MXM Traders Twitter Model Lecture Notes

Overview

• MXM Traders Twitter Model: Trading strategy involving the movement from external liquidity to internal liquidity on smaller time frames.
• Key Components:
  • Market Structure Shift (MSS)
  • SMT (Smart Money Tool)
  • Liquidity considerations: Previous day's high/low, fair value gaps (FVG)

Trading Strategy Breakdown

• Primary Concepts:
  • External Liquidity: Typically marked by previous day's high/low
  • Internal Liquidity: Target fair value gaps
  • Market Structure Shift (MSS): Change in market dynamics, indicating potential trade entries
  • SMT (Smart Money Tool): Indicators of potential trades based on liquidity and market structure
• Trade Types:
  • Short Trades:
    • Above midnight open
    • Using previous day's high and targeting hourly bullish fair value gap (FVG)
    • Look for 15-min MSS and SMT setup
  • Long Trades:
    • Below midnight open
    • Using previous day's low and targeting hourly bearish fair value gap (FVG)
    • Look for 15-min MSS and SMT setup

Example Trades

• Daily Chart:

  • Identify swing points e.g., previous day high/low

• Hourly Chart:

  • Mark out fair value gaps (FVGs)
    • Bullish FVG: Below current price, indicating potential buying areas
    • Bearish FVG: Above current price, indicating potential selling areas

• 15-Minute Chart:

  • Look for MSS and SMT confirmation
  • Enter trades based on these signals

Gold Example

1. Daily Chart: Uptrend, previous day's low
2. Hourly Chart: Identify bearish FVG above
3. 15-Minute Chart:
   • Purge of previous day's low
   • SMT with silver
   • Change in state of delivery
   • Long entry below midnight open, stop below MSS candle’s low
4. Execution: Reached target FVG

NQ (NASDAQ) Example

1. Daily Chart: Previous day's low
2. Hourly Chart: Identify bearish FVG above
3. 15-Minute Chart:
   • SMT with ES (S&P 500 futures)
   • MSS or state of delivery change
   • Long entry below midnight open, stop below
4. Execution: Reached target FVG

Tools & Indicators

• Indicators Used:
  • ICT Kill Zones and Pivots: Automatically draw opening prices at midnight

Additional Examples

• Currency Pair Example: GBP/CAD

  • Identified bearish FVG on hourly
  • MSS and SMT on 15-min chart
  • Long entry below midnight open

• Final Example: NASDAQ with Daily Open

  • Identified daily highs, hourly FVGs
  • SMT with ES, MSS on 15-min
  • Shorting above daily open, using daily instead of midnight open for limit

Conclusion

• Model Flexibility: Can be adapted to higher or lower time frames (e.g., weekly to hourly)
• Trade Considerations:
  • Always align trades with structural analysis and liquidity targets

Note: Aim for a minimum risk-reward ratio of 2R for stops and targets.

Key Takeaways

• Utilize MSS and SMT for entry signals
• Always check higher and lower time frames for liquidity and FVGs
• Adapt the model to fit trading style and asset class