The Markets

DNA
Decoding Price and Liquidity

NINE

DTT Trading Community

Copyright © [2024] by Nine

All rights reserved.

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publisher or author, except as permitted by U.S. copyright law.

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Contents

1. Median Body Zone 1

2. The Logic Behind MBZ 7

3. MBZ Types and Strength 14

4. MBZ Type 1 25

5. MBZ Type 2 34

6. MBZ Type 3 43

7. MBZ Mechanical Risk Management 52

8. MBZ Superiority 61

9. MBZ Invalidation and Liquidity 68

10. The Power of MBZ 80

Chapter One

Median Body Zone

The Origin of the Median
Body Zone (MBZ)

The Beginning: From Personal Discovery to a Structured

Framework

The Median Body Zone (MBZ) was rtsi noitducmeu no y, 2024 DTT
eBookb ,ei ai ihai inyeb ni teyanoeu ao undiscovered gem wnihno ihe
.tdauet Digital Time Theory (DTT) frameworkI li was ao couetg,nop
vtnomnvge no y, vetsdoag itaunopb sdyeihnop l hau noicninfeg, cseu Hdt ,eatsI
xdwefetb ni was oefet Hcgg, eUvgdteu no a wa, ihai mdcgu .e sitcmicteu noid
a mechanicalb logicalb aou repeatable s,sieyI

kognMe yao, mdofeoindoag itaunop mdomevis ihai Hdmcs do wicks, ICT

models, supply/demand zones, or trendlinesb BZ— ns .cngi entirely
around price action within the candle body itselfNa logical aou
quantiLable yeihdu ihai teydfes ihe eydindoag .nases itauets dHieo
’ ElE2

sitcppge wnihI

The market is governed by liquidity, ine-ciencies, and structural

order jowb aou BZ— ns the missing link ihai aggdws ,dc id see price in
a structured, systematic mannerI Edwb niqs inye id .tnop ihns mdomevi
HdtwatuNnot as a theoryb .ci as ao esseoinag aou gdpnmag price model ihai
Hcomindos amtdss agg yatMei mdounindosI

The Core Premise: The True Consensus Wies in the Body of

the Candle

Bao, itauets yaMe uemnsndos .aseu do wicks, trendlines, or indicax

torxbased entriesb ,ei ihese yeihdus dHieo geau id sub5ectivity, inconx
sistency, and false signalsI

%icks can be manipulatedNsyati ydoe, Hte-ceoig, eopnoeets

gn-cnuni, sweevs id itav itauets whd vgame sidvjgdsses ai swnop
hnphs dt gdwsI

Trendlines are not L.edNa sgnphi au:csiyeoi no hdw a itauet

utaws ihey mao mhaope ihe eointe dcigddMI

Indicators are laggingN., ihe inye ihe, snpoag ao eoit,b ihe

ydfe ns dHieo couetwa,I

Thns ns whete MBZ stands apartNni udes odi teg, do visual interx
pretations or lagging dataI losieaub ni zeroes in on the most ob5ective
measure of price actionA ihe candle bodyb svemnrmagg, nis median level
 Tx2 BRKS2TD 3ER 4

(H0[ mark)N

The yeunao .du, ns ihe equilibrium point of price acceptanceb whete

nosinicindoag agpdtnihys ueietynoe Hant fagce .eHdte a snponrmaoi shnHi no
untemindo dmmctsI Thns mteaies a mathematical framework taihet ihao ao
eydindoag doeb eosctnop ihai vtnme teamindos ate .aseu do sitcmicteu gdpnm
taihet ihao svemcgaindoI

50% Mark
1 ElE2

Eow MBZ %as First IdentiLed in My Trading ]AIA’

ZeHdte l dzmnagg, mdnoeu ihe iety BZ—b l odinmeu a recurring phex

nomenon no vtnme amindoA

5I strong candle forms at key price levelsN

’I The market reverses but does not fully return to the initial
point of originN

4I Instead, price consistently Lnds equilibrium around the

H0[ level of the previous dominant candleN

1I This median body zone serves as a magnet for price, either

re5ecting or conLrming continuationN

Ri rtsib l ihdcphi ihns was random coincidenceb .ci aHiet ,eats dH

observing, testing, and reLningb l teagnWeu ihai BZ— was a consistent
price behavior ihai mdcgu .e cingnWeu as a sitcmicteu itaunop yduegI

The market is driven by e-ciencyxseeking algorithmsb aou BZ—

tevteseois ihe oaictag equilibrium of price movementb whete .c,ets aou
seggets teamh a ydyeoiat, mdoseoscs .eHdte doe snue udynoaies ihe dihetI
 Tx2 BRKS2TD 3ER 6

MBZ and the Digital Time Theory (DTT) Connection

hnge BZ— mao .e cseu as a standalone trading modelb ni .emdyes

efeo more powerful when combined with DTTI

DTT s timexbased structure allows traders to predict when

price movement is likely to occurN

MBZ provides a precise e.ecution model to capitalize on

those movementsN

Z, noieptainop ihese iwd HtayewdtMsb itauets mao remove the uncerx

tainty from price actionb teg,nop do a structured system that aligns
time with e.ecution precisionN
 ElE2

The Aeed for a Mechanical and Wogical pproach

The MBZ model is not built on emotions, predictions, or gut

feelingsNni ns rooted in market structure, liquidity mechanics, and
price e-ciencyN
Z, HdtyagnWnop BZ— noid a mechanical, repeatable strategyb we iaMe
ihe human error dci dH itaunop aou focus purely on logicI

Thns .ddM wngg dive deep into MBZb mdfetnop nis types, strengths, and
realxworld applicationsI Ttauets whd couetsiaou aou avvg, ihns mdomevi
will gain an edgeNodi .emacse ihe, vteunmi vtnmeb .ci .emacse ihe, align
with how the market naturally movesN
Chapter Two

The Logic Behind

MBZ
A New Logical Approach to
Market Structure

F or years, traders have sought ways to renie thexr eitrxes aid ecxts,
tryxig to depxfher the phaotxp iature o. frxpe aptxoiM laiy have
turied to poiveitxoiak xidxpators kxme stophastxps, Iovxig averages, aid
evei Iephaixpak Iodeks derxved .roI CT( )Ciier Txrpke (raderW poipeftsM
-hxke these tooks frovxde soIe kevek o. strupture, they .akk short xi dekxvq
erxig poisxsteipy due to thexr .rebueipy aid sujNeptxvxtyM
H ECE8

The Issue with Traditional Indicators and ICT Mechanical

Models

Cidxpators kxme the Exponential Moving Average (EMA) aid Sto-

chastic Oscillator are poIIoiky used to deterIxie treid dxreptxoi aid
IoIeituI shx.tsM ’owever, they are lagging indicators, resfoidxig to
frxpe rather thai .orepastxig xtM (hxs keaves traders reacting xistead o.
froaptxveky fosxtxoixig theIsekves .or tradesM

CT(—s mechanical models, whxke struptured, freseit thexr owi set o.

phakkeigesM (hese Iodeks affear oi a phart multiple times throughout
a session:o.tei 30 or more occurrences per trading dayM (hxs preates
a dxkeIIaO

Which setup do you take?

Do you take all 30 setups and accept a low win rate?

