ICT Market Maker Buy Model – MMBM Explained in Depth
Do you want to master ICT market maker buy model (MMBM) to trade like a pro?
ICT market maker buy model is a blueprint for how price will behave moving from Bullish PD Array to Bearish PD Array. It is very helpful because having an idea will allow you to enter precise trades with tight stops.
Of course, if you are not familiar with PD Arrays the whole concept of Market Maker Model will be basically useless , so before diving deep in to MMXM you should go through ICT PD Array .
In this article we will be exploring the ICT market maker buy model (MMBM) from its definition to identification and to its use.
Now lets start with defining the ICT market maker buy model (MMBM).
What is ICT Market Maker Buy Model (MMBM)?
ICT market maker buy model is basically the blue print of price delivery from a bullish PD array to bearish PD array.
You have to look for following things before ICT market maker buy model.
(I) The higher time frame market structure should be bullish.
(II) The next draw on liquidity or Daily Bias should be pointing higher.
(II) There should be a sell program on the lower time frame prior to the higher time frame PD Array.
Components of ICT Market Maker Buy Model (MMBM)
Market maker buy model is made up of four components explained below.
(I) Original Consolidation refers to the consolidated range of the price between two limits of price.
(II) Engineering Liquidity refers to the sell side move of price making lower highs which act as liquidity when prices moves to the buy side.
(III) Smart Money Reversal refers to the reversal of sell side to buy side , when price reaches higher time frame PD array.
(IV) Liquidity Hunt refers to the sweep of old highs which were made previously during engineering liquidity and finally the original consolidation area.
How to Trade ICT Market Maker Buy Model?
As mentioned above , to trade ICT market maker buy model at first you have to look for bullish order flow and next draw on liquidity to the upside on the higher time frame.
After the confirmation of above steps you have to wait for sell program on the lower time frame so that price should reach to the bullish PD array of higher timeframe.
When price reaches the bullish PD array of higher timeframe wait for the bullish confirmations like Market Structure Shift and SMT divergence.
Now after the above confirmations of buy side you can execute a buy trade in any fair value gap when price retraces below the market structure shift level.
Your stop loss will be 10/20 pips below the last swing low (low made before market structure shift).
Profit Target
For profit target you may use fibonacci tool with the following settings.
1Start 0End -11st profit scale -1.52nd Profit Scale -21st Target -2.5Final Target
You have to draw fibonacci from the low of smart money reversal to the high of market structure shift.
Secondly you may target old highs as your profit taking levels and the final target will be high of original consolidation or higher timeframe draw on liquidity level.
Final Thoughts
While using ICT market maker buy model in trading, we should keep in mind that no strategy is foolproof in trading, so you should not risk all your capital on this strategy.
Plus to mitigate your risks, you should always trade with stop loss in place to keep your equity safe.