Bunnex Investment Group
The Market Maker Method is a trading strategy that follows how large institutions manipulate markets to catch impulsive moves. It involves cycles, levels, and resets, and can be applied across timeframes. The strategy utilizes external authorities like the IMF and World Bank to gauge market movements and can be used to identify potential reversal patterns. The video uses the US Dollar as an example to illustrate how the Market Maker Method can be applied.
Understanding the Market Maker Method
Introduction to the Market Maker Method
The Market Maker Method is one of the institutional trading methods currently being employed in the trading world. This approach is often classified as a smart man concept or a Trending SMC’s methodology that looks to incorporate what large institutions are doing in the market. These institutions manipulate the market and create impulsive moves and the market maker method aims to catch these impulsive moves to create a profitable trading strategy.
Cycles and Impulsive Moves
The Market Maker Method relies on cycles that create reversal patterns in the market. These patterns are typically created by external authorities such as the International Mindful Monetary Fund and the World Bank. These authorities monitor the market to ensure that no currency is being devalued. If they find that a devaluation is occurring, they will restrict the movement of the market in a particular direction for a certain magnitude.
Large Institutions and Their Impact on the Market
There are people who have access to large amounts of capital and if they participate in the market, they can alter the demand or supply of a particular currency in their pairings. This alteration of the demand or supply can result in increased rates or the rate of a particular asset, causing an incremental rise and impulsive moves on the market.
Market Mega Cycle and Reset Points
The Market Maker Method relies on what is called a Market Mega Cycle, which is a move of three impulsive moves before reaching what is called a reversal point or high of a certain period. After the market reverses, and before the higher timeframe cycle is completed, we typically have what is called a cycle restart, which is a reset point of the market. In a complete higher timeframe cycle being viewed in smaller time frames, two reset points occur along the way.
Counting Levels and Interlinking them With Timeframes
In this methodology, there are levels or impulsive moves that come into play because external authorities govern how the market moves. These levels interlink and can be counted in relation to different timeframes. In one H4 level, we expect to see three H1 levels in the preceding timeframe. Further, in one daily level, three H4 levels are expected, and in one monthly level, three weekly levels are expected.
Implementing the Market Maker Method in Trading
To implement the Market Maker Method in trading, traders must start with the highest timeframe and count the number of impulsive moves issued. Once this is done, traders can identify the levels of these moves and use them to predict the market’s future movements. The Market Maker Method provides a framework for traders to follow and can help simplify trading.
Conclusion
In conclusion, understanding the Market Maker Method is critical for traders who want to create a profitable trading strategy. The Method provides a framework for traders to follow, making it a valuable tool for simplifying trading. It is essential to know how to use the Method across different timescales and levels to predict market movements accurately. By mastering the Market Maker Method, traders can participate in institutional trading methods and increase their chances of success in the trading world.
