Advanced MMXM Lecture - ICT Concepts

Introduction

The speaker introduces the topic of market maker models and explains that all his trades are based on this model. He emphasizes the importance of taking notes during the lecture.

Market Maker Buy Framework

• The market maker buy framework consists of a sell side of the curve, a reversal price level, and a buy side of the curve.

• Wait for the market to trade into your reversal prior shuffle, anticipate confirmation of this reversal, then buy the buy side of the curve.

• A schematical representation is shown to explain how by side equity gets engineered through placing stop losses above resistance levels.

Market Maker Buy Framework Continued

The speaker continues to explain how by side equity gets engineered through placing stop losses above resistance levels.

How By Side Equity Gets Engineered

• When the market retraces and creates another high, traders place their stop loss above this high.

• Above each high rests a buy stop which is liquidity by side liquidity.

• The market trades into this reverse requires level which is a discount array within a market make a buy model framework and then it reverses and we see the buy side of the Curve.

Annotation Explanation

• Annotations on original consolidation, resistance price level, and highs are explained in detail.

Smart Money Tool (SMT)

In this section, the speaker talks about SMT or Smart Money Tool. He explains that SMT is a cracking correlation between assets or markets that should be highly correlated with each other. The speaker also shows an example of SMT within the charts.

What is SMT?

• SMT stands for Smart Money Tool.

• It is a cracking correlation between assets or markets that should be highly correlated with each other.

• The speaker shows an example of SMT within the charts using the e-mini SMP, NASDAQ, and Dow Jones.

How to Confirm a Possible Reversal Scenario

• Confluences are needed to confirm a possible reversal scenario.

• A significant cracking correlation within a discount array such as an imbalance or an order book can indicate smart money actively accumulating their own positions within this marketplace.

• Narrative comes first when looking for SMT. Look for it in price levels where you expect smart money reversal to take place.

Market Structure Shift

In this section, the speaker talks about market structure shift and how he discovered it. He explains that market structure shift occurs when there's a change in market behavior and how it can help traders identify potential trading opportunities.

What is Market Structure Shift?

• Market structure shift occurs when there's a change in market behavior.

• It helps traders identify potential trading opportunities by looking at key levels where price has reacted before.

• The speaker discovered market structure shift while attending ICT's 2022 mentorship program.

How to Identify Market Structure Shift

• Look for key levels where price has reacted before.

• Market structure shift can be identified by looking at the behavior of price around these key levels.

• The speaker developed a tool called "The Real Source" to help traders identify market structure shift.

Introduction to Market Structure Shift Pattern

In this section, the speaker introduces the concept of the market structure shift pattern and emphasizes its importance in understanding price action.

The Market Structure Shift Pattern

• The market structure shift pattern is a secret weapon hidden within the marketplace that can give traders so much confirmation of a reversal or change in state of the market.

• The pattern involves an intermediate term high that retraces into an imbalance, followed by a bearish fair value gap that gets broken by a bullish fair value gap. This signals a change from sell side to buy side.

• After the bullish fair value gap, there is typically a retracement before the market continues higher.

• Properly using this pattern can be incredibly powerful for traders.

Market Maker Sell Model

In this section, the speaker discusses the market maker sell model and explains how it works.

Market Maker Sell Model

• The market maker sell model is essentially just the market maker buy model in reverse.

• It starts with an original consolidation where the market is consolidating within a certain price range.

• Sell side liquidity gets engineered below the lows of this consolidation, and then the market trades down to that specific price level where smart money reversal will take place eventually.

Understanding Market Support and Resistance Levels

In this section, the speaker explains how to identify support levels in the market and why it is important to place stop losses below these levels.

Identifying Support Levels

• Support levels are areas where the market has previously stopped falling and turned around.

• To identify support levels, look for areas where the market has bounced off a certain price level multiple times.

Placing Stop Losses

• It is important to place stop losses below support levels to limit potential losses if the market falls through that level.

• This is a common practice taught in trading books.

Understanding Smart Money Reversals

In this section, the speaker discusses smart money reversals and how they can be confirmed.

Smart Money Reversals

• Smart money reversals occur when the market trades into a specific premium array or price level engineered by smart money traders.

• When this happens, there is often a reversal in the market's direction.

Confirming Smart Money Reversals

• To confirm a smart money reversal, look for significant displacement on one side of the curve (either higher prices or lower prices).

• If there is a significant displacement, wait for a bearish fpg or CBR (confirmed bearish reversal) before placing a short stop above the high.

• Take profits at sales at equity boosts which rest below all-time highs.

Market Maker Models and SMTs

In this section, the speaker explains how market maker models work and how they can be used to identify SMTs (significant market tops).

Market Maker Models

• Market maker models are used to identify where the market is trying to move.

• The speaker has created a schematic that shows where the market is trying to move based on whether it is on the left or right side of the curve.

• Green candles indicate higher prices, while red candles indicate lower prices.

