🧵Market Structure : a #thread🧵( 0/10 )
❓What is Market Structure
❓What are MSS and MSB
❓How to find a real MSS
❓How to find ITL/ITH
Understranding Market Structure is a key point in your PA ( Price Action ) reading.
#forex #education #liquidity #trading #studytwt
❓What is Market Structure
❓What are MSS and MSB
❓How to find a real MSS
❓How to find ITL/ITH
Understranding Market Structure is a key point in your PA ( Price Action ) reading.
#forex #education #liquidity #trading #studytwt
( 1/10 )
First, you have to understand that theoretically, there are only two types of market structure. A bullish one and a bearish one. We will see later why in fact, this isn't the case.
First, you have to understand that theoretically, there are only two types of market structure. A bullish one and a bearish one. We will see later why in fact, this isn't the case.
( 2/10 )
A structure is considered to be one single price leg. Taking the last picture as an example, every box would be a different structure.
A structure is considered to be one single price leg. Taking the last picture as an example, every box would be a different structure.
( 3/10 )
When price "leaves" a structure, it is referred to as a Market Structure Break ( MSB ). Which you can mark out like this.
When price "leaves" a structure, it is referred to as a Market Structure Break ( MSB ). Which you can mark out like this.
( 4/10 )
Chart Example 📈:
Chart Example 📈:
( 5/10 )
Knowing that orderflow isn't only bullish or only bearish, you can admit that there is a point where price should reverse to get to the lower liquidity created (link to my thread on liquidity: ). This point is called a Market Structure Shift (MSS)
Knowing that orderflow isn't only bullish or only bearish, you can admit that there is a point where price should reverse to get to the lower liquidity created (link to my thread on liquidity: ). This point is called a Market Structure Shift (MSS)
( 6/10 )
Chart Example 📈:
Chart Example 📈:
( 7/10 )
Now that you know what an MSB/MSS is, you should know that a MSS can be a confluence in certain models/setups, and could even be in your future favorite A+ model. That's why you might want to know how to spot a real MSS.
Now that you know what an MSB/MSS is, you should know that a MSS can be a confluence in certain models/setups, and could even be in your future favorite A+ model. That's why you might want to know how to spot a real MSS.
( 8/10 )
To find MSSs which you can trust more, you want to look for ITL/ITH ( Intermediate Term Low / Intermediate Term High ) to be taken instead of a STL/STH ( Short Term Low / Short Term High ). But first, here is how to find an ITL/ITH :
To find MSSs which you can trust more, you want to look for ITL/ITH ( Intermediate Term Low / Intermediate Term High ) to be taken instead of a STL/STH ( Short Term Low / Short Term High ). But first, here is how to find an ITL/ITH :
( 9/10 )
There are two ways to identify ITH/ITL :
- If a ITL/ITH fills a FVG and have a STL/STH on the right
- If a ITL/ITH has a STL/STH on both sides
There are two ways to identify ITH/ITL :
- If a ITL/ITH fills a FVG and have a STL/STH on the right
- If a ITL/ITH has a STL/STH on both sides
( 10/10 )
If you got there, you must now understand what a true MSS is, here are a bearish and a bullish example where it would have been usefull
If you got there, you must now understand what a true MSS is, here are a bearish and a bullish example where it would have been usefull
I hope you now understand ITL/ITH and I know it is impossible to understand true market structure complitely without a complete school curriculum in finance,but I hope I helped you understanding it.
If you think I deserve it.Likes and retweets would be appreciated.
Lots of love💙
If you think I deserve it.Likes and retweets would be appreciated.
Lots of love💙
Loading suggestions...