Understanding Major structure, minor structure and substructure.
A 🧵.
For a better understanding of this thread, please read my threads on Market structures and Market trends.
Also read my thread on Time frames and top down analysis as well.
Let's begin.
A 🧵.
For a better understanding of this thread, please read my threads on Market structures and Market trends.
Also read my thread on Time frames and top down analysis as well.
Let's begin.
Markets don't move in straight lines. The market moves according to its structure.
For every move, the markets have the Major structure, minor structure and substructure, all this are subject to the timeframes.
For every move, the markets have the Major structure, minor structure and substructure, all this are subject to the timeframes.
Your major structure may be on the daily, 4hr, or 1hr and the minor and substructure would be on timeframes lower than whichever timeframe you choose as your major structure.
The major structure usually is the big move, mostly clearer on the higher time frame of your choice.
The major structure usually is the big move, mostly clearer on the higher time frame of your choice.
Usually the market makes an impulsive move and a corrective move. The direction of these moves are determined by the trend.
In an uptrend the market makes impulsive moves upwards, then corrective moves downwards, while downtrends make impulsive moves downwards and corrective moves upwards.
In an uptrend, the major structure is usually the big bullish move, while the Substructure is the lower time frame structure of a corrective leg down. The minor structure is the lower time frame bullish structure of the impulsive bullish moves up, where you look for long entries.
The major structure of a downtrend is usually the big bearish move, while the substructure is the lower time frame structure of the corrective leg up. The minor structure is the lower time frame bearish structure of the impulsive bearish move up, where you look for short entries.
Let's see some examples.
White = major structure.
Black = minor structure.
Red = substructure.
White = major structure.
Black = minor structure.
Red = substructure.
Major structure is a higher time frame downtrend.
The green zone is the substructure, a corrective move up, and within you see a bullish market structure playing out.
The Red zone is the minor structure in line with the major, within you see lower time frame bearish structure.
The green zone is the substructure, a corrective move up, and within you see a bullish market structure playing out.
The Red zone is the minor structure in line with the major, within you see lower time frame bearish structure.
The major structure here is a higher time frame uptrend.
The green zone is the substructure, a corrective leg downwards and within you see a lower time frame bearish structure.
The Red zone is the minor structure, a continuation of the major structure, and within is a lower...
The green zone is the substructure, a corrective leg downwards and within you see a lower time frame bearish structure.
The Red zone is the minor structure, a continuation of the major structure, and within is a lower...
...time frame bearish structure.
I hope I've simplified this in a way you'd understand.
I hope I've simplified this in a way you'd understand.
Now what's the essence of this thread, and why do you need this knowledge?
It's for you to always understand your trading environment, so you don't mistake a move in a substructure for a change in major structure or make a mistake of thinking a small change in the lower time...
It's for you to always understand your trading environment, so you don't mistake a move in a substructure for a change in major structure or make a mistake of thinking a small change in the lower time...
...frame determines what happens in the macro.
Also so you don't set ridiculous targets.
Trade safe.
Peace.
✌️
Also so you don't set ridiculous targets.
Trade safe.
Peace.
✌️
Here's a thread of all my Educational threads. Do well to study them.
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