ICT Time & Price Theory
Understand ICT's Time & Price Theory — the concept that time is MORE important than price in trading. Learn IPDA cycles, time-based trading, and how the algorithm operates on schedules.
What is Time & Price Theory?
ICT's Time & Price Theory establishes that TIME is the senior element in trading. While most traders obsess over price levels, ICT teaches that understanding WHEN the algorithm will move is more valuable than knowing WHERE it will go.
"If you know the time, you can figure out the price. But if you only know the price, you can't figure out the time. Time is senior to price." — ICT
The IPDA (Interbank Price Delivery Algorithm)
What is IPDA?
The Interbank Price Delivery Algorithm is the system that controls price delivery in financial markets. It operates on:
- 20-day cycle — The IPDA looks back 20 trading days for liquidity targets
- 40-day cycle — Medium-term institutional reference
- 60-day cycle — Quarterly institutional perspective
IPDA Data Ranges
To find where price is heading, look back 20/40/60 days:
- Mark the highs and lows of these lookback periods
- These become the algorithm's liquidity targets
- The algorithm delivers price to these levels within the current cycle
Key Time Concepts
Macro Times
Specific minutes where displacement occurs:
| Macro | EST | BD Time |
|---|---|---|
| London Macro | 1:33-4:00 AM | 11:33 AM - 2:00 PM |
| AM Macro 1 | 9:50-10:10 AM | 7:50-8:10 PM |
| AM Macro 2 | 10:50-11:10 AM | 8:50-9:10 PM |
| PM Macro | 1:50-2:10 PM | 11:50 PM-12:10 AM |
| Last Hour | 3:15-3:45 PM | 1:15-1:45 AM |
Quarterly Shifts
Markets shift character at quarterly boundaries:
- Q1 (Jan-Mar): Often sets the yearly low
- Q2 (Apr-Jun): Expansion from Q1's range
- Q3 (Jul-Sep): Reversal or continuation
- Q4 (Oct-Dec): Year-end institutional positioning
Day of Week Profiles
| Day | Profile |
|---|---|
| Monday | Accumulation / range setting |
| Tuesday | Manipulation / Judas day |
| Wednesday | Distribution / maximum expansion |
| Thursday | Continuation or reversal |
| Friday | Profit-taking / reduced reliability |
Applying Time & Price Together
The Complete Framework
- Monthly/Weekly → Which liquidity pool is the target? (IPDA cycle)
- Daily → What is today's bias? (PO3 candle + day of week)
- Session → Which Kill Zone? (time of day)
- Macro → Which :50-:10 window? (exact entry timing)
- Entry → PD Array within the macro window
Example: Full Time-Price Analysis
- IPDA 20-day range: Low at 1.0780, High at 1.0960 (untouched BSL)
- Day: Wednesday (expansion day)
- Bias: Bullish (yesterday was bullish PO3)
- Session: NY AM Kill Zone (5:00-8:00 PM BD)
- Macro: 9:50-10:10 AM EST (7:50-8:10 PM BD)
- Action: At 7:55 PM BD, displacement forms bullish FVG → ENTER BUY
- Target: BSL at 1.0960
Common Mistakes
❌ Ignoring time completely — Most retail traders only look at price levels
❌ Not knowing macro times — These are the algorithm's "scheduled" moves
❌ Trading Friday like Wednesday — Each day has different character
❌ Ignoring IPDA cycles — The 20/40/60 day lookback shows you the algorithm's targets
Related Topics
- ICT Kill Zones — Session-based time windows
- Silver Bullet — Time-specific execution
- Daily Bias — Time-based bias determination
- Weekly Profiles — Weekly time patterns
- Monthly Profiles — Monthly time patterns