CBDR Calculator (Central Bank Range)
Calculate the Central Bank Dealers Range using Asian session high and low for ICT analysis. Project standard deviation levels for London and New York
CBDR Calculator (Central Bank Range)
Calculator
Adjust values & calculateEnter your values below. Every result is computed in your browser — no data is sent to any server.
Formula: CBDR = Asian High - Asian Low; Projection = High + (CBDR x N) or Low - (CBDR x N)
Worked example — CBDR: 30 pips | Current: +1.33 SD | Next target: 2.0 SD at 1.0940 | Assessment: Normal range
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 Midpoint: 1.0865 1.0 SD Upper: 1.0880 + 0.0030 = 1.0910 2.0 SD Upper: 1.0880 + 0.0060 = 1.0940 2.5 SD Upper: 1.0880 + 0.0075 = 1.0955 3.0 SD Upper: 1.0880 + 0.0090 = 1.0970 1.0 SD Lower: 1.0850 - 0.0030 = 1.0820 2.0 SD Lower: 1.0850 - 0.0060 = 1.0790 Current 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) Midpoint: 1.2730 1.0 SD Upper: 1.2760 + 0.0060 = 1.2820 1.5 SD Upper: 1.2760 + 0.0090 = 1.2850 2.0 SD Upper: 1.2760 + 0.0120 = 1.2880 Assessment: Wide range suggests reduced London expansion. Expected expansion: 1.0-1.5 SD maximum on normal day. Daily 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
What is the Central Bank Dealers Range (CBDR) in ICT trading?
The Central Bank Dealers Range (CBDR) is an ICT concept that uses the Asian trading session range (typically 8 PM to midnight EST, or 5 PM to midnight EST depending on the trader) as a framework for projecting probable price movement during the more volatile London and New York sessions. The theory is that the Asian session establishes a consolidation range influenced by central bank activity, and subsequent sessions tend to expand from this range in measurable, predictable multiples. By measuring the Asian session high and low, traders can project standard deviation levels that act as potential targets and reversal zones during the London and New York trading sessions.
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.
What is the optimal Asian session time window for calculating CBDR?
ICT practitioners typically use two main time windows for CBDR calculation. The traditional window runs from 8 PM to midnight EST (New York time), capturing the core Asian session before the London pre-market begins. An alternative window extends from 5 PM to midnight EST, starting from the New York session close. The 8 PM to midnight window tends to produce tighter ranges and therefore more precise projections. The key requirement is consistency in your chosen window rather than switching between them. Some traders further refine by excluding the first hour (8-9 PM) if it shows unusual volatility from late New York session activity. The window should capture the typically quiet consolidation period that characterizes Asian trading.
Which standard deviation levels are most significant for trading?
Based on ICT analysis and backtesting, the most significant CBDR standard deviation levels vary by market conditions. The 2.0 and 2.5 standard deviation levels are considered the most common targets for normal daily expansion, with price reaching these levels approximately 60-70% of trading days. The 1.0 standard deviation often acts as a first intraday target or a pullback level after initial expansion. The 3.0 and 4.0 standard deviation levels are reached on high-volatility days, often coinciding with major news events or significant institutional repositioning. For practical trading, most ICT practitioners focus on the 2.0-3.0 range for take-profit targets and the 1.0 level for initial position management and trailing stop adjustments.
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.
How does CBDR integrate with other ICT concepts like killzones and Judas Swings?
CBDR projections work synergistically with other ICT concepts for comprehensive trade planning. The CBDR range extremes often serve as the Judas Swing target during the London killzone: price may sweep one side of the CBDR before reversing toward the projected standard deviation levels on the opposite side. The London killzone (2-5 AM EST) is when CBDR expansion typically begins, making it the primary trading window for CBDR-based setups. NWOG and NDOG levels that align with CBDR projection levels create high-probability confluences. The Power of Three pattern often uses the CBDR as the accumulation phase, with the London open initiating manipulation (Judas Swing of CBDR) before distribution toward projected standard deviation targets.
Can CBDR analysis be applied to indices and other markets besides forex?
Yes, the CBDR concept can be adapted for various financial markets, though the session times and typical range sizes differ. For stock indices like ES (S&P 500) and NQ (NASDAQ), traders use the overnight session range (6 PM to 9:30 AM EST) or the Globex Asian session as the consolidation range. For commodities like gold, the Asian session range serves a similar function. Cryptocurrency markets present a unique challenge since they trade continuously, but some traders use the quietest period (typically 10 PM to 4 AM UTC) as a proxy for the CBDR. The mathematical principle of standard deviation projections from a consolidation range applies universally, but the specific multipliers and time windows need calibration for each market.
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 is the statistical basis behind CBDR standard deviation projections?
The CBDR standard deviation concept borrows from statistical distribution theory. In a normal distribution, approximately 68% of observations fall within one standard deviation of the mean, 95% within two, and 99.7% within three. When applied to the CBDR, the Asian session range represents the baseline volatility measure, and the standard deviation multiples project where price is likely to travel based on historical expansion patterns. However, financial markets do not perfectly follow normal distributions as they have fat tails, meaning extreme moves beyond 3.0 standard deviations occur more frequently than a normal distribution would predict. Backtesting shows that on an average day, price reaches the 2.0 SD level approximately 65% of the time and the 3.0 SD level about 25% of the time.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
Related Calculators
🧮Asia Range Calculator
Calculate the Asian session range high and low for ICT Judas Swing and CBDR strategies.
🧮Balanced Price Range Calculator
Calculate balanced price range with inputs, formulas, and instant results.
🧮Average Daily Range Calculator
Calculate average daily range with inputs, formulas, and instant results.
🧮ICT Dealing Range Calculator
Calculate the weekly dealing range boundaries using ICT institutional orderflow concepts.
🧮ATR Calculator — Average True Range
Calculate atr with inputs, formulas, and instant results.
🧮Premium Discount Zone Calculator
Calculate premium and discount zones using the range equilibrium for ICT smart money trading.
🧮Daily Bias Calculator
Determine daily directional bias using ICT concepts including previous day range and key levels.
🧮Williams %r Calculator
Calculate Williams Percent Range oscillator for momentum and overbought/oversold conditions.