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Now that we've discussed the three
different types of structure, what they
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mean and how we can understand what's
happening within swing structure.
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The best thing we can do now
is just hop on the charts.
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Take a look at a few examples to
better understand the interactions
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between three different types of
structure and what it means when
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we're looking at an overall trend.
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And what I'll do is I'm just gonna pick
this section of your us dollar, and
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we're just gonna dig into this UPT trend.
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So as we can see from this bit
of structure, we've just seen
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a daily change of character.
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So we were making lower lows and lower.
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We've broken daily swing structure, and
we're starting to create an up trend.
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And on the four hour, we
started to see our change of
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character a little bit lower.
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And we'll just start in this section
as we are just about to break this
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daily swing points to switch the
trend from bearish to bullish.
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So as we can see, if we
just zoom in, we have.
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we have our impulsive leg
on the four hour here.
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We have a swing low and a swing high
price corrects to the downside and the
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moves to the upside breaking structure.
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In this case, what we can see here on the
four hour is we just have sub-structure.
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and then price breaks the high.
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And even then the sub structure doesn't
create any sort of real true structure
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that we can look at on a four hour
chart, but on a lower timeframe,
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we'd be able to use the structure
to make informed trading decisions.
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And this is where multi
timeframe analysis.
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This is where multi timeframe charting
is going to really come in handy
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and become incredibly powerful.
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So we just continue on
what we can see is we've.
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We created this new swing
point on the four hour chart.
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And as we can see, price
is creating structure.
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We see a low being formed.
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What seems to be a lower high price
then matches the low breaks, the high.
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So in theory, this would
be a change of character.
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Although we didn't actually break
a low and then break a high,
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we more or less created a low.
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Created a higher, low broke the high,
and then we're starting to continue up.
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So it's a little bit different take on a
change of character, but as we know, the
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markets are not perfect and we can only
work with the data that we are given, but
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what we can see very clearly is that price
creates a higher high within the range.
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So we've created up until this
point sub structure, and then we
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start creating minor structure.
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Once we break this high, create a higher.
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High or low.
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And then we go running the previous
swing high to form a new high.
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And what we can see is
price creates a high.
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Initially we start to
create sub structure.
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We move to the upside once again, but
we don't actually break and close above.
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The four hour high price then creates
another bit of sub-structure, which
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breaks below this bit of sub-structure
and then continues to move to the upside
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breaking once again, the swing high.
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And this is where we see that
true daily point being broken.
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The trend is now switched from
bearish to bullish on a daily chart.
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And as we can see, we are in a very
strong four hour bull trend as price.
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Continue.
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And then if we'll just continue on what we
can see is we now have this impulsive leg
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or this swing structure on the four hour.
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And what we can see is a little bit more
clearly we're creating sub structure.
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We get a change of character, press comes
down and then continues to the upside.
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And if we just look at this a little
bit more granularly again, When
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we're just talking about market
structure, all of the concepts apply.
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Regardless if you're looking at swing
structure, sub structure, and minor
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structure, that when we're looking
at the overall range of the swing
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structure, as long as this low.
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Isn't violated.
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We're still in a uptrend.
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And once this, and once this
high is broken, we're expecting
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a new high or high to print.
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So anything that happens within
here is just contained within
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this range of swing structure.
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And the same can be said
for our substructure.
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So as we can see, we come down,
we come up, we create a lower
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high, we create a lower low.
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So when we're looking at this range
in price, as long as this high isn't
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violated, we're still in sub structure.
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And we're still in that
down trend contained within.
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The swing structure.
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And then as we can see, we break to
the upside, we create a new, higher
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high, we've seen a change of character.
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So what we can then do is look
at this range in price, cuz now
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we have our low and our high.
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So we're now starting to see higher
highs and potentially higher lows.
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We haven't actually formed
any sort of higher, low yet.
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We see price does come down.
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It does.
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break lower than this.
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But the key thing here is
that price doesn't actually
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close below that swing point.
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And even if it did, it's not a big
issue, but as we can see, we then run
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to the upside, creating a new high.
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If this price did start doing something
like this, again, we would just have
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sub structure, minor structure, sub
structure, and then minor structure.
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If we continue to break to the
upside, we won't know that's
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gonna happen until it happens.
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And at that point, we just
have to adjust our analysis.
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Flow with the market and don't force
your will on it, just because it did a
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change of character here doesn't mean
that it can't break down to create more
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substructure because as we know, prices
contained within this range and for it to
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remain bullish, it can still come down as
low as here before coming to the upside.
