ICT Forex - Market Maker Series - Volume 3

ICTShark · March 29, 2024, 8:55am

Notes

Key Levels are defined by higher time frames such as monthly, weekly, daily, and 4-hour charts.
Key levels can be old highs and lows or the tops and bottoms of trading ranges.
These levels are crucial as they guide large fund traders who do not operate on lower time frames (like 15-minute charts).
Michael stresses that we should study these concepts with the historical data and backtest them.
Market Maker models provide a framework for understanding market movements.
If we’re bearish (MMSM - Market Maker Sell Model), we look for a retracement into a bearish order block or OTE levels.
If we’re bullish (MMBM - Market Maker Buy Model), we look for a retracement into a bullish order block or OTE levels. We can also enter during runs on sell stops (bullish turtle soup entry).
Consolidation is an area where the price stays within a range for a prolonged period, indicating potential upcoming movement. We can also enter during runs on buy stops (bearish turtle soup entry).
We look for a retracement or sharp rejections at consolidation boundaries.
SMT (Smart Money Technique or Smart Money Tool) is a divergence between correlated markets (e.g., EUR/USD vs. GBP/USD).
The Smart Money Technique indicates a strong disparity and possible market reversal. For example, if EUR/USD makes a higher low while GBP/USD makes a lower low, it suggests a divergence and potential reversal.
Experience and continuous study are essential for mastering these concepts and applying them in live trading.