What do you target? What debnes the strongest setup?

(hese Iodeks reky heavxky oi order jow and Bias, Iamxig theI suB-
Zective xi eceputxoiM Aie trader Ixght see a vakxd CT( setuf, whxke aiother
Iay xiterfret the strupture dxRereitky jased oi thexr jxas or how they
denie xiteriak Iarmet strupture shx.tsM
 (’8 lKSD8(9 UEK B

M:PQ zrecision Over fuantity

Zikxme CT( Iephaixpak Iodeks that refeat doqens o, times per day,
l30 xs a rare oppurreipeM Ct does iot affear every sessxoi oi a sfepxnp
txIeq.raIeM -hei xt does, xt parrxes ai unmatched consistency in exe-
cutionM

(he Median :ody Pone (M:P) xs jased oi the Iost prxtxpak ekeIeit o.
frxpe aptxoiO the commitment o, price at key levelsM Ct Ieasures where
frxpe xs Iost kxmeky to reapt jased oi the Body closure o, a signibcant
reZection candle, rather thai rekyxig oi sujNeptxve order +ow readxigs or
Iarmet strupture shx.ts that pai je dejated jetweei tradersM

(hxs keads to a highly selective approach where a trader xs not

BomBarded with endless setups throughout the dayM Cistead o. tamxig
1'5 trades wxth inconsistent win rates, l30 akkows .or one or two
high-.uality opportunities per session on a specibc time-,rame,
Iamxig xt a truky mechanical and oBZective systeIM
2' ECE8

8aph txIeq.raIe has xtzs owi sfepxnp aIouit o. l30 setqufs throughq
out the dayM (ame thxs ecaIfke o. the 1' Ixiute txIeq.raIe aid the 4
Ixiute txIeq.raIe oi gokd .uturesM
 (’8 lKSD8(9 UEK 22

Why M:P Works as a Mechanical System

It does not appear ,re.uently— reducing overtrading&

It eliminates suBZectivityLno personal Bias— only mechan-

ical conbrmations&

It ensures traders only take the most asymmetric risk-to-re-

ward setups&

Win rates are signibcantly higher Because the strategy ,o-

cuses on rare But high-conviction reversals&

Ci poitrast, CT(—s Iephaixpak Iodeks preate more ,re.uent opportu-

nities But with lower precisionM (hxs keads to a faradoc where traders
execute more But win lessM l30 +xfs thxs kogxp:xt eisures that every
trade tamei xs Backed By oBZective price action mechanics, iot sfepukaq
txve order +ow aiakysxsM
2 ECE8

M:P R +ogical 2isk-to-2eward

Aie o. the greatest streigths o. l30 xs that xt akkows traders to have

predebned and structured risk-to-reward parametersM
3epause l30 xs not Zust an entry qone But also a proZection qone,
xt preates a logical ,ramework ,or debning stops and targetsO

Entry OptionsQ

8iter at the Iedxai oie o. the jodyM

8iter at the ofeixig frxpe o. the jodyM

8iter at the pkosxig frxpe o. the jodyM

Stop zlacementQ

C. eiterxig at the ofeixig frxpe, the stof xs fkaped at a devxaq

txoi away .roI the jodyM

C. eiterxig at the Iedxai jody oie, the stof xs fkaped at the

ofeixig frxpe, o.tei at a denied staidard devxatxoiM

C. frxpe .axks to hokd the l30 oie aid pkoses agaxist the
ecfepted dxreptxoi, the trade xs xivakxdatedM

Target zroZectionQ

K 4Y standard deviation move Iay je used as a stof, wxth

a -Y standard deviation move as a target .or a 2O2 rxsmqtoqreq
 (’8 lKSD8(9 UEK 21

wardM

K - standard deviation move pai je used as a target .or a

O2 rxsmqtoqreward, xipreasxig frontajxkxtyM

(hxs mechanical structure hekfs traders jepauseO

2M M:P is already rare:you are iot .orped to tame uiiepessary

tradesM

M It removes the suBZectivity o, order jow interpretation:io

ieed to overaiaky e kxbuxdxty shx.tsM

1M ou choose your own risk-to-reward:jased oi pkear kogxpak

faraIetersM

M Over time— probtaBility is a natural Byproduct o, ,ollowing

the system:there xs io ieed to phase setufsM

(he mey tameaway here xs that l30 xs not Zust another trad-
ing setup:xt xs a mechanical model with Built-in logic that req
Ioves overtrading— suBZectivity— and emotional BiasesM -xth strupq
tured risk-to-reward parameters, clear conbrmation signals, aid ai
extremely rare occurrence, l30 eisures that whei a trade xs tamei, xt
has the hxghest poivxptxoi fossxjkeM

Ci the iect phafter, we wxkk jream dowi the three types o, M:P aid
ecfkaxi thexr varyxig keveks o. streigth xi dxRereit Iarmet poidxtxoisM
Chapter Three

MBZ Types and

Strength
The Three Types of MBZ and
Their Market Logic

T he Median Body Zone (MBZ) framework is designed to pin-

point high-probability reversal zones with precision. However, not
all MBZ setups carry the same level of reliability. They vary in strength
depending on how price interacts with liquidity and conUrms direction-
al intent. The market operates through a structured process of liquidity
grabs, order xow shifts, and engineered reversals. Enderstanding the three
types of MBZ helps traders diAerentiate between strong and weak setups,
improving eRecution and consistency.

The Median Body Zone (MBZ), regardless of its type, operates as

a two-candle model. The rsft candle serves as the sepesence zoint,
establishing the key body structure that determines the potential reversal
zone. The fecond candle acts as the conrsmation, validating the reversal
by closing within or beyond the MBZ, depending on the type. This second
 THK MSDNKT1 5'S I6

candle not only conUrms the trade idea but also provides a zsecife en-
tsy kone and allows for sifj-to-sewasd zsoTectionf based on the body(s
midpoint, open, or close. This structured two-candle framework ensures
clarity and consistency in eRecution.
I0 ')'K

h1e h1see hyzef op MBZ

Kach MBZ type categorizes reversals based on their interaction with

liquidity pools and their level of conUrmation.

hyze : MBZS h1e gtsonReft veDesfal

KernitionS S Type I MBZ occurs when price wicks beyond a liquidity

pool %buy-side or sell-side liquidity7 and then closes above or below the 6jW
mark of the previous candle body, conUrming the reversal.
 THK MSDNKT1 5'S I8

Fey ueatWsefS
This MBZ takes out liquidity before reversing, forming a long
wick beyond the previous structure.

The conUrmation candle decisively closes past the 6jW level of the
previous candle body.

This setup represents a deliberate liquidity grab followed by in-

stitutional order xow reclaiming price direction.

I1y ’tLf t1e gtsonReftS

The market often engineers liquidity grabs before ma2or moves.
Phen price sweeps liquidity and immediately re2ects, it signiUes a
strong presence of aggressive counterxow participants.

This setup indicates that weaker hands have been forced out,
while stronger players have positioned themselves in the opposite
direction.

The clear re2ection and close beyond the MBZ conUrm that mar-
ket structure has shifted.