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And as we can see, we do have
a valid demand zone at the
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bottom of this entire range.
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So this would be a valid point to
look for a potential buy as well.
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If price did come down that.
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We'll move on and just
look at this bit of price.
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So what we can see is price moves
impulsively to the upside from
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the swing low to this swing high.
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And as we can see, we
create again, sub structure.
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And as we say, in this case,
we don't actually get minor
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structure in its true form.
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We can see that we just get
more or less equal highs.
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We're creating more of a range in
price and the price comes, moves to
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the upside breaks, the previous swing
high and forms a new, higher high.
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Now of course, if we looked on a
lower timeframe, this would more
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than likely be some sort of change of
character and we'd be able to derive.
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The understanding that we've switched
from sub structure to minor structure
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and then continued to break the overall
swing structure that we see on the chart.
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So when we look at this next bit
of price action, there's a little
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bit of multi timeframe analysis
to factor in to be able to better
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understand how structures played.
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Because if we're just looking
at this bit of structure here,
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we know that our lows would be.
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Our new high is here because price created
ranged just like that price pulled back
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and then continued creating a higher high.
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But as you can see, I don't
have a low mapped out here or
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a higher, low mapped out here.
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It's maintained here.
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And this is still part of the bullish leg.
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now, if you were looking at the four
hour in isolation, yes, it does break
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structure and we start to create
what looks to be a bears trend.
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And then we do get a change of
character, but because this exists
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and we're still bullish on the daily
chart, this is what we would refer
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to as a variance in market structure.
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And what I mean by a variance.
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We're starting to see the four hour
creating lower lows and lower highs
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while the daily is still creating
higher highs and higher lows.
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So if I just pull this back, we're
gonna go to the daily chart and
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just look at this bit of price
action in a little bit more detail.
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And what we'll do is we'll look
at this point here and this
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point here on a daily chart.
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So what we can see when we map
that out is when we're looking
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at this in general daily.
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Market structure.
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What we can see is this is
just one large impulsive leg.
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And when we're looking at market
structure, we know that the larger,
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the impulsive leg, the more room that
price has to move to the downside.
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And we know on a four hour
chart, if price is to correct.
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we're gonna see lower lows and
lower highs, more than likely
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forming on the lower timeframe
as that daily chart pulls back.
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So what we can see is on the four hour
chart, this little section right here,
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we'll go back up to the daily chart.
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We can see that it is a minor
pullback on the daily chart.
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Although in my personal opinion
is not so much a bit of structure,
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but a small pause in the market.
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It's a consolidation.
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And what we can see very clearly
is price does break that.
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So we do get a four hour
change of character.
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So if we go back to the four hour, once
again, we've broken the low, like I said,
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we're starting to create lower lows and
lower highs, but because we're trading
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within the larger daily impulsive range,
we can look at that and start to identify
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it in a slightly different manner.
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Again, we'll touch on this, more in the
liquidity section, but as we can see,
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we have this collection of equal lows.
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Which implies that there are
multiple orders that rest below this
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structural point price is more than
likely going to tap into that range.
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And what we can see is also
we have more equal lows here
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followed by a daily demand zone.
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So what we would expect is that price
would more than likely tap into this
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spot before it runs to create a new,
higher high on the daily swing structure.
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And as we can see if
we just eliminate this.
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Set of lows as a primary swing point,
we can see that price creates lower
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lows and lower highs and then changes
character breaking the high and
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starts to create minor structure.
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Before we actually take out the.
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Swing structural high.
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Now of course, from a four hour
perspective, we can absolutely
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use this as a structural point and
then start to say that we're now
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creating lower lows and lower highs.
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We're breaking structure to the downside.
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There's absolutely
nothing wrong with that.
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So in that case, if we're looking at it
here, we would have some sub structure.
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We have minor structure being
created within this candle.
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Again, it would be seen
more on a lower timeframe.
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We had this sort of price
action that creates.
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the lowest slow.
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We break to the high and we start
creating a large impulsive leg.
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So on the four hour, yes, we can
consider this the start of a bear
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trend, but then when we factor in
liquidity concepts, again, we'll touch
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on that in the next set of videos.
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And the fact that the daily is in a
larger swing structure, we could disregard
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this point as a true four hour low.
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Use it at this point and looking at
it from a four hour structure and
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looking at this as the sub structure.
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Creating minor structure and
then moving to the upside.
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But again, this is combining a
few extra bits that might not
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necessarily seem overly clear yet,
but it will be very clear very soon.
