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STBP SMT + MMXM

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2K views10 pages

STBP SMT + MMXM

Uploaded by

diego
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SMT + MMXM

Identifying High Probability Narratives

@CASPER_SMC
@ETHAN_ICT
INTRODUCTION
SMT + MMXM

WHAT IT IS
Blending SMT Divergence and
Market Maker Models is using
MMBM SMT Divergence to determine
when a phase of a Market Maker
Model is completed.

SIGNIFICANCE
The significance of blending SMT
and MMXMs together is that you
are able to identify high
probability trade ideas. The
MMXM provides narrative, and
SMT provides confirmation. When
SMT occurs within an MMXM, it
tells you that the market is about
MMSM to expand.

APPLICATION
To blend SMT and MMXMs
together, there is a simple 3 step
process to identify high
probability setups:

1. Higher Timeframe Key Level


2. SMT within the HTF Key Level
3. LTF Market Maker Model

With this 3 step process, you will


be able to identify ICT’s favorite
setup - The Silver Bullet.
EXAMPLE
Step 1 - HTF Key Level

HTF NARRATIVE
The first step is to identify the HTF Narrative. In this scenario, you have
a HTF Market Maker Sell Model to frame the trade off of. This is the best case
scenario for setups as you will find MMXMs within MMXMs.

In the chart below, you can see that price manipulates the highs, displaces
lower creating the market structure shift and leaves behind a massive Fair
Value Gap. In this instance, when trading back into the FVG left behind,
there was also SMT Divergence, telling us that the market is completing the
Distribution phase and is ready to expand.

On the HTF, this in itself is the Silver Bullet, but let’s dive deeper and see
what we find on the LTF within the HTF Key Level.
EXAMPLE
Step 2 - SMT Within The Key Level

SMT + HTF PDA


The second step is to identify if SMT has occurred within the HTF Key
Level on the LTF.

In the chart below, you can see that SMT occurs at the highs, and so with the
idea that a potential ‘reversal’ is about to take place on the LTF in context of
the HTF, we can move onto step 3.
EXAMPLE
Step 3 - LTF Market Maker Model

LTF MMSM WITHIN A HTF MMSM


The third step is to look for a Market Maker Model on the lower
timeframe that occurs within the Higher Timeframe Key Level.

In the chart below, you can see that this is exactly what was forming.
When a market maker model forms within a market maker model, this is one
of the highest probability models.

In this case, there are two take profit options:


1. The LTF MMXM Original Consolidation for a quick trade, but less RR.
2. The HTF MMXM Original Consolidation for a longer trade, but more RR.

(Personally, I like to take partials at Option 1, and full close at Option 2 - Ethan)
HOMEWORK
SMT + MMXM

HOMEWORK 1
Take a look at this blank diagram of two markets, annotate all the phases of
the Market Maker Models by using SMT to identify each phase.
HOMEWORK
SMT + MMXM

HOMEWORK 2
Take a look at this blank diagram of two markets, annotate all the phases of
the Market Maker Models by using SMT to identify each phase.
ASSIGNMENT
SMT + MMXM

HOMEWORK 3
Go into your own charts and see if you can spot this occurrence between the
markets that you trade.

For more information on this concept & model, feel free to check out
EthanICT’s Full Lecture on YouTube about SMT Divergence.
ANSWERS
SMT + MMXM

HOMEWORK 1 ANSWER
Take a look at this blank diagram of two markets, annotate all the phases of
the Market Maker Models by using SMT to identify each phase.
ANSWERS
SMT + MMXM

HOMEWORK 2 ANSWER
Take a look at this blank diagram of two markets, annotate all the phases of
the Market Maker Models by using SMT to identify each phase.

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