Masjet 2oRic Be1ind hyze : MBZSS classic stop-hunt occurs when

price aggressively takes liquidity, Ulling institutional orders before revers-
ing. Type I MBZs represent the smart money reclaiming control, leaving
retail traders on the wrong side of the market. Because this structure in-
volves an engineered liquidity grab, it has a far higher probability of success
compared to other reversal patterns.
I9 ')'K

hyze A MBZS b veliaqle BWt gliR1tly Ieajes getWz

KernitionS S Type 3 MBZ forms when price closes above or below the
6jW level of the previous candle body but does not initially take out the
liquidity pool itself.

Fey ueatWsefS
The reversal is conUrmed, but there is no initial li3Widity Rsaq.

–rice has established directional intent, but without the liquidity

sweep, there is a chance of further retests before a sustained move.

The setup relies more on structure shifts than on engineered

stop-hunts.
 THK MSDNKT1 5'S IY

I1y ’tLf Ieajes h1an hyze :S

Pithout a liquidity grab, there is no clear indication of trapped

orders or engineered liquidity events.

The market may still reverse, but without taking liquidity Urst,
there is a higher chance of price retesting that area before contin-
uing the move.

Masjet 2oRic Be1ind hyze A MBZS Phile still a reliable setup, the
absence of a liquidity grab means that there is no guarantee that weaker
hands have been fully cleared. )nstitutional players often seek to remove
liquidity before committing to a move, which is why Type I MBZs remain
superior.
3j ')'K

hyze E MBZS h1e Ieajeft BWt gtill hsadaqle

KernitionS S Type O MBZ occurs when price closes inside a liquidity

pool but the neRt candle conUrms the reversal by closing beyond the MBZ.

Fey ueatWsefS
The initial MBZ formation does not show an immediate re2ec-
tion.

)nstead, the neRt candle provides conUrmation of the reversal.

–rice remains inside the liquidity pool longer, which may lead to
more choppy behavior.
 THK MSDNKT1 5'S 3I

I1y ’tLf t1e IeajeftS

Enlike Type I, which aggressively re2ects price after a liquidity
sweep, Type O MBZs take longer to conUrm direction.

The market has not decisively reclaimed a key level, meaning there
is a higher probability of price ranging before moving.

These setups often require additional conxuence factors for eRe-

cution.

Masjet 2oRic Be1ind hyze E MBZS This type of MBZ suggests

that buying or selling pressure is still being absorbed before price makes
a decisive move. )t may work, but it carries greater uncertainty due to the
eRtended consolidation.
33 ')'K

I1y h1efe MBZ hyzef xUiftS h1e MasjetLf OndeslyinR

gtsWctWse

The strength of an MBZ setup is directly related to how the market

moves through liquidity.

I. 2i3Widity Kictatef Masjet MoDement 4 The market seeks

liquidity before ma2or trends. Type I MBZs succeed because
they take liquidity before reversing, conUrming that institutional
players have taken control.

3. Csdes ulow xftaqlif1ef HonDiction 4 Phen price sweeps liq-

uidity and immediately reclaims a key level, it signals a strong shift
in market sentiment. Type 3 and Type O MBZs may conUrm re-
versals, but without an initial liquidity grab, the intent is weaker.

O. Masjet himinR Mattesf 4 The strength of an MBZ is also tied

to the timing of its formation. )f a Type I MBZ occurs during a
ma2or liquidity event %such as the 'ew Cork —pen7, it carries far
more weight than a random Type O MBZ forming during a period
of low volume.

?. use3Wency and gelectiDity 4 Enlike many trading models that

occur frequently but with a lower success rate, MBZ setups are
rare. They do not appear multiple times a session like standard
)→T setups, which often result in traders taking too many trades
with a lower win rate. Pith MBZ, traders encounter fewer setups
but with far higher accuracy.
 THK MSDNKT1 5'S 3O

Pow MBZ soDidef Hlasity Homzased to hsaditional

Modelf

Many traders struggle with mechanical trading models because they

appear repeatedly throughout the session. )→T concepts, for eRample, pro-
vide multiple mechanical setups daily, but traders often Und themselves
in a dilemma should they take every setup, or only a select few Pith
)→T mechanical models, traders can Und themselves chasing numerous
setups and achieving a moderate win rate, due to the sheer number of
opportunities.

Pith MBZ, there is no ambiguity. The setup is sase and does not repeat
itself constantly throughout the session. Phen an MBZ appears, it is a
clear high-probability event. Because of its structured nature, it allows
for deUned risk-to-reward parameters, making it a truly mechanical and
systematic model.
3? ')'K

hsadinR MBZf Iit1 Honrdence

By categorizing MBZ setups into three logical strengths, you can make
informed decisions about which setups to take, which to wait for conUr-
mation on, and which to avoid entirely.

hyze : MBZf The highest conviction trades with engineered

liquidity grabs.

hyze A MBZf Deliable but lack the liquidity sweep that makes
Type I more powerful.

hyze E MBZf Dequire additional conUrmation and carry

more uncertainty.

Mastering the MBZ framework enables you to focus only on the

strongest setups, improving eRecution and long-term proUtability while
eliminating the noise of constant, lower-probability setups.
Chapter Four

MBZ Type 1
The Strongest Reversal
Model

I n the world of price action trading, precision is key. Among the three
types of Median Body Zone (MBZ) reversals, Type 1 stands as the
strongest and most reliable. This chapter will break down the mechanics
of Type 1, explain why it is the most evectiue reuersal model, and explore
the Nnderlying market logic that makes it so powerfNl.
6q EIE2

Deqning MBZ Type 1

An MBZ Type 1 reuersal occNrs when a price mouement sweeps li-—

NidityWeither bNy—side or sell—sideWforming a wick that extends beyond
preuioNs highs or lows. This initial liucidity grab creates a key reaction
point in the market. Mhat makes Type 1 stand oNt is the 5onqrmation
5andle, which not only reuerses price action bNt also closes past 0%f ow
the previocs 5andle body.

In other words, BZH Type 1 occNrs only khen the liucidity pool is
sc55esswclly taWen and price aggressiuely reuerses, secNring a strong shiwt
in marWet sentiment all in the 5onqrmation 5andle.
 TR2 BAKS2TD 7EA 6U

Shy MBZ Type 1 is the Ltrongest

1. Piucidity Cool -learan5e

The jrst candle wclly skeeps liucidity, meaning price has

taken oNt stop losses from traders positioned in the opposite
direction.

This removal ow liucidity often resNlts in an immediate

and strong reaction, as trapped traders rNsh to exit and smart
money enters in the new direction.

6. -onqrmed Lhiwt in Lentiment

3nlike weaker reuersals, Type 1 provides immediate 5on&

qrmation, with the next candle fNlly closing past the 0%f
threshold of the preuioNs body.

This ensNres that the reuersal is not zNst a weak boNnce of

orders bNt a strc5tcral shiwt in marWet dynami5s.

8. Momentcm . Displa5ement

BZH Type 1 reuersals wreucently lead to rapid pri5e dis&

pla5ement, meaning price moues away from the reuersal Oone
e(ciently.

This often resNlts in clean follow—throNgh withoNt excessiue

chop, maWing it one ow the highest&5onqden5e setcps
availableH
6) EIE2

MarWet Pogi5 Behind MBZ Type 1

To Nnderstand why BZH Type 1 works so well, we need to analyOe the

market logic behind li-Nidity grabs and reuersals.

