Learning objective
The Market Maker Buy Model (MMBM) and Market Maker Sell Model (MMSM) are ICT-style narratives used to organize price delivery around liquidity, a shift in short-term structure, and a potential move toward an opposing liquidity pool. They are not proof that a particular institution is controlling a chart. Treat them as hypotheses to test against observable candles, levels, timing and risk. This lesson develops a repeatable way to describe those hypotheses without predicting outcomes from labels alone.
Start with the higher-timeframe map
Before marking a model, identify the previous day high and low, important swing points, obvious equal highs or lows, and the dealing range on a higher timeframe. Note whether price is near a premium or discount portion of that range. Write down which pool of liquidity might be attractive next, but do not assume price must visit it. A model built without a clear reference range can become a story attached to any random move.
Market Maker Buy Model: a working sequence
In a bullish MMBM interpretation, price may first trade lower into sell-side liquidity, such as a previous low or a cluster of equal lows. The initial decline can look convincing to traders expecting continuation. A subsequent recovery with displacement and a meaningful market structure shift may suggest sellers have lost short-term control. The trader then watches for a retracement into a relevant fair value gap or other defined area, rather than chasing the first strong candle. The opposing buy-side liquidity can be a possible target, not a guaranteed destination.
Market Maker Sell Model: a working sequence
A bearish MMSM interpretation reverses the logic. Price may first rise through buy-side liquidity above a previous high, then fail to sustain that advance. A bearish displacement move and a shift below a meaningful short-term swing can support a bearish working bias. A controlled retracement toward an imbalance or clearly defined supply area may offer a location to evaluate risk. The next sell-side pool is a potential objective only if structure and conditions continue to support the scenario.
Why the liquidity raid is not enough
A wick through a prior high or low does not by itself establish either model. Price can sweep a level and continue in the same direction, particularly around important data releases or during strong trends. Confirmation is contextual: identify the reference level before the event, assess the response after the sweep, distinguish displacement from ordinary volatility, and require a meaningful swing to break. If those observations are absent, label the idea unconfirmed and stay out.
Displacement and market structure shift
Displacement refers to unusually decisive movement relative to nearby candles, often leaving a visible imbalance. A market structure shift is more useful when the swing being broken was identified in advance and has clear significance. Avoid treating every tiny lower low or higher high on a one-minute chart as decisive. Compare the displacement with the current session range and higher-timeframe direction. A clear invalidation point is more important than an impressive-looking candle.
Bullish example: hypothetical chart
Suppose a market trades beneath yesterday's low during an active session and then closes back above it. On the five-minute chart, price rallies strongly through a previously marked short-term high, leaving a bullish fair value gap. A trader may classify this as a possible MMBM sequence and wait for a pullback to the gap. The stop could be placed beyond a technically meaningful invalidation level, with position size calculated from that distance. If price breaks the swept low again or never offers an acceptable entry, the trade is skipped.
Bearish example: hypothetical chart
Imagine price trades above a well-defined intraday high and immediately falls back into the range. A decisive bearish candle breaks a prior short-term low and leaves an imbalance. This may support an MMSM hypothesis. Instead of selling simply because the high was swept, the trader checks whether a retracement offers sufficient distance to a realistic downside objective. If the next support or liquidity pool is too close to justify the risk, the setup is rejected even if the model appears visually attractive.
Entry, stop and target framework
Write the planned entry zone, invalidation level and first target before placing an order. The stop belongs at a level that disproves the trade idea, not at an arbitrary fixed number of pips. Determine position size so a stopped trade loses only the chosen fraction of account equity; many learners practice with a small fixed risk such as 0.25% to 0.5%, but no percentage removes trading risk. Account for spread, slippage, commissions and news volatility. Targets should be plausible relative to nearby obstacles, not selected to force an attractive reward-to-risk ratio.
Common mistakes and false positives
The most common errors are identifying a model only after the move is complete, moving reference swing points to fit the outcome, entering before displacement, and calling every liquidity sweep a reversal. Another mistake is ignoring higher-timeframe conditions: a short-term bearish shift during a strong bullish trend can fail quickly. Record invalid setups as carefully as successful ones. A model is useful only if its rules can be applied consistently before the result is known.
Practice workflow
Open a historical chart and hide candles to the right of a chosen date. Mark previous day highs and lows, a higher-timeframe dealing range, and obvious intraday liquidity. Advance one candle at a time. Record whether a raid occurred, whether displacement followed, which meaningful swing shifted, and where invalidation would sit. Then calculate hypothetical risk and compare the outcome with your original plan. Repeat across trending and ranging sessions, including examples where the model fails. Use demo or paper trading until the process is stable.
Key takeaway
MMBM and MMSM are structured ways to think about a potential change in price delivery after a liquidity event. They are not mechanical guarantees and do not make market manipulation observable from a single chart. Strong analysis separates premarked levels, observable confirmation, risk-defined execution and post-trade review. If any one of those elements is missing, there is no obligation to trade. Education and backtesting come before live capital.