Identifying SMTs

• SMTs occur when there is a crack in correlation between different markets.

• If one market makes a lower high while others make higher highs, this indicates an SMT and can be used as a bearish signal.

Smart Money Reversals

In this section, the speaker discusses how smart money is accumulating short positions in the market and how to identify a high probability smart money reversal.

Identifying Smart Money Reversals

• Smart money is actively participating in the market by accumulating short positions.

• Look for a market maker framework and especially within the smart money refers to take place.

• Combining an SMT with a Market structure shift pattern increases the probability of a smart money reversal.

Market Structure Shift Pattern

In this section, the speaker explains what a market structure shift pattern is and how it can be used to identify potential reversals.

Understanding Market Structure Shift Pattern

• A bearish example within a market make a cell model framework trades into our premium price level where we expect smart money reversals to take place.

• Wait for an intermediate term low to be broken as it represents an imbalance in price that offers sell-side opportunities.

• If an intermediate term low gets broken by a CB buy or bearish Effigy, there's significant displacement on it. This confirms a change in the state of degree within the algorithm, indicating lower prices are going to be targeted.

• Combining this with an SMT in the smart money refers to man probabilities of this being the actual reversal goes through the roof.

Importance of Studying Market Structure Shift Patterns

In this section, the speaker emphasizes why studying market structure shift patterns is crucial for traders and investors.

The Value of Studying Market Structure Shift Patterns

• Every single market move is part of a market maker framework.

• Studying market structure shift patterns can help traders identify high probability shifts in Market structure.

• It is essential to study and understand market structure shift patterns to become a successful trader or investor.

Introduction

The speaker introduces a valuable source and explains how powerful it is. He talks about the importance of time in algorithmic trading and how precision can be achieved.

• The speaker points people to a valuable source.

• He emphasizes the power of the source and encourages listeners to imagine its potential.

• Time is the most important factor in algorithmic trading, followed by price. Precision can be achieved with these factors.

Market Maker Sell Model

The speaker explains the market maker sell model and how it works.

• If a high rebalanced an imbalanced price range, your stop should be above this high if your overall market maker cell model is what the algorithm refers to.

• This means that this was just a purge of sales adequacy and that this was a trendline phantom within the marketplace. By side we create the rest above these highs but how do you know that that is the case? Significant displacement confirms this.

Intraday Trading on Demo Accounts

The speaker teaches listeners how to trade intraday markets on demo accounts without higher time frame perspective on price.

• Every retracement has a market maker model on it, every single market move drawing to a certain price level has a market maker model in it.

• When trading into reversal price levels, wait for smart money reversal to take place on lower time frames such as M5 chart where significant displacement confirms retracement under hourly chart or any other higher timeframe chart being used as reference point for entry/exit decisions based off liquidity imbalances created by previous moves.

• Utilize a lower time frame chart to frame a market maker model and just take a trade based on that on my demo account of course.

Understanding Market Maker Buy and Sell Frameworks

In this section, the speaker explains how market maker buy and sell frameworks work and how they can be used to trade in different market conditions.

Market Maker Buy and Sell Frameworks

• The speaker explains that a market maker buy framework involves buying into the discount array of a curve where smart money is expected to enter, while a market maker sell framework involves selling into the premium array of a curve where smart money is expected to exit.

• The cell side of the curve refers to multiple retracements within a price level, while the voice out of the curve refers to an expansion in price. Displacement occurs when there is a shift from one side of the curve to another.

• A higher time frame order flow can provide insight into whether institutional order flow is bullish or bearish. Traders can use this information to determine whether they want to be contrarian traders or follow institutional order flow.

• Within a market maker buy framework, traders can sell into the discount array and expect a reversal before higher prices are reached. Similarly, within a market maker sell framework, traders can buy into the premium array and expect a reversal before lower prices are reached.

• Traders should experiment with different strategies within these frameworks to find what works best for them.

Example Trade on Dow Jones

In this section, the speaker provides an example trade on Dow Jones using his understanding of market maker buy and sell frameworks.

Example Trade on Dow Jones

• The speaker shows an example trade he took on Dow Jones using a market maker sell model. He explains that he sold into the sell side of the curve at a premium array where smart money was expected to exit.

• The speaker types out what he is seeing in real-time, including the consolidation of sales adequality and the buy side of the curve into a price where smart money is expected to enter.

• The speaker shows how there was a market structure shift before the cell set of the curve occurred. He emphasizes that this trade was executed based on his understanding of market maker buy and sell frameworks and provides proof that these frameworks work.

Market Maker Cell Model

In this section, the speaker explains the concept of a market maker cell model and how it can be used to anticipate market movements.

Anticipating Market Movements

• Markets move based on two things - South Side liquidity being engineered by a set of the curve into a project for where we expect smart money first to take place, and significant displacements combined with other factors.

• When markets are trading higher, we should anticipate a downwards move within the marketplace. This is different from what retail traders would think.