MarWet MaWers . Ltop ,cnts

InstitNtional players and algorithms know where li-Nidity

is restingWthese are often at eucal highsO eucal loksO or
previocs sking points.

They driue price into these li-Nidity pools to trigger stop

losses and indc5e breaWoct traders, only to reuerse and
pNsh price in the opposite direction.

BZH Type 1 occNrs right awter this liucidity grab, mean—

ing the manipNlation phase is complete and price is now ready
to moue e(ciently.

Frder Alok . /ggressive BcyersxLellers

9nce li-Nidity is taken, scpply and demand shiwt drastical—

ly.

Dellers 0in a bNllish reuersalL or bNyers 0in a bearish reuersalL

who were caNght ov gNard are now forced to eIit their
trades.

This resNlts in a strong inRcI ow volcme, pNshing price in

 TR2 BAKS2TD 7EA 6[

the reuersal direction.

Csy5hologi5al Kmpa5t on ’etail Traders

Bany retail traders chase breakoNts at key highs and lows,

belieuing the trend will continNe.

BZH Type 1 reuersals exploit this behauior, forcing retail

traders to cNt losses and providing a pokerwcl entry wor
traders positioned 5orre5tly.
8Y EIE2

,ok to Trade MBZ Type 1

1. Kdentiwy a zey Piucidity Zone

Pook for price approaching a well—dejned li-Nidity

poolWthis coNld be a previocs sking highxlok.

2nsNre that the li-Nidity pool is signijcant, meaning it is

a mazor strNctNral leuel. ]Asia, Pondon, Eew 4ork AB or
5B session li-Nidity, preuioNs daily highs or lows, preuioNs
weekly highs or lows

6. Sat5h wor the Airst -andleEs ’ea5tion

The jrst candle shoNld show a liucidity skeep, forming a

long ki5W past the liucidity Qone.

If the moue is aggressiue, it sNggests a strong reaction from

market participants.

8. -onqrm the ’eversal kith the Le5ond -andle

The next candle mNst wclly 5lose beyond 0%f ow the pre&
viocs 5andleEs body.

This conjrms that momentNm has decisiuely shifted and

preuents false reuersals.

. Ynter the Trade kith -onqden5e

2ntries can be taken at the median body Qone or Npon the

neIt pcllba5W to rejne risk—to—reward.
 TR2 BAKS2TD 7EA 81

Dtops can be placed zNst beyond the wick of the li-Nidity grab.

. Let Targets Based on Pogi5al Cri5e Pevels

Traders can Nse standard deviations to measNre potential

extensions of the moue.

Notice the quick expansion and strength

86 EIE2

Shy MBZ Type 1 is ’are and ,igh&2cality

9ne of the key diverentiators of BZH Type 1 is its rarity. 3nlike

traditional reuersal setNps that may occNr mNltiple times a session, MBZ
Type 1 setcps happen inwreucently bct kith eItreme pre5ision.
+oc donEt need to trade % times a session to 5at5h a strong
moveH

Be5acse MBZ Type 1 is a strc5tcred and rcle&based modelO

it eliminates the gcesskorWH

Kt provides a bcilt&in stop pla5ement and logi5al risW&to&re&

kard wramekorWH

Zy focNsing on high&ucality setcps rather than fre-Nent trades, yoN

can in5rease proqtability khile redc5ing cnne5essary risW eIposcre.
 TR2 BAKS2TD 7EA 88

BZH Type 1 is the strongest of the three BZH models becaNse it

5onqrms the liucidity grab kith an immediate reversal, creating an
optimal entry point for traders. It is based on marWet logi5O liucidity
engineeringO and institctional order Rok, making it a reliable and
repeatable setNp.

3nderstanding how to identiwyO 5onqrmO and trade MBZ Type 1 re&

versals is key to improuing precision and consistency. In the next chapter,
we will explore MBZ Type , a slightly weaker bNt still highly evectiue
reuersal model that prouides more fre-Nent trade opportNnities.
Chapter Five

MBZ Type 2
The Moderate Reversal
Model

In the previous chapter, we explored the MBZ Type 1 setup, character-

ized by its strong reversal signal following a liquidity sweep and a decisive
conmr.ation candleT In this chapter, we delve into the MBZ Type 2 .odel,
which, while slightly less potent than 1ype k, re.ains a valuable tool for
traders seeHing reliable reversal indicationsT
 1EM ARKSM1D N3R 5:

Denigit MBZ Type 2

Rn MBZ Type 2 setup is demned by a wo-srwep pc-Rerr(

kT feCeceiRe adil(e LqguGglgwy bcd& W kgRv fe)ecrd(j

1he mrst candle roeepr (guGglgwy by taHing out previous

highs )buyside liquidity2 or lows )sellside liquidity2T

It for.s a (-it cemeRwg-i ogRv, signaling that liquidity has

been taHen and the .arHet is now absorbing orders in the
opposite directionT

OT a-incVdwg-i adil(e Lhd(gldwg-i -C fe)ecrd(j

1he second candle does i-w create a new liquidity grab but
instead R(-rer &ey-il w5e 0%z Velgdi &-ly -C w5e ncrw
Rdil(e, conmr.ing the reversalT

Bnce conmr.ation occurs, the AZj 1ype O zone is estab-

lished as a valid pro6ection area for future price actionT

Bnce the conmr.ation occurs, the MBZ Type 2 &eR-Ver d CGiRwg-id(

wcdlgit P-ie, o7ering traders a clear structure for potential entries and
risH .anage.entT
50 3I3M
 1EM ARKSM1D N3R 5%

Mdcvew q-tgR Be5gil MBZ Type 2

T5e f-(e -C qguGglgwy S--(r gi fe)ecrd(r

1he ncrw Rdil(e dRwr dr w5e (guGglgwy e)eiw, sweeping out

resting stop orders and mlling institutional ordersT

AarHet .aHers and large participants provide liquidity at these

Hey areas, absorbing aggressive orders and reversing price direc-
tionT

1he conmr.ation candle )d(gldwer w5e d&r-cpwg-i by closing

beyond the :U8 body of the initial liquidity grabT

k5y w5e a-incVdwg-i adil(e Mdwwecr

9nliHe Type 1, where both liquidity grab and conmr.ation hap-

pen in one sequence, Type 2 ceuGgcer w5e reR-il Rdil(e C-c
)d(gldwg-iT

1his additional step ensures that the .arHet has truly dRRepwel
w5e ce)ecrd(, rather than it being a brief stop-run before contin-
uationT
54 3I3M

MBZ Type 2 BeR-Ver d Sc-meRwg-i Z-ie

Bnce conmr.ed, the AZj 1ype O level acts as a ceCeceiRe p-giw

C-c CGwGce wcdlerT

1raders can observe how price cedRwr o5ei cewGcigit w- w5gr

P-ie, as it .ay o7er entriesT
 1EM ARKSM1D N3R 5P

Tcdlgit w5e MBZ Type 2 IewGp

1o e7ectively utilize MBZ Type 2, traders should follow a structured

process(

kT ’leiwgCy qguGglgwy Ioeepr

Bbserve a clear liquidity grab via the ncrw Rdil(e, which

leaves behind a wicH re6ectionT

OT kdgw C-c a-incVdwg-i

1he next candle .ust R(-re &ey-il w5e 0%z Velgdi -C w5e
ncrw Rdil(eAr &-ly to validate the AZj zoneT

