ATM Method

A complete explanation of this method requires revisiting the article on Market Structure (MS) initially.

For all we know, the market moves from one consolidation to another. We call a "trend" what happens between the two consolidations.

To explain this method, we are interested in price during trend movements.

In an uptrend, price tends to make new highs. Whereas in a downtrend, it tends to make new lows.

During the formation of new highs in an uptrend - a position is sold by a major player.

That is, smart money (investor/big player) starts to gain a short position when there are a sufficient number of buyers. When the price moves upwards - there will be a large number of buyers.

Therefore, position accumulation comes in stages. The percentage of positions (gained at the start of an upward movement) will be significantly lower than the percentage of the positions gained at the last high.

The big players start to form the position by 10% and 30% while some trending movement. 40% of the total position amount accumulates on the formation of the last high within the uptrend. 20% gained within the consolidation. Result - the market starts its collapse, and the downtrend begins.

Accordingly, once the move down begins - the big player starts to gain a long position (contrary to the example above).

Subsequent recruitment will continue until the entire trading position they gain. It will trigger a change in the MC to an uptrend.

To determine the ATM method, it is initially necessary to find the key SR levels involved in the Swing High/Low formation.

This method is particularly relevant to H1-H4 timeframes.

The ATM method acts as an indicator of the position gaining by the smart money and subsequent reversal. We should use it in areas of potential trend changes and consolidations. 

The scheme to determine a local SR level:

We find a local high > break above > break below and consolidate below it.

You need to identify the SR or OB level for the entry point. It is at the base of the low before we break the local high.

The formation of a breakout of two to three highs is preferable to reinforce the pattern. This pattern takes place in areas where the smart money should end up gaining ground. In other words, in the areas of most likely reversal.

The aim when using this level will be liquidity (as always).

The position management:

We should place SL behind the maximum.

The target is the liquidity pool.