Market Maker Methodology – Precision Execution in London Session

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Objective: Exploit liquidity traps, manipulate institutional price zones, and dominate prey traders during the high-volatility London session.
Trade Summary
Entry 1: Buy Stop at $2,664.00.
Entry 2: Limit Buy at $2,650.00.
Targets: $2,668 (TP1), $2,671 (TP2), $2,680 (TP3).
Stop Loss: $2,647.00, dynamically trailed using VWAP.



1. Institutional Overview
Market State:

Instrument: XAU/USD (Gold Spot).
Current Session: London – peak liquidity, high volatility.
Bias: Bullish with liquidity sweeps expected to bait weak traders into selling before continuation.

2. Key Zones for Execution
Using advanced Market Maker Methodology, the following zones have been identified as traps for liquidity grabs and breakout setups:

POC (Point of Control):

$2,657.50 (institutional magnet level).
Expect price manipulation around this level to sweep liquidity before the next impulsive move.
Value Area High (VAH) & Low (VAL):

VAH: $2,668 (resistance trap for short-sellers).
VAL: $2,648 (support trap to lure sellers before bullish reversal).
VWAP (Monthly Anchored):

Upper Band: $2,671.00 – Target zone for liquidity sweep (expect initial rejection or slow grind here).
Lower Band: $2,647.50 – Bear trap zone.
Fair Value Gaps (FVGs):

Key imbalance at $2,661.80-$2,663.00 – Institutional orders likely to accumulate here.
Low Volume Nodes (LVNs):

Observed at $2,663.00. This is the breakout zone with low resistance.

3. Execution Strategy – Market Maker Tactics
Market Makers will likely target liquidity through engineered false breaks, stop hunts, and pullback traps. Aligning with these moves is crucial for riding their manipulation to profits.

Primary Trade Setup: Liquidity Sweep with Continuation

Scenario: Trap sellers below VAL ($2,648) or above POC ($2,657.50) and reverse into a bullish breakout above VAH ($2,668).

4. Step-by-Step Execution Workflow
Step 1: Liquidity Mapping on Multi-Timeframe
5-Minute FRVP: Draw from swing low to swing high to confirm micro POC and breakout zones. Key LVNs at $2,663.00 and POC at $2,657.50.
30-Minute Channel: Resistance near $2,671.00, support near $2,647.50 – critical levels to watch for engineered reversals.
Step 2: Parallel Channels and FRVP Zones
Resistance: $2,671.00 (VWAP Upper Band & LVN).
Support: $2,647.50 (VWAP Lower Band).
Intermediate Levels: $2,663.00 (LVN) – key for breakout entry.
Step 3: RSI and MACD Confirmation
RSI: Trending upward at 59-61, bullish divergence aligning with volume inflows. Not overbought—ready for continuation.
MACD: Positive crossover with histogram accelerating—momentum intact for breakout above $2,663.
Step 4: Trap Execution

Wait for a liquidity grab (stop hunts) below $2,648 (VAL) or minor rejection at $2,657.50 (POC) before entering long.

5. Entry, Targets, and Risk Management
Entry Calibration:
Primary Entry: Buy Stop at $2,664.00 (above LVN and POC sweep).
Secondary Entry: Limit buy at $2,650.00, targeting a fakeout reversal from VAL.
Targets (Take Profit Levels):
TP1: $2,668 (VAH) – Exit 40% to secure quick profits.
TP2: $2,671 (VWAP Upper Band) – Exit 30% to ride momentum.
TP3: $2,680 (Institutional Target) – Exit final 30% at high probability resistance.
Stop Loss (SL):
Dynamic trailing SL anchored below $2,647.00 (VWAP Lower Band).
Use VWAP and moving averages to adjust dynamically.
Scaling Tactics:

Scaling In: Add positions near $2,663.00 after confirming volume breakout.
Scaling Out: Exit progressively at each target zone, reducing risk exposure.

6. Predatory Scenarios for London Session
Scenario 1: Breakout Continuation Above VAH ($2,668)

Trigger: Price consolidates above $2,663 with rising volume.
Execution: Long breakout above $2,664.00, targeting institutional resistance at $2,671-$2,680.
Scenario 2: Stop Hunt Below VAL ($2,648)

Trigger: Price dips below $2,648 to trap sellers, then reverses with bullish divergence.
Execution: Limit buy near $2,650, ride reversal back to $2,668-$2,671.


7. Timeframe Integration and Market Flow Alignment
Daily: Macro bullish structure remains intact.
4-Hour: Consolidation near key liquidity levels suggests breakout imminent.
1-Hour: Clear bullish momentum—short-term moving averages align with trend.
30-Minute: Liquidity traps defined with precision.
5-Minute: Micro-volume confirmation at breakout levels ensures sniper entries.

8. Institutional-Level Contingency Management
If Price Fakes Out: Tighten SL and reduce position size to minimize losses.
If Volume Surges: Scale aggressively into positions for extended profit capture.
If Reversal Develops: Flip position short using same TP/SL methodology.

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