Intraday Bias Simplified | ICT 2022 Mentorship + MMXM = 🤯

How to Develop a Trading Bias Using Market Maker Models

Introduction to Trading Bias

• Zeus introduces the concept of developing a trading bias, emphasizing the need for a logical framework behind market expectations.

• He mentions incorporating market maker models into his analysis and promises to share chart examples and theories supporting their effectiveness.

Understanding Price Fractals

• Zeus explains that price is fractal, meaning patterns on higher time frames reflect those on lower time frames.

• He references ICT's advice about treating shorter time frames as daily charts to unlock new insights in trading.

Market Maker Sell Model

• The market maker sell model involves price moving into key premium areas (e.g., fair value gaps), followed by a reversal towards lower prices.

• Retail traders often place stop losses below perceived support levels, which creates liquidity that smart money seeks out.

Market Maker Buy Model

• The buy model mirrors the sell model; it requires waiting for price to enter an old discount array before looking for reversals.

• Traders can utilize various time frames (e.g., one hour or four hours) to identify potential buy models while maintaining alignment with higher time frame biases.

Aligning with Higher Time Frame Trends

• For high probability setups, it's crucial to trade in line with the higher time frame bias—looking for sell models in bearish trends and buy models in bullish trends.

• Counter-trend trading is possible but requires significant experience and knowledge.

Practical Application: NASDAQ Analysis

• Zeus analyzes the NASDAQ's one-hour chart from last week, identifying a market maker sell model following CPI news release.

• He notes how consolidation patterns indicate that the market is not ready to retrace higher but rather aims to take out liquidity below previous lows.

Entry Patterns on Lower Time Frames

• By examining lower time frames like 15-minute and 5-minute charts, traders can spot entry patterns aligning with identified market maker models.

Understanding Market Maker Models

Overview of Institutional Order Flow

• The analysis begins with the one-hour and 15-minute charts indicating a bearish institutional order flow, suggesting a downward market trend.

• The five-minute chart reveals a clear Market Maker sell model, prompting the need to refine entry points on the one-minute chart.

Consolidation and Fair Value Gaps

• The market shows consolidation patterns; significant fair value gaps are identified that influence price movements.

• A rejection block is noted, leading to a market structure shift and retracement into a bearish order block before selling off.

Fractals in Market Structures

• The concept of fractals is introduced, where larger market maker models can contain smaller ones (e.g., one-hour models containing five-minute models).

• Five-minute premium arrays serve as points of interest for entries in one-minute market maker sell models.

Trading Logic and Probability

• Emphasis is placed on trading aligned with higher time frame institutional order flows to increase probability of successful trades.

• An example trade from September illustrates how old fair value gaps guide decision-making through various time frames.

Execution and Confirmation

• The importance of waiting for confirmation signals before executing trades is highlighted; patience leads to better outcomes.

• Specific strategies are discussed regarding stop placement and target setting based on observed price actions within established frameworks.

Conclusion and Further Learning Resources