The Ultimate A to Z Guide to

Mastering Market Structure and

Trading It Effectively & Mechanically

This PDF is designed as a free

educational resource for everyone.
 Introduction
➢ The Market follows a logic known as Wyckoff's
Method.

➢ Wyckoff's Method is a technical analysis approach that

helps traders understand and anticipate market

movements by observing the behavior of institutional

investors. Developed by Richard Wyckoff in the early 20th

century, this method focuses on price and volume to reveal

the underlying intentions of market participants.

➢ Wyckoff's Method is based on three primary phases:

Accumulation - Manipulation - Distribution (AMD)

Understanding these phases allows traders to recognize

the market's current condition and make informed

decisions based on the institutional behavior underlying

the price action.
 AMD
➢ 1. Accumulation Phase

➢ Definition: This phase occurs when institutions

accumulate orders within a specific price range without
causing a significant market move.
➢ Characteristics:
Sideways market structure (Range-bound price action)
Liquidity Grab: Sweeping below previous lows to trigger

stop-loss orders
High volume around lows (suggesting Smart Money
accumulation)
False Breakouts: Tricking traders into believing a bearish
move is underway

Presence of long wicks (wick rejections)

➢ Objective: To accumulate long positions while inducing

retail traders to short the market.

 AMD
➢ 2. Manipulation Phase

➢ Definition: This phase involves sharp, unpredictable

moves designed to manipulate retail traders into taking the
wrong side of the market.
➢ Characteristics:
Stop Hunts: Targeting liquidity by sweeping key highs or

lows
Liquidity Grab: Triggering pending orders before a
reversal
Fake Breakouts: Inducing premature entries on the
wrong side
High Volatility: Sudden spikes designed to confuse
traders
➢ Objective: To capture liquidity before initiating a strong
move in the intended direction.
 AMD
➢ 3. Distribution Phase

➢ Definition: Following the manipulation phase,

institutions begin offloading their positions by selling into
rising prices or buying into falling prices.
➢ Characteristics:
Formation of a market top (or bottom)
Liquidity Grab at Highs: Inducing FOMO buying before
reversal
Weak continuation signals, often followed by structural
shifts
Strong bearish candles indicating institutional selling
pressure
➢ Objective: To exit profitable positions while misleading
retail traders into late entries.
 Liquidity
➢ What is Liquidity?
Liquidity refers to the ability to buy or sell an asset in the
market quickly and efficiently without causing a significant
➢
change in its price. It represents the depth of market

participation, where a higher number of buyers and

sellers ensure smoother price movements.

➢ Why Liquidity Matters?

Institutions and market makers hunt liquidity to efficiently
enter and exit positions without major price impact.
Understanding liquidity helps traders anticipate where

Smart Money is likely to manipulate price to grab liquidity

before making a significant move.

 Liquidity
➢ Types of Liquidity

➢ Liquidity is not randomly scattered throughout the

market; rather, it is concentrated at key price levels

where traders and institutions place their stop-losses,
pending orders, and large institutional orders. These

areas act as magnets for price because they provide

the necessary volume for Smart Money (banks, hedge

funds, and market makers) to execute their large

positions efficiently.
Since institutional traders handle enormous trade
➢ sizes, they cannot simply place all their orders at once

without significantly impacting price. Instead, they

manipulate the market to seek out liquidity pools,

ensuring that their orders get filled at the best possible

price with minimal slippage.

