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So in this lesson, we're going to
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discuss the elements of time in relation to market maker models. Again, if you haven't gone through the academy already or you're not really familiar with ICT concepts, this is
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going to be a little bit more difficult to follow. Essentially, the market maker models are running on the time element that blends with price.
Now, specifically, we are looking at data points to the left side of a printed chart where we have the open, high, low,
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and close. Now price will refer back to these data points inside of a window of time.
When these data points align with time, the algorithm is going to deliver a set of instructions, which is essentially what a macro is. These instructions will
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be carried out and price will deliver in one of four ways. Consolidation, expansion, reversal, and retracement.
Right? Now, let's take that on a weekly range.
And let's say for example this is a 1 hour time frame. Now there are various
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market profiles and not every week is going to obviously pan out like this right which is why it's important for you to be aware of where you are within the stage of market maker model. If you understand the higher time frame fractal then you can pinpoint where you are
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within that price delivery continuum. Now Monday typically we have a consolidation.
This is generally where orders are building up above the market and below the market. On Tuesday, we will have a retracement back into the
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expansion leg where price will align with a data point and ideally we are looking for this inside of a kill zone. When the data point and time align inside of this kill zone, the first stage of accumulation will commence.
output will be an expansion phase
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followed by a retracement again inside of another kill zone where we will have our second stage of accumulation on Thursday. Typically we can form the high of the week.
Generally it will happen during the New York session and this is where we will experience our
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smart money reversal. The buy program for the market maker sell model will be complete.
We will witness a change in state of delivery and a sell program will commence. On Friday, we can see a retracement back up into the expansion leg created after the smart money
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reversal. And this is where we will typically have our first stage of distribution.
We can normally see this in the form of a TGIF trade where we can retrace from 20 to 30% back into the weekly range that has already been formed on Monday. In this case, we do
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not see the consolidation, but instead we see a retracement back into the expansion leg after the first stage of distribution and our second stage of distribution takes place, which is also our silver bullet. So, when we can understand where we are within price
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delivery, it will help us to identify when we want to be in a trade and when we don't. Just because it's a Monday doesn't necessarily mean that it's going to be a consolidation day.
Now we can combine market maker models with our AMD cycles which is the
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accumulation manipulation distribution phases of a buy or sell program. Inside of the retracement legs is where we will see our market maker buy models.
We have our accumulation phase, the manipulation phase and the distribution phase. Since
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price is fractal, we can have smaller market maker buy models inside of a larger time frame market maker model. On the opposite side of the curve, the retracements of where we expect distribution to form will be smaller market maker sell models on a lower time
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frame fractal. There are buy programs and sell programs running throughout the different time frames and all time frames are linked.
Again we will see our accumulation the manipulation leg higher and then the distribution leg lower. So this smaller
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market maker cell model is inside of a larger market maker cell model. Since we are on the sell side of the market maker cell model, our highest probability entries will form inside of these lower time frame fractals.
Again, this is why
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it helps knowing where you are inside of that price delivery continuum. We can also take the daily range and we can combine market maker models with the power of three for example.
Now again there are many different daily profiles.
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As an example here we're going to use the consolidation in Asia as our initial consolidation. We have an expansion leg outside of the Asian consolidation up into 12:00 a.m.
midnight New York time.
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price will drop below the 12:00 a.m. opening price inside of London where the Judith swing will form.
This is where we expect the first stage of accumulation to form. We are looking inside of the expansion leg that broke away from the Asian range to align data points, PD
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arrays, liquidity and gaps. Again, if we think about the power of three in relation to a market maker model, the due to swing lower is technically the sell program of a market maker buy model.
We then witness another expansion
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leg after our first stage of accumulation into the New York session where we may have a news embargo say at 8:30 and we witness a retracement lower back into the expansion leg between the London session and the New York session.
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And this is where we expect the second stage of reaccumulation to form. Price will then quickly expand higher reaching for our buyside objective.
Generally the high or low of the day will form in London close. If there is a news event in London close and we have not yet
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completed our buy side objective prior to the news release, then this is where the algorithm is likely to spool price. Once the buy side objective has been complete, we will see a smart money reversal and a change in state of delivery will take place.
Now, we can combine the market maker models with the
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power of three and standard deviations. Now, what do I mean by that?
Well, post 12:00 a.m. New York midnight, we're expecting a drop lower.
That retracement leg lower is the manipulation phase where we expect our first stage of
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accumulation. Now if we take a fib of that manipulation leg and we anchor it from the high to the low and we project deviations of that range upwards we can get an indication of how high the buy program can reach for.
In this case we
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get four standard deviations. If we take our accumulation range and run fib deviations higher and we get two deviations that are in close proximity to each other.
This again gives us extra confirmation that the buy program is
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likely to complete at this level. Of course, we would have to have a higher time frame level to the left.
Deviations alone are not enough for high probability. They're a guide, but we still want to look to the higher time frame and make sure we are keying off a higher time frame level.
Now, if we take
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the accumulation range and we project deviations higher, this will give us our manipulation leg. The manipulation leg is where we can expect to find a retracement or a reversal after tagging a higher time frame level.
Now,
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generally the manipulation leg will run to around two to three standard deviations of the accumulation range. If we take the manipulation swing that completed our buy program and we project deviations lower, we can predict our
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distribution leg to terminus. The distribution leg will normally fill four to five standard deviations of the manipulation swing.
Again, refer back to previous lessons where we can build a confluence of different projection points, pip ranges, and higher time
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frame levels. But three to four standard deviations of the manipulation leg and four to five standard deviations of the distribution leg will serve you very well going forward.
Again, if you use this as a rough guide, you would be able to distinguish whether we are in a
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retracement leg or we are in a distribution leg of a market maker model. Of course, we can also apply this to the A.M.
session. And inside of the A.M.
session between 10 and 11:00 typically, we will see our silver bullet entry form. Now, the silver bullet entry
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is something that ICT has discussed on his YouTube channel where we are looking for fair value gap inside of the expansion leg inside of the times of 10:00 a.m. and 11:00 a.m.
New York time. This is where we are likely to see our first stage of accumulation.
Now, we
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understand that inside of the stages, we are looking for smaller market maker buy models. If we blend that with the macro times that ICT speaks about.
Now again this is a general overview because our main focus here is the market maker model but I do get into more detail
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regarding the timing elements inside of the academy lectures more precisely the academy 2.0 we can view the AM session as our accumulation cycle inside of the lunch hour there will be another macro that forms where we can anticipate the second stage of accumulation we can see
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a high form inside of the lunch hour where we have our smart money reversal. Now, at this stage, who has been making money in the market?
It's been the buyers, right? After the smart money reversal, we're going to start our distribution cycle or our sell program
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to target the stocks of those buyers from the morning session. We can typically see our first stage of distribution at the end of the lunch hour.
And again, our silver bullet zone between 2:00 p.m. and 300 p.m.
we will have our second stage of distribution
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targeting the A.M. session lows.
Notice the timing and where this stage of distribution is occurring. Silver bullet zone.
This is the original silver bullet. Now the penny should be dropping of why ICT has called those times specifically the silver bullet time.
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Essentially he is talking about the different stages of accumulation or distribution which occur at specific times of the day. Right?
So thank you for watching. I hope you have found this one insightful.
Again, we will be getting into a little bit
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more detail in the next lessons. Everything that I have taught throughout these lessons, I will be applying it to a real chart so you can see how it all fits together.
Right? In the meantime, please go through your own charts and specifically note the times of day where
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you are seeing these stages of accumulation forming. So again, thank you for watching and I will catch you again in the next lesson.