MXM Traders Twitter Model Lecture

Jul 19, 2024

MXM Traders Twitter Model

Overview

  • Concept: Moving from external liquidity to internal liquidity on a smaller time frame, paired with a market structure shift and SMT (Smart Money Technique).
  • Strategy: Use previous day's high/low, target a 1-hour fair value gap (bullish/bearish), look for a 15-minute market structure shift and SMT, and trade relative to midnight open.
  • Fractality: Can be applied on different time frames (e.g., weekly, 4-hour, 1-hour or daily, 1-hour, 15-minute).

Key Components

  1. External Liquidity:
    • Previous day's high (for shorts)
    • Previous day's low (for longs)
  2. Internal Liquidity:
    • 1-hour bullish fair value gap (for shorts)
    • 1-hour bearish fair value gap (for longs)
  3. Market Structure Shift (MSS)
  4. SMT (Smart Money Technique)
  5. Midnight Open: Trades are only taken relative to this line (shorts above, longs below)

Example Walkthroughs

Example 1: Gold (Daily Chart)

  1. Daily Chart:
    • Identify current uptrend
    • Mark previous day's low
  2. 1-Hour Chart:
    • Identify a bearish fair value gap
  3. 15-Minute Chart:
    • Confirm creation of SMT with silver
    • Confirm market structure shift
    • Entry below midnight open, stop loss below the fair value gap candle's low
  4. Outcome: Target hit, 2R achieved

Example 2: NQ (Daily Chart)

  1. Daily Chart:
    • Mark previous day low
  2. 1-Hour Chart:
    • Identify a bearish fair value gap (choosing larger gap based on premium/discount methodology)
  3. 15-Minute Chart:
    • Confirm creation of SMT with ES
    • Confirm market structure shift
    • Entry and stop loss setup
  4. Outcome: Target hit, near equilibrium of the range

Indicators

  • ICT Kill Zones and Pivots: Used to mark midnight open

Additional Example Notes

  • Example 3 (GBP/CAD):
    • Market structure shift below midnight open
    • Potential retracement entries
    • Target hourly fair value gap
  • Example 4 (NASDAQ/ym):
    • Identify and trade using SMT
    • Entry setup below midnight open and targeting hourly fair value gaps
  • Example 5 (NQ/ES):
    • Using daily open instead of midnight open for entry strategy
    • Short setup with bearish fair value gap

Conclusion

  • Application: Model can be adjusted and applied according to preferences and different trading instruments.
  • Recommendation: Practice understanding market structure, SMT, and fair value gaps to better utilize the model.