The "Twitter Model" trading setup combines ICT style concepts such as MSS, FVG, PDL, and PDH.
This strategy identifies potential trade opportunities by leveraging price imbalances.
ICT Concepts in the Twitter Model Trading Setup
The Twitter Model setup is built upon multiple ICT concepts analyzed across different timeframes:
- Market Structure Shift (MSS): A mid-term trend reversal identified by a break in Swing High or Swing Low levels;
- Smart Money Divergence (SMT): A divergence in price movement between correlated assets, often indicating liquidity grabs or fakeouts caused by Smart Money;
- Previous Day Low (PDL): The lowest price recorded in the previous trading day, often used as a liquidity level or potential support;
- Previous Day High (PDH): The highest price of the previous trading day, acting as resistance or liquidity target;
- Fair Value Gap (FVG): A gap formed between three consecutive candles that indicates a liquidity imbalance the price is likely to return to.
Twitter Model Setup; Identification and Trading Steps
In the Twitter Model, each part of the setup is analyzed in a different timeframe.
Formation Steps of the Twitter Model
- Identify PDH or PDL on the daily timeframe as the divergence reference level.
- Mark Midnight Open to assess the trade direction (Buy/Sell).
Defining Midnight Open to determine direction in Twitter Model Setup - Spot Fair Value Gap (FVG) in the 1-hour timeframe as the price zone is likely to return to.
- Look for SMT Divergence to PDH/PDL on the 15-minute timeframe.
- Confirm Market Structure Shift (MSS) in the 15-minute timeframe.
Entry is valid only if all conditions above are confirmed. If any are missing, the setup is invalid, and no trade should be taken.
Trading Steps Using the Twitter Model Setup
After confirming the Market Structure Shift (MSS), trade orders are placed as follows:
Entry Points
- Immediately after MSS confirmation: This type of entry lowers the risk-to-reward ratio, but prevents missing the move if no retracement occurs;
- Pullback to the 1H Fair Value Gap (FVG): This entry improves the risk-to-reward ratio, but if the price does not retrace, the trade opportunity is missed.
Stop Loss (SL) Points
- Below the MSS candle: Placing the stop loss here offers a favorable risk-to-reward ratio, though it is susceptible to stop hunts;
- Below the wick of the SMT divergence candle: This stop loss is more secure, although it reduces the risk-to-reward ratio.
Take Profit (TP)
Depending on the price movement and momentum, the 1-hour FVG zone is a suitable area for exiting the trade.
Pros and Cons of the Twitter Model Setup
The Twitter Model setup aligns entries with Smart Money Concepts (SMC), but requires multiple confirmations, increasing complexity.
Pros | Cons |
Precise liquidity & order flow integration | Execution complexity |
Aligns with Smart Money behavior | Limited signal frequency |
Filters out fake breakouts | Requires multiple timeframe analysis |
Entry at high-liquidity points | Demands multiple confirmations |
Optimal risk management | Session dependency (NY & London) |
Conclusion
The Twitter Model combines MSS, SMT, FVG, and liquidity levels to map Smart Money movement. However, it requires proper multi-timeframe analysis and deep understanding of ICT concepts.
Valid entries require both confirmed SMT divergence and MSS formation.
Identifying key levels like PDL/PDH along with price reaction to FVG zones improves stop-loss placement and risk-to-reward ratio.
