Market Maker Mastery
Market Maker Mastery
TABLE OF CONTENTS
Time ................................................................................................................................ 4
Liquidity .......................................................................................................................... 9
Orderblocks ................................................................................................................... 15
Timeframes ................................................................................................................... 17
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So, we live in a very privileged time in trading. It has never been easier to become a full
time profitable day trader with the knowledge that we have now compared to 5 - 10 -
15+Year ago.
Even tho we do have this knowledge, many traders fall victim to analysis paralysis and
with so much out there, its hard to keep up. As well as with many shady and
uneducated guru’s out there, many traders are left astray.
What you need is a strategy thats consistent, day in and day out. Something thats so
consistent. Its almost boring. Thats good. Trading is boring, very very boring. Its no
different that showing up for a couple hours to your job. You just so happen to do a job
that you actually enjoy with an uncapped potential of how much you can make doing
that one job.
The strategy that im going to give you is that missing piece that you have been looking
for; its very simple. You either buy or sell. Don’t complicate trading. Your either inside
of a Market Maker Buy Model, or a Market Maker Sell Model.
I will give you all the steps that you need to make trading a robust and simple as
possible using the Market Maker Model Strategy. This is the same strategy i have been
using throughout my trading career that have made me consistently profitable. Quit my
job and go full time trading and now mentoring thousands of students using the same
strategy. So id advice you to read closely and take many notes.
This is where you can reach me and stay informed with my day to day life.
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TIME
Before we get into the concepts im going to lay to you, we have to get into the
fundamentals of time. Remember, its time & price. Meaning before you can enter the
marketplace and start to look for your model and specific strategy you have to place
yourself inside of the marketplace at a specific time of day where the opportunity
presents.
You don’t want to come to the marketplace when the volume is low at all. That only
means the likelihood of you finding an opportunity or setup decreased dramatically. So
you position yourself during times when we have volume and when the marketplace is
giving that volatility that you're looking for to catch those big moves.
We can focus our time into specific intervals throughout the day called Killzones.
The three killzones i want you to focus on is the London Session Killzone, The New York
Session Killzone, then the London Close Killzone.
The New York Session Killzone stems from 7am - 10am EST
When we are entering the marketplace to look for our opportunities we have to trade
according to these time periods and only that. This keeps your trading very simple as
your treating it as a job, your trading between this time to this time each day. Your
looking for 1 - 2 opportunities throughout that time period and then you will log off and
come back tomorrow to repeat again. Keeping things very robust and simplistic. The
goal is to make it systematic to a point to where it gets boring, so coming to the
markets and leaving at a certain time. Makes it that much easier.
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MARKET STRUCTURE
Market Structure is the backbone is the marketplace. For as long as the marketplace
has been around, we have all been accustomed to this narrative of a bullish or bearish
market.
As well as a saying as old as the markets has been around “The trend is your friend”
This saying is very powerful as its a clear representation of keeping your trading simple.
Have we been going higher, or have we been going lower and staying aligned with
those higher or lower prices. Once again, your either selling or your buying. So when
choosing the direction wether you want to sell or buy, Choose it in the direction of
where the marketplace has been going.
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As we can see in this example we have been inside of a down trending market. Meaning
the best opportunities when it comes to trading would be to look for shorts. And
everytime that we move higher, we are immediately met with some measurement of
resistance to continue to push lower and lower prices.
In this depiction above we can see that we have been making overall higher and higher
prices inside of the marketplace. Meaning we are identifying the trend to be bullish.
Meaning the highest probability opportunities to look for inside of the marketplace is
buys.
The goal is so simply our trading to a level to where we can come to the market on a
consistent basis and trade only the best opportunities.
The more that you limit your thinking due to analysis paralysis and focus on the big
picture which is what is the trend and trading in accordance to that trend. The easier
your trading will become and the less you will feel the need to take unnecessary trades.
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MARKET STRUCTURE SHIFT
A market structure shift is classified as simply displacement inside of the marketplace
after reaching a level of resistance or support.
We will get into these levels as we progress, but thats the simple characteristic. When
we reach this level. We should expect price to see a break either higher or lower away
from this level. Following that break either to the upside or the downside. That low or
high before the strong break higher or lower. That low or high is classified as a strong
high or lower.
When we saw the market structure example. Every single HH & HL, and LH & LL. Those
are all key highs and lows inside of the marketplace that holds structure together,
causing the market to create uptrends and downtrends.
