8 pips below) before aggressively snapping back up. This 8-pip 'stop run' is your signal.

Step-by-Step Execution Strategy

Let’s put this into a concrete plan you can use tomorrow morning. We will use a hypothetical trade on GBP/USD.

Step 1: Define the Range

• Time: 20:00 - 00:00 EST.
• GBP/USD Asian High: 1.2740
• GBP/USD Asian Low: 1.2710
• Range Size: 30 pips (Ideally, the range should be under 40 pips for this strategy to work best).

Step 2: Identify the Daily Bias

Check the Higher Timeframe (Daily or H4). Is the trend up or down? If the Daily trend is up, we are looking for a Judas Swing below the Asian Low to go Long.

Step 3: Wait for the Sweep

At the London Open (02:00 - 03:00 EST), watch the 5-minute chart. Price drops to 1.2705, taking out the Asian Low of 1.2710.

Step 4: Look for the Market Structure Shift (MSS)

We don't just buy blindly. We wait for price to move back above the Asian Low and break a recent 5-minute swing high. This confirms the 'Smart Money' has stepped in. Learn more about identifying a market structure shift to refine your entries.

Step 5: The Entry

Once the MSS occurs, look for a Fair Value Gap (FVG) or a return to the 'Order Block' created by the Judas Swing.

• Entry: 1.2715
• Stop Loss: 1.2700 (below the Judas Swing low)
• Take Profit 1: Asian High (1.2740)
• Take Profit 2: 2x the Asian Range size (1.2770)

Warning: If the Asian Range is huge (e.g., 80 pips), the probability of a successful expansion move decreases. The best setups come from 'tight' Asian ranges.

Risk Management and Trade Management

No strategy works 100% of the time. The ICT Asian Range strategy is powerful because it offers a high Reward-to-Risk (R:R) ratio.

In our GBP/USD example:

• Risk: 15 pips (1.2715 to 1.2700)
• Reward to TP1: 25 pips (1.6:1 R:R)
• Reward to TP2: 55 pips (3.6:1 R:R)

If you risk 1% of your account ($1,000 on a $100k account), a hit on TP2 nets you $3,600. Even with a 40% win rate, you are mathematically profitable over time. For more advanced techniques, explore our guide on risk management strategies.

According to the Bank for International Settlements (BIS), the London session is the most liquid period in the FX market. This is why we use the Asian Range as the 'bait'—the liquidity is highest when London traders arrive to clear out the Asian session orders.

Common Pitfalls to Avoid

1. Trading During High-Impact News: If there is a 'Red Folder' news event (like CPI or NFP) at the London open, the technicals often go out the window. Sit on your hands.
2. Ignoring the Daily Bias: If the Daily chart is screaming 'Bearish,' don't try to buy a sweep of the Asian Low. Only trade in the direction of the higher timeframe trend.
3. Over-trading the 'Dirty' Range: If the Asian session was volatile and messy, it likely didn't build up a clean pool of liquidity. The best ranges are 'quiet' and horizontal.

Conclusion

The ICT Asian Range strategy isn't about predicting the future; it's about reacting to how the market traps retail liquidity. By marking your 20:00 - 00:00 EST levels and waiting for the London Judas Swing, you position yourself on the side of the institutions.

Remember: Accumulation (Asian Range) leads to Manipulation (Judas Swing), which leads to Distribution (The Trend).

Your next step? Go back into your charts for the last 5 days. Mark the Asian Range on EUR/USD and see how many times the London session swept one side before moving to the other. You'll be surprised how often this pattern repeats.

Ready to dive deeper? Check out our masterclass on forex trading sessions to understand how the Tokyo, London, and New York sessions interact to create daily cycles.

Frequently Asked Questions

What time is the ICT Asian Range?

The ICT Asian Range is typically defined as the period between 20:00 and 00:00 EST (New York Time). This captures the most consistent part of the Tokyo session consolidation before the London pre-market begins.

How do I trade the Judas Swing?

To trade the Judas Swing, wait for the London session open (around 02:00 EST) to push price outside the Asian Range high or low. If the move is a fake-out, price will quickly reverse and break the internal market structure, providing an entry in the opposite direction.

Is the ICT Asian Range strategy profitable?

Like any forex strategy, its profitability depends on risk management and discipline. It is highly regarded among price action traders because it targets high-liquidity areas, often resulting in trades with high Reward-to-Risk ratios.

Which currency pairs work best with this strategy?

Pairs involving the Euro (EUR) and British Pound (GBP), such as EUR/USD, GBP/USD, and EUR/GBP, work best because they experience the most significant volume shifts during the transition from the Asian to the London session.