• The market consolidates during an original consolidation phase before expanding higher or lower.

• A smart money reversal confirms when there is a sell-side imbalance in the market.

Examples of Market Maker Models

• The speaker shares an example of a perfect market maker cell model that occurred in the past.

• The speaker shares another example of a market maker buy model that occurred in the past.

Market Maker Models

In this section, the speaker discusses market maker models and how they operate within the markets. He explains how these models give clear direction of where prices are drawn to and how they can be used to determine entry opportunities.

Visual Framework of Market Maker Models

• The speaker explains that market maker models are visually pleasing frameworks that give clear direction of where prices are drawn to.

• He notes that there are multiple distribution phases on the left side of the curve and multiple accumulation phases on the right side of the curve.

• The speaker emphasizes that when the market is trading above the original consolidation, it is crucial to see big ranges and big candles above this price range for continuation to the upside.

Trailing Stop Losses

• The speaker mentions that he is very aggressive with trailing his stop losses in expansions and wants to be out when the market is retracing deeper than he would like to see it retrace.

• He explains why this is crucial because when trading within a market maker framework, there's a cleared wrong equity which is important for determining whether or not there's a premium array above a certain high.

Market Maker Buy Model

• The speaker introduces a market maker buy model where you have a price level where the market reverses after it has been trading down.

• He notes that whenever we have a price range like this, we can have multiple entry opportunities based on SMD confirmation and accumulation phases.

Market Maker Buy Model

In this section, the speaker discusses the market maker buy model and how to use it to make trading decisions.

Key Points

• The market maker buy model involves looking for certain levels where a reversal is expected to take place.

• Look for an original consolidation somewhere on the left side of the curve.

• Wait for obvious displacement in the form of the market structure shift pattern.

• Look for an SMT (smart money reversal).

• Once you have identified a potential reversal point, look at the bicep of the curve to determine if there is enough difference to justify a trade.

• Stops should be placed at imbalances in price ranges to prevent a market structure shift and lower prices.

• If there's an imbalance, the market should not trade below that row.

• Intermediate term lows are protected goals because they serve as reference points for new trading ranges.

• The final run after accumulation phases is likely to be quick.

Range Imbalance

• If a high is created within a certain amount of points or ticks from the original consolidation high, then it's possible that instead of going up like this, there must be another retracement in which there's a third rack of accumulation.

Details Around Framework

• You can start using standard deviations, measuring time, duration, when it starts or ends once you see all details around this framework in terms of how what it looks so I can price man.

Stop Placement

• Stops should be placed at imbalances in price ranges to prevent a market structure shift and lower prices.

• If there's an imbalance here, then the market should not trade below this row.

• When intermediate term lows get broken, it's important to switch time frames to determine if it's a marked structure shift or just a purge of the low.

Market Maker Buy Model Recap

• The market maker buy model involves looking for certain levels where a reversal is expected to take place.

• Look for an original consolidation somewhere on the left side of the curve.

• Wait for obvious displacement in the form of the market structure shift pattern.

• Look for an SMT (smart money reversal).

• Once you have identified a potential reversal point, look at the bicep of the curve to determine if there is enough difference to justify a trade.

• Stops should be placed at imbalances in price ranges to prevent a market structure shift and lower prices.

• If there's an imbalance, then the market should not trade below that row.

• Intermediate term lows are protected goals because they serve as reference points for new trading ranges.

Introduction

In this section, the speaker introduces themselves and provides a disclaimer that they are not a financial advisor. They also encourage viewers to watch the lecture multiple times to fully understand the content.

Speaker Introduction

• The speaker is not a financial advisor and is not providing advice.

• Viewers should watch the lecture multiple times to fully understand the content.

Conclusion

In this section, the speaker thanks viewers for watching and encourages them to leave a like if they found the lecture helpful. They also provide links to their social media platforms for viewers who want to follow them.

Thank You and Social Media Links

• Viewers should leave a like if they found the lecture helpful.

• Links to the speaker's social media platforms are provided in the video description.

Study Tips

In this section, the speaker provides study tips for viewers who want to fully understand the content of the lecture.

How to Study

• Viewers should take notes slowly and study what is being discussed.

• Binge-watching through it over and over again is not recommended.

• It takes time to digest everything that was covered in this lecture.

Social Media Platforms

In this section, the speaker provides more information about their social media platforms and what type of content can be found on each platform.

Social Media Platforms

Twitter

• Interesting tweets related to trading are posted every now and then.

• Trade executions are also shared on Twitter.

Telegram Journal

• Psychological-related stuff is posted on Telegram Journal.

• Personal life-related stuff is also shared on Telegram Journal.

Final Words

In this section, the speaker thanks viewers for spending time with them and wishes them good luck in their trading development.

Final Words

• The speaker thanks viewers for spending time with them.

• Viewers are wished good luck in their trading development.