Cbdr Calculator
Calculate the Central Bank Dealers Range using Asian session high and low for ICT analysis. Enter values for instant results with step-by-step formulas.
Formula
CBDR = Asian High - Asian Low; Projection = High + (CBDR x N) or Low - (CBDR x N)
The CBDR range is the distance between the Asian session high and low. Standard deviation projections multiply this range by N (0.5, 1.0, 1.5, 2.0, 2.5, 3.0, etc.) and add to the high or subtract from the low to create upper and lower projection levels.
Worked Examples
Example 1: Tight CBDR with London Expansion
Problem: Asian session produces a range of 1.0850 to 1.0880 (30 pips). Price is currently at 1.0920 during London session. Calculate CBDR projections.
Solution: CBDR Range: 1.0880 - 1.0850 = 30 pips\nMidpoint: 1.0865\n1.0 SD Upper: 1.0880 + 0.0030 = 1.0910\n2.0 SD Upper: 1.0880 + 0.0060 = 1.0940\n2.5 SD Upper: 1.0880 + 0.0075 = 1.0955\n3.0 SD Upper: 1.0880 + 0.0090 = 1.0970\n1.0 SD Lower: 1.0850 - 0.0030 = 1.0820\n2.0 SD Lower: 1.0850 - 0.0060 = 1.0790\nCurrent price 1.0920: 1.33 deviations above CBDR
Result: CBDR: 30 pips | Current: +1.33 SD | Next target: 2.0 SD at 1.0940 | Assessment: Normal range
Example 2: Wide CBDR Assessment
Problem: Asian session range is 1.2700-1.2760 (60 pips) on GBP/USD. How does this affect London expectations?
Solution: CBDR Range: 60 pips (Wide - above 50 pip threshold)\nMidpoint: 1.2730\n1.0 SD Upper: 1.2760 + 0.0060 = 1.2820\n1.5 SD Upper: 1.2760 + 0.0090 = 1.2850\n2.0 SD Upper: 1.2760 + 0.0120 = 1.2880\nAssessment: Wide range suggests reduced London expansion.\nExpected expansion: 1.0-1.5 SD maximum on normal day.\nDaily range already partially consumed by Asian session activity.
Result: CBDR: 60 pips (Wide) | Expected expansion: 1.0-1.5 SD | 2.0 SD target: 1.2880 (unlikely without news catalyst)
Frequently Asked Questions
How do you calculate the CBDR range and its standard deviation projections?
To calculate the CBDR, first identify the Asian session high and low (typically between 8 PM and midnight EST). The CBDR range is simply the high minus the low. Standard deviation projections are calculated by multiplying the range by various factors and adding to the high (for upper projections) or subtracting from the low (for lower projections). For example, if the CBDR is 30 pips with a high of 1.0880 and low of 1.0850, the 1.0 standard deviation upper projection is 1.0880 + 0.0030 = 1.0910, and the 2.0 SD is 1.0880 + 0.0060 = 1.0940. Common projections used are 0.5, 1.0, 1.5, 2.0, 2.5, 3.0, and 4.0 standard deviations from the range boundaries.
How does the size of the CBDR range affect trading expectations?
The CBDR range size provides crucial context for the trading day ahead. A tight CBDR of less than 20 pips on major pairs like EUR/USD suggests low Asian session participation and typically precedes significant London session expansion, potentially reaching 3.0-4.0 standard deviations. A normal CBDR of 20-40 pips suggests regular market conditions with expansion likely reaching 2.0-2.5 standard deviations. A wide CBDR exceeding 50 pips indicates unusual Asian session activity, possibly from central bank intervention or major news, and typically means London expansion may be limited to 1.0-1.5 standard deviations since much of the daily range has already been used. Understanding this relationship helps traders set realistic targets.
What are the limitations and common pitfalls of CBDR analysis?
CBDR analysis has several important limitations that traders must understand. First, major news events during London or New York sessions can override CBDR projections, pushing price well beyond the typical 2.5 standard deviation target or failing to reach even the 1.0 level. Second, Monday CDBRs can be distorted by weekend gaps, particularly after eventful weekends. Third, the CBDR works best on major forex pairs with clear session separation and diminishes in effectiveness on exotic pairs or during holiday-thinned markets. Fourth, blindly fading price at projection levels without confirmation from market structure is a common mistake. Fifth, the CBDR is a probabilistic tool providing likely ranges, not exact levels. Traders should always use it in conjunction with market structure, order flow confirmation, and proper risk management.
How do you use CBDR for setting realistic daily trading targets?
Using CBDR for target setting involves a systematic approach. First, measure the Asian session range after midnight EST. Second, assess whether the range is tight, normal, or wide to set expectations for expansion magnitude. Third, identify the direction of the initial expansion move during London open. Fourth, set your first target at the 1.5-2.0 standard deviation level in the expansion direction. Fifth, if the 2.0 SD level is reached with strong momentum and the CBDR was tight, consider holding for the 2.5-3.0 SD level. Sixth, use standard deviation levels as reference points for partial profit-taking rather than all-or-nothing targets. A practical rule of thumb is to take 50% profit at 2.0 SD and let the remainder run with a trailing stop.
What formula does Cbdr Calculator use?
The formula used is described in the Formula section on this page. It is based on widely accepted standards in the relevant field. If you need a specific reference or citation, the References section provides links to authoritative sources.
Is Cbdr Calculator free to use?
Yes, completely free with no sign-up required. All calculators on NovaCalculator are free to use without registration, subscription, or payment.