The market structure shift is simple the confirmation bias that we get after price has
tapped into a key level, that confirmation bias leads us to know that price has found
rejection at that level and that high or low is now structured in a way indicating we can
see further movements higher or lower.
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In the example we can identify that we have been making lower prices. Until we
reached down into this support level as we tapped into this support level we then see a
sudden burst higher inside of the marketplace. That is classified as our market structure
shift, then as you can see as we give the retracement, the market gives a higher high,
indicating the trend has now shifted from lower prices to now higher prices, all because
of this simple concept within structure.
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LIQUIDITY
Liquidity are highs and lows inside of the marketplace that levels throughout the
trading day and trading week that price will seek.
But not every single high or low inside of the marketplace are liquidity. We must go
back to the example of market structure with the concept of strong highs and lows and
bring in another concept with the introduction of weak highs and lows.
When we are in an uptrend, we can clearly identify that we have been making higher
highs and higher lows. Meaning that liquidity inside of the marketplace are the old
highs. Why? Because we are in an uptrend, so of course price is going to target the old
highs and take them out. This is the introduction to liquidity.
When we are in a clear downtrend, making lower lows and lower highs. The obvious
liquidity pool in that sense would then be the old lows. Because we are finding respect
from the old highs, we are in a downtrend, why should we take out a high. No, we
should be taking out the lows and continuing lower. So the obvious liquidity pool in our
sense then would be the lows.
It can be used a reversal level. Lets say we have been going lower, and then we just
took out a liquidity pool which is an old low. And then we create a market structure
shift to the upside and now we are pushing higher prices. That liquidity pool would
have been a key level in structure to where we have now shifted from lower to now
higher prices. So when we encounter these liquidity pools its important to identify how
do we react. Do we immediately try to leave these liquidity pools and reverse the other
direction, or do we continue to see lower or higher prices despite. This will be very
important later on.
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The other characteristic of liquidity is a draw. Lets say we have been making higher and
higher prices inside of the marketplace essentially an uptrend. So since we know we are
in an uptrend, we can target old highs. Meaning if we can see a pullback inside of the
marketplace, we want to then go long inside of each pullback inside of the marketplace,
Then selling above every old high. This is the concept of market structure and liquidity
is the prime source for it.
As we can see in the example above we have the lines at the old highs and old lows all
representing points inside of the marketplace as Liquidity.
When we were in the downtrend, you can see how we have been primarily targeting
old lows and its not until we then shifted from lower to now higher prices from that
market structure shift do we then do from targeting the lows to now targeting the highs
inside of the marketplace.
This is why we had to start off with structure and eventually the market shift before we
can to the framework of liquidity, because its all aligned as one to form structure inside
of the marketplace.
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Liquidity is a very simple framework. Understand where you are in the market
structure. If bearish (Seeking lower prices) target old lows. If you are bullish (Making
higher prices) Then target old highs.
If you are bearish, prices should not want to take out old highs, instead those old highs
will be strong highs.
If you are bullish, price should not want to take out old lows, instead those old lows will
be strong lows.
Now that we are familiar with market structure and the anatomy of market
movements, lets get into support and resistance levels inside of the marketplace.
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FAIR VALUE GAP
To start off lets go over the fair value gap. This is one of the simplest yet effective
support and resistance levels inside of the marketplace.
A fair value gap is a three candlestick formation. We have both a bullish and bearish
fair value gap.
As you can see for our first example we have a bullish fair value gap. The separation of
wicks, that middle area is our bullish fair value gap.
The fair value gap in this sense is a bullish fair value gap. The logic behind it is, price has
seen an impulsive move to the upside leaving this inefficiency behind.
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As we know about the marketplace its a series of expansions and retracements. So as
we expand inside of the marketplace those expansions usually have a fair value gap
inside of then, and as we then retracement inside of the marketplace. Price comes back
down into these inefficient levels which it has left before continuing to see the
expansion higher.
Now opposed to the bullish fair value gap we have the bearish fair value gap. As you
can see in the image above, its simply the separation in the middle from wick to wick.
That middle area is our bearish fair value gap.
The logic is when we have been making lower and lower prices inside of the
marketplace. Price leaves these areas of inefficiency out. As we know the marketplace
is a serious of expansions and retracements. So as we expand lower creating these
inefficiencies, when we enter the retracement cycle inside of the marketplace, these
are likely areas where we can expect the marketplace to retrace into to find resistance
before continuing lower.
