From the CE to the high (50–100%). Institutions sell here: distributing existing longs to retail buyers entering at above-fair-value prices, or initiating shorts for the next bearish cycle. Q4 is the Phase 3 completion zone — the final delivery leg, the range high with its BSL pool, and the launch point of the next market maker cycle.
From the low to the CE (0–50%). Institutions buy here: accumulating longs as retail sells at below-fair-value prices, or covering shorts as the prior bearish distribution completes. Q1 is the Phase 2 destination — the deeper the Judas drives into it, the larger the profit margin on the subsequent delivery to Q4.
| Timeframe | Range boundaries | CE level | Primary AMD context | Sunday / pre-session use |
|---|---|---|---|---|
| Weekly | PWH to PWL | (PWH + PWL) ÷ 2 | Weekly premium/discount — the primary weekly bias. Above the CE = bearish-week context; below = bullish-week context. | Sunday: mark PWH, PWL, weekly CE — the first step of weekly bias analysis. |
| Daily | PDH to PDL (or developing TDH to TDL) | (PDH + PDL) ÷ 2 | Daily premium/discount — the daily bias signal. Midnight open above the CE = premium = bearish Judas more likely; below = discount = bullish Judas. | Pre-session: mark PDH, PDL, daily CE; check the midnight open against it. |
| Session | Asian range high to low (00:00–02:00 EST) | (Asian high + Asian low) ÷ 2 | Session equilibrium — the Judas direction signal. Above the Asian CE at 01:30 = expect the downward Judas; below = upward. | At 01:30 EST: mark the Asian boundaries and CE; note price’s position. |
| Intraday | Macro window high to low within the kill zone | (Macro high + macro low) ÷ 2 | Micro premium/discount for precision PD array entries. Rarely needed — the session CE is usually sufficient. | Advanced: within-kill-zone context only. |
| AMD phase | Dealing range location | Price action | ICT tools active | Trader action |
|---|---|---|---|---|
| Phase 1 — Accumulation | Near the CE (equilibrium zone) | Narrow ranging, tight candles, multiple CE tests | Asian range; OBs forming; midnight open near the CE | Mark the Asian boundaries, note the CE position, await the London Judas. |
| Phase 2 — Manipulation | CE to the discount extreme (bullish day) or premium extreme (bearish day) | The Judas sweep — sharp, rapid, large single candle into Q1/Q4 | Judas swing; stop hunt; Asian range sweep; kill zone open | Observe. Do not enter the Judas direction. Await the CHoCH. |
| Phase 3 — Distribution | Extreme → crosses the CE → delivers to the opposite extreme | CHoCH, displacement candles, FVGs forming, heading to Q4 (bullish) or Q1 (bearish) | OB + FVG entries; post-Judas CHoCH; macro window | ENTER from the post-Judas PD array at the macro window. Target: the opposite range extreme. |
| Phase 4 — Reversal | At or beyond the opposite extreme (Q4 bullish / Q1 bearish) | Momentum slowing, target reached, ranging begins at the extreme | Breaker block; PDH/PWH sweep; rejection block at the extreme | EXIT Phase 3 positions; mark the rejection block; prepare for the next cycle. |
Weekly range: the PWH and PWL from Sunday’s analysis. Daily range: the PDH and PDL. Session range: the Asian high and low as they form between 00:00 and 02:00 EST. AMD operational range: the Judas extreme (TDL or TDH as it forms at the London open) plus the anticipated distribution target.
From the swing low to the swing high, with a very light, nearly transparent fill — the rectangle should outline the range without dominating the chart. For multiple timeframes, build a visual hierarchy: the weekly range most transparent, the daily slightly less, the session range the least.
Calculate (high + low) ÷ 2 and draw a dashed horizontal line at that price, labelled “DR CE”, “Weekly CE”, “Daily CE”, or “Session CE”. This is the most important marking of the four — if only one element gets drawn, it is the CE: the premium/discount orientation every entry requires.
For detailed analysis, add the 25% level ((CE + low) ÷ 2) and the 75% level ((high + CE) ÷ 2) as lighter dashed lines. The 25% line marks the top of Q1 (the deep-discount accumulation zone); the 75% line marks the bottom of Q4 (the deep-premium distribution target zone).
The dealing range is defined by the specific swing high and swing low bracketing the current AMD cycle — not the last N candles or a calendar period. Arbitrary ranges produce CE levels that don’t align with the institutional references the AMD actually uses. Always derive the boundaries from market structure: the BOS swing low and the most recent significant swing high.
A bullish entry in daily discount but weekly premium carries a counter-weekly-trend context. Maximum-probability entries are in discount at the daily AND weekly CE simultaneously — check both before every entry. The daily CE locates today’s AMD; the weekly CE locates the whole week’s.
The Judas extreme establishes a new lower boundary; the developing TDH establishes the upper; the CE shifts with both. Pre-session analysis starts from PDH/PDL — but once the Judas sets the TDL, the operational range and its CE must be recalculated. Static ranges produce stale CE levels.
The CE is the premium/discount boundary, the accumulation reference, and the immediate bias signal against the midnight open. Skipping it means running AMD analysis without the equilibrium context institutional analysis operates from. Weekly CE on Sunday, daily CE before each London open — 30 seconds that convert premium/discount from intuition into a calculable level.
Lio has traded ICT and Smart Money Concepts on forex majors and US indices since 2021 and built LiquiditySweeps.com to teach the framework the way it should be learned: in sequence, on real charts, with free live tools instead of paid indicators. Every article on this site follows the same rule — nothing gets published that wouldn’t survive a trade review.
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