 Liquidity
➢ Buy-Side Liquidity (Above Current Price)
➢ Buy-side liquidity exists above the current market price, where
stop-losses of short sellers and buy-stop orders from breakout
traders are located. Smart Money often pushes price into these
areas to trigger these orders before reversing the market
downward.
➢ Where is Buy-Side Liquidity Found?
➢ Above major swing highs – These levels attract stop-losses of
short traders.
Above resistance zones – Retail traders place buy-stop orders
for breakout entries.
Above psychological round numbers (e.g., 1.1000 in Forex,
$50,000 in BTC).
At liquidity pools where Smart Money accumulates buy-side
orders before selling.
➢ How Market Makers Use Buy-Side Liquidity?
➢ Price is often manipulated upward to trigger short sellers' stop-
losses and activate breakout traders' buy orders.
Once liquidity is grabbed, Smart Money fills their sell orders at
premium prices and reverses the price downward.
This often results in a liquidity sweep (stop hunt) where price
wicks above a key level and then aggressively moves lower.
➢ Example:
Imagine EUR/USD is consolidating near 1.1000, and many traders
have placed sell positions with stop-losses above 1.1020. Market
makers may drive price up to 1.1025, triggering these stops and
activating buy-stop orders before reversing sharply downward.
 Liquidity
Sell-Side Liquidity (Below Current Price)
➢
➢ Sell-side liquidity exists below the current market price, where
stop-losses of long traders and sell-stop orders from breakout
traders are located. Institutions often push price down to sweep
these levels before reversing upward.
➢ Where is Sell-Side Liquidity Found?
➢ Below major swing lows – These levels attract stop-losses of
long traders.
Below support zones – Retail traders place sell-stop orders for
breakout entries.
Below psychological round numbers (e.g., 1.0900 in Forex,
$45,000 in BTC).
At liquidity pools where Smart Money accumulates sell-side
orders before buying.
➢ How Market Makers Use Sell-Side Liquidity?
➢ Price is often manipulated downward to trigger long traders'
stop-losses and activate breakout traders' sell orders.
Once liquidity is grabbed, Smart Money fills their buy orders at
discounted prices and reverses the price upward.
This results in a liquidity grab (stop hunt) where price wicks
below a key level and then aggressively moves higher.
➢ Example:
Imagine GBP/USD is ranging around 1.2500, and many traders have
placed buy positions with stop-losses below 1.2475. Market makers
may push price down to 1.2470, stopping out these traders and
activating new sell orders before reversing the price back up
sharply.
 Liquidity
➢ Why Understanding Liquidity is Essential?
Liquidity plays a crucial role in the financial markets, and mastering
➢
its dynamics can significantly enhance a trader's ability to navigate
price movements with precision. The ability to recognize liquidity
zones and understand how Smart Money manipulates price to
capture liquidity can mean the difference between success and
failure in trading.
Avoid
Retail Getting
Trapped
fall by
Stopto
Hunts and False Breakouts
traders often victim market manipulation because
➢ they rely on traditional support/resistance concepts without
➢ understanding how liquidity drives price action. Market makers,

institutions, and Smart Money take advantage of this by

engineering stop hunts and false breakouts to trap retail traders
before moving price in the opposite direction.
How Market Makers Manipulate Liquidity?

They push price slightly above a resistance level to trigger

breakout buy orders and stop-losses of short sellers, then reverse
the price downward (bull trap).
They drive price slightly below a support level to trigger sell-
stop orders and stop-losses of long traders, then reverse the price
upward (bear trap).
Example:
➢
Imagine EUR/USD is consolidating near 1.1000, and many traders
have stop-losses below 1.0980. Market makers may push price
down to 1.0975, triggering these stops before reversing the price
back above 1.1050, leaving retail traders trapped in losing positions.

➢ Solution: By identifying liquidity pools before entering a trade,

traders can avoid executing positions right where Smart Money is
likely to hunt stop-losses before reversing the trend.
 Liquidity
➢ As you can see in the image below, liquidity is extracted from

the buyside (where buy orders are concentrated) and then

transferred to the sellside (where sell orders are filled). This is a
typical behavior of the market maker, who manipulates the
liquidity to create market movement. The market maker does
this on all timeframes, whether on a short-term chart or a
longer one, in a fractal manner—meaning the same process
occurs on different timeframes, with the same principles
applied at each scale. This fractal pattern reflects how the
market maker operates consistently, creating liquidity shifts
and price action based on the same core strategy, regardless
of whether the timeframe is 1 minute or 1 day.
 Liquidity
➢ Now, how can we easily identify the buyside and sellside?

➢ To trade intraday, use the 15-minute timeframe and identify

the highs and lows that are formed close to each other.

These levels can be marked as the buyside and sellside.

