Understanding ICT Macro Times

As seasoned traders know, timing can be everything in the world of trading. One concept that’s been gaining attention is “ICT Macro Times.” Whether you’re just starting out or have been trading for years, understanding ICT Macro Times can enhance your trading strategy and potentially increase your profits.

In this guide, we’ll break down what ICT Macro Times are, how they work, and how you can use them in your trading. We’ll keep things simple and straightforward, using basic trading terms so everyone can follow along.

What Are ICT Macro Times?

ICT Macro Times are short periods during the trading day when the market is more likely to make significant moves. These times are based on the teachings of Michael Huddleston, also known as the Inner Circle Trader (ICT). According to ICT, during these times, the market’s algorithms either seek out liquidity (like stop-loss orders) or adjust price imbalances (areas where the price moved too quickly without enough trading volume).

In plain English, during ICT Macro Times, the market might make sharp moves up or down to “grab” orders sitting at certain price levels or to fill in gaps where trading was thin.

Why Are ICT Macro Times Important?

Knowing when these times occur can give you an edge. While ICT Macro Times aren’t a complete trading strategy by themselves, they can add extra confirmation to your trades. By aligning your trading with these periods, you might catch bigger moves and improve your results.

When Do ICT Macro Times Occur?

ICT Macro Times happen during specific windows in the trading day, mainly in the London and New York sessions when the markets are most active. Here are the key times to watch (all times are Eastern Standard Time, with GMT in parentheses):

• London Session:
  • 2:33 AM – 3:00 AM (6:33 AM – 7:00 AM GMT)
  • 4:03 AM – 4:30 AM (8:03 AM – 8:30 AM GMT)
• New York AM Session:
  • 8:50 AM – 9:10 AM (12:50 PM – 1:10 PM GMT)
  • 9:50 AM – 10:10 AM (1:50 PM – 2:10 PM GMT)
  • 10:50 AM – 11:10 AM (2:50 PM – 3:10 PM GMT)
• New York Lunch Hour:
  • 11:50 AM – 12:10 PM (3:50 PM – 4:10 PM GMT)
• New York PM Session:
  • 1:10 PM – 1:40 PM (5:10 PM – 5:40 PM GMT)
• New York Last Hour:
  • 3:15 PM – 3:45 PM (7:15 PM – 7:45 PM GMT)

These times are when the market tends to be most volatile, providing opportunities for significant price movements.

How Do ICT Macro Times Work?

During ICT Macro Times, the market often does one of two things:

1. Seeks Liquidity: The market may move to areas where many orders are placed, such as previous highs or lows. This “grabs” stop-loss orders or triggers pending orders, adding liquidity to the market.
2. Balances Price Imbalances: If the price moved quickly earlier, leaving a “gap” or area with little trading activity (called a Fair Value Gap), the market may return to that area to fill in the gap.

In the chart above, you can see the US30 on a 15-minute timeframe just before the 9:50 AM macro time, and the price has already taken out the buy-side liquidity.

Using ICT Macro Times in Your Trading

Here’s how you can incorporate ICT Macro Times into your trading:

1. Identify Key Levels: Before the macro time begins, mark important price levels on your chart, like recent highs and lows, support and resistance zones, and any gaps in price.
2. Determine Market Direction: Look at the bigger picture to see where the market might be headed. Has it recently broken a key level? Is it trending up or down?
3. Wait for the Macro Time: Be patient and watch how the price behaves during the macro time. Does it approach your key levels?
4. Look for Entry Signals: Use your usual trading signals, such as candlestick patterns or moving averages, to find a good entry point.
5. Manage Risk: Always use stop-loss orders to protect yourself if the market moves against you.

Example:

Suppose you’re watching the EUR/USD currency pair. Before the 9:50 AM macro time, you notice the price has just hit a previous high, which could indicate the market is ready to reverse. During the macro time, the price starts to move down, confirming your suspicion. You might enter a sell trade, set your stop-loss above the recent high, and aim for the next support level.

Best Time Frames to Use

Because ICT Macro Times are short periods, it’s helpful to use lower time frames for your charts. You might use a 15-minute chart to see the overall trend, then switch to a 5-minute or even 1-minute chart to find precise entry and exit points during the macro time.

Best Markets for ICT Macro Times

While ICT Macro Times were first used with stock indices like the NASDAQ and S&P 500, they work well with other markets too. Many traders have successfully applied these concepts to:

• Forex Pairs: Especially major pairs like EUR/USD and GBP/USD.
• Metals: Such as gold (XAU/USD).

These markets are highly liquid and often show strong movements during the macro times.

Choosing the Best ICT Macro Time

If you’re looking for the most active period, the New York AM macro times are often the best. Specifically, the 9:50 AM – 10:10 AM window can be ideal because it overlaps with the opening of the New York Stock Exchange, leading to increased volatility.

Using Indicators for ICT Macro Times

To make things easier, you can use indicators that highlight ICT Macro Times on your charts. If you’re using TradingView, you can add the “ICT Macros [LuxAlgo]” indicator:

1. Click on the Indicators tab.
2. Search for “ICT Macros”.
3. Select “ICT Macros [LuxAlgo]” from the list.
4. Apply it to your chart.

This indicator will mark the macro times for you, making it easier to spot opportunities. Keep in mind it works best on charts with a 5-minute time frame or lower.

Conclusion

Understanding ICT Macro Times can give you an extra tool in your trading toolbox. By knowing when the market is likely to make significant moves, you can better time your trades and potentially increase your profits. Remember, while ICT Macro Times can add value to your trading, they should be used alongside a solid trading strategy and good risk management practices.

Frequently Asked Questions (FAQs)