BTC Short using ICT Market Maker Sell Model (Explained)

7 авг.

ICT Market Maker Sell Model (MMSM) for Bitcoin (BTC/USD)

Key Components:

1. Original Consolidation:
- This is the initial phase where the price consolidates within a range, indicating accumulation by smart money.

2. Smart Money Reversal:
- This area marks the point where smart money starts to take profit or reverse their positions, leading to a reversal in the market trend.

3. Market Structure Shift:
- This indicates a significant change in market direction with a displacement

4. Fair Value Gaps (FVG):
- They are marked as potential areas of interest where price might return to fill these gaps.

5. Sellside Liquidity:
- This is the area where liquidity is collected, often below the market structure where stop-losses and other sell orders are triggered.

6. Re-Distribution:
- After the initial move down, the market redistributes, often retesting previous support areas or fair value gaps before continuing the trend.

Chart Analysis:

1. Consolidation Phase:
- The price starts with an original consolidation phase where accumulation occurs.

2. Upward Move:
- After consolidation, there's an upward move indicating bullish market conditions.

3. Smart Money Reversal and Low Risk Sell:
- The price reaches a peak where smart money starts to reverse their positions. The chart highlights a 'Low Risk Sell Inside FVG' which is an optimal selling point within a fair value gap, suggesting a high probability sell zone.

4. Market Structure Shift:
- After the peak, the market experiences a shift in structure, breaking previous support levels and signaling a bearish trend.

5. Downtrend and Redistribution:
- The price moves down sharply, redistributing within fair value gaps. The chart highlights these gaps (fvg) where price might retrace to fill before continuing downward.

6. Sellsides Liquidity Targeted:
- The market targets sellside liquidity, triggering sell orders and stop-losses, leading to further downward pressure.

Practical Use:

- Identifying Entry and Exit Points:
- Traders use this model to identify optimal entry (sell) points within fair value gaps and exit points where liquidity might be targeted.

- Understanding Market Phases:
- Recognizing different market phases (accumulation, distribution, and redistribution) helps in anticipating market moves.

By understanding these components and their interplay, traders can better anticipate market movements and make informed trading decisions.

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