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.
Outlines
π Introduction to Market Maker Models in Trading
Zeus introduces the concept of using market maker models to determine trade biases. He emphasizes the importance of a logical framework for market expectations and explains how market makers' behavior influences price patterns. The video promises to demonstrate the fractal nature of price movements across different time frames and how understanding these patterns can reveal opportunities for traders. Zeus also mentions the significance of smart money and retail traders' perceptions in forming market bias.
π Market Maker Models and High Probability Trading
This paragraph delves into the specifics of market maker models, explaining how retail traders' stop-loss placements and smart money's strategic moves create predictable market patterns. It discusses the importance of aligning trades with the higher time frame bias and using market maker models on lower time frames for high probability setups. Zeus provides a real-world example from the NASDAQ, illustrating how to identify and trade according to the market maker cell model within various time frames, from one hour down to one minute.
π Fractals in Market Maker Models and a Trade Example
Zeus explains the concept of fractals within market maker models, showing how larger patterns can contain smaller, similar patterns across different time frames. He uses the five-minute and one-minute charts to highlight how points of interest from larger time frames can guide entry points on smaller ones. The paragraph concludes with a detailed trade example from September 7th, where Zeus applied the market maker buy model, providing a step-by-step account of his analysis and the resulting trade outcome.
Mindmap
Keywords
π‘Bias
π‘Market Maker Models
π‘Fractal
π‘Support and Resistance
π‘Smart Money
π‘Liquidity
π‘Fair Value Gap
π‘Order Block
π‘Stop Loss
π‘High Probability Setups
π‘Trendline
Highlights
Zeus introduces a framework for determining a trading bias based on market maker models.
The concept of price being fractal is explained, meaning patterns repeat across different time frames.
ICD's tweet about treating higher time frames as daily charts and studying lower time frames for new insights is referenced.
The logic behind market maker models is discussed, emphasizing the importance of retail and smart money behavior.
A step-by-step breakdown of the market maker sell model is provided, illustrating smart money reversals and entry patterns.
The importance of trading in line with higher time frame bias for high probability setups is highlighted.
An example of a market maker cell model on the NASDAQ one-hour chart is analyzed, showing institutional order flow.
The use of fractals within fractals is explained, demonstrating how patterns can appear on multiple time frames.
A detailed walk-through of a trade example from September 7th is presented, showing the application of market maker models.
The significance of using one-hour and five-minute premium arrays as points of interest for trade entries is discussed.
The video emphasizes combining the framework with the logic of market movement to trading areas of liquidity.
Zeus shares a personal trade example, detailing the thought process and strategy behind it.
The video concludes with a reminder to back-test market maker models for a deeper understanding of their effectiveness.
A call to action for viewers to engage with the content by liking, commenting, and applying the knowledge shared.
The video includes a link to ICT's videos for further exploration of market maker models.
The importance of aligning with the institutional order flow on higher time frames for successful trading is reiterated.
Transcripts
hey guys it's me Zeus and today's video
I'm going to explain to you guys how I
come up with a bias for my trades the
thing is with determining a bias is that
you need to have a framework for why the
markets should do what you expected to
do
there needs to be logic behind it and
today's video I'm going to tell you guys
how I incorporate the market maker
models into my analysis about the
marketplace
and I'm going to share with you some
chart examples some Trace that I took
I'm going to share with you the theory
about why the market maker models work
and how you can spot them easily
so let's dive into today's video
[Music]
I want to make something clear to you
and that is that price is fractal
and what that means is that what happens
on the higher time frames happens on the
lower time frames
there's a reason why ICD sets in one of
his tweets that if we treat the four
hour or the 60 Minutes as our daily
chart and study the five minute
structure that the new worlds will open
for us
there's actually logic behind that and
it all has to do with the market maker
models and today I'm going to prove that
to you
I hope you will enjoy it
so here's the market maker cell model
created by ICT which is shared in one of
his public YouTube videos
we can see that the market trades up
into a key premium array an order book
or Fair fairy Gap or an old High
and then the market refers
and it's together's lower prices
but why
does this pattern work why does it occur
why does this model keep repeating
itself well let's look at it purely from
an equality perspective
the market has been trading up
like this
what do you think retail beliefs what
the next move of the marketplace is
likely to be
reads or beliefs that the market is
going to continue
to move higher
so where do they Place their stop losses
below this row
we go this row
and especially these rows down here
because retail thinks in terms of
support and resistance
so this becomes support
this is support
because the Markets started to move
higher here we as smart money-minded
Traders know
that's the markers moves to areas of
liquidity and that liquidity is needed
in order to fulfill the orders of smart
money
so if the market is trading higher
higher higher we do not look at that as
oh the market is going to continue to go
higher let's look for launch no we wait
for the smart money refers to to take
place within that premium array
and then waits for an entry pattern to
occur to provide us with the opportunity
to Target these rows okay so here's the
market make a buy model just refers to
logic of the market makes cell model and
you'll be all right here's a quick
breakdown we wait for the marker to
trade into an old discount array
so this could be a fair failure gap an
order book or an old row
that would be here
then we want to see the market reverse
this is smart money reversal you could
either be a buyer down here in smart
manure first you could be a buyer here
buyer here Target these highs
why well Rito ceases as resistance so
where do they place our stops the places
stops above here and above here
what I want you to keep in mind is that
because price is factual you could use a
one hour discount array so one hour Fair
