If you're still CONFUSED on how to map out the right structure , then you have to read this.
Here is a thread to educate you on the difference between a CHOCH and IRL.
How to map out the right swing structure..
A THREAD🧵
Repost for others
Here is a thread to educate you on the difference between a CHOCH and IRL.
How to map out the right swing structure..
A THREAD🧵
Repost for others
As usual
Good day traders 🙏
please take a few minutes to respot the first post above. And also give me a follow @AartTheTrader
Before you continue reading..
Done right??
Now let's begin.
Good day traders 🙏
please take a few minutes to respot the first post above. And also give me a follow @AartTheTrader
Before you continue reading..
Done right??
Now let's begin.
So first we will first talk about CHOCH and IRL..
CHOCH stands for change of character
While
IRL means Internal range Liquidity..
This thread will literally be short because I will be going straight to the point..
Let's first talk about CHOCH
CHOCH stands for change of character
While
IRL means Internal range Liquidity..
This thread will literally be short because I will be going straight to the point..
Let's first talk about CHOCH
CHOCH is a temporary change in trend.
It is temporary not necessarily means price has totally change trend..
A choch indicate short term pullback
But the issue is now that many traders fail to recognise this as a short term pullback thinking maybe market has change trend.
It is temporary not necessarily means price has totally change trend..
A choch indicate short term pullback
But the issue is now that many traders fail to recognise this as a short term pullback thinking maybe market has change trend.
Firstly, let's look into basic market structure.
We all know that in a downtrend the market form series of lower highs and lower lows breaking Structure to the downside while in an uptrend the market forme series of highers highs and highers lows breaking Structure to the upside
We all know that in a downtrend the market form series of lower highs and lower lows breaking Structure to the downside while in an uptrend the market forme series of highers highs and highers lows breaking Structure to the upside
Firstly when you see This what comes to your mind?
Some will mark point A as there swing low and point F as the swing high.
that is wrong ❌
Your swing low is only confirm if it breaks an external Structure and swing high is only confirm is it takes out internal range liquidity.
Some will mark point A as there swing low and point F as the swing high.
that is wrong ❌
Your swing low is only confirm if it breaks an external Structure and swing high is only confirm is it takes out internal range liquidity.
Now many people confuse interanal range liquidity sweep as a CHOCH and the next Thing they start making out supply to sell from.
Don't do that.❌
Don't do that.❌
That supply is definitely invalid because that point you mark as CHOCH is not a CHOCH.
it is just internal Range liquidity sweep
it is just internal Range liquidity sweep
Price has to take out interanal range liquidity to confirm a valid pullback.
Price has to give that pullback into a discounted or premium pricing for lower/higher prices before continue the move in the trend direction.
Price has to give that pullback into a discounted or premium pricing for lower/higher prices before continue the move in the trend direction.
Price has to take out interanal range liquidity before a swing structure is printed.
Price moves from external to Internal
Point E and point F is a swing structure
Point G and H is another new swing structure.
Any other BOS inside those swing structure are interanal Bos
Price moves from external to Internal
Point E and point F is a swing structure
Point G and H is another new swing structure.
Any other BOS inside those swing structure are interanal Bos
For a new swing low to be confirmed it must break an external Structure and for a new swing high to be confirmed it must take out an internal range liquidity.
If a swing high does not take out an internal range liquidity is not yet a valid swing high.
If a swing high does not take out an internal range liquidity is not yet a valid swing high.
This is a clear structure mapping on #EURUSD#
Majority confused the internal range liquidity sweep as CHOCH hence they start mapping out supply to sell from mean while we are still bullish.
Price was just giving pullback to discounted pricing before continue the bullish move.
Majority confused the internal range liquidity sweep as CHOCH hence they start mapping out supply to sell from mean while we are still bullish.
Price was just giving pullback to discounted pricing before continue the bullish move.
So, not that a single structural leg consist of a
High
Low
IRL, not every BOS in the opposite direction means a CHOCH it could just be that price is reaching out for the IRL before continuing in the tread move.
Thanks for reading this and hope you do learn something from it.
High
Low
IRL, not every BOS in the opposite direction means a CHOCH it could just be that price is reaching out for the IRL before continuing in the tread move.
Thanks for reading this and hope you do learn something from it.
If you find this thread insightful please
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Do well to follow me @AartTheTrader and also like and respost the first post...
Few more intelligent content writer you should follow
@Starr_gael
@Marresecira
@Alh_Myke1
@Kelvintalent_
@oluoftrades
@neehyeehwah
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