Price Action Model 7: Universal Trading Model

Introduction

• Focus on sell-side low resistance liquidity runs and fractals.
• Applicable to all trading styles: position, swing, short-term, day trading, scalping.
• Focus on sell-side market maker profile, specifically sell-side delivery seeking liquidity.

Key Concepts

• Liquidity Draw: Higher time frame level absorbing liquidity.
• Market Maker Sell Model: 2 profiles - buy and sell; both involve sell-side delivery.
• Fractals: Used to determine market patterns and behaviors.

Setup and Strategy

• Identify sell-side market maker profile.
• Recognize when the market is poised to move lower based on liquidity draw.
• Target levels of liquidity below the market.
• Define the range of opportunity between identified liquidity targets.
• Market Structure Breaks: Crucial in identifying shifts in market trends.
• Fair Value: Key point for determining market entry.

Liquidity Distribution Profile

• Analyzing distribution of buy-side and sell-side liquidity.
• Recognizing the pairing of orders for fair value gaps.
• Using historical levels of buy-side and sell-side to anticipate future movements.

Fractal Analysis

• Recognize the cycle of market movements: accumulation, distribution, reaccumulation, and redistribution.
• Understand higher probability setups by breaking down higher time frame structures.

Trading Execution

• Use of Balanced Price Range: Acts as natural support/resistance.
• Focus on Rejection Blocks: Important for determining potential reversal points.
• Recognize opportunities for Optimal Trade Entries based on identified levels.

Practical Application

• Market Maker Models:
  • Identify buy and sell opportunities within the model framework.
  • Recognize the role of institutional order flow.
• Weekly and Daily Analysis: Understanding long-term and short-term liquidity runs.

Conclusion

• The model provides a framework for predicting market behavior.
• Emphasis on understanding liquidity distribution rather than relying solely on charts.
• Encourages patience and focus on specific setups within defined models.

Additional Insights

• Tape Reading: Understanding market behaviors without visual charts.
• Algorithmic Perspective: Recognizing the structured nature of market movements.
• Continual Learning: Repeated review of models can enhance understanding over time.

Notes

• The content is complex and requires multiple reviews for mastery.
• Emphasis on long-term analysis rather than short-term predictions.
• Integration of theoretical models with real-world application, particularly on how liquidity runs are engineered and executed.