How to use Time & Price (ICT Macros)

Summary

In this video, the speaker delves into the concept of 'time and price' in trading, emphasizing the importance of macro times—specifically the first and last 10 minutes of every hour—where liquidity tends to be swept. Traders are advised to anticipate price movements during these periods, helping manage trades with less emotional stress. While entries don’t always need to be during these times, expecting liquidity to be run within these windows can enhance trading strategy. The speaker also discusses tools like the ICT macros indicator, offering insights into trade management and the timing of exits when liquidity targets are not met.

Takeaways

• 😀 Understanding the concept of 'time and price' is essential, as it plays a significant role in market behavior, but many traders struggle with its meaning and application.
• 🕒 The concept of 'macro times' is central in this video, as it explains specific time frames where price tends to run liquidity, particularly the last 10 minutes and first 10 minutes of every hour.
• 💡 Liquidity is a key concept in market movements during macro times. Traders often look for liquidity draws, which occur when the price reaches a specific point of liquidity (like low or high of the day).
• 📊 The 'ICT macros' indicator is mentioned as a tool to track these macro times. It helps identify the key time windows to monitor for potential liquidity movements.
• 🔄 Macro times can be used emotionally in trading. If a liquidity draw doesn’t occur during the expected macro time, traders might consider exiting positions early, as this could be a sign that the setup isn’t working as expected.
• 💥 It is crucial to recognize when a macro time is not running liquidity as expected. In such cases, exiting the position earlier can help save mental capital and avoid unnecessary stress.
• ⚖️ Traders should not always enter trades during the macro time itself, but they should expect liquidity to run during these times, especially if the momentum is heading in the expected direction.
• 🏆 Macro times generally help traders stay emotionally grounded. The expectation that a liquidity draw will happen quickly during these times can reduce the need for excessive patience in a trade.
• 🔍 Consolidation before a macro time can be a signal for a potential big move. Traders should observe price behavior and look for inversions (like bearish gaps) as confirmation for entry during the macro time.
• 🛠️ While macro times are not the only times to trade, they often present the most reliable opportunities. The key is to recognize the macro times and expect liquidity draws to occur before the time frame ends.

Q & A

What does 'time and price' mean in the context of ICT trading?

In ICT trading, 'time and price' refers to the relationship between specific time windows (macros) and price movements. These macros represent key periods when liquidity tends to run, and the price is expected to move toward certain liquidity draws. Understanding these time periods helps traders anticipate price movements more accurately.

Why is it important to understand macro times in ICT trading?

Understanding macro times is crucial because they represent periods where liquidity runs are more likely to occur. These times help traders predict price movement more effectively, manage their trades better, and avoid unnecessary risks. It provides a structured framework for entering and exiting trades.

What are the key macro times mentioned in the video?

The key macro times mentioned are the first 10 minutes and the last 10 minutes of every hour. These times are when liquidity runs typically happen, and traders should be particularly aware of them as price movements often align with these periods.

Can a trader enter a trade before a macro time begins?

Yes, a trader can enter a trade before the macro time begins, but they should expect the liquidity to be run during the macro period. If the liquidity isn't run during the expected macro time, it may signal a bad trade, and the trader may need to adjust or exit their position.

What should a trader do if a price doesn't reach the expected liquidity draw during the macro time?

If the price doesn't reach the expected liquidity draw during the macro time, it’s often a sign that the trade might not perform as anticipated. In this case, the trader should consider exiting the position or scaling out of it to avoid unnecessary risk.

What role does liquidity play in macro times?

Liquidity plays a crucial role in macro times as it drives price movements. During these periods, traders expect price to move toward liquidity pools (such as previous highs or lows) that have not been fully tapped. Running these liquidity levels often triggers significant price movement.

How should a trader react when they see price action that doesn't align with the expected liquidity during macro time?

If the price action doesn’t align with the expected liquidity during macro time, the trader should be cautious. They might consider exiting the position early, as it could indicate that the price will not reach the expected liquidity within the macro period.

What is the significance of 'Power Hour' in the context of macro times?

'Power Hour' refers to the period from 3:15 PM to 3:45 PM, which is considered a macro time that can lead to strong price movements, especially after consolidation. Traders should watch for liquidity runs during this time, as it tends to provide high movement opportunities.

What is the emotional advantage of trading during macro times?

The emotional advantage of trading during macro times is that these periods typically see quick price movements, reducing the need for prolonged patience. This helps traders maintain a clear, less stressful mindset as trades tend to resolve more rapidly.

What should traders expect when entering trades during a macro time?

Traders should expect price to move quickly toward a liquidity draw during macro times. While it's not mandatory to enter trades exactly during the macro time, entering a trade within a macro period increases the likelihood of reaching the liquidity target before the macro ends.