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So what we'll do is we'll just
move on just a little bit more,
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move back to where we were.
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Okay.
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Perfect.
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And what we can see is we now create a
high and again, similar to what happens.
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Back here where we created a
high, we started to create some,
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sub-structure created a new, lower, low.
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We moved back to the high, we wick it.
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And then we continue back to the downside,
creating lower lows and lower highs.
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And what we can see here is
we get a change of character.
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We've now started to create minor
structure before we take out the previous.
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Swing structural high.
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This also coincides with a daily
level as well as a four hour level.
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So it's a very key bit of
structure that is happening here.
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And one thing I also want to just touch
on very quickly is how I would be mapping
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out a break of structure, just so that it
gets cleared up as quickly as possible.
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So say we are in a up trend and
we create a high just like this.
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This would be the high that
we're looking to break.
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I would only consider this
structural broken if we break and
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close above the previous high.
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So in this case, let me
just take all this stuff.
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So if I see future price, action breaking
and closing above this previous high, I
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would count that as a break of structure.
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Now on the flip side, if price just
does something like this, to me,
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that's not a break of structure.
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That is a liquidity grab.
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Again, we'll touch on that in the future
videos, but I just wanted to clear this
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up as we continue, because in this case,
this is a perfect example of a high being
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created a liquidity grab of that high
because we don't break and close above.
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So we're just still creating
that overall swing structure.
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00:12:03,000 --> 00:12:06,510
We start to create sub structure,
as I said, create a low.
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00:12:07,575 --> 00:12:08,295
Break that low.
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00:12:08,295 --> 00:12:10,455
And then we start to create
minor structure and price
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00:12:10,455 --> 00:12:12,855
continues moving to the upsides.
230
00:12:14,415 --> 00:12:19,065
So again, breaks of structures are
only valid when you're looking at
231
00:12:19,065 --> 00:12:24,285
breaks and closes above or below a
structural high or low a, a WIC of those
232
00:12:24,285 --> 00:12:27,525
levels indicates more of a liquidity
grab, but not a break of structure.
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00:12:27,645 --> 00:12:31,245
And if we get the instance where a high is
created, so in this case, we can see this.
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00:12:31,425 --> 00:12:34,065
If we are mapping this out in
real time, initially, we would
235
00:12:34,065 --> 00:12:35,535
look at this as our swing high.
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00:12:35,954 --> 00:12:37,125
We'd be waiting for this to break.
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00:12:37,125 --> 00:12:40,275
So we'd be anticipating some
sort of higher, low to form.
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00:12:40,574 --> 00:12:41,145
What ends up happening.
239
00:12:41,145 --> 00:12:43,244
We get a pullback, creating
some sub structure.
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00:12:43,574 --> 00:12:45,135
We take another run at the highs.
241
00:12:45,165 --> 00:12:46,935
We wick it, but we
don't actually break it.
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00:12:47,114 --> 00:12:49,125
We pull back down again.
243
00:12:49,635 --> 00:12:51,285
We break that low.
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00:12:51,585 --> 00:12:52,635
We've created a new high.
245
00:12:52,635 --> 00:12:54,915
So again, we're just waiting to
see if this high gets broken.
246
00:12:55,155 --> 00:12:58,845
We wick it once again, and then we start
to get a more substantiated pullback.
247
00:12:59,055 --> 00:13:03,615
And sometimes this can be the clues that
a larger pullback is going to happen
248
00:13:03,615 --> 00:13:07,455
if price struggles to break a high, but
it's just wicking it ever so slightly.
249
00:13:07,755 --> 00:13:09,345
The indication is that we're starting to.
250
00:13:09,704 --> 00:13:11,805
Get people to look for cells.
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00:13:11,865 --> 00:13:15,495
A lot of people are looking to sell
and a lot of orders are changing hands.
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00:13:15,495 --> 00:13:17,895
Again, I'm, I'm starting to get a
little bit too much into liquidity,
253
00:13:17,895 --> 00:13:19,725
so I'm gonna curb that discussion.
254
00:13:19,725 --> 00:13:22,785
But just to give you a little bit more
information there, but again, when we're
255
00:13:22,785 --> 00:13:28,214
looking at the overall swing structure,
we're just looking for valid places to
256
00:13:28,214 --> 00:13:30,975
look for trades or to look for a reaction.
257
00:13:30,975 --> 00:13:33,765
So we know that because price is
in an UPT trend, we're creating
258
00:13:33,765 --> 00:13:34,845
higher highs and higher lