This document provides an overview of ICT's Market Maker Buy/Sell Model (MMXM) for trading the forex market. [1] The MMXM analyzes price action to identify when a smart money reversal is likely as price moves between periods of consolidation and points of interest on higher time frames. [2] Traders can enter positions at the reversal or wait for confirmation of the trend change. [3] The document outlines several variations of the MMXM including the ATM method, market maker series, and accumulation-manipulation-distribution.
This document provides an overview of ICT's Market Maker Buy/Sell Model (MMXM) for trading the forex market. [1] The MMXM analyzes price action to identify when a smart money reversal is likely as price moves between periods of consolidation and points of interest on higher time frames. [2] Traders can enter positions at the reversal or wait for confirmation of the trend change. [3] The document outlines several variations of the MMXM including the ATM method, market maker series, and accumulation-manipulation-distribution.
This document provides an overview of ICT's Market Maker Buy/Sell Model (MMXM) for trading the forex market. [1] The MMXM analyzes price action to identify when a smart money reversal is likely as price moves between periods of consolidation and points of interest on higher time frames. [2] Traders can enter positions at the reversal or wait for confirmation of the trend change. [3] The document outlines several variations of the MMXM including the ATM method, market maker series, and accumulation-manipulation-distribution.
This document provides an overview of ICT's Market Maker Buy/Sell Model (MMXM) for trading the forex market. [1] The MMXM analyzes price action to identify when a smart money reversal is likely as price moves between periods of consolidation and points of interest on higher time frames. [2] Traders can enter positions at the reversal or wait for confirmation of the trend change. [3] The document outlines several variations of the MMXM including the ATM method, market maker series, and accumulation-manipulation-distribution.
1 Background Info to the MMXM ICT gives us 2 Price Action models around which to form trades:
MMSM: Marker Maker Sell Model
MMBM: Marker Maker Buy Model
Youtube Links:
● ICT - Trading Plan Development 6
● ICT - Trading Plan Development 7
2 3 4 The above models are in their most basic form and ICT has introduced a few derivatives of this model since then; but the logic remains the same. Below are some of the derivatives of the MMXM:
1. The ATM Method
2. ICT Market Maker Series 3. Reversal Market Profile & Asia Range Consolidation & Raid 4. ICT Power of 3: Accumulation - Manipulation - Distribution
5 The ATM Method Youtube Link: ICT Forex - The ICT ATM Method
6 MMSM
7 MMBM
8 ICT Market Maker Series Youtube Link: ICT Forex - Market Maker Series Vol. 3 of 5
9 Reversal Market Profile & Asia Range Consolidation & Raid
Youtube Link: ICT - Trading Plan Development 7
10 ICT Power of 3 : Accumulation - Manipulation - Distribution The ever so twitter-popularized ICT Power of 3 is essentially a derivative of the MMXM. Youtube Link: ICT Forex - Accumulation - Manipulation - Distribution
11 My interpretation of the MMXM I have a very simplistic interpretation of the MMXM. Price moves from: Consolidation -> HTF POI -> Smart Money Reversal = SMR -> Return to the original consolidation
12 Smart Money Reversal ICT explains that a Smart Money Reversal (SMR) can happen in 2 ways; 1. Liquidity Raid 2. SMT Divergence
Please note I will not be covering SMT divergence as I myself do not use it. Feel free to research for yourself if you are indeed interested. If you’re trading crypto, BTC and ETH SMT divergence seems to work.
Liquidity Raid When price reaches a HTF POI, anticipate a reversal to occur. The entry technique is essentially the well known Quasimodo pattern. One can enter at the Breaker candle or a Fair Value Gap (FVG). I personally enter at an FVG (ICT 2022 YT Mentorship). Below are entry patterns for a SMR in a MMSM.
13 Entries along the Sell/Buy curve One can also obviously enter after a SMR has occurred. These are classified as Low Risk Buy/Sell entries as these occur when a trend reversal is confirmed.
14 Directional Bias 1. One way to develop daily bias is wait for price to run a previous day high/low, and anticipate a reversal. Target Liquidity in the opposite direction.
15 2. A second way is, If the HTF trend is bullish, anticipate at Market open for price to pullback to fill any FVG and/or react to OB’s and continue the bullish trend. Vice-versa if price is bearish.
16 Trading Framework
17 Notes: 1. Internal Liquidity is more often than not just External liquidity on a lower timeframe. Context is everything. 2. If price hits the intended TP Target without it returning to origin (i.e LTF FVG/OB), the entry is invalid if/when price does return.
3. Liquidity does not just exist above/below swing points. It also exists in FVGs/OBS. 4. Develop an ‘IF’ price does this ‘THEN’ i’ll enter like this. Do not predict but react. Do you want to be right or do you want to make money? 5.
18 6. Look for Shorts in premium, and longs in discount.