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As we can see in this bearish example. AS we are in a downtrend inside of the
marketplace. Price find resistance inside of bearish fair value gaps continuing that
downtrend. These are the real support and resistance levels inside of the algorithm and
once you learn this concept and truly master it. The trading world is your oyster for
success.
As the market is bullish, we find support inside of bullish fair value gaps for the
continuation.
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ORDERBLOCKS
The next key level we are going to talk about is orderblocks.
A bearish orderblock is the last upclosed candlestick before a strong shift lower inside
of the marketplace
A bullish orderblock is the last downclosed candle before a strong shift higher inside of
the marketplace
As you can see in this example. As we get that massive move to the upside creating that
market structure shift. That last downclosed candle is referred to as our bullish
orderblock and see how prices comes down into that bullish orderblock very precisely
before reaching back higher and continuing to see higher prices in that uptrend.
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Now we are looking at it in a bearish example. See how the marketplace shifts from
higher prices to now lower prices with that massive displacement move to the
downside. Thats exactly what we want to look for, that last upclosed candlestick is
referred now as our bearish orderblock. So as price comes back up into that bearish
orderblock level. That is an overall resistance level inside of the market.
As you can see, price makes little effort to eventually run away from that level reaching
lower and lower prices.
As you can see just before that bearish orderblock example, we have another
orderblock in the form of a bullish orderblock, which price finds respect at following
that break higher reaching into the bearish orderblock for the continuation of the
downtrend. Its important to be aware of the overall trend of the marketplace.
We have been reaching lower prices so when we are choosing between bullish or
bearish orderblocks we have to choose the ones that most aligned with the overall
market trend. We can still take bullish orderblock trades inside of a downtrend but as
you can see the opportunity was most rewarding in the bearish orderblock. So choose
the trade thats most high probability in according to the trend of the marketplace.
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TIMEFRAMES
I want to keep things very simple for you, so im only going to give you three
timeframes. This keeps it very clean cut when approaching the marketplace.
1 Hour: This timeframe is great as it allows you to get a birds eye view of the
marketplace from the higher timeframe perspective.
On the 1 hour, you will identify Fair value gaps and orderblocks inside of the
marketplace. This is very important as the higher timeframe support or resistance levels
will hold alot more than the lower timeframe levels overall. So when market out our
inefficiencies its best to do so on the higher timeframe as its likely to give you the best
probabilities and less likely to get faked out.
Also on the 1 hour, we want to identify trend inside of the marketplace. Identify
whether we are in an overall uptrend. Or an overall downtrend inside of the
marketplace. This is very important as the trend hold strongly on the higher timeframes
than it ever would on a lower timeframe, so keeping your eye on the higher timeframe
when it comes to trend is so important.
15 Minutes: This timeframe is my favorite. This allows the best of all worlds when its
comes to timeframes. What we want to look for on the M15 is liquidity and
inefficiencies.
After establishing the trend inside of the marketplace, in this case lets say we are in an
uptrend going down to the M15, we want to identify any old highs inside of the
marketplace as targets when we are entering a trade.
As well as inefficiencies like orderblocks or fair value gaps are very important to take
note of on this timeframe. Sometimes you may not see a fair value gap or orderblock
on the H1 so you may go down to the M15 and then wallah what do you see there fair
value gap or orderblock. As well as nested fair value gaps or orderblocks. Meaning
there may be a H1 orderblock and then you go down to the M15 and there may also be
a M15 orderblock inside of that H1 orderblock. That makes that area even more
probable and when you scale down to a lower timeframe you only get more precise.
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Last but not least the M5: On this timeframe your goal is to identify the Market
structure shift, after tapping into a higher timeframe support & resistance level or takes
liquidity.
Then anticipate a retracement inside of the marketplace after that structure shift into a
M5 bearish fair value gap or bearish order block. Targeting M15 areas of liquidity.
When approaching the marketplace, we want to look at it from the lens of the higher
tiemframe as that gives us the best probabilities and then go down to the lower
timeframes for entries.
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PUTTING IT ALL TOGETHER
Im going to go over some examples inside of the markets using all the concepts that i
have outlined. The trading plan goes as such.
