Market maker model in gold trading
The market maker model is an ICT template in which gold runs one way into a key level, reverses there, then retraces the whole leg; MMBM is the buy model.
Also called MMBM, MMSM, Market maker buy model, Market maker sell model
The market maker model is an ICT price-delivery template with a buy version (MMBM) and a sell version (MMSM). In the buy model, price first moves down from a consolidation in stages (the sell program), reaches a higher-timeframe discount array or liquidity pool, reverses (the smart money reversal) and then rises back through the same consolidations (the buy program), often to the original high. The sell model is the mirror.
How it applies to gold trading
The template helps traders frame a gold swing that is unfolding. Each consolidation on the way down becomes a target on the way back up, and the reversal point, a higher-timeframe order block or fair value gap with a liquidity sweep, is the entry area. Partial profits are often taken at each consolidation, with the original high as the final target.
Like other ICT models, it is clear in hindsight and harder in real time. Requiring a market structure shift at the reversal area before entering avoids buying a falling market too early.
Worked example
Example (hypothetical numbers): gold falls from 4,060 to 3,980 in three legs, pausing at 4,040 and 4,010. At 3,980 it sweeps last week’s low and breaks above a 15-minute lower high. A trader buys at 3,988 with a stop at 3,974, takes a third off at 4,010, a third at 4,040 and targets 4,060 with the rest.
A common mistake
Anticipating the reversal without confirmation. Many sell programs continue past the expected level.
See also: ICT, Power of three (AMD), PD array, CHoCH.
Frequently asked questions
What is MMBM in ICT?
The market maker buy model: a decline in stages to a key level, a reversal there, and a rally back through the earlier consolidations.
How do I trade the market maker model on gold?
Mark the consolidations on the way down, wait for a sweep and structure shift at a higher-timeframe array, then target the consolidations in turn.
Does the market maker model work every time?
No. It is a template for framing moves, and many declines simply continue. Confirmation and stops are essential.