Learning Market Structure is essential to reading price action effectively.
Today, we’ll be going over the differences in ITH/L and STH/L. also going to learn when should we use one over the other and how it can help us improve our accuracy while trading!
Let's dive in 🧵
Today, we’ll be going over the differences in ITH/L and STH/L. also going to learn when should we use one over the other and how it can help us improve our accuracy while trading!
Let's dive in 🧵
First up, if you haven’t read Part 2 of this series, do read it first before coming back here.
First of all, you must learn the 2 types of Market Structure
When price is making higher highs and higher lows, price is in an Uptrend
When price is making lower lows and lower highs, price is in a Downtrend
When price is making higher highs and higher lows, price is in an Uptrend
When price is making lower lows and lower highs, price is in a Downtrend
However, when price is in an uptrend and breaks a recent swing low, it is called a Market Structure Shift (MSS). This is because price has switched from an uptrend to a downtrend.
The same applies for downtrends.
The same applies for downtrends.
Now that you’ve learnt about the Market Structure Shift (MSS), let’s learn about the Significant Market Structure Shift (S.MSS)
Remember when we learned about ITH/L in the last lesson? Now we're going to be using it to identify S.MSS
Remember when we learned about ITH/L in the last lesson? Now we're going to be using it to identify S.MSS
When price is in a downtrend and breaks an ITH, it is considered as a Significant Market Structure Shift (S.MSS)
When price is in an uptrend and breaks an ITL, it is also considered a Significant Market Structure Shift (S.MSS)
When price is in an uptrend and breaks an ITL, it is also considered a Significant Market Structure Shift (S.MSS)
It’s that simple.
STH/L = Market Structure Shift (MSS)
ITH/L = Significant Market Structure Shift (S.MSS)
STH/L = Market Structure Shift (MSS)
ITH/L = Significant Market Structure Shift (S.MSS)
That wraps up our Market Structure Series! If you don’t understand any parts of it, go through it again and try to understand it.
If you have any questions, leave a comment or send me a DM. I'll do my best to answer all of your questions.
If you have any questions, leave a comment or send me a DM. I'll do my best to answer all of your questions.
In the next series, we’ll be going over PD Arrays in the “PD Array Matrix”
Be sure to follow me @TritonTrades to get notified when I drop the thread!
Be sure to follow me @TritonTrades to get notified when I drop the thread!
That's a wrap!
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Good luck and good trading!
If you enjoyed this thread:
Like & RT the tweet below to share with others 🤍
Good luck and good trading!
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