Market Structure Shifts: Unveiling Validity and Correct Application
A thread🧵
A thread🧵
[1] Introduction
This is one of the first terms that I came across when I began learning price action analysis which is used in a wrong way,
even me since recently when I figured out when it's valid and when it is not
This is one of the first terms that I came across when I began learning price action analysis which is used in a wrong way,
even me since recently when I figured out when it's valid and when it is not
![[1] Introduction
This is one of the first terms that I came across when I began learning price act...](https://pbs.twimg.com/media/F3zo49TawAAq3BA.png)
[2] What is MSS?
A break in the previous low when price forms a new low from that high
[or]
A break in the previous high when price forms a new high from that low,
is called a market structure shift
A break in the previous low when price forms a new low from that high
[or]
A break in the previous high when price forms a new high from that low,
is called a market structure shift
![[2] What is MSS?
A break in the previous low when price forms a new low from that high
[or]
A brea...](https://pbs.twimg.com/media/F3zsh4OaoAAugFr.jpg)
[2] When is it valid?
Market structure shifts will not work effectively when applied without a thorough understanding of HTF orderflow and your underlying bias
Always use your Higher TF for direction and Lower TF to observe these structural shifts
Market structure shifts will not work effectively when applied without a thorough understanding of HTF orderflow and your underlying bias
Always use your Higher TF for direction and Lower TF to observe these structural shifts
![[2] When is it valid?
Market structure shifts will not work effectively when applied without a thor...](https://pbs.twimg.com/media/F3zw6hAbAAE3bC8.png)
[3] Where do you go wrong?
You go wrong with LTF structure whenever your bias is wrong
- You would be expecting an expansion below but that would be a judas swing
- You would expect a retracement but price keeps going higher
- You would be looking for MSS in an consolidation
You go wrong with LTF structure whenever your bias is wrong
- You would be expecting an expansion below but that would be a judas swing
- You would expect a retracement but price keeps going higher
- You would be looking for MSS in an consolidation
[4] Are wicks valid?
Yes, if price takes out the previous low/high with a wick, it is a valid market structure shift
Remember, you are looking for price to shift and give you that nudge of confirmation to validate the structure shift based on HTF orderflow
Yes, if price takes out the previous low/high with a wick, it is a valid market structure shift
Remember, you are looking for price to shift and give you that nudge of confirmation to validate the structure shift based on HTF orderflow
![[4] Are wicks valid?
Yes, if price takes out the previous low/high with a wick, it is a valid marke...](https://pbs.twimg.com/media/F3zwpgkbcAACFpH.png)
[5] Without a clear bias and narrative behind price action, there is not a single concept that you can apply, including market structure shifts.
Likes and RT's are appreciated
Open to suggestions below
Likes and RT's are appreciated
Open to suggestions below
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