5T Mdcv w5e MBZ Z-ie dr d Sc-meRwg-i Eced

Bnce conmr.ed, the AZj 1ype O acts as a (-tgRd( dced -C

giwecerw for future trading opportunitiesT

T x3eRGwe Bdrel -i Mdcvew a-iwe3w

If price cewGcir w- w5e MBZ P-ie, traders can looH for

further conmr.ations to engage in high-probability setupsT
U 3I3M
 1EM ARKSM1D N3R k

Iwceitw5r dil a-irglecdwg-ir -C MBZ Type 2

Iwceitw5r

a(edc IwcGRwGcd( a-incVdwg-i( 1he separation of liquidity

grab and conmr.ation enhances reliabilityT

Deniel fgrvsfeodcl Z-ier( 1he AZj 1ype O zone can be

used to pro6ect future reversals or entriesT

x Rgeiw gi Mdcvew fe)ecrd(r( articularly useful when the mrst

candle taHes liquidity but lacHs an i..ediate responseT

a-irglecdwg-ir

qerr ’VVelgdwe fedRwg-i( Dince the conmr.ation occurs in a

separate candle, reactions .ay not be as fast as 1ype k setupsT

feuGgcer Ellgwg-id( a-incVdwg-i( 1raders .ust be disci-

plined in waiting for the second candle to conmr. the setupT
 O 3I3M

1he MBZ Type 2 V-le( represents a powerful yet .ethodical ap-

proach to identifying .arHet reversalsT Zy ensuring that a (guGglgwy tcd&
-RRGcr ncrw and is followed by a repdcdwe R-incVdwg-i Rdil(e, you gain
a structured way to engage with price actionT 1he MBZ Type 2 P-ie w5ei
&eR-Ver d RcGRgd( ceCeceiRe p-giw, guiding future trade opportunities
with clarity and precisionT

In the next chapter, we will explore MBZ Type , the weaHest but still
functional variation of this .echanical .odelT
Chapter Six

MBZ Type 3
The Weakest but Still Valid
Reversal Model

I n our exploration of Median Body Zone (MBZ) structures, we have

covered Type 1, the strongest and most decisive form, and Type 2,
which provides con.rmation through a second candle while still oNering a
decent reversalk Mow, we turn our attention to MBZ Type 3, the weaBest
form of the Zyb model, Eet still a relia4le structure under speci.c marBet
conditionsk
11 MIMT

Degninl MBZ Type 3

2he MBZ Type 3 setup diNers from 2Epe : and 2Epe j in one critical
aspectz

2he initiaf reherence candfe cfoses outside tqe fimuidity poof,

meaning the reHection is weaBer compared to the previous tEpesk

2he congrxation candfe does not e.tend xucq hurtqer tqan

tqe reherence candfe, maBing the reversal less aggressivek

2he Aone is still valid for potentiaf huture price interactions,

4ut traders must approach it with caution due to its reduced
xoxentuxH
 2RT ZKSDT25 qMK 1-

woF MBZ Type 3 Rorxs

:k Ceherence Landfe (Simuidity OFeep bccurs -ut Lfoses butP

side tqe Simuidity koof)

2he .rst candle tazes fimuidity on the 4uE or sell sidek

Instead of fullE reHecting and forming a decisive reversal with

a wicB, it cfoses at or sfilqtfy -eyond tqe fimuidity Vone,
signaling weaBer initial reHectionk

jk Longrxation Landfe (vafidates tqe CeAersaf -ut Saczs WlP

lressiAe RoffoFPTqroulq)

2he second candle con.rms the reversal 4ut does not

stronlfy dispface price from the li6uiditE gra4 areak

Instead of an immediate, strong move awaE, the marBet re7

mains in a consofidatiAe state 4efore continuationk
1W MIMT
 2RT ZKSDT25 qMK 13

Marzet Solic Beqind MBZ Type 3

Uhile 2Epe 8 is the weaBest Zyb model, it still functions within the
frameworB of fimuidityPdriAen xarzet xecqanicsk

:k Simuidity koofs and brder W-sorption

2he .rst candle trillers stops and coffects fimuidity, 4ut

xarzet xazers do not allressiAefy pusq price aFay im7
mediatelEk

Instead, the li6uiditE a-sor-s orders lraduaffy, maBing the

reversal slower and more uncertaink

jk Ieazer jnstitutionaf kresence

9nliBe 2Epe : and 2Epe j, where institutions or larger plaEers

react 6uicBlE, 2Epe 8 suggests that fimuidity is stiff -einl
processed, leading to potential sideFays xoAexent -ehore
continuationk

8k kotentiaf hor Cetests and Lqoppiness

yecause price does not decisiAefy feaAe tqe area, traders

must 4e cautious of xuftipfe retests, which maE invalidate
the reversalk

2he Zyb 2Epe 8 Aone should 4e treated as a Feazer pro:ecP

tion area rather than an immediate execution pointk
10 MIMT

Tradinl MBZ Type 3E W Lautious Wpproacq

5ince MBZ Type 3 faczs ixxediate conAiction, traders should apP

proacq it diUerentfy than 2Epe : or 2Epe j setupsk

:k Iait hor Oilns

9nliBe 2Epe :, where reversals happen swiftlE, 2Epe 8 maE

re6uire more patiencek It maE consolidatek

jk Sooz hor Cetests Behore ,nterinl

2Epe 8 Aones often see price return to tqe MBZ area 4efore
moving in the expected directionk

2his provides traders an opportunitE to re.ne their entries

4ased on hurtqer fimuidity reactionsk

8k nderstand tqe Ceduced Iin Cate

5ince 2Epe 8 lacBs decisive displacement, it maE lead to xore

haifed setups tqan Type 1 or Type 2k

2raders should account for this when integrating 2Epe 8 into

their sEstemk
2RT ZKSDT25 qMK 1–
- MIMT

Otrenltqs and Lonsiderations oh MBZ Type 3

OtrenltqsE
Otiff kroAides a Ceherence Zone Tven though weaBer, 2Epe 8
Zyb can still serve as a price reaction areak

WffoFs hor CetestPBased Trades 2raders who miss 2Epe : or

2Epe j setups can use 2Epe 8 as an additional opportunitEk

Lan Sead to Sarler CeAersafs Uhile less decisive, 2Epe 8

reversals can still result in extended movesk

LonsiderationsE
More Cetests Behore Longrxation 2Epe 8 Aones often see
price revisiting the area multiple times 4efore fullE reversingk

Sess LonAiction in tqe CeAersaf Uithout a strong displace7

ment, the pro4a4ilitE of failure is higherk

Must Be sed Fitq katience 9nliBe 2Epe : and 2Epe j,

which can stand alone, 2Epe 8 re6uires additional patience and
o4servationk
 2RT ZKSDT25 qMK -:

MBZ Type 3 is the weaBest variation of the Zyb frameworB, 4ut it still
holds value in the right contextk Uhile not as ixxediate or decisiAe as
2Epe : or 2Epe j, it provides Eou with an additional reherence point for
tracBing li6uiditE7driven movesk

In the next chapter, we will discuss tqe xecqanicaf risz xanalexent

approacq hor MBZ tradinl, focusing on stop pfacexent trade e.ecuP
tion and riszPtoPreFard considerations for each Zyb tEpek
Chapter Seven

MBZ Mechanical
Risk Management
Defining Risk and Reward

N ow that we have established the three types of Median Body

Zone (MBZ) models, it is time to shift our focus to mechanical
risk management. Unlike other trading strategies that rely on subjec-
tive order Mow or discretionary decision-making, BZ( operates within a
structured, logical, and repeatable framework. Zecause of its deqned en-
try points )time based lizuidityx, conqrmation structures, and projection
Tones, traders can set x-ed riskwtowre,ard ratios and maintain consistent
eHecution without second-guessing.

