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ICT Mentorship Core Content - Month 04 - Reclaimed ICT Orderblock
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ICT Mentorship Core Content - Month 04 - Reclaimed ICT Orderblock

Market Maker Buy Model and Reclaimed Order Blocks

Introduction to Market Maker Buy Model

  • The session focuses on reinforcing order block theory and reclaimed blocks, specifically the market maker buy model.
  • The concept involves a price drop reaching a support level, which can be identified through various indicators such as old highs/lows or fair value gaps.

Understanding Support Levels

  • Anticipation of market movement is crucial; traders can either short before the drop or wait for confirmation at support levels.
  • Market makers scale in their positions gradually due to larger order sizes, requiring time to execute trades effectively.

Accumulation and Price Action

  • As prices decline, small transactions create minor lows indicating accumulation by smart money.
  • Short-term rallies may mislead traders into entering positions that are based on market maker hedging motives.

Bullish Order Blocks

  • Traders should reference down candles (bullish order blocks) during price movements higher after a sell-off.
  • The market maker buy model illustrates that prices will eventually rise from major support levels after initial declines.

Reclaiming Old Order Blocks

  • New buying opportunities align with previous down candles from the sell side of the curve, indicating potential for long positions.
  • A bullish reclaimed block is defined as a candle previously used for buying that confirms minor displacement in the buy side of the curve.

Examples of Reclaimed Bullish Order Blocks

Analyzing Price Action Examples

  • The analysis includes specific instances where markets dropped before reclaiming bullish order blocks leading to upward movements.
  • Two examples illustrate how price returned to previous down candles, confirming successful reclamation and subsequent rises in price.

Market Maker Sell Model Overview

Transitioning to Sell Model Concepts

  • The discussion shifts to the market maker sell model, which anticipates trading higher before moving lower.

Understanding Market Maker Strategies

The Role of Bearish Order Blocks

  • Market makers often reclaim bearish order blocks during price rallies, indicating potential short positions. This occurs when the market is building up into a premium while they hedge their positions.
  • Observing small displacements or declines after an up candle can signal that market makers are hedging and selling short, providing insight into price action dynamics.

Identifying Short Opportunities

  • When prices retrace back to previous up candles after reaching a high, it presents new opportunities for short positions, especially in old bearish order blocks.
  • A reclaimed bearish order block signifies a prior sell point; minor displacement confirms the shift towards the sell side of the curve.

Analyzing Market Maker Sell Profiles

  • The analysis focuses on identifying every up candle that indicates a willingness to drop prices during the buy side of the curve, particularly to the right of established highs.
  • Specific examples illustrate how certain up candles serve as bearish order blocks. Even if initial reactions seem bullish, subsequent price actions confirm bearish trends.

Practical Application and Future Learning

  • Utilizing market maker buy and sell models allows traders to align with old order blocks effectively. Recognizing these patterns aids in anticipating future market movements.
  • Continuous study of charts is encouraged to identify patterns during price rallies and declines, enhancing understanding of market behaviors over time.

Conclusion: Building Knowledge Over Time

Playlists: 2016 ICT Private Mentorship Core Content Month 04
Video description

2016 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in December 2016. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.