➢ As your experience increases, you can also start using the 5-

minute timeframe.
 Market BIAS
➢ Market bias serves as the foundation for making decisions
about when to enter or exit a trade. It essentially answers the
question, "What direction is the market likely to move in?"
Having a clear understanding of the market bias helps
traders:
Avoid trading against the trend: The most common
➢ mistake novice traders make is to take trades that go

against the dominant market trend. Trading with the trend

(also called "trend following") has historically been more
profitable than trading against it.
Identify potential entry and exit points: When the market
bias is clear, traders can pinpoint the best areas to enter and
➢
exit positions based on the current market direction. For
example, in a bullish market bias, traders may look for
buying opportunities near support levels or breakouts above
resistance levels.
Enhance risk management: Knowing the market bias helps
traders set their stop-loss orders in the correct zones. For
➢ instance, in a bullish market bias, a trader might place a
stop below key support levels, while in a bearish market
bias, a stop may be placed above resistance. This aligns risk
with the prevailing market structure.
 Market BIAS
➢ How Liquidity Movement Indicates Market Bias:

➢ Now, to determine the market bias (whether the market is

bullish or bearish), you need to watch how liquidity shifts

between the buyside and sellside. Here's how it works:

Bullish Bias: In a bullish market, there is usually a higher
➢
amount of liquidity on the buyside. This means that there is

strong buying interest, and prices are generally rising. The

market maker or large institutions may take the liquidity

from the buyside (buy orders) and move it to the sellside.

When this happens, it could indicate that the market is

making a temporary pause, retracement, or preparing for

further upward movement after a shift.

➢ Bearish Bias: In a bearish market, liquidity shifts the

opposite way. When sellers are in control, liquidity is

primarily on the sellside, and prices are dropping. Market

makers or institutions may take liquidity from the sellside

(sell orders) and deliver it to the buyside, signaling a shift

towards buying pressure and potentially reversing the

downward trend.
 Market BIAS
➢ Identifying Liquidity Shifts and Market Sentiment:
➢ Bullish to Bearish Shift: If you see that the market is taking

liquidity from the buyside and pushing it to the sellside, it

could indicate that buying pressure is weakening, and the
market might be turning bearish. This suggests a possible
bearish bias.
➢ Bearish to Bullish Shift: Conversely, if the market takes
liquidity from the sellside and shifts it to the buyside, it
could show that selling pressure is weakening, and buying
pressure is increasing. This would indicate a bullish bias.
Fractal Nature of Liquidity Shifts:
➢
This liquidity movement happens in a fractal manner,
➢
meaning that it occurs on all timeframes. Whether you're
looking at a 1-minute chart, 15-minute chart, or daily chart,
you’ll observe similar liquidity patterns. The key is to watch
for how the market absorbs or releases liquidity at various
price levels, which helps you identify the bias and align your
trades with the prevailing market direction.

➢ In summary, observing how liquidity moves between the

buyside and sellside helps you identify the market bias. By
understanding these shifts, you can better predict whether
the market is transitioning from a bullish to a bearish bias, or
vice versa, giving you an edge in making informed trading
decisions.
 Market BIAS
➢ For instance, on the 15-minute timeframe, we can observe that

liquidity has been absorbed from the buyside, indicating a shift in

market bias towards the sellside. This shift suggests a bearish bias,
meaning that the market is currently leaning towards downward price
action. In this context, we can look for short opportunities as the
market moves towards its sellside liquidity target. The bearish bias
implies that there is more selling pressure, and as liquidity is absorbed
on the sellside, prices are likely to continue moving lower. We can
capitalize on this trend by entering short positions in alignment with
the market’s prevailing bias, taking advantage of the liquidity flows
until the market reaches the area where sellside liquidity is absorbed.
By doing so, we ensure that we are trading in the direction of the
dominant bias, which increases the probability of successful trades.
 Point of Interest
➢ What is a Point of Interest (POI) in Trading?
➢ In technical analysis, a Point of Interest (POI) refers to specific areas on

the chart where price is likely to react. These zones typically hold
liquidity, large orders, or key market levels that attract institutional
activity. Understanding POIs helps traders anticipate high-probability
trade setups and refine their entries.

➢ Order Blocks (OBs)

➢ Order blocks are the last bullish or bearish candles before a strong price

move. They represent areas where institutions and smart money placed
large orders before a major price shift. These zones often act as support
or resistance when price revisits them.
➢ Bullish Order Block: A down candle before a strong bullish move. Acts
as support when price retraces.
Bearish Order Block: An up candle before a strong bearish move. Acts
➢
as resistance when price retraces.