Ehis chapter will break down risk placementu trade e-ecTtionu and
proxt targeting, ensuring that BZ( traders maHimiTe eAciency while
minimiTing unnecessary losses.
 ERK BSD5KE3 ONS W–

Ihe fmportance oR Mechanical visk in MBZ Irading

Ine of the key advantages of BZ( is its systematic approach to risk

management. 3ince BZ( provides a well-deqned Tone for entries, traders
can predexne their risk rather than relying on arbitrary stop placements.
Ehis eliminates oUerleUeragingu emotional tradingu and random deciw
sionwmaking.

Cnlike traditional fzI models, which often repeat through-

out the day with multiple signals, BZ( is rare. Ehis means traders
are not Rorced into oUertrading but rather ,ait Ror premiTm
setTps.

4ith MBZu the risk is predetermined based on the entry

point relatiUe to the body .onej Ehis creates a framework
where traders can obDectiUely manage risk and avoid taking un-
necessary trades.

viskwtowre,ard is Ee-ible 1 traders can adjust ,here they

enter ,ithin the MBZ .one to modify their risk eHposure.
W2 N:NK

Sexning Pntry and Otop 5lacement

3ince BZ( is a t,owcandle model, the xrst candle establishes the

tool oR obserUation, while the second candle conxrms the reUersal.
Zased on where a trader enters within this Tone, the stopwloss placement
,ill Uary.
/. Pntry at the 0pening 5rice oR the veRerence zandle

Otop placementP St the closing price oR the reRerence

candle.

viskwtowre,ard considerationsP Ehis is a conserUatiUe apw

proach, o6ering a tight stop but possibly increasing the risk
of a stop-out before the move occurs.

7. Pntry at the Median Body Zone (%/1 oR the veRerence

zandle)

Otop placementP 3lightly below or above the opposite ,ick

of the reference candle.

viskwtowre,ard considerationsP S more balanced ap-

proach, as it provides room Ror price ETctTation ,hile
maintaining a controlled stop si.e.

–. Pntry at the zlosing 5rice oR the veRerence zandle

Otop placementP St the lo,:high oR the reRerence candle

)for buys8sellsx.

viskwtowre,ard considerationsP 9rovides the ,idest stop,

 ERK BSD5KE3 ONS WW

allowing more breathing room but rezuiring a larger price

moUement to maintain eAciency.

Kach entry type o6ers a di2erent leUel oR risk e-posTre, and traders
should choose their method based on their risk tolerance and trade
strategy.
W% N:NK

viskwtowve,ard vatios and Otandard SeUiation 5roDecw

tions

Snother advantage of BZ( is that traders can predict their proxt tarw
gets using standard deviation projections. 3ince BZ( provides a precise
entry model, the targets can be mechanically set based on price behavior
following conqrmation.
Rere are some of the commonly used riskwtowre,ard models within
BZ(P
/. 343 viskwtowve,ard (Balanced Wpproach)

3top placed at one standard deUiation aboUe or belo, the

MBZ .one.

Earget set at one standard deUiation in the opposite diw

rection.

4orks well for highwprobability Iype 3 setTps, where price

is eHpected to move zuickly.

7. q43 viskwtowve,ard (Irending Market zonditions)

3top placed at one standard deUiation.

Earget eHtended to t,o standard deUiations in the oppow

site direction.

3uitable for Iype q or Iype N setTps, where price takes

longer to conqrm but eventually moves.

–. L43 viskwtowve,ard (MomentTmwBased Irading)

 ERK BSD5KE3 ONS W’

3top placed at one standard deUiation.

Earget set at three or more standard deUiations in the

opposite direction.

Zest for aggressiUe traders who want to capture full direc-

tional moves.

Zy maintaining x-ed proDection leUels, traders ensure systematic e-w

ecTtion rather than guessing when to take proqt.
W0 N:NK

Khy Mechanical visk Korks Ror MBZ

Ehe reason this approach is so e6ective is that MBZ entries are not based
on sTbDectiUe order Eo, or realwtime reaction to price action. :nstead,
they areP
vooted in li Tidity mechanics 1 ensuring that every setup
occurs at a meaningful level.

5redictable in behaUior 1 allowing traders to plan entries, stops,

and targets beRore e-ecTtion.

ot reliant on discretionary conxrmation 1 reducing the

need to react emotionally.
 ERK BSD5KE3 ONS W

Managing Sra,do,ns and osses

Kven with highwprobability MBZ setTps, losses will occur. Ehe key is to
control the damage and ensure that the system remains proqtable in the
long run.
eep risk per trade x-ed )e.g., / or 7 of account balancex.

So not take eUery MBZ setTp 1 focus on only the cleanest

Rormations that align ,ith a larger trendj

Wccept that MBZ is rare 1 patience is rezuired. Unlike other

models that form frezuently, BZ( happens only a few times per
session on a speciqc time-frame.

S trader s success with BZ( is not determined by a single trade but by

the same consistent e-ecTtion oUer time.
% N:NK

BZ( o6ers a logical and mechanical approach to risk management

that is sTperior to many discretionary trading methods. Zy deqning
entry pointsu stop placementsu and proDection leUels, traders can eHe-
cute BZ( setups with conxdence and consistency.

:n the neHt chapter, we will eHplore why BZ( provides sTperioriw

ty oUer other reUersal models, focusing on its rarityu eAciencyu and
riskwadDTsted perRormance.
Chapter Eight

MBZ Superiority
Why MBZ is Superior to Other
Reversal Models

N ow that we have covered the mechanics of Median Body Zone

(MBZ) risk management, it is time to examine why MBZ o.ers a
superior method for trading reversalsg Many tradinl modeus, incupdinl
ICT mechanical models, candlestick patterns, and traditional sup-
port/resistance, attembt to cabtpre reversaus, yet they often lack consis-
tency, structure, or logical risk-reward parametersg

MBZ souves these ineIciencies Ey introdpcinl a structured, mechan-

ical approach that is rooted in market behavior, liquidity dynamics,
and logical price projectionsg
T: N6N2

The Problem with Other Reversal Models

Many traders reuy on subjective methods to enter reversau tradesg 1hese

often incupdeW

Cg ICT Mechanical Models

qhiue 6k1 modeus abbear fre-pentuy, the broEuem is identi-

fying which one to takeg

6f a trader taPes all reversal setups, they wiuu inevitably low-

er their win rate dpe to overuabbinl setpbs, contradictions
in order 3ow, and marPet noiseg

