Last Lecture on Market Maker Models

Jun 28, 2024

Last Lecture on Market Maker Models by ICT

Introduction

  • Final teaching lecture on the Inner Circle Trader YouTube channel.
  • Closest viewpoint to how the instructor actually trades.
  • Understanding PD arrays (price delivery arrays) is crucial.

Importance of PD Arrays

  • Market maker models rely on understanding all available PD arrays.
  • Key concepts include: breaker, mitigation block, inversion fair value gap, etc.
  • Familiarity with multiple PD arrays enhances understanding of price action.

Approach to Learning

  • Journaling and annotating missed opportunities are crucial for learning.
  • Pseudo-experience helps condition the brain for real-time recognition.
  • Emphasizes learning without monetary risk initially.
  • Reverse methodologies for market maker buy models.

Content Overview

  • Lecture focuses on market maker sell models.
  • Assumes familiarity with prior lessons and concepts.
  • Application depends on recognizing liquidity and inefficiencies in price.

Key Terms and Concepts

  • Market Maker Model: A framework for understanding price movements based on liquidity and inefficiencies.
  • Buy Side Delivery: Movement from discount to premium price, buying into inefficiencies and liquidity above old highs.
  • Sell Side Delivery: Movement from premium to discount price, selling into inefficiencies and liquidity below old lows.
  • Fair Value Gap (FVG): Inefficiency in price that the market aims to fill; classified as CBI (sell side imbalance/buy side inefficiency) or BISI (buy side imbalance/sell side inefficiency).

Analyzing Price Movements

  • Identifying relative equal highs and lows is just the beginning.
  • Understand the market's narrative (liquidity hunting or manipulation).
  • Distinguish between types of inefficiencies and their respective targets.

Example Analysis

  • Close line charts vs. candlestick charts for price detail analysis.
  • Annotating graphs to track inefficiencies, liquidity points, and price behavior.
  • Key levels: Original consolidation, order blocks, fair value gaps, and rejection blocks.

Practical Application

  • Recognize the original consolidation and entry points for long or short positions.
  • First Stage Accumulation: Initial entry based on order blocks and fair value gaps.
  • Second Stage Redistribution: Additional entries based on further price confirmations.
  • Smart money reversals, second stage redistributions, and low resistance liquidity runs.

Advanced Strategies

  • Identifying high and low resistance liquidity runs based on experience and price recognition.
  • Use of time frames (15-minute, 5-minute) to zoom in on price action details.
  • Smart money reversals on buy and sell curves offer refined entry points.

Time and Price Considerations

  • Importance of aligning time and price for precision in trades.
  • Key trading times: London Open, New York Open, Kill Zones (specific high volume periods).
  • Example: Market reversal profiles and running liquidity hunts during these times.
  • Anticipating market reactions and using predefined strategies like the Silver Bullet or Model 2022.

Conclusion

  • Emphasis on the comprehensive understanding of concepts over time, not rushing the learning process.
  • Multiple approaches to market maker models, tailored to individual trader's experience and skill level.
  • Ending with a note of appreciation for the students and the impact of teaching.
  • Encouragement to continue using the available content for further learning.

Final Notes: All current content on the ICT YouTube channel and Twitter will remain accessible and unchanged.

Resources and Further Learning

  • Continuously review and practice with existing lectures and resources.
  • Engage with provided content to deepen understanding.

Thank you for your dedication and time spent learning. Wishing you continued success and growth in your trading journey.