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Friday, July 12, 2024

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

Algorithmic macros are timed directives for market maker price algorithms to seek and take out liquidity levels and imbalances in the market. Hence looking at a chart the first task is always to identify imbalances/inefficiencies, 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. 
 
 
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
 
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).
 
Divison of the trading day according to the Quarterly Theory:
6 Hour Sessions, 90 Minute Quarters & 22.5 Minute Micro Cycles/Quarters (EST/EDT).
 
6 Hour Sessions & 90 Minute Quarters in the S&P 500 E-mini Futures 15 minute chart.
 
90 minute Cycles & 22.5 Minute Micro Quarters in the S&P 500 E-mini Futures 1 minute chart.
 
Based on market structure and price action prior and during a macro, three categories can be classified:
 
(1.) Manipulation Macros sweep both buy-side and sell-side liquidity levels.
(2.) Expansion Macros sweep liquidity only on the buy-side OR the sell-side (trending price).
(3.) Accumulation Macros are characterized by ranging prices. 
 
Swing highs and lows of macro intervals can act as support and resistance.
 
Reference: