The market efficiency paradigm is a representation of how "smart” money interprets price and influences speculative, uninformed “dumb” money. Basically, it is how “smart” money (banks & institutions) capitalize off of “dumb” money (retail traders).
It is the paradigm between where smart money would enter & where they would look to exit.
The interbank price delivery algorithm was programmed to offer fair value with this very logic. it is coded to hunt “dumb” money and engineer liquidity for “smart” money. it is beautiful.
This is what makes MMXM so powerful. It allows us to trade with this very logic in mind. It effectively aligns us with smart money’s order pairing.
Smart money is the true influencer of price. It is all about liquidity & order pairing.
Retail is the prey & they don’t even realize it. Smart money is just constantly pairing their orders with with willing buyers and sellers. Once you understand this, your trading will change.
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There truly is no holy grail in trading. Any strategy with a statistical edge can be profitable.. But with that being said, I genuinely believe MMXM is about as close as you’ll get to finding a “holy grail.” Everything is a MMXM. This IS the market.
Before we get into the details, we must first understand the logic behind why MMXM works.
This is smart money, and this is us, simply catching a ride with them.
An order block is defined as “a change in the state of delivery.”
A change in the state of delivery (CSD) is when IPDA shifts from a buy program to a sell program, or vice versa.
When price returns to an old level of institutional sponsorship, there will be a change in the state of delivery.
Displacement alongside order blocks hints that there is institutional sponsorship behind the move. It is the large orders of smart money participation that leave behind a “footprint.”
This is true institutional order flow, price should respect it. (assuming you are aligned with the current draw on liquidity)
A dealing range is defined as the most recent range where both buyside and sellside liquidity has been taken.
Establishing a deep relationship with dealing ranges & the PD array matrix is an absolute game changer. Things really clicked for me once I understood this fully.
Once you have your dealing range, you can begin to focus on breaking down the PD arrays within it based on the PD array matrix. Each dealing range will consistent of different PD arrays.
Power of three is an ict concept deriving of 3 phases – accumulation, manipulation, and distribution. It is a method deployed by smart money to trick retail traders. By utilizing the "power of three" concept, we can identify potential trade opportunities, and effectively position ourselves for the distribution alongside smart money.
In the accumulation phase smart money (banks, institutions, etc.) begin to gradually acquire a particular asset in large quantities at (or around) a certain price level. This stage in price can easily be viewed as “consolidation” or range bound price action. (grey shaded area)