ICT Central Bank Dealers Range (CBDR): Measurement and Scenarios

Framework note: ICT terms are interpretations of price action, not proof of institutional motives or a market algorithm’s intent. No setup is guaranteed. Test clearly defined rules, account for costs and slippage, and use risk limits before risking capital. Read our editorial policy.

The Central Bank Dealers Range (CBDR) is an ICT label for a selected overnight time range. A later break of that range is a possible scenario, not proof that the day's true direction has begun or that central-bank dealing activity caused the move.

What Is the CBDR?

The CBDR is the price range formed between 2:00 PM and 8:00 PM New York time — the period after the New York session closes and before the Asian session reaches full participation. During this window, the major institutional participants (the central bank dealing desks and their associated market makers) are either winding down for the day or managing overnight inventory. The price range they create during this window is the CBDR.

This 6-hour window is characterized by relatively low volatility and tight ranging price action. The high and low of this range represent the outer boundaries of the accumulation phase. When London opens and begins directional delivery, price will typically break out of the CBDR and move decisively in one direction.

Using the CBDR for Daily Range Forecasting

The relation between CBDR width and subsequent daily range should be tested rather than assumed. A narrow range does not prove large institutional orders are accumulating, and a wide range does not prove daily expansion will be smaller.

• •Narrow CBDR: expect a large daily range once the breakout occurs. The London or New York session will likely deliver a significant directional move.
• •Wide CBDR: expect a smaller, more contained daily range. The breakout will still occur, but the move is likely to be more modest.
• •Mark the CBDR high and low before each London session opens.
• •When price breaks above the CBDR high during the London Killzone with a decisive displacement candle, bias is bullish for the session.
• •When price breaks below the CBDR low during the London Killzone, bias is bearish for the session.

The Asian Range and CBDR Interaction

The CBDR and the Asian Range overlap and interact. The Asian session (midnight to 6:00 AM London time) occurs within and extends beyond the CBDR. The Asian range high and low are often used interchangeably with the CBDR boundaries, though technically the CBDR begins at 2:00 PM New York and the Asian range begins at midnight New York.

What matters practically is that the combined zone created by the overnight low-volatility period establishes the day's range boundaries that London will then seek to break. Mark both the CBDR boundaries and the Asian session high/low, and watch for the London session to sweep one side before delivering in the other direction — the classic London Turtle Soup setup operates directly from the CBDR/Asian range extremes.

Worked hypothetical example

A hypothetical trader marks a defined overnight range before the London and New York sessions. Price breaks above the high, briefly returns inside the range and later makes another high. A rule that required a close back inside would log a breakout-and-return event, but any later entry still needs its own confirmation and risk rule.

Failure case and what to test

The range does not predict the day's direction by itself. Range size, news, instrument, daylight-saving transitions and broker/session definitions can affect the measurement. Choosing start and end times after seeing price introduces hindsight bias.

Test checklist

• •State timezone and session boundaries, including daylight-saving handling.
• •Record breaks that continue as well as those that return inside.
• •Test the range as context separately from the actual entry trigger.

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