Many traders get lost in the noise of Order Blocks, Breakers, and Voids. They analyze too much and trade too little.
What if you only needed ONE setup?
The 2022 Model (popularized by the Inner Circle Trader) is widely considered the most robust intraday strategy in modern trading.
It relies on a simple 3-step logic: Purge (Liquidity) -> Revert (Shift) -> Rebalance (Entry).
In this guide, we will strip away the jargon and give you the blueprint to execute this model like a sniper.
1. The Logic: Why It Works
The 2022 Model is based on the core mechanic of the algorithm:
- Liquidity: The market moves to take out stops (Liquidity Sweep).
- Displacement: Once stops are taken, Smart Money reverses the price aggressively (Structure Shift).
- Rebalance: The aggressive move leaves a gap. Smart Money returns to fill it before continuing (FVG Entry).
Unlike other strategies that use indicators, this strategy uses Price Action & Time only.
2. The Setup Conditions (Checklist)
You cannot trade this setup anywhere. It must happen in a specific context.
A. Time (Kill Zone)
The setup must form during specific hours.
New York AM Session: 08:30 AM – 11:00 AM (NY Local Time).
Why? Because this is when the USD volatility injection happens.
B. The Raid (Liquidity Sweep)
Look for price to sweep a Short-Term High (for Sell) or Short-Term Low (for Buy).
This high/low could be:
- Previous Day High/Low.
- Asian Session High/Low.
- A "Double Top" formed 15 minutes ago.
3. The Execution: Step-by-Step
Let's break down a Bearish Setup (Sell).
Step 1: The Raid
Price rallies up and takes out an old High.
Do not sell yet. This could be a breakout.
Step 2: The Shift (MSS)
Wait for price to reverse and break a Short-Term Low with a strong, energetic candle (Displacement).
This confirms that the buyers are trapped. The trend has shifted.
Step 3: The Gap (FVG)
Look at the leg that caused the shift. Is there a Fair Value Gap?
If there is no FVG, No Trade. The FVG confirms institutional volume.
Step 4: The Entry
Place a Sell Limit at the open of the FVG.
Stop Loss: Above the Swing High that took the liquidity.
Take Profit: The next opposing Liquidity Pool (Old Lows).
4. Risk Management
This model is high probability, but it is not 100%.
- Fixed Risk: 1% per trade.
- Partial Close: Take 50% profit at the first internal Low (Short Term Low). Move SL to Breakeven.
- The Runner: Leave 50% to target the External Range Liquidity (The far Low).
5. Why it Fails (Troubleshooting)
If you keep losing with this model, check these common errors:
- Trading Against the HTF: Did you try to Sell a M5 setup when the H4 Trend is bullish? Don't do that.
- Bad Timing: Did you trade during the Asian Session? The model needs volatility to create displacement. Stick to NY AM.
- No Displacement: Did price "crawl" down instead of "crashing" down? If the move is slow, it's not Smart Money.
Final Thoughts
The 2022 Model is powerful because it is Repeatable.
It happens almost every day on indices (NAS100/US30) and major forex pairs (EURUSD).
Master this one setup. Ignore everything else. You don't need to be a "Jack of all trades". You need to be a specialist.
Identify the liquidity targets for this model: Liquidity Grabs Explained