Market Makers - Level 2 Day Trading Strategies

Market maker strategy

Market maker strategy


Market makers are generally the financial institution and investment banks which perform activities to ensure that there is enough amount of liquidity in the market by ensuring that enough trading volume is there in the market so that trading can be done without any problem.

Market Makers Strategy - Beginner Questions

Common Market Makers The following is a list of market makers as well as ECNs and Exchanges that actively compete for order flow.

Algorithmic Trading 101 — Lesson 6: Market Making

Yep you’re not wrong there, kind of the same as Elliot Waves, Accumulation/Distribution, it’s all the same thing, but ICT’s way of illustrating it, is clearer as well as being more flexible, and much more up to date.

‎The Market Maker Strategy - Traders Talk with Martin Cole

Market makers are licensed broker-dealers that work for firms to mitigate client orders in the open market. They compete with other market makers by posting the required bid and ask price and size quotes for every stock they make a market in. Market makers get order flow information and will trade in the open market to fill the order for a profit. The profit comes from the spread between what they paid for shares compared to what the client is charged. When market makers complete large order transactions, they will often post the blocks on time and sales. Unusually large blocks are likely market maker transactions that have been completed earlier.

The Market Maker Method - Amazon S3

That’s right, most traders don’t learn it & even if they did most of them wouldn’t know what to do with it anyway.

You bring up some good points, and I do actually teach why the market moves the way it does, how to read the order flow behind these markets, how to determine accumulation buying, as that is the point of reading price action - to understand the institutional order flow behind it.

Indeed, as long as you dont making money in phase 8 only to give it back to the Market in stage 6 and 7… That’s what most people do.

I believe (although I can’t remember where I read it), Kathy Lien & Boris Schlossberg have devised a trading strategy precisely to take advantage of this situation. Worth a look if you’re struggling with it!

Profit release - The break out, the trend. This is the “only” time the Market Makers invite us to join in. Why? well all the accumilated buy orders they took from owning us in the congestion box, buying low… they now need us to push prices up so they can sell back for profits. It’s supply and demand. When they oversell this is the retrace, not only this, they will happily play off the fear in traders and use our SL for accumilating mre buy orders before prices rise again. This process repeats until exaustion and then goes back into another accumilation phase to start all again. This is why we see zig zags formations. You see it’s not good enough to now that fibs work some times… you must understand why price is retracing!

He may well be regurgitating information but to call it nonsence? It’s all relevant information which occurs in Forex and most traders don’t learn this. they jump into a system which is used by the masses and well 95% fail. What does that tell you? I see things more clearly now. Not just by reading his £6 book but all his videos and explanations… Keep that frame of mind going… won’t do you any good.

Yes I refer to Large institutions not brokers. I’n not totally confident in all this yet but i’m on my way


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