➢ Fair Value Gaps (FVGs)

➢ Fair Value Gaps (FVGs) are price inefficiencies created when the market

moves aggressively in one direction, leaving a gap between the

previous candle’s high/low and the next candle’s low/high.
Bullish FVG: Created when price moves up rapidly, leaving an
➢
imbalance below.
Bearish FVG: Created when price drops quickly, leaving an imbalance
➢ above.
FVGs act as magnets for price, as the market often seeks to "fill"
these inefficiencies before continuing in the original direction.
➢
 Point of Interest
➢ Inversed Fair Value Gaps (Inversed FVGs)

➢ Inversed Fair Value Gaps (IFVGs) are areas where price fills an

FVG but fails to fully close the imbalance, leading to a partial

gap. This creates a hidden zone of liquidity that can act as a

strong support or resistance.

➢ If price leaves an FVG but fails to fully close it, that unfilled

portion acts as an Inversed FVG.

➢ These zones often lead to sharp reactions when revisited, as

leftover liquidity gets absorbed.

➢ Breaker Blocks Breaker Blocks are invalidated order blocks

➢ that later act as strong support or resistance. They occur when

price breaks through an OB and then retests it from the

opposite direction. Bullish Breaker: A previous bearish OB that

➢ gets invalidated and later acts as support.

Bearish Breaker: A previous bullish OB that gets invalidated

and later acts as resistance.

Point of Interest
 Confirmations
A trade confirmation is a set of conditions or signals that
validate the potential entry point for a trade. It’s essentially
➢
the proof or confirmation that supports your decision to
enter a position, ensuring that the trade aligns with your
strategy and has a higher probability of success.

➢ To enter a position, you can use different confirmation

models. Choose one that works best for you and repeat the
process. There is no "better" or "worse" confirmation; each
has its own success rate. The key is to backtest and see which
one fits your understanding and style. Once you find the
right one, stick to it and execute consistently.
➢ Confirmation can be done on the 1-minute or 5-minute
timeframe. The lower the timeframe, the higher the risk.

➢ Important question! Where should we look for these

confirmations? You should only look for confirmations when a

buyside or sellside has been hunted. Once you identify that
liquidity has been absorbed from one side, then you can
proceed to look for your confirmation model. If this condition
is not met, simply forget about it and move on.
 Confirmations
➢ One important thing to pay attention to is that you should
try to look for confirmations in kill zones. This is because
liquidity in the market is high during these periods, making

it a great opportunity to spot potential confirmations. Kill

zones represent times when market activity is concentrated,

and liquidity is more likely to be absorbed, providing better

conditions for confirming your trade setups.

➢ The next thing you need to pay attention to is that seeing a

confirmation does not guarantee a 100% win rate. So, from

now on, learn to behave like a mature trader and don’t get

upset when you hit a stop loss. Losses are a natural part of

trading, and it's important to stay emotionally neutral and

focus on the long-term consistency of your strategy.

 Confirmations
➢ The first simple confirmation is MSS (Market Structure Shift).
➢
MSS occurs when the market structure changes direction, typically after
a period of consolidation or trending. It indicates a shift in the market's
behavior, suggesting that a reversal or continuation may be coming. In
other words, MSS is the point where the market moves from making
higher highs and higher lows (bullish structure) to lower highs and
lower lows (bearish structure), or vice versa.
➢ For example, if the market was making higher highs and higher lows
(bullish structure) and then starts making a lower high, it could be
signaling a potential bearish shift. This break in the structure can act as
a confirmation that the market may be preparing to change direction,
and you can use it to enter a trade in alignment with the new market
trend.

➢ MSS is a useful and straightforward tool for identifying potential entry

points because it helps traders spot the change in the market's
direction, which often leads to profitable trades if entered at the right
time.
 Confirmations
➢ The second confirmation is the Breaker :