1here can Ee 30+ ICT setups per session, maPinl it diIH

cput to determine which ones are vauidg

:g Traditional Candlestick Patterns

Aatterns uiPe engulSng candles, pin bars, or double

tops/bottoms uacP a strpctpred risPHreward abbroachg

qithopt a deSned model for entry, stop, and projection,

these setpbs often resput in inconsistent execptiong

kanduesticP reversaus fre-pentuy faiu Eecapse they do not acH

copnt for liquidity dynamicsg

Rg Wupport and Resistance Reversals

1raders often assume that a ueveu wiuu houd simbuy Eecapse

brice has reacted there Eeforeg
 1K2 MSDj214 UNS TR

1his abbroach does not factor in liquidity grabs or insti-

tutional absorption, maPinl it brone to faiupreg

S spbbort or resistance ueveu is not a mechanical model,

Ept rather a discretionary area that traders pse with no cuear
strpctpreg

2ach of these methods lacks the mechanical nature of MBZ, which

brovides an oEzective frameworP for trade execptiong
T5 N6N2

Lhy MBZ is Wuperior

—nuiPe the aEove methods, MBZ is based on the actual logic of

market behaviorg 6t is Epiut pbon three essentiau combonentsW

Cg xiquidity Mechanics

MBZ onuy forms when brice takes liquidity and conSrms

a reversalg

6nstead of asspminl brice wiuu tprn at a ueveu, MBZ waits for

conSrmation Eefore brovidinl an entry 7oneg

:g Precision and Rarity

—nuiPe ICT models that occur frequently, MBZ setpbs are

eDtremely rare, maPinl them hilhuy seuectiveg

1his rarity Slters out low-quality reversals and brevents

overtradinlg

Rg 1eSned Risk and Reward

MBZ traders auways have a structured stop-loss and proSt

target Eased on the con rmation candueg

1his maPes it a true mechanical system where the trader

does not have to lpessg
 1K2 MSDj214 UNS T

The Core Wtrengths of MBZ

.E xogical —ntry Zone Based on Market 1ata

MBZ is not just a concept2it is built on real liquidity be-

haviorg

1he second conSrmation candle always determines the en-

try this removes spEzectivity from execptiong

AE Risk-“djusted —Decution

qith MBZ, traders do not enter randomly or based on ”gut

feelingEH

2ach trade has a predeSned risk level, auuowinl traders to stay

disciplined and maintain account stabilityg

3E Figh Reward Potential

4ince MBZ setpbs are rare and precise, they often uead to large,
clean movesg

1raders can capture eDtended reversals with minimal draw-

down, pnuiPe other methods where brice often revisits stobHuoss
ueveusg
TT N6N2

Lhy Traders ail Lithout a Mechanical Model

qithopt a strpctpred abbroach, traders oftenW

Cg Overtrade by chasing multiple setups per day

Many traders taPe too many ICT setups, redpcinl their win
rateg

MBZ forces traders to wait for high-probability trades

rather than reactinl imbpusiveuyg

:g xack a SDed risk-to-reward system

Many reversau traders guess their stop placement, ueadinl

to pnnecessary uossesg

MBZ enspres that every trade follows a strict framework

with brober stob and tarlet buacementg

Rg Trade Based on —motion Instead of xogic

Most reversau traders enter too early or too late, Eased on

emotion rather than uolicg

MBZ forces traders to wait for structure, euiminatinl pnH

necessary uossesg
 1K2 MSDj214 UNS T

MBZ is spberior to other reversau modeus Eecapse it isW

Rooted in liquidity mechanics, ensprinl that traders onuy enter

at hilhHbroEaEiuity areasg

Rare and selective, uterinl opt uowH-pauity trades and redpcinl

overtradinlg

Risk-deSned, ensprinl that every trade fouuows a strpctpred

buang

Mechanical rather than subjective, auuowinl for rebeataEue exH

ecption over timeg
Chapter Nine

MBZ Invalidation
and Liquidity

I n the previous chapters, we have covered the mechanical structure,

risk management, and superiority of MBZ over other reversal
models. Now, it is critical to understand when an MBZ setup becomes
invalid and how to properly identify liquidity pools to enhance trade
execution.

A structured and logical system is not just about knowing when to

enter—it’s about knowing when not to trade and when to exit early.
MBZ is built on logical, repeatable price behavior, meaning that when
a setup is invalidated, traders must respect it and move on.

This chapter will focus on:

1. MBZ Invalidation – When a Setup Fails

2. How to Identify the Right Liquidity Pools

 THE MARKETS DNA 69

3. Why Some Liquidity Grabs Are Meaningless

70 NINE

MBZ Invalidation: The Key to Protecting Capital

Since MBZ is a structured and rule-based trading model, there must

be a clear invalidation condition that determines when a trade setup is no
longer valid.

How an MBZ Becomes Invalid

The MBZ is invalidated if:

A full-body close occurs below (for longs) or above (for

shorts) the MBZ con.rmation candleU

This means the market has failed to respect the liquidity grab
and reversal.

Any close beyond this level negates the strength of the MBZ
setup, requiring an immediate exit.
 THE MARKETS DNA 71

Why This Rule is Important

This prevents traders from holding onto losses and ensures

that only valid setups are traded.

If price closes beyond the MBZ zone, it signals a shift in liquid-

ity behavior, meaning the reversal is not con.rmed.

Institutions and large players are not supporting the move,

meaning the probability of continuation is low.

This simple rule ensures that traders do not get caught in failed rever-
sals and instead wait for only the highest-quality MBZ setups.
72 NINE

jnderstanding Liquidity Pools: The Foundation of MBZ

MBZ is not Nust a random reversal model—it is structured around

liquidity pools, where price seeks orders before reversing. ?ot all liquid-
ity pools are equal, and traders must be able to identify the ones that
matter.

What Are Liquidity Pools1

Liquidity pools are areas where stop-losses and pending

orders accumulateU

Price moves to these areas to absorb liquidity, allowing large

traders to enter or exit positions eWciently.

This creates the conditions for MBZ reversals.

The Three Key Liquidity Pools to jse with MBZ

Not every liquidity pool is signi4cant. MBZ traders should focus only
on:

EU Swing Highs and Swing Lows (MaNor Liquidity)

 THE MARKETS DNA 73

These are the most important liquidity pools because they

contain the largest stop orders.

-hen price reaches a major swing high or swing low, there is a

high probability of an MBZ forming.

Why1 Institutions trigger these areas to trap orders, creating

strong reversal opportunities.

’xample:
Price runs above a previous day2s high, grabbing liquidity.

The con4rmation candle forms an MBZ structure.

This setup is high probability, as institutions have collected

liquidity and are ready to push price in the opposite direction.

DU Previous 3ay2s Highs and Lows (Session Liquidity)

The previous day’s high and low serve as critical liquidity areas.

These zones often trigger liquidity grabs before a new direc-

tional move begins.

MBZ setups that form around these levels are often stronger
due to their signi4cance in market structure.
7O NINE

’xample:

Price sweeps yesterday2s low and forms an MBZ.

If the MBZ con4rmation candle is respected, price is likely to

reverse higher.

