Macro is not a daytrading perspective, its long term daily charts ICT uses this for a long term perspective on the market
ICT doesnt believe in banks, because why would a bank tell you what there intentions are. That doesnt make sense. Its like football team telling you what their plays are going to be for the super bowl.
ICT looks for a 3-6 months outlook (Long term), 1 thing he uses for that is interest rates. The bond market
Both december contracts in this case, use barchart
Every 3-4 months there is a quarterly shift, either a reversal or an extended period of consolidation and then a resume of the trend or a reversal
ICT doesnt use much fundamentals, he uses a visual interpertation of the data, the bond market and the 10 year notes will tell him that. And then he has a good indication of what the interest rates will do.
Interest rates higher → dollar goes higher Interest rates higher → bond market drops Bond market higher → interest rates dropping Bond market lower → interest rates higher
30 year treasury bond is for mortgage in america 10 year bond
SMT from lesson 5 will be applied here, between the bond market and the dollar Around every 3-4 months there will be this shift and so SMT will occur
This is aimed to give you a 3-4 month outlook on where the currency will be going
SMT between 10 year note and the 30 year T bond market, so right away we know we should see an rally for the dollar a the end of september
So if we see a rally in the dollar we can expect a rally in USD-… pairs and a drop in …-USD pairs
Macro economics to then micro technical, take all this information and then in september start looking for USD pairs a reason to be long on the technical part
It builds an idea of where the market wants to go based on fundamentals without looking at the numbers The interest markets control everything around the world, without it nothing moves