How the model structures price

How the model structures price

The Market Maker Model maps price into phases. These are not just abstract concepts—they can be seen visually on charts. From tight consolidations to explosive fakeouts and clean trends, the MMM gives structure to what often feels like chaos. ICT traders use this model to anticipate rather than react, combining it with time-of-day logic and liquidity zones for precision entries.

Phase 1: Accumulation

Accumulation is where institutions begin quietly building positions. The range is usually narrow, volatility low, and retail traders often get bored or overtrade during this phase. You may see choppy price action, equal highs and lows, or mid-range consolidation.

• Appears during Asian session or off-peak hours

• Forms the foundation of the move to come

• Smart Money accumulates long or short positions

• Often shows balance between buyers and sellers

In this phase, the key is observation. Recognizing accumulation prepares you for the manipulation that follows—and that’s where the edge begins.

Phase 2: Manipulation

Manipulation is where the game gets dirty. Price violently breaks out of the accumulation range, either above or below, with the intent of grabbing liquidity. This triggers retail stop-losses and tempts traders to enter what looks like a breakout. But it’s a trap. The move quickly stalls, reverses, and begins the real directional push.

• Happens during London or New York open

• Sweep of buy stops above highs or sell stops below lows

• Volume often spikes unnaturally

• Price returns inside the range quickly

This is the make-or-break moment. Experienced traders wait for the manipulation phase to finish before entering. You’re looking for a stop run and rejection—clear signs that Smart Money has completed its liquidity grab.

Phase 3: Distribution

Distribution is when the true move unfolds. Once liquidity has been taken and false breakouts have failed, price starts trending with momentum. This is where the clean setups happen—often aligning with Fair Value Gaps, Order Blocks, and continuation structures in the ICT framework.

• Clear directional push with minimal pullback

• Price respects internal structure (higher highs/lows or lower highs/lows)

• Often aligns with macro narrative or fundamental catalyst

• High reward-to-risk trades are found here

If you’ve been patient, this is where you get paid. ICT traders time these moves precisely, often entering off a retracement into a FVG or breaker block, with stops tight and targets mapped to external liquidity.

Structure repetition across timeframes

The beauty of the Market Maker Model is that it plays out fractally. Whether you’re on a 1-minute chart or a weekly swing, these phases repeat. Price is always seeking liquidity. Once you learn the model, every chart becomes a map—not a mystery.

• M5 shows setups for scalpers

• H1-H4 reveals session-based swings

• D1-W1 reflects institutional macro bias

This is why ICT traders use multiple timeframes. The MMM provides structure at all levels, guiding both entry and exit strategies with logic and consistency.

What is the Market Maker Model?

What is the Market Maker Model?

The Market Maker Model (MMM) is a strategic framework that explains how large financial institutions—often referred to as Smart Money—move price through a repeatable, engineered cycle. These entities don’t chase price; instead, they manufacture liquidity by creating predictable patterns that lure retail traders into bad positions. By understanding the phases of the MMM, traders can begin identifying when markets are accumulating orders, manipulating price to sweep stops, and distributing into new trends.

The model is built on the idea that markets are moved with purpose. Every run on a high or low isn’t chaos—it’s part of a larger structure designed to fill massive orders. The MMM provides a roadmap that repeats across all timeframes and instruments, from forex to crypto, indices, and commodities.

The three phases of the model

• Accumulation: Price consolidates in a tight range while Smart Money builds positions.

• Manipulation: Price spikes outside of the range to trigger stop-losses and fake momentum entries.

• Distribution: Once liquidity is harvested, price trends in the real intended direction.

These phases are not always cleanly defined, but their structure is consistent. Once you learn to spot the clues, you’ll stop chasing trades and start anticipating setups with clarity and confidence.

Who uses the Market Maker Model?

While the name “Market Maker” originally referred to institutions providing liquidity in forex or equities, in modern trading, the term refers broadly to Smart Money—hedge funds, banks, and algorithmic entities that move markets. The MMM has been popularized by ICT (Inner Circle Trader) but is widely used by price action traders seeking to understand manipulation.

If you’ve ever been stopped out right before price moved your way, or bought a breakout that immediately reversed, you’ve seen the model in action. With this framework, you’ll know exactly what’s happening—and how to profit from it.