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S TA N D A R D D E V I AT I O N +

MMXM

FEB
2024
DISCLAIMER:

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financial advice, and no content within this document should be
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Introduction.

Hello MonsterLab! This is a guide to Standard Deviations + MMXM. If you


haven’t already, I recommend reading the previous PDFs:

- ‘Standard Deviation + PO3’


- ‘IOF + Standard Deviation Theory’
- ‘Power of Three: The Devil’s Mark’

TraderDext3r

ICT Charter / MonsterLab Founder

4.5 years trading experience

Standard Deviation Theory

Po3trader

ICT Student / MonsterLab Trader

6 years trading experience

Pairs I trade: NAS, SPX & GU


Power Of Three - It all starts with an Opening Candle.

It all starts with a Power of Three (any PO3). You need to know what PO3 you are
trading within:

- Monthly, Weekly, Daily, 4H, 1H.

Elements to a PO3 - Identify A, M, D Phases

Accumulation
Manipulation Power of 3.
Distribution.

Please see this example of this Monthly PO3 depicting the Accumulation,
Manipulation & Distribution phases. This all occurs within a single candle -see the
Monthly Candle to the right of the price action. This applies to ANY PO3 candle of
your choice.

Indicator: ‘HTF Power of Three’ by toodegrees (highly recommend)


Standard Deviations - brief overview

Having covered Standard Deviations thoroughly within this PDF: ‘Standard


Deviation + PO3’ -I will only cover this briefly but strongly recommend you read
that PDF first for deeper understanding.

In short, we can use sample sizes of each phase (AMD) to project the future range
expansion.

For example, Accumulation > Manipulation:

During the Accumulation, the lowest discernible range measured from the low to
the high will project the Manipulation. The 2-2.5 Standard Deviation zone is used
to anticipate Reversals/Retracements.

During the Accumulation, the highest discernible range measured from the high
to the low will project the Manipulation. The 2-2.5 Standard Deviation zone is used
to anticipate Reversals/Retracements.

Once 2-2.5 STDV is reached, expect price to Retrace back into the range to
rebalance inefficiencies created below Equilibrium of the expansion.
AMD - Standard Deviation

This same process can be applied to the Manipulation phase to project the
Distribution.

- 4 STDV = Terminus -expect Retracement/Reversal back into the Range.

OLHC -Open Low High Close

OHLC -Open High Low Close


But WHY?

Price runs on an algorithm and moves according to the previous range. For
example, if the Manipulation range reaches 2 Standard Deviations then the
following Expansion will reach 4 Standard Deviations. Or more if price has
unfinished business.

Example:

STDV FORMULA:

1 -1.5 = Re-accumulation / Re-distribution levels (Silver Bullet Zone -SBZ)


2 -2.5 = Smart Money Reversal
4 = Smart Money Reversal / Terminus
Market Maker X Model + Standard Deviation

Market Maker Models will start at PD Array HTF and end in an opposite PD Array of
the same Timeframe. Think PD Array HTF (A) to PD Array HTF (B).

Once you have selected the 2 HTF PDA: PD Array HTF (A) & PD Array HTF (B). We will
identify the Opening PO3 in play & the Accumulation, Manipulation and
Distribution phases.

From PD Array HTF (B) > PD Array HTF (C)

See example below:


How to apply Standard Deviation to MMXM

HTF Understanding -be aware of developing PO3s of the present moment.

HTF PD Arrays
- IPDA lookback: 3 previous candles
- Monthly PO3 = 3 Months Data (20-40-60 Day Look Back)
- Weekly PO3 = 3 Weeks Data (5-10-15 Day Look Back)
- Daily PO3 = 3 Days Data (1-2-3 Day Look Back)
- 4H PO3 = 12 Hours Data (4-8-12 Hour Look Back)

Targets
- Internal Liquidity Above-Below 50%
- External Liquidity / Swing High Current Range

Confirmation Tool
- Smart Money Tool (SMT)

Schematic:
Sell Side of the Curve

1/ Price reaches PD Array HTF A which can be combined with Standard Deviation
of the previous range. (2 -2.5 STDV = Retracement / Reversal to PD Array HTF B)

2/ We use the sample size (discernible price leg) at PD Array HTF A to project the
Market Maker Sell Model to PD Array HTF B.

