SMART TRADERS NO LONGER FALL FOR THIS "MARKET MAKER TRAP"
(A Thread)
(A Thread)
Hey my G π,
You won't fully understand the contents of this thread if you haven't seen the first part.
Here it is ππΎ
You won't fully understand the contents of this thread if you haven't seen the first part.
Here it is ππΎ
We now know that on a bearish day, we should expect price to first trade up before the down move and vice versa on a bullish day.
This brings us to a concept known as the "AMD FORMATION"
This brings us to a concept known as the "AMD FORMATION"
Now don't get intimidated by this wordπ
AMD stands for Accumulation, Manipulation and Distribution.
Not so difficult right?
AMD stands for Accumulation, Manipulation and Distribution.
Not so difficult right?
Accumulation (A) - This is what is popularly known as a "consolidation". When price doesn't show a clear direction.
It is also known as a "Sideways Market".
The fancy words attached to this market pattern isn't important. What's important is the underlying narrative.
It is also known as a "Sideways Market".
The fancy words attached to this market pattern isn't important. What's important is the underlying narrative.
When Price consolidates, the "Algo" accumulates Buy and Sell orders.
For every time there's a consolidation, there are alot of traders that have orders to Buy or Sell on the break out.
These orders represents Liquidity (Money) in form of Buy and Sell Stops.
For every time there's a consolidation, there are alot of traders that have orders to Buy or Sell on the break out.
These orders represents Liquidity (Money) in form of Buy and Sell Stops.
Price is usually expected to clear one or both these liquidities (Sell-side Liquidity or/and Buy-side Liquidity).
The move to clear liquidity is termed "Manipulation".
The move to clear liquidity is termed "Manipulation".
Manipulation (M) - This is when price makes false moves to trap sellers or buyers. Price also manipulates to kick buyers or sellers out of the market.
Distribution (D) - After price manipulates, it reverses and goes to it's intended direction. This move is called distribution.
Ps: The AMD formation can be seen on all timeframes. This thread however, tries to break down the cycle of this formation within a 24-hour trading window.
Let's talk about the "TRAP"
During Accumulation, price creates patterns that traps or kicks out both retail concepts traders and smart money concepts traders. Let me show you what I mean ππΎ
Retail Traders Trap(S&D):
Smart Money Trader Trap(SMC):
How to play it safe:
Things to note from the threads so far:
- On a bullish day, price is expected to first trade down before the up move.
- On a bearish day, price is expected to first trade up before the down move.
- When price consolidates, we have to wait for a clear manipulation before engaging.
- On a bullish day, price is expected to first trade down before the up move.
- On a bearish day, price is expected to first trade up before the down move.
- When price consolidates, we have to wait for a clear manipulation before engaging.
Knowing all these only begs the question, "HOW DO WE KNOW A BULLISH OR BEARISH TRADING DAY BEFOREHAND?"
If this thread get 200 retweets, I'll create a thread exposing 2 powerful daily candlestick patterns with a 90% consistency rate.
I hope this was insightful?
If it was kindly FOLLOW, drop a LIKE and RETWEET to get this thread across to alot more people ππΌ
If it was kindly FOLLOW, drop a LIKE and RETWEET to get this thread across to alot more people ππΌ
I'd love to connect with you on WhatsApp.
Send me a message with your name via this link. ππΎππΎ
wa.me
Send me a message with your name via this link. ππΎππΎ
wa.me
PART 3
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