UNICORN
MODEL
THE STRONGEST ENTRY MODEL
IN THE GAME
by: Trader_Luuk
Unicorn Model
The Unicorn Model is an advanced price action strategy designed to identify
strong turning points in the market. By combining the Breaker Strategy and
Fair Value Gaps (FVGs), this model offers a unique and reliable approach to
spotting high-probability trade setups.
What makes the Unicorn Model so effective is its ability to highlight key areas
of future support or resistance, providing traders with a structured framework
for entering and managing trades. By merging two powerful entry
techniques—the breaker block and the FVG—it significantly enhances trade
accuracy and risk management.
When these two elements overlap, they form what is known as the Unicorn
Model, a zone that signals a potential trend continuation.
The Unicorn Model can be applied to any timeframe and any asset, making it
universal. However, the probability of success can be increased by various
factors, which will be explained later in the document.
Understanding the Core Concepts
Before fully grasping the Unicorn Model, it is essential to understand its two
key components:
Breaker Blocks – These occur when price sweeps liquidity above a key
high or below a key low, followed by a strong market reversal. The area
where this reversal started becomes a crucial support or resistance zone.
Fair Value Gaps (FVGs) – These represent price inefficiencies, often
formed by a strong impulsive move, leaving a gap between candles. This
gap frequently gets revisited, creating potential trade opportunities.
Unicorn Model
Breaker Blocks
A Breaker Block occurs when the market collects liquidity above a significant
high or below a significant low, followed by a strong reversal. The zone where
this reversal began then serves as a key support or resistance level.
Characteristics of a Breaker Block:
Liquidity is collected (stop hunt or sweep).
The market breaks the previous structure (Break of Structure - BOS).
Price returns to test the breaker block as an entry point.
In theory
In practice
Unicorn Model
Fair Value Gaps
A Fair Value Gap (FVG) is an inefficiency in the market where price has made
a large impulsive move without sufficient counter-orders. This results in a gap
that is often filled later.
Characteristics of an FVG:
It consists of a three-candle structure: a large impulsive candle with an
unfilled space between the previous and next candle.
FVGs show displacement in the market and a desire to move towards a
further target
It acts as additional confluence when it coincides with a breaker block.
Bullish FVG Bearish FVG
Unicorn Model
The Unicorn Model in Practice
In practice, the Unicorn Model can be spotted on any timeframe. However, it
works best during volatile price movements. For this reason, the model is
often used around the New York Open, as this event brings significant market
volume.
But what is the best way to trade the model? Below are several steps that can
be followed for a successful trade using the Unicorn Model.
1 Determine your daily Draw on Liquidity
It is essential that the HTF bias is clear and that a logical Draw On Liquidity is
present on the chart, which will serve as the trade’s target.
2 Liquidity Grab
Wait for a liquidity grab, preferably during New York Open. Institutions use
this liquidity to fill their positions before the "real" move is initiated.
3 Break of Structure
After the manipulation has occurred, you want to see a break of structure.
This break of structure should be strong, meaning there must be clear
displacement in the price movement.
4 The creation of the FVG
Look for an inefficiency (FVG) that has formed after the liquidity grab. This is
a sign that price may return to this zone before the actual move begins.
5 The creation of the Breaker
Identify the breaker block, and make sure it aligns with the FVG. The price
must return to this zone for a potential entry.
Unicorn Model in practice
IIn the example below, we see how the Unicorn Model plays out perfectly. At
9:30 (NYO), there is a manipulation move where liquidity above the highs is
taken out. Immediately after, we see the price displaced downward, and a
break of structure occurs. Due to the strength of the displacement, an FVG
and a Breaker are also created, which ultimately served as the perfect entry
for shorts.
This is a textbook example of anticipating shorts according to the Unicorn
Model, where technicals and timing align. Of course, the model works exactly
the opposite for longs.
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The Unicorn Model is one of the strategies we regularly trade within TDL
Community, alongside many other strategies. If you’d like to learn more
about how we use the Unicorn Model in our daily trading, feel free to come
and check out our FREE Community:
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