/U Time Based Liquidity

Markets operate in time cycles, and liquidity is built around speL

ci4c session transitions and model-based structuresU Instead
of chasing random liquidity, traders should focus on time-based
levels that consistently in8uence priceU

Key Time-Based Liquidity Pools to Watch for MBZ Trades

Asia Session High0Low (E9:YY PM - Y/:YY AM ’ST)

Sets the initial range for the trading day.

Yften used as a liquidity grab before a larger directional move

in Condon or N5.

London Session High0Low (Y/:YY AM - Y4:/Y AM ’ST)

Ureates expansion during the European session.

 THE MARKETS DNA 78

Yften gets swept in N5 before a major reversal.

?& AM High0Low (4:/Y AM - ED:YY PM ’ST)

De4nes the morning volatility range.

Ciquidity grabs during this period often signal a reversal.

?& PM High0Low (ED:YY PM - z:YY PM ’ST)

MaNor reversals or continuations occur from these levels.

Key for identifying the afternoon trend continuation or

reversalU

3TT Model Highs O Lows

TimeLbased price levels derived from statistical research.

sed to frame premium0discount ones and proNect MBZ

setups.
76 NINE

Why Some Liquidity Grabs Are Meaningless

Not all liquidity sweeps are valid for MBZ setups. Traders must learn to
.lter out weak liquidity grabs that do not lead to true reversals.

1. Small Internal Liquidity Grabs (Weak rder Absorption)

If price only takes out minor liquidity levels, it may not be

enough to trigger a strong MBZ move.

Weak liquidity grabs often fail because there isn2t

enough institutional participationU

2. Liquidity Sweeps That ccur Without Con.rmation

If a liquidity grab does not result in a proper MBZ con.r-

mation candle, it is not valid.

Traders must always wait for the second candle con.rma-

tion before executing trades.

3. Random Wicks Without Structure

If a wick grabs liquidity but does not form a structured

MBZ, it is not a true institutional move.

Retail traders often mistake every liquidity sweep for a

reversal, leading to unnecessary losses.
 THE MARKETS DNA 77

By understanding which liquidity pools matter, traders can avoid

low-quality setups and focus only on premium MBZ formations.
7 NINE

How Invalidation and Liquidity Pools Work Together

MBZ traders should always combine invalidation rules with liquid-

ity analysis to ensure they are only trading high-probability setups.

If a setup forms at a maNor liquidity pool and the MBZ

con.rmation candle holds, the trade is validU

If a setup forms at a weak liquidity grab and price closes

beyond the MBZ one, the setup is invalid and should be
ignoredU

Strong liquidity areas improve MBZ accuracy, while weak

liquidity areas increase the risk of failureU
 THE MARKETS DNA 79

The combination of strict invalidation rules and proper liquidity pool

selection makes MBZ an extremely logical and mechanical trading sysL
tem. By following these principles, traders can avoid unnecessary losses
and increase their probability of trading only high-quality setups.
Chapter Ten

The Power of MBZ

A Logical and Mechanical
Edge in Trading

A s we conclude this book on the Median Body Zone (MBZ) frame-

work, it is important to re.ect on why this model is so ecevtige
and how it van vhanue the way yop abbroavh the marketsT gradinf
is oyten complicated bM spj,evtigityq emotional devision-makinuq and
invonsistent models that lack clear rulesT BZv remoges the upesswork
and projides a mevhanivally sopndq louivalq and strpvtpred abbroavh
to tradinf rejersalsT

BZv is not —ust another battern-jased strateuyEit is structured

around brive jehagiorq liWpidity dynamivsq and risk-to-reward man-
auementT xjerM aspect oy BZv is desifned to fije Mou vlarityq brevisionq
and vonRdenve in Mour eHecutionT
 gRx BAKSxgD N8A 1-

Ihy MBZ Iorks in the Leal Market

-T Et is Bpilt on UiWpidity Mevhanivs

BZv onlM yorms after a siuniRvant liWpidity uraj, meanU

inf traders are alwaMs tradinf with institptional order xow
rather than afainst itT

2nlike sub—ectije patterns, BZv waits for market vonRr-

mation beyore presentinf a trade opportunitMT

3T Et .liminates Cnvertainty in .Tevption

.gery MBZ trade has a deRned ingalidation bointA ghere

is no fuessinf when a setup is wronfT

KiskUtoUreward is mevhanivally strpvtpred, allowinf traders

to blan their trades rather than react impulsijelMT

4T Et is Lare

2nlike EGP models that abbear freWpently, BZv setups

are rare, ensurinf traders onlM yocus on the jest bossijle
setpbsT

ghis redpves ogertradinu and increases eWciencM in eHecuU

tionT

IT Et Iorks Fvross Fll Market Gonditions

5hether in trendinu marketsq ranue-jopnd vonditionsq

or hiuh-golatility egents, BZv adapts bM oqerinf oj,evtige
13 8:8x

entry and eTit bointsT

ZM yocusinf on key liWpidity bools, BZv ensures traders are

positioned where the smart money oberatesT

–T Et :iges Praders a Glear Jlan

BZv teaches traders eTavtly where to enterq where to

blave stobsq and where to take broRtA

ghere is no need to sevond-upess whether a trade is jalid or

notEthe model vonRrms it for yopA
 gRx BAKSxgD N8A 14

Phe Jath Dorward2 Bevominu an MBZ Jravtitioner

8ow that Mou haje fained a deeper understandinf oy BZv, the neHt step
is masterinu its eTevptionT ghis re uires

Gonsistently abblyinu the MBZ rplesExjerM trade must yolU

low the eHact principles outlined in this bookT

0oprnalinu trades and stpdyinu batternsEgrackinf BZv seU

tups will help re ne Mour skill in identiyMinf hifhU ualitM tradesT

Fgoidinu trades that do not meet the MBZ vriteriaEBZv

is a selevtige model, and its success comes yrom waitinf yor the
jest setpbsT

Gontinpinu to reRne yopr risk manauementExjen within

BZv, diqerent riskUtoUreward structures eHist, and ndinf the
best t yor Mour stMle will improje lonfUterm resultsT

ZM yollowinf these steps, Mou will not only uain vonsistenvy in yopr
tradinu jpt also degelob a deeber pnderstandinu of market jehagiorT
BZv is not —ust a tradinu toolEit is a waM to strpvtpre and reRne the
waM Mou jiew price actionT
1I 8:8x

Phe .golption of MBZ in Pradinu

BZv was rst introduced in the oriuinal 4PP jook in z z , but it

was nejer yullM eHpanded uponEuntil nowT :t has been a core component
oy my bersonal tradinu yor Mears, uietlM shapinf mM eHecution in the
backfroundT 8ow, it is time yor it to be fplly revouni ed yor what it isEa
bowerfplq mevhanivalq and louival framework that can help traders fain
an edfeT

ghis book was written to jrinu vlarity to tradinu, to eliminate von-

fpsion, and to help traders understand that markets oberate with strpv-
tpreq not randomnessT 5hether Mou are tradinf yutures, yoreH, or crMpto,
BZv projides a systemativ abbroavh that works across all instruments
and timeyramesT
 gRx BAKSxgD N8A 1–

Now, it is time to release it into the world and put it to use. Help those in need
of structure in their trading. Spread it like wildfire. 8:8x