3/ At 1.0 -1.5 STDV = Re-Distribution Zone. Expect retracement into any IRL for
continuations. This is also known as the Silver Bullet Zone.

4/ At 2.0 STDV = Expect retracement into IRL for continuations to 2.5 ONLY if price
has unfinished business. In this example, PD Array HTF B below.

5/ At 2.5 STDV = We hit PD Array HTF B so we anticipate Smart Money Reversal for
the next move to PD Array HTF C (MMBM).
Buy Side of the Curve (MMBM)

1/ Price comes into PD Array HTF B and into 2.5 STDV = we anticipate Smart Money
Reversal to start the MMBM. We call this the ‘Action Point’.

2/ Take the sample size (lowest discernible leg) for projections.

3/ At 1.0 -1.5 STDV = Re-Accumulation Zone. Expect retracement to any IRL for
continuations. This is also known as the Silver Bullet Zone.

4/ At 2.0 STDV = We expect retracement into IRL however notice in this example we
have a deeper retracement. Price can have a small retracement like in the first
example but in some cases price will retrace deeper. Simply wait for confirmation
of continuations by using crash correlation lows (SMT).

The way you determine if this move is a retracement & not a reversal solely
depends on HTF. Does price have unfinished business above?
(PD Array HTF C = Unfinished business), therefore you can determine that this
move is only retracement for re-accumulations.

5/ Price breaks structure to the upside for continuations.

6/ At 2.5 STDV = Same dynamic. Expect retracement for re-accumulations to


allow continuations IF price has unfinished business above. (-4.0 Terminus)
USDJPY Example Weekly

1. SMT with DXY

2. Use 3 Previous Candles


Identify PD Arrays within 3 Previous Candles and transpose them to LTF (1H).
USDJPY Example - 1H TF

1. Levels transposed to 1H
PWL + Rejection Block C.E

2. 3 Previous Candles delineated

3. Most discernible range for Standard Deviation Projections

3 Questions

Where did price come from?


Expansion from the low of the previous week.

Where is price right now?


In 2.0 - 2.5 STDV of the Previous.Range

Where is price likely to go?


We anticipate retracement/reversal. Smart Money Reversal in this point.
USDJPY Example - 1H TF

Standard Deviation Theory

Using the discernible price range (sample range) and reaching 2.0 - 2.5 STDV, we
anticipate a retracement/reversal.

Price is not unidirectional and will seek to rebalance the inefficiencies generated
below 50% (Equilibrium) of the range.

To know if it is a retracement/reversal is all dependent on HTF broader picture.


USDJPY Example - 1H TF

Simplify:

We are at 2.0 - 2.5 STDV + HTF PD Array A

We anticipate retracement/reversal below Equilibrium to the BISI (HTF PD Array B)


USDJPY Example - 1H TF

Weekly PO3 in Play, Accumulation > Manipulation.

Price reaches HTF PD Array B + 2.0 - 2.5 STDV = Action Point / SMR

Market Maker Buy Model starts here.

Weekly Devil's Mark ;)

Think ABC, 123.


USDJPY MMBM - 11/9/2023

Look how we blend MMXM + PO3 with Standard Deviations. Removes the ambiguity.

Recap:

1. High Time Frame


IOF was Bullish, SMT at the Lows,.
Price was at Weekly Volume Imbalance

2. 3 Previous Candles (3 Week Look-Back)


Outlined the 3 Previous Candles + Discount Arrays
Discernible price leg projections, We were at 2.0 - 2.5 of Previous Range =
Retracement/Reversal

3. ABC
Original Consolidation - A
Discount Array - B
Distributions - C

4. Weekly PO3 in play (AMD)

Bonus: Devil's Mark

ABC / 123...

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