Intraday Bias Simplified | ICT 2022 Mentorship + MMXM = π€―
Summary
TLDRIn this educational trading video, Zeus explains the concept of market maker models and their significance in determining trade biases. He emphasizes the fractal nature of price movements and how they manifest across different time frames. By analyzing higher time frame institutional order flows and identifying entry patterns on lower time frames, traders can align with market trends, increasing the probability of successful trades. Zeus provides real-world examples and encourages viewers to study and backtest these models for deeper understanding.
Takeaways
- π The video by Zeus explains how to determine a trading bias using market maker models.
- π Price is fractal, meaning patterns observed on higher time frames can also be seen on lower time frames.
- π The market maker cell model involves the market trading up to a key premium area and then reversing, which is a common pattern.
- π€ Retail traders often place stop losses based on support and resistance levels, which smart money traders can anticipate and use to their advantage.
- π‘ Market makers move to areas of liquidity to fulfill orders, which smart money traders watch for to identify potential reversals.
- π Zeus demonstrates how to spot market maker models by using chart examples and the theory behind why they work.
- π Trading in line with the higher time frame bias increases the probability of successful trades.
- π The NASDAQ example shows how a market maker cell model can be identified on different time frames, from one hour to one minute.
- π οΈ Fractals within fractals concept allows traders to identify market maker models on various time frames, using the larger patterns as points of interest for smaller time frame entries.
- π― Zeus emphasizes the importance of combining the market maker model framework with the logic of market liquidity movements for high-probability setups.
- π The video encourages viewers to study and backtest market maker models to understand their occurrence in the market.
Q & A
What is the main focus of Zeus's video?
-The main focus of Zeus's video is to explain how he determines a trading bias by incorporating market maker models into his analysis.
Why is it necessary to have a framework for market expectations?
-A framework is necessary because it provides the logic behind why the markets should behave as expected, giving a structured approach to trading.
What does Zeus mean when he says 'price is fractal'?
-When Zeus says 'price is fractal,' he means that market patterns observed on higher time frames can also be seen on lower time frames.
What is the significance of the market maker cell model created by ICT?
-The market maker cell model created by ICT is significant because it helps traders understand how the market trades into key areas and then reverses, which can be used to predict future market movements.
Why does the market maker model keep repeating itself?
-The market maker model repeats itself because it is based on the consistent behavior of market participants, particularly retail and smart money, in response to price movements and perceived support/resistance levels.
How does the smart money trader view the market's movement into areas of liquidity?
-Smart money traders view the market's movement into areas of liquidity as an opportunity to fulfill their orders, rather than as a sign that the market will continue to move in the same direction.
What is the importance of trading in line with the higher time frame bias?
-Trading in line with the higher time frame bias increases the probability of successful trades, as it aligns with the overall market direction and institutional order flow.
How does Zeus use the one hour chart of the NASDAQ as an example in his explanation?
-Zeus uses the one hour chart of the NASDAQ to demonstrate how a market maker cell model can be identified, showing how the market trades into a fair value gap and then respects it as a sell-side inefficiency.
What is the role of the fair value gap in the market maker cell model?
-The fair value gap in the market maker cell model serves as an area of price consolidation and potential reversal, indicating where smart money may enter or exit the market.
How does the fractal nature of price help in identifying market maker models across different time frames?
-The fractal nature of price allows traders to identify similar market maker models across different time frames, from one hour to five minutes, providing multiple opportunities to trade based on the same underlying logic.
What advice does Zeus give regarding trading against the trend?
-Zeus advises that trading against the trend, such as looking for market maker buy models within a bearish institutional order flow, requires a lot of experience and knowledge and suggests that beginners should stick to trading in line with the higher time frame flow.
What is the importance of combining the market maker model with the framework of institutional order flow?
-Combining the market maker model with the framework of institutional order flow increases the likelihood of making correct trading decisions, as it aligns with the overall market sentiment and the actions of large players in the market.
How does Zeus demonstrate the application of the market maker model in a real trade example?
-Zeus demonstrates the application of the market maker model in a real trade example by showing how he identified a market maker buy model on the one hour chart, verified it on the five minute chart, and then executed the trade with a stop loss and target based on the identified patterns.
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