The Central Bank Dealers Range (CBDR) is a concept introduced by Michael Huddleston (ICT) to identify a special price range in the Forex market that often acts as a magnet for price during the trading day.
It’s based on the idea that large institutions, such as central banks and major dealers, often set a controlled price range during certain hours, and retail traders can use this range to anticipate intraday price moves.
The CBDR is particularly effective in London and New York sessions because that’s when most institutional activity happens.
1. How the ICT CBDR Works
The CBDR is formed during a specific time window in the Forex market — often during the first few hours of the London session.
This range sets the high and low levels for the day’s key institutional manipulation.
Once these levels are established, price tends to:
- Trade away from one side of the range
- Come back to retest it
- Or target the opposite side
This behavior is because market makers aim to trap traders, collect liquidity, and then move the market in the intended direction.
2. Time Window for Central Bank Dealers Range in ICT
Although the exact time window can vary slightly depending on the pair and trader’s preference, a common ICT guideline is:
- Start Time: 02:00 AM EST (London Pre-Open)
- End Time: 05:00 AM EST (Start of London session)
This 3-hour window is where you mark the high and low to define the CBDR.
3. Example of ICT Central Bank Dealers Range in Action
Let’s say you are trading GBP/USD.
Mark the High & Low between 02:00 AM and 05:00 AM EST.
- High: 1.2765
- Low: 1.2725
Wait for London Open (around 03:00–04:00 AM EST).
Price may break above the high or below the low.
Scenario 1 – Fake Breakout:
Price quickly spikes above 1.2765, trapping breakout buyers.
It then falls back into the range and breaks below 1.2725.
This gives a sell opportunity targeting 20–40 pips or more.
Scenario 2 – True Breakout:
Price stays above 1.2765 after the breakout, retests it, and continues higher.
This gives a buy opportunity with a clear invalidation level at the opposite side of the range.
4. Trading Tips for ICT Central Bank Dealers Range
- Always confirm with higher time frame bias
Check the Daily or 4H chart for overall direction before deciding to buy or sell. - Combine with ICT concepts
CBDR works best with concepts like liquidity grabs, Fair Value Gaps (FVG), and Order Blocks. - Avoid chasing the first breakout
Many CBDR moves start with a false breakout to trap retail traders. Wait for confirmation. - Risk Management is key
Keep stop losses tight (often just outside the CBDR boundary).
5. Why ICT CBDR Works
CBDR works because it reflects institutional accumulation and distribution.
Market makers and banks use this range to position themselves before moving the market, and understanding this lets retail traders “ride the wave” instead of getting trapped.
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