Identify the timeframe you will be trading (London, New York, or London close Session)
Then identify the H1 & M15 Inefficiencies (Fair value gaps or Orderblock)
As well as identify M15 liquidity pools. (If we are bearish, identify lows inside of the
marketplace we can be reaching down into. If we are bullish identify highs inside of the
marketplace we can be reaching up into)
As price comes into your entry, have a wide enough stop loss to put above the high,
aiming for a 2:1 Risk to reward ratio near a M15 Liquidity pool or inefficiency. When
you take the trade on M5 immediately go to the M15 and use that as your birds eye
view and look for targeting above or below old highs and lows in accordance to the
trend or if your taking a counter trend trade back inside of orderblocks or fair value
gaps for a retracement trade.
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Lets get into our first example.
This is the 1 hour timeframe and clearly we can identify that we have been inside of a
downtrend as well as we have a 1 hour bearish orderblock coming into the London
Close session Between 10 - 12pm EST.
Now as we reach into this bearish ordebrlock level i want to go down to a lower
timeframe to anticaipte a break of structure to the downside for a retracement move
for the continuation of that market trend lower.
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Now we can clearly identify on the M15 timeframe that we have left from the H1
bearish orderblock and we have now created a M15 bearish fair value gap.
In my head im anticaipting price to reach back up into this inefficiency to then find
resistance for that continuation to the downside.
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Now coming down to the M5, we get a nested M5 fair value gap inside of the M15 fair
value gap. So we want to wait until price reaches into that level to take a short
targeting the lows.
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Just like butter, price comes back into that bearish fair value gap. Quick and easy
tagging us into the trade and immediately leaves it targeting back below those lows
continuing to see the trend pushing lower and lower.
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Our next example.
As we can see here on the H1 timeframe. We can identify that we have been in an
overall uptrend inside of the marketplace. Now coming into our session which in this
case is the new york session. We have this H1 bullish fair value gap below us. Which as
you can see the marketplace reaching down into. Now i want to go on the lower
timeframes. Anticaipte some type of lower timeframe break higher from this level to
then take a long inside of any lower timeframe inefficiencies.
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Now coming down to the M15 timeframe, we can clearly qualify that we have broken
structure to the upside after tapping into that H1 bullish fair value gap. As well as we do
have areas of liquidity above us that we want to see the marketplace reach up into. So
we have confirmation that we are seeking higher prices. We have established a low
after tapping into that H1 bullish fair value gap. Now i want to see if we can get some
type of lower timeframe entry into our targeting.
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Coming down to a lower timeframe, we have to take into account the long wick as well
from the last downclosed candle as our bullish orderblock, if we can see a retracement
inside of the marketplace at that level. We want to then take longs targeting back
above those highs.
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Just like so, stop loss just below the low of that long wick. Targeting back above those
highs for a 2-1r trade. This would then be our market maker buy model. Very simple,
very robust.
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Coming into our last example.
We can identify that we have been making higher prices here on the H1, and now
coming into the london session. We can see that we have some lows inside of the
marketplace that were just now taken. I want to then go down to a lower timeframe
and anticipate a break of structure to the upside after taking out these lows for that
continuation to the upside.
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Now coming down to the M15 timeframe we can clearly identify that we have broken
structure to the upside after taking out that low. Following that break higher we did
create a M15 bullish fair value gap. If we can get a retracement inside of that bullish fair
value gap on the m15, id want to then take longs targeting back above those highs for
the continuation of the bullish trend.
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As we can see coming down to the M5, we have that M5 fair value gap inside of the
M15 fair value gap, so that makes it a nested fair value gap. So, we have identified the
higher timeframe trend to be bullish anticipating higher prices. Then we took liquidity
followed by the break higher now i want to see a retracement into this support level to
then reach into those highs.
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Coming into the final product, we take the long inside of that M5 bullish fair value gap,
stop loss below the recent low. Targeting back above those highs for that continuation
of the trend higher.
Keeping things very simple. From a top down approach. Starting from the H1 to frame
our narrative, M15 to solidify that narrative and then capitalize on the M5 for those
precision entries.
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CLOSING STATEMENT
I have just now given you a framework inside of the marketplace that is repeatable day
in and day out. Keep trading boring. Its doing the same thing over and over again.
Looking for the same setups day in and day out and making it to the point where its
routine, you don’t even have to think.
I hope you guys got alot of value out of this free EBOOK. If you guys want to learn more
from me check out my socials where I give tons and tons of free education and value to
thousands of traders on a daily basis.
@Arkhamtrades
@Arkhamtrades
Thank you for reading. I hope you use the information I have just now given you and
apply it to your charts and continue to backtest and get better on a daily basis. The road
to profitability is not easy, but its one to never give up on. Your so close. Keep going.
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