Time ▾ Price ▴ Research: ICT Time Macros & Quarterly Theory

Friday, July 12, 2024

ICT Time Macros & Quarterly Theory | Michael J. Huddleston & Jevaunie Daye

Algorithmic macros are timed directives for market maker price algorithms to seek and take out liquidity levels and imbalances in the market. These periods, typically lasting 20-30 minutes, are characterized by increased market volatility and are used by traders to identify high-probability trading setups. Developed by Michael J. Huddleston, ICT macros are based on the ICT Time and Price Theory, where algorithms execute precise instructions to interact with liquidity pools or correct market inefficiencies.

Hence looking at a chart the first task is always to identify imbalances/inefficiencies such as Fair Value Gaps (FVGs), buy-side and sell-side liquidity levels. Look at previous day's highs and lows, session highs and lows, highs and lows in the last three days and the previous week.

These macros are not intended to function as standalone systems but are instead used to enhance trading strategies by providing confluence, aligning trades with algorithmic price movements. Macros generally appear during specific times of the trading day, particularly in the last 10 minutes of a closing hour and the first 10 minutes of an opening hour. Within the final hour of a trading session, they may also occur every 15 minutes. They are especially common during the London and New York trading sessions, which are known for high trading volume and increased volatility, making these periods optimal for macro-based setups. There are 8 macros during the trading day:

#1 London Pre-Open Macro 02:33 - 03:00 EST/EDT

#2 London Open Macro 04:03 - 04:30

#3 New York AM Macro                 08:50 - 09:10
#4 London Close Macro               09:50 - 10:10
#5 London Fix Macro                    10:50 - 11:10
#6 New York AM Close Macro    11:50 - 12:10
#7 New York Lunch Macro          13:10 - 13:40
#8 New York PM Close Macro    15:15 - 15:45

Traders monitor price action closely during these specific time windows for precise trade entries. Lower timeframes, such as the 1-minute, 3-minute, 5-minute, or 15-minute charts, are preferred for execution due to their precision. During macro periods, market algorithms may aggressively sweep liquidity, targeting stop-loss orders, or fill imbalances, which can lead to sharp price movements. By studying market structure shifts (MSS) and maintaining a clear directional bias, traders can anticipate and respond to these moves effectively.

To trade ICT macros successfully, the process generally involves several key steps. First, mark important price levels in advance, including buy-side and sell-side liquidity zones and FVGs. Use 15-minute charts to establish directional bias and switch to lower timeframes (1 to 5 minutes) for execution.
During the macro window, wait for the algorithm to take liquidity or fill imbalances, and then look for entry signals such as market structure shifts or candlestick patterns.
Trades are entered with clearly defined stop-losses—typically just beyond key levels—and profit targets are set around opposing liquidity pools or imbalances.
Strict risk management is crucial, especially given the volatility that often accompanies these macro windows.

For example, on a US30 15-minute chart just before the 09:50 AM New York macro time, if the market takes out a buy-side liquidity level (such as previous highs), the price may then shift directionally to seek sell-side liquidity. Dropping to a 5-minute chart, a trader might observe a market structure shift to the downside and enter a sell trade at an FVG. A stop-loss could be placed above the high of the FVG candle, with a take-profit targeting equal lows—yielding, for instance, a 1:3 risk-reward ratio.

ICT macro strategies are particularly effective for trading indices like NASDAQ, S&P 500, and Dow Jones (US30), major forex pairs such as EUR/USD and GBP/USD, and commodities like gold (XAU/USD).

ICT Killzones and Macros in the US Dollar Index 5 minute chart.

ICT Killzones and Macros in the S&P 500 E-mini Futures 5 minute chart.

Macros focus mainly on the first 20, 30, or 40 minutes of a trading hour (22.5 Minute Cycle).

► There are no ICT macros during the Asian Session.

► The macro between 9:50 and 10:10 is a time window where the market maker algorithm starts running for liquidity (look for ICT Silver Bullet setup).

► The period between 10:50 and 11:10 marks the end of the 3rd hour of the New York AM Session, and the first 90 minutes of floor trading (90 Minute Cycle).

► The transition from the AM session to the lunch period leads either to consolidation, reversal or continuation (6 Hour AMDX/XAMD Cycle).