Ferry Gap and zoom into the lower time
frames such as on the five minute time
frame and see if there's a market make a
buy model if price trades into that one
hour Fair fire gap the same logic
applies to the four hour time frame if
you see the market rate into a four hour
discount array you can go into the lower
time frames to see if there's a market
make buy model on the lower Tower frames
but keep in mind if you want to have
high probability setups you need to
trade in line with the higher time frame
bias so if you see a market make cell
model on for example the daily
just like there's on the s p and NASDAQ
right now you want to be looking for
Mark make cell models on the lower time
frames because that's easiest training
in line with the higher time frame or
the flow
of course you could go to counter Trends
and look for Mark maker buy models
within a market make cell model on the
hard time frame
but that takes a lot of experience and
knowledge in order to pull that off I
would just suggest to trade in line with
the higher time frame institutional
Ortho if you spot a
higher time frame bearish institutional
orderful you search for Market maker
cell models if you spot a higher time
frame bullish or the flow you look for
Mark maker buy models
keep that in mind
so let's do what ICT set that we should
do
I have put on the one hour chart of the
NASDAQ from last week's Trading
and we can clearly see that there is a
market make cell model here
we have an original consolidation down
here the Mark has been trading up
into an old row
into ffi Gap and on the CPI news release
the market sold off then
the next day we have a consolidation and
then Thursday comes around
we can see that this Fair failure Gap is
holding price so this signals to us okay
the market isn't in a mood to retrace
higher before dropping lower no it's in
a rush to take out these rows because
this Fair fire gap this sell side
inefficiency is being respected
perfectly
and there's an smt with the SMP
we could look into the 15-minute charts
because we already knew that the one
hour charts institutional order flow was
bearish because it was in a rush to take
out these rows so now we have framed the
bias
for the day and now we can look on the
lower time frames for entry patterns
so here's the 15 minute chart this is at
one hour for a fair fire gap and there's
an smt here with the SMP
we can see that the markets retraces
into 50 minutes fair value Gap
after leaving behind relatively egross
remember those lows that are showed to
you on the one hour chart those are
these goes if we dive into the five
minute time frame we can see the same
thing appear the market trades into a 50
minute
Fair photo Gap
and then it sells off for the PM session
to complete the market make Excel model
because there there was a lot of cell
certificate down here trendline accuracy
we have the one hour charts our higher
time frame signaling to us that the
institutional order flow is bearish
the 15-minute chart is signaling to us
that the institutional order flow is
bearish a five minute chart structure
shows us a clear Market maker cell model
and now we just need to go on the one
minute chart to fine-tune or take our
entry is that the market was
consolidating in here remember this is
that original consolidation on the five
minute chart we had the smart money
refers to up here within that 15 minute
fair value Gap
and we started to see the markets break
down fair value Gap get respected
sales off
retraces sells off although gets
respected why does it get respected
because of this fair value Gap
was here a rejection block buysite has
been taken Market struct shift retrace
into a bearish order block stop can be
placed above this high
sells off what I want you to see is that
within this Mark make cell model
there was actually a market Mega cell
model in one minute chart because here
you can see trendline impurity being
built up prices consolidating within in
here the markets expands to an old
premium array
to an old row smart money refers for
takes place rejection block Market
structure shift retrace into bearish
order block sells off completing the
higher Target framework make Excel model
and as well with our trade market make
model so what I want you to understand
is that fractals appear within fractals
so we could see a one hour Market maker
cell model
but within that market make a cell model
we could see a market maker cell model
appear on the five minute chart
and if we see that we can go into the
one minute chart and look for the same
stuff but what we can do is use our five
minute premium arrays as point of
interest
for our One Minute Market maker cell
model entries
are price patterns
so what we're doing is we're using the
framework and combining that with the
logic that the market moves to the
obvious areas of liquidity
and because we're trading in line with
the higher time frame institutional
order flow the probabilities of being
right go through the roof
and I hope that you are able to see the
logic of that what I've just described
in here
so here's an example of a market maker
buy model trait that I took this was on
the 7th of September so at the beginning
of this month so we can see that the
market traded into this old fair value
Gap here
which was my poi
on the one hour chart I saw that price
trade into an order book here
after price traded away from this four
hour poi
then I went into the five minute chart
and I saw that probably straight into
this one hour order book then a five
minute order block got created price
respect this we saw an original
consolidation up here which was really
obvious
there's a lot of buyers at the equity
above here Rito thinks oh this is
resistance
let's place our stop losses above these
highs Trend wearing equality so this was
a smart money reversal in my opinion
but this is not enough information or
confirmation for me I need to wait
so I waited and waited and I saw that
this five minutes verify get got
respected price broke this intermediate
term High here which was my significant
microstructive shifts
and then I went wrong within the sharify
Gap stop above below this row because
this row already rebalanced this fair
for the Gap so this row should not be
broken
and then my targets were these highs
over here
here's the result of the trade
so that basically sums up this video I
hope I was able to point you into the
right direction with regards to Market
maker models I will leave a link to the
videos of ICT in which he talks about
Market maker models because this video
alone will not make you fully grasp the
market maker models probably I pointed
you in the right direction and now it's
up to you to put in the work and back
test if they really occur within the
marketplace
I thank you all for watching if you
enjoyed it or if you learned something
new please leave a like or comment I
would highly appreciate that and I wish
you all a great day be safe
[Music]
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