Chapter 1 What are kill zones in forex?
Kill zones are important to be aware of because they represent a time when traders are most vulnerable to losses. As such, traders need to be careful during these times and take steps to protect themselves from excessive risk.
How do kill zones work?
Kill zones operate on the principle that when there is a high volume of trading activity, the market becomes more unpredictable. This unpredictability can be caused by a number of factors, including unexpected news events, changes in global economic conditions, or changes in market sentiment.
During kill zones, traders need to be especially careful not to take on too much risk. This means avoiding trades that are too large or too risky, and taking steps to protect their positions.
The Concept of Killzones
The Killzones are specific time frames within the 24-hour banking cycle that hold significant importance for Forex traders. These periods are particularly relevant for those trading the major pairs that are coupled with the dollar index, as these markets are most active during these times. The Killzones frequently set up an optimal trade entry pattern that can offer a significant number of pips for a scalp.