➢ The Breaker sends the price deep into the liquidity zone,
hunting for stops and orders. Once the price pushes through
and breaks the level with significant momentum, it then
creates a Point of Interest (POI). This happens because the
market has absorbed the liquidity in that area, and the
broken level now acts as a key point where price may reverse
or continue in the new direction. So, after the liquidity hunt
and the price rejection, the area transforms into a POI, which
traders can use as an entry point for potential trades.
 Confirmations
➢ The third confirmation is IFVG (Inversed Fair Value Gap).
➢ An Inversed Fair Value Gap (IFVG) is essentially the opposite of the
regular Fair Value Gap (FVG), and it occurs in a similar way but with a
reversal of expectations. An IFVG is formed when price moves in such
➢ a way that an area of imbalance or a "gap" is left behind, but this time
the gap is formed in the opposite direction of the current trend or
expected market direction. This creates an inefficient price move,
where the market quickly retraces and fails to fill the gap fully, often
due to a shift in market sentiment.
 Confirmations
➢ Optimal Trade Entry (OTE) is a Fibonacci-based retracement zone
that provides traders with an ideal entry point for high-probability
trades. The OTE zone is typically found between the 61.8% and
78.6% Fibonacci retracement levels, where price tends to reverse
before continuing its primary trend.
In reality, the Equilibrium level (50% retracement) can also be
➢
considered a significant area for trade entries, as it represents a fair
value where the market often reacts before reaching deeper
discount or premium zones. However, OTE offers a more refined
entry within the discount or premium range, increasing the
probability of a strong continuation in the intended direction.
How to Determine Which POI (Point of Interest) Price Will Return
➢ To & Re-Enter After Missing a Move
Missing an entry doesn't mean the opportunity is gone, price often
provides a second chance at a more refined level. When analyzing
➢
multiple Points of Interest (POIs), traders must identify the most
probable level where price will react and offer a re-entry
opportunity. Here’s how to determine the best POI for entry or re-
entry:
Identify the Best Discounted/Premium POI for Re-Entry
In an uptrend, look for POIs in a discount zone (below equilibrium,
➢
50% retracement).
➢ In a downtrend, look for POIs in a premium zone (above
equilibrium, 50% retracement).
The deeper the retracement (e.g., 61.8%–78.6% OTE zone), the
➢
higher the probability of a reaction.

➢
 Confirmations
➢ How to Use OTE (Optimal Trade Entry) Effectively?

➢ To utilize OTE (Optimal Trade Entry), follow these steps:

➢ 1. Identify a Strong Market Move (Impulse Leg)

➢ Find a clear swing high to swing low (for bullish setups) or swing

low to swing high (for bearish setups).

The move should be significant, with strong momentum, indicating
➢
a valid impulse leg.

2. Apply the Fibonacci Retracement Tool

➢
In a bullish setup, draw Fibonacci from the lowest point (swing
➢
low) to the highest point (swing high) of the move.
In a bearish setup, draw Fibonacci from the highest point (swing
➢

high) to the lowest point (swing low) of the move.

 Confirmations
➢ Divergence Between Related Pairs (SMT Divergence)
➢ When two correlated assets (e.g., EUR/USD & GBP/USD)
show different behavior:
➢ One makes a higher high while the other fails to do so
(bearish divergence).
➢ One makes a lower low while the other fails to do so
(bullish divergence).

➢ This signals smart money manipulation and potential

reversals.
 Summary
➢ Start by Identifying Buyside & Sellside Liquidity – Before
anything, mark out key liquidity zones where price is likely to
target.
Wait for Manipulation to Occur – Don’t rush in; let price take out
➢
liquidity on one side before considering an entry.
Drop to a Lower Timeframe for Confirmation – Once liquidity is
➢ grabbed, refine your entry on a lower timeframe using the
Confirmations.
Personal Approach: I personally mark liquidity zones on the 15-
minute timeframe and execute trades on the 1-minute chart.
➢ However, you can apply this method to any timeframe since price

action is completely fractal.

Key Rule: Once price sweeps liquidity in one direction, I avoid
trading against it until it reaches the opposite liquidity zone. If
➢ you counter-trade too soon, your confirmations will fail
unnecessarily.
Is This Process That Simple?
I’d say NO—this is a skill-based approach that requires a lot of
practice. But once you develop your eye for it, execution becomes
➢
second nature.

➢ On the next page, I will include an example of my trade.

Example
 Final Thoughts
➢ I have tried to include all the essential elements in this PDF

to help you trade mechanically with complete clarity.

However, it is crucial that you backtest these concepts first

to ensure you can apply them effectively on the charts.

My advice to you: Don't chase a magical strategy, because
➢ it doesn’t exist! The only thing you truly need is a simple

and repeatable setup. The setup I have taught here occurs

frequently throughout the day and is easy to execute.

All you need is time and practice to master it. I hope you
make the most out of this material!
➢

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