How Market Makers Condition

The Market
There are 2 groups of traders. One is much larger and the other one is very small.
We, as the larger populace of retail-minded trading, think because of our sheer
vastness that we are the driver of this apparatus that's called the marketplace.
And we tend to think of ourselves as the drive axle of what makes the markets go
up and down. The “Smart Money” group doesn’t want to draw too much attention
to itself. But contrast that with everybody in the retail. We all have Twitter
accounts, Everybody is living large over here in the Uninformed money, and smart
money is up here quietly just doing their thing.

How Market Makers Condition The Market 1

 Speculative Uninformed Money: Smart Money

1. Everybody on Social Media 1. Banks

2. People with a retail account

3. All the gurus, teachers & services.

You need to have a paradigm shift in your thought process about how the
markets are efficient because they're not efficient for the speculators; they're
efficient for the smart money, the banks drive price. Whether you want to accept it
or not, that's what's going on. And the sooner you get to that understanding and
expectation of what it is that's going on in price, it's not for your well-being; it's for
the bank's well-being. It's their business; they have a liquidity provider. Everyone
else is liquidity.

The markets are being driven and manipulated to the degree of every single
minute detail. They're absolutely controlled. It's an AI, it's artificial intelligence.
You are not trading against a person anymore; it's a computer program that
delivers price, and it knows human behaviour because it's the same way it's been
always: fear and greed. Which makes the markets go around? It's not the big
populous of traders; it's the liquidity provider. So, you need to be thinking like this

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 small group is. They're not trying to draw attention to themselves; they're not
trying to be online flashing this and flashing that. They're just quietly in here,
skinning people alive.

We already know from the previous

episode how to combine these 2
groups of characteristics.

Expansion + Order-blocks
Retracement + Fair Value Gaps &
Liquidity Voids

Reversal + Liquidity Runs & Stop

Hunts

Consolidation + Equilibrium

Let's look at the daily range. Suddenly, expansion, retracement, reversal, and
consolidation mean something.

1. Every day starts with consolidation

in the Asian range.

2. After 0:00 EST there is a expansion

in the form of Judas Swing.

3. After we made H/L of the Day in

London we get a Reversal: London
Swing.

4. It is followed by another Expansion

move into NYKZ.

5. NYKZ is a Retracement and

continuation: New York Session

How Market Makers Condition The Market 3

 6. Then we will have another
consolidation. That’s the NYKZ
consolidation.

7. Or we could get a Reversal which

will lead to another expansion
going into LCKZ.

8. LCKZ is a condition for a Reversal.

9. Then the market will go into

Consolidation again.

The daily range structure can be really broken down and

simplified:
1. It starts with a price equilibrium, that's the Asian range.

2. Then there's manipulation. That's the Judas swing.

3. Then we'll see a range Expansion. In other words, after the high or low is
formed, the range will start expanding.

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 It'll go up into 5 o'clock in the morning
New York time, we're going to use the
perspective as a buy day. That means
that Asia, the Asian range, has a small
consolidation, and then right after
midnight New York time, there's a drop
down in price. That's the manipulation
making the false move for the low. The
manipulation will come in the form of
Expansion.

4. Between 5AM-8AM the market will go into Consolidation.

5. Then it will have a Retracement between 8:00AM and 8:30AM.

6. Then during NYKZ, we can have either Reversal or another Expansion leg
creating the opposite of the daily range.

7. During 10AM - 11AM in LCKZ price will create a Reversal.

8. Then the market will go into Consolidation till the end of the day.

We can see the interbank price delivery algorithm on a daily basis by studying
these events. And then, seeing it over a period of time, you'll know what is most
likely to happen. Now, let's look at a little bit further.

Algo Roadmap

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 It all starts with a consolidation.
Nothing can happen until
consolidation. Consolidation is when
the market's quiet. Why is that
important? Because that's when the
orders are building up in the
marketplace. The market makers will
allow orders to build up above and
below the range. The next stage is
always expansion. It's not
consolidation to retracement; it can't
retrace if it hasn't moved anywhere. It
can't go consolidation, reversal
because it has to come out of the
consolidation. So when you see a
consolidation, you've got to think the
next leg is going to be in price. It's

How Market Makers Condition The Market 6

 going to be an explosive move or an
impulse price swing movement. You
need to see movement by determining
what that movement is and what
direction is relative to the conditions
you're trading in. Once we're in the
expansion stage, then you have a
choice.

1. Always Consolidation.

2. Always Expansion.

3. Once you see expansion you have to make a choice:

a. It can Retrace, come back to the OB that it left behind and make another
continuation leg.

b. Or it can Reverse.

i. After it reverses, there will be another Expansion

ii. Then it will go into Consolidation.

💎 The Main take away:

From Consolidation it never goes to Retracement/Reversal. It is always
Expansion.
From Expansion it goes Retracement/Reversal. It won’t consolidate after
Expansion.

When you understand this algorithm, the way it moves and where it operates,
it's very generic, it's very systematic. It has only a few options to go to, and
they're time-sensitive; they're day-sensitive.

Applying Time to the general structure:

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 Daily Range Weekly Range
1. Consolidation in Asia. 1. Sunday’s open is a Consolidation

2. Expansion 2. Expansion Move on Monday.

3. Reverse in London Open. Make the 3. Reversal on Tuesday/Monday

H/L of the day.
4. Expansion move
4. Expansion
5. Mid week consolidation on
5. Small consolidation in New York. Wednesday.

6. Retracement between 8:00AM - 6. It will Reverse or Retrace

8:30AM.

7. Another Expansion move.

8. Reversal

9. Back into Consolidation

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