Study Notes: Market Maker Primer – Target Selection & Profit Objectives

These are my study notes from ICT Market Maker Primer – Target Selection & Profit Objectives. I’m documenting them for personal review and to share my trading journey.

Original ICT video: https://www.youtube.com/watch?v=nNEt9QTCTtk

What is Target Selection?

When you trade, you need to know two important things:

1. Where to enter a trade
2. Where to exit for profit

Target selection is about finding the best places to take your profits. Think of it like planning a road trip – you need to know where you’re going before you start driving.

Why Do We Need Targets?

Without targets, trading is like shooting arrows in the dark. You might hit something, but you won’t know what you’re aiming for. Good targets help you:

• Lock in profits before the market turns against you
• Stay disciplined and not get greedy
• Plan your trades properly

The Two Main Types of Weekly Targets

1. Bullish Weekly Targets (When Price Goes Up)

When you think the market will go higher during the week, you need to find where price might stop going up. Here’s how:

Step 1: Find the Big Picture

• Look at the weekly chart
• Find a strong move up (called an “impulse leg”)
• Measure from the lowest point to the highest point

Step 2: Set Your Main Targets

• Target 1: The first level where price might stop
• Target 2: The second level if price keeps going
• Symmetrical Price Swing: A mathematical level based on the move

Step 3: Look for Confluences A confluence is when multiple levels line up close together. This makes the target stronger and more likely to work.

2. Bearish Weekly Targets (When Price Goes Down)

When you think the market will go lower during the week, you do the opposite:

Step 1: Find the Big Picture

• Look at a strong move down
• Measure from the highest point to the lowest point

Step 2: Set Your Targets

• Target 1: First level where price might stop falling
• Target 2: Second level if price keeps dropping
• Look for equal lows (areas where price stopped before)

The Fibonacci Tool

ICT uses something called Fibonacci levels. Don’t worry about the math – just know these are special percentages that traders watch:

• 62% level: Often where price bounces (good for entries)
• 127% extension: First profit target
• 162% extension: Second profit target
• 200% extension: Third profit target

How to Pick the Best Target

When you have multiple targets close together, here’s how to choose:

1. Conservative approach: Take profit at the first confluence level
2. Moderate approach: Aim for round numbers (like 1.1930 instead of 1.1928)
3. Aggressive approach: Hold for the highest confluence level

Pro Tip: Most successful traders take profit slightly BEFORE the exact level. This ensures you actually get filled and don’t miss out if price reverses quickly.

Real Example: Bullish Week Setup

Let’s say you’re bullish on EUR/USD for the week:

1. Sunday: Market opens and drops (this is normal)
2. Tuesday: Price hits your 62% level – good entry spot
3. Target 1: Price reaches 1.1925 (your first profit level)
4. Target 2: Price might reach 1.1935 (your second profit level)

You could:

• Take half profits at Target 1
• Let the rest run to Target 2
• Always exit before Friday close

Important Rules for Beginners

Do This:

• Always have a target before you enter
• Look for confluences (multiple levels close together)
• Take some profit at your first target
• Use round numbers when levels are close

Don’t Do This:

• Don’t hold trades without targets
• Don’t get greedy and wait for “just a few more pips”
• Don’t use targets more than 15 pips apart as confluences
• Don’t rely on just one measurement

Common Beginner Mistakes

1. No Exit Plan: Entering trades without knowing where to exit
2. Moving Targets: Changing your target mid-trade because you want more
3. Ignoring Confluences: Not looking for multiple levels that agree
4. Perfect Pip Hunting: Trying to get the exact high or low

Practice Exercise

Next time you look at a chart:

1. Find a strong move up or down
2. Use Fibonacci to measure it
3. Look for where multiple levels cluster together
4. Mark these as potential targets
5. See how price reacted when it got there

The Bottom Line

Target selection is about being prepared, not perfect. You want to find areas where price is likely to slow down or reverse, then take your profits there.

Remember: It’s better to leave some money on the table than to give back all your profits because you got greedy.

Start with weekly targets, practice on demo accounts, and always have a plan before you trade. The market will always give you another opportunity, but it won’t always give you back your money.

Disclaimer: Trading involves substantial risk and is not suitable for all investors. Past performance does not guarantee future results. This content is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making trading decisions.