Market Maker Indicator V2 [tecnocrypto]

2022년 3월 10일

This indicator is based on the idea that prices are generated by the interaction between a Market Maker on one side (sometimes also called the "Composite Man") and Retail Traders on the other side (Retail Traders include simple retail, professional traders, whales, institutions...as a single entity). These two opposite entities "play" the trading game on trading platforms/exchanges (crypto), which are neutral to the game.

Market makers are liquidity providers, and make profits either by charging a spread between buy and sell prices, and (also) by trapping retail traders into specific positions.
Trading is a "zero sum" game in the sense that it generates a transfer of resources between these two specific players, which are indeed the Market Maker and Retail Traders. If Retail Traders are in profit, Market Maker is (temporarily) in loss, and viceversa. Market Maker goal is to squeeze profits out of Retail Traders, by inducing them to take wrong positions.

The Market Maker Method Indicator executes the following:

1) Identifies and plots candles that are generated by the Market Maker's moves (called "Shift Candles"); shift candles are "artificial" price/volumes moves, generated to induce retail traders into specific zones which are, essentially, traps. They are called Shift Candles as they generate abnormal (and mostly unexpected) price movements in either direction. They move the price from one zone to the next to execute the Market Maker strategy. Observe how often sudden (apparent) prices increases are followed by price crashes (stop hunt rise, drop); and observe how often sudden (apparent) price collapses are followed by price uptrends (stop hunt low, rise); sometimes these movements are made in progressive steps (generally, 3).

2) Plots open long/open short alerts based on the assumption that when Market Maker plots upwards shift candles, vivid green color, they are preparing for an upcoming price reversal (down); same, but opposite sign, for downwards shift candles. This is a counterintuitive logic for Retail Traders, that generally open long when price is rising, and open shorts when price is falling - jumping into Market Makers traps.

3) Plots the areas where price is expected to return (upwards or downwards) based on previous shift candles (called "Recovery Zones")


You can use this indicator on any timeframe and for any asset.

The Market Maker indicator V2 provides long / short entry signals based upon the market maker manipulative moves described above.

Long alerts are triggered by manipulative price push-downs by the marker maker, which will be followed by price increases (while price was decreasing, market maker was purchasing from retail). Additional factors are taken into consideration to plot long entry signals, , mainly volume build up and mean reversion, around this basic concept.

Short alerts are triggered by manipulative price push-ups by the marker maker, which will be followed by price drops (while price was increasing, market maker was selling to retail). Additional factors are taken into consideration to plot short entry signals, mainly volume build up and mean reversion, around this basic concept.

The indicator is based on the Traders Reality indicator, but improved with alerts, that can be used with trading bots, and additional possibilities to customize the behavior of the indicator.

A strategy associated with this indicator is also available.

Best results on the 1H timeframe.

Contact me for further info.