Core Month 02 08 Market Maker Trap False Breakouts - newsqlguru/ict-index GitHub Wiki

ICT Mentorship Core Content - Month 02 - Market Maker Trap False Breakouts

Key Terms

Content

  • False Breakouts Above Price Consolidation

  • Condition generally manifest in Primary Bearish Markets

  • At some measure of Equilibrium in Price, the market will move into a trading range

  • Neophyte Trades or Breakout Traders will bracket the trading range in price with orders

  • Market Makers will typically send price above the range to neutralize Buy Stops

  • False Breakouts Below Price Consolidation

  • Condition generally manifest in Primary Bullish Markets

  • At some measure of Equilibrium in Price, the market will move into a trading range

  • Neophyte Trades or Breakout Traders will bracket the trading range in price with orders

  • Market Makers will typically send price below the range to neutralize Sell Stops

  • Liquidity above highs and lows

  • highs are buys stops for shorts and buy limits for longs

  • lows are sell stops for longs and sell limits for shorts

  • IPDA will take these order to pair with SM for the planned move.

  • When PA breaks old highs/lows it is MM order pairing for the next move.

  • Typically when PA moves out of a consolidation against the overall direction of the market is is to pair orders for the next move in the direction of the market.

  • MM will look to take profits from willing participants, this is in the form of buy and sell orders above and below consolidations and old high/lows

  • Directional bias hint, where is the recent area of liquidity that is untapped, with the least resistance getting to it?

  • When markets go into consolidation and we have a bias it will help us find trade setups.

  • We know that there is liquidity at the old high/low

  • Which liquidity (buy side/sell side) is the market seeking?

    • To understand, Study consolidations
    • Which side is the market reaching for?
    • What happens after the price leave the consolidation range?

  • MM are creating MMXM with consolidations and price swings.

  • Measured Move (MeMo) is equal with 2 price swings making the 1 symmetrical price swing.

  • The first move is the distance the second move will make.

  • ICT can see price and predict levels with this approach.

  • How MM is booking?

  • How MM manipulating price?

  • What side of the market are MMs working on?

  • Where are they punishing the less informed traders?

  • Seeking one side of market over and over again, consolidation, manipulation, distribution to next level of price swing?

  • Easiest way to see market trend.

Notes

  • Find 10 occurrences in past price action and log them in your trade journal.
  • Extra credit if found on multiple time frames.