The only ICT MMXM video you'll ever need

Summary

In this video, the speaker simplifies the complex concept of market maker models, breaking them down into three key pillars: direction, high-timeframe key levels, and key targets. The speaker explains how market makers manipulate price action to gather liquidity and shift market direction, using both buy and sell models. By mastering these principles, traders can enhance their market predictions and trade profitability. Through live trade examples, the speaker demonstrates how to apply these concepts in real-time, emphasizing the importance of understanding the overall market direction and targeting internal range liquidity for optimal trades.

Takeaways

• 😀 Market maker models are a method of price delivery that help traders understand market structure, liquidity pools, and high-value areas.
• 😀 The market maker buy and sell models explain how the market manipulates in different directions to gather liquidity and shift the market's trend.
• 😀 Market maker models are based on three pillars: direction, high time frame key level, and key target. Each pillar is critical for effective trade execution.
• 😀 Direction (pillar 1) is essential in determining whether the market is in a bullish or bearish phase, influencing the trade strategy.
• 😀 High time frame key levels (pillar 2) include order blocks, liquidity sweeps, or fair value gaps, which act as zones where price reactions occur.
• 😀 Key targets (pillar 3) help determine when to take profit, focusing on internal range liquidity instead of chasing external range liquidity.
• 😀 A market maker buy model often starts with the market moving lower to spark seller interest before reversing to the upside for profit.
• 😀 For successful trading, it's crucial to identify a market shift after manipulation, which signals the reversal and entry point for trades.
• 😀 The key to consistent profits is targeting internal range liquidity rather than aiming for larger, more volatile price moves that can involve high risk.
• 😀 A well-managed trade that follows the three pillars can lead to significant profits, as shown by real-life examples from the speaker's live trades.
• 😀 Traders should avoid complicating market maker models; instead, they should focus on simplicity, consistency, and understanding the underlying principles of liquidity and price delivery.

Q & A

What are market maker models?

Market maker models are a form of price delivery that can be either bullish or bearish. They help traders understand market structure, liquidity pools, high-value areas, and more. Essentially, they are foundational concepts for analyzing price movements in the market.

What are the three main pillars to master market maker models?

The three main pillars are: 1) Direction, which helps identify which market maker model to look for. 2) High time frame key levels, which include order blocks, liquidity sweeps, or fair value gaps. 3) Key target, which helps define where price delivery will end, either for taking profit or as part of the directional framework.

Why is direction considered the most important pillar in market maker models?

Direction is crucial because it determines whether the market is in a bullish or bearish phase. Without understanding the overall market direction, traders cannot accurately predict whether they are dealing with a market maker buy model or sell model.

How do market maker buy and sell models work?

Market maker buy and sell models are price patterns that occur as the market moves to manipulate liquidity before making a significant move in the direction of the trend. For example, in a bullish market, the market may move lower to gather liquidity before reversing and moving upwards.

What role do higher time frame key levels play in market maker models?

Higher time frame key levels, such as order blocks, liquidity sweeps, or fair value gaps, act as crucial reference points where the market is likely to react. These levels provide context for when the market might shift, helping traders make informed decisions.

Why is targeting internal range liquidity important in market maker models?

Internal range liquidity is a key target because it represents liquidity within the current range, which is less likely to cause major reversals. In contrast, external range liquidity, which targets major highs or lows, can be riskier as it may involve mid-to-high time frame reversals.

What does a market shift mean in the context of market maker models?

A market shift refers to a change in the market's structure, usually marked by a break in price action or trend. It indicates a potential reversal or continuation, and traders typically wait for a second market shift before entering a trade, as it provides a stronger confirmation.

What is the significance of a fair value gap in market maker models?

A fair value gap is a price gap on a chart, typically caused by sharp movements or inefficiencies in the market. In market maker models, these gaps can serve as a key reference point, helping traders identify potential reversal zones or areas of high probability for price delivery.

How does market maker liquidity manipulation affect traders?

Market makers manipulate liquidity by pushing the price in a way that entices traders to enter the market in the wrong direction. This often results in retail traders losing positions, as the market then reverses to capture the liquidity they left behind in stop losses.

What were the key takeaways from the three live trades shared in the video?

The three trades showcased the use of market maker buy models in a bullish market. Key takeaways include: 1) The importance of identifying direction, 2) The use of higher time frame key levels like fair value gaps or order blocks, and 3) Targeting internal range liquidity for safer, more predictable exits.