Most traders often overlook the framework of market structure, yet it's the very foundation upon which our financial world is built on.
I call it the PAST, PRESENT, and FUTURE of the market
In this thr~ead, we'll be UNVEILING THE SECRETS OF MARKET STRUCTURE
A MUST READ! πͺ‘π«΅
I call it the PAST, PRESENT, and FUTURE of the market
In this thr~ead, we'll be UNVEILING THE SECRETS OF MARKET STRUCTURE
A MUST READ! πͺ‘π«΅
Get your writing materials, grab your sits, sit tight and letβs have it! π£οΈ
There comes a point where your analysis scores accuracy, but you still take a loss. π This puzzling scenario often boils down to understanding market structure.
Market structure is the footprint π£ of any market. It is not a strategy.
Market structure is the footprint π£ of any market. It is not a strategy.
It is simply the way the market moves. The storyline of every market lies on the market structure.
When we discuss βmarket structure,β our immediate association tends to be with the highs and lows of price movements. But NO!
Market structure broadly falls into two primary categories:
β> RANGING MARKET
β> TRENDING MARKET
Market structure broadly falls into two primary categories:
β> RANGING MARKET
β> TRENDING MARKET
β> RANGING MARKET
A ranging market is one where prices move within a relatively defined range or channel. Instead of a clear trend, prices tend to oscillate between established levels of support and resistance.
A ranging market is one where prices move within a relatively defined range or channel. Instead of a clear trend, prices tend to oscillate between established levels of support and resistance.
β> TRENDING MARKET
This refers to a market where prices are consistently moving in a specific direction, either upwards (referred to as a βbullish/upβ trend) or downwards (known as a βbearish/downβ trend).
This refers to a market where prices are consistently moving in a specific direction, either upwards (referred to as a βbullish/upβ trend) or downwards (known as a βbearish/downβ trend).
Different timeframes tells the story of the market structure, (Fractal nature of the market) but the bigger the timeframe the clearer picture of the overall trend and market structure. It sometimes depends on what you intend trading. (Scalp, swing, day trading)
Position and swing traders focus primarily on the higher timeframes like the H4, daily, Weekly, and monthly to analyze the market structure and establish their trade setups. However, when it comes to executing their trades, they may drop down to shorter timeframes like the M15
In simpler terms, they zoom in to shorter timeframes only when itβs time to execute the trade, while the higher timeframes provide the overall context and direction for their analysis. This approach allows them to combine the bigger picture view as a solid confluence.
Understanding market structure and spotting liquidities are essential in every analysis. With that understanding, let's look into "Change of Character" (CHOCH).
CHOCH: CHOCH refers to a shift in the marketβs behavior, particularly in terms of trends. Itβs a sign that the current trend or structure might be changing. When CHOCH occurs, it can mark the beginning of a transition in market structure.
After a change of character (CHOCH) occurs in the market, If you have an existing trades, review your positions. Consider adjusting stop-loss orders to protect profits or minimize losses if the new market direction conflicts with your existing positions.
Now letβs move further π©βπ³
Market operates based on orderflow, consistently adhering to demand zones during bullish trends and supply zones during bearish trends.
Market operates based on orderflow, consistently adhering to demand zones during bullish trends and supply zones during bearish trends.
These demand and supply zones are referred to as Flip zones.
Once a flip zone gets taken out, it indicates a change of trend (CHOCH)
Once a flip zone gets taken out, it indicates a change of trend (CHOCH)
Market structure together with flip zone can create a good confluence
Market taking out the demand zones and reacting to the poi that flipped it.
ππ πππ
Market taking out the demand zones and reacting to the poi that flipped it.
ππ πππ
Traders often pay close attention to flip zones because they can signal important shifts in the market. When a flip occurs, it indicates a change in the balance of supply and demand, which can lead to significant price movements.
Eg: Supply turned demand/ demand turned supply
Eg: Supply turned demand/ demand turned supply
Using market structure and flip zones, one can easily have an edge over the market.
After a failed demand (flip) which caused the change of character (CHOCH) we took our entry from the flip, confirming our liquidity and BOS.
Most pairs like $Xauusd respects Flip zones and LQπ
After a failed demand (flip) which caused the change of character (CHOCH) we took our entry from the flip, confirming our liquidity and BOS.
Most pairs like $Xauusd respects Flip zones and LQπ
This brings us to the end of this thr~ead and I hope it was insightful and helpful to you. Please do well to follow, like and retweet for more updates.
Keep back testing and staying consistent
Keep back testing and staying consistent
Share your thoughts and suggestions in the comment section π€
Also follow these accounts for more trading tips ππ©βπ³
@AartTheTrader
@Marresecira
@Kelvin_Graph
@Tobiforex
@Techriztm
@Kelvintalent_
@neehyeehwah
Also follow these accounts for more trading tips ππ©βπ³
@AartTheTrader
@Marresecira
@Kelvin_Graph
@Tobiforex
@Techriztm
@Kelvintalent_
@neehyeehwah
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