Intraday Bias Simplified | ICT 2022 Mentorship + MMXM = 🤯

Summary

In 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

• 😎 The video by Zeus explains how to determine a trading bias using market maker models.
• 📈 Price is fractal, meaning patterns observed on higher time frames can also be seen on lower time frames.
• 📊 The market maker cell model involves the market trading up to a key premium area and then reversing, which is a common pattern.
• 🤔 Retail traders often place stop losses based on support and resistance levels, which smart money traders can anticipate and use to their advantage.
• 💡 Market makers move to areas of liquidity to fulfill orders, which smart money traders watch for to identify potential reversals.
• 🔍 Zeus demonstrates how to spot market maker models by using chart examples and the theory behind why they work.
• 📝 Trading in line with the higher time frame bias increases the probability of successful trades.
• 📉 The NASDAQ example shows how a market maker cell model can be identified on different time frames, from one hour to one minute.
• 🛠️ 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.
• 🎯 Zeus emphasizes the importance of combining the market maker model framework with the logic of market liquidity movements for high-probability setups.
• 📚 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

00:00

📈 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.

05:01

📉 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.

10:03

🔍 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.

Keywords

💡Bias

In the context of trading, 'bias' refers to a trader's preconceived notion or inclination towards a particular direction in the market, typically based on analysis and patterns. The video's theme revolves around developing a trading bias by using market maker models. For instance, the script mentions 'how I come up with a bias for my trades' and explains the importance of having a logical framework for market expectations.

💡Market Maker Models

These models are theoretical constructs used by traders to understand and predict market movements based on the behavior of market makers. The video discusses how incorporating these models into analysis can help in identifying high-probability trading setups. An example from the script is the 'market maker sell model' which is used to illustrate how the market trades into key areas and then reverses.

💡Fractal

The term 'fractal' in trading signifies that price patterns repeat across different time frames. The video emphasizes that understanding fractals can help traders identify similar patterns on higher and lower time frames. The script uses the concept to explain how observing patterns on a five-minute chart can be as insightful as on a daily chart.

💡Support and Resistance

Support and resistance are concepts used to identify price levels at which it is expected that the market will find a pause in its movement. In the script, retail traders are described as placing their stop losses below support levels, expecting the market to continue moving higher.

💡Smart Money

Smart money refers to large institutional investors or professional traders who are believed to have a more significant impact on the market. The video suggests that understanding smart money's behavior is crucial for identifying market maker models. For example, the script mentions 'smart money reversal' as a key moment in the market maker model.

💡Liquidity

Liquidity in trading refers to the ease with which assets can be bought or sold without affecting their price. The script explains that market makers move the market to areas of liquidity to fulfill orders of smart money, which is a critical aspect of the market maker models discussed in the video.

💡Fair Value Gap

A 'fair value gap' is a term used to describe a price area that the market is expected to reach based on its current trading behavior. The video uses this term to illustrate how traders can identify potential reversal points in the market. The script mentions 'fair value gap' in the context of market trading patterns and entry points for trades.

💡Order Block

An 'order block' is a price area where there is a high concentration of buy or sell orders. In the script, the concept is used to explain how the market's movement is influenced by these areas of concentrated orders, which are crucial for the execution of smart money strategies.

💡Stop Loss

A 'stop loss' is an order placed by a trader to sell a security when it reaches a certain price, typically to limit potential losses. The video discusses how retail traders place their stop losses based on support and resistance levels, which is a behavior that can be exploited by understanding market maker models.

💡High Probability Setups

High probability setups refer to trading opportunities that have a higher chance of success based on certain patterns or signals. The video emphasizes the importance of aligning trades with the higher time frame bias to increase the probability of a successful trade. The script provides examples of how to identify these setups using market maker models.

💡Trendline

A 'trendline' is a line drawn on a chart to represent the direction of a price trend. The video uses trendlines to illustrate how market movements can be analyzed and to identify potential reversal points within the market maker models. The script mentions 'trendline impurity' as part of the entry pattern recognition process.

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]