Market Maker Buy Model (MMBM) The Market Maker Buy Model consists of the following four parts:
Original Consolidation: Refers to the range of consolidation where prices are between two price limits.
Design Liquidity: Refers to the seller providing liquidity by creating lower highs, which becomes effective when prices move towards the buyer.
Smart Money Reversal: Refers to the situation when sellers turn into buyers as prices reach higher timeframe PD arrays.
Liquidity Raid: Refers to the sweeping of old highs made during engineered liquidity, ultimately returning to the original consolidation area.
To use the ICT Market Maker Buy Model, you must first look for bullish order flow, then attract liquidity upwards on a higher timeframe.
After confirming the above steps, you need to wait for sell programs on a lower timeframe so that prices can reach the bullish PD array on the higher timeframe.
When prices reach the bullish PD array on the higher timeframe, wait for bullish confirmation signals such as market structure shifts and SMT divergences.
Now, after the buyer confirms the above information, when prices pull back below the market structure shift level, you can execute buy trades at any fair value gap.
PO3 (Power of Three) is the core model concerning the "K-line formation logic" in the ICT system. It reveals how algorithms construct a complete K-line within any time period (daily, weekly, or even 1-minute).
The core logic of PO3 is: a K-line with a body consists of three stages: Accumulation, Manipulation, and Distribution.
Using PO3, one must first have a correct daily bias for intraday trading. Daily bias refers to predicting the next K-line and the price trend for the day.
In a rising market, prices will accumulate near the opening price of the day, as we discussed earlier, smart money will establish their buy positions in this area.
Afterward, they manipulate retail traders by significantly selling stocks below the opening price, artificially creating liquidity issues and targeting any old lows.
Retail traders perceive this manipulation as a downward breakout and attempt to sell assets; on the other hand, the stop-loss orders of those retail traders who bought during accumulation will be triggered below the previous lows, offsetting their buy positions.
Now, savvy investors will buy the asset in the discount area below the opening price and push up the price by selling to release liquidity towards historical highs, leaving a shadow below the opening price.
After breaking through previous high liquidity and forming the day's high, savvy investors will sell their positions to close them, causing the market to retreat to the intraday volatility range, leaving a shadow above, and ultimately closing below the day's high.
Market activities are divided into three key stages: Accumulation Stage, where smart money builds positions; Manipulation Stage, where false trends deceive retail traders; and Distribution Stage, where smart money guides the market in a direction favorable to themselves.
By understanding these three stages, you can better grasp the timing of entering the market, avoid traps, and stay aligned with market trends, thereby maximizing profits and minimizing losses.
Accumulation Stage: The accumulation stage refers to the period after the market opens, where prices fluctuate around the opening price, and smart money builds positions in this area. During this stage, retail traders place buy orders below the horizontal support area and sell orders below the horizontal resistance area. Their stop-loss positions are above the highest point and below the lowest point of the price range.
Manipulation Stage: The manipulation stage is also known as the false breakout of the accumulation stage. When prices break upward out of the price range, the stop-loss orders of short sellers will be triggered, while bullish breakout traders will enter buy positions. When prices break downward out of the range, the stop-loss orders of long traders will be triggered, and bearish breakout traders will enter sell positions.
Distribution Stage: The distribution stage is the final stage of AMD and the main event of the day.
After manipulating retail traders using all the liquidity created by them, smart money will continue to increase their positions, driving the market in the opposite direction of what retail traders expect. #BTC $BTC
ICT Rejection Block is the last point of interest for traders, characterized by long wicks formed at key support or resistance levels.
A rejection block refers to a setup formed at major highs and lows after liquidity has been taken.
Order blocks and rejection blocks are both used to initiate trades in ICT PD Arrays.
Both are reliable trading tools, but they differ in one aspect.
Order blocks can appear at 50%, 62%, or 70% retracement levels, while ICT rejection blocks always appear at 80% or 90% retracement levels.
Therefore, using ICT rejection blocks increases your risk/reward ratio, as your stop loss will be lower than that of the order block setup. #学习改变成长行动收获 $BTC
ICT FVG, also known as the fair value gap, is a pattern of three candlesticks, where there is an area of no retracement between the high and low of the first candlestick.
The fair value gap manifests as price imbalance, serving as support and resistance levels on the price chart.
The FVG acts like a magnet, attracting prices back to the fair value gap to balance price delivery.
After retracing to the FVG price, the price reverses and continues its trend.
To trade using the ICT fair value gap, you need to follow these steps:
Step 1 - Determine the market trend: First, we need to identify the market trend of any asset, whether it is a bull market or a bear market.
An ICT Order Block is an area on the price chart where a large number of institutional traders execute orders, resulting in sudden strong market fluctuations in that area.
Retail traders follow the footsteps of institutions, waiting for these order block areas to appear, and then trade in the market alongside large institutions like banks to make a profit.
Order blocks are divided into bullish and bearish types:
A bullish order block refers to the last bearish candle before a strong bullish trend, typically consisting of two candles: the first candle is bearish, and the second candle is bullish. A bearish order block is the opposite.
Bullish order trading strategy:
In a bullish order block trading strategy, you look for a reversal in price action from bearish to bullish, and then execute buy trades using the bullish order block.
When the trend is downward and approaching a demand area, you look for a price reversal in that area, at which point the price structure will shift towards buyers.
Then, you seek order blocks at the strong trend bottoms that change the market trend.
When you spot a bullish order block in that trend, it indicates this is a market involving institutions, so you need to wait for the price to test the bullish order block area before executing a buy trade.
When the price retraces and tests the bullish order block area, you can execute buy trades as shown in (Figure 2).
In the trend after the retracement, we can also find order blocks, which can confirm the strength of the trend. We can use these order blocks to trade with the trend or to establish new positions within the trend.
$ETH The current market for Ether is still hard to judge. Right now, it can be seen as a rebound after a sharp decline, but 1760 is also the phase bottom I anticipated. The rebound is not very strong, so I will raise the stop-loss and patiently wait for the market to show a direction. The worst-case scenario is just to exit at break-even.
山风bit
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$ETH is too weak, let's prepare to layout spot around 1760😪 {future}(ETHUSDT)
Will yesterday's decline in gold and silver cause panic for elderly individuals holding physical commodities? If so, then it hasn't finished dropping $XAU $XAG
Trade with the trend Refuse frequent trading Only trade within the time window outlined in the trading plan Only execute trades within the system Maintain a calm mindset regarding stop losses and selling out Do not revenge trade Refuse to go all in
How far is it from enlightenment if all of this can be achieved? How many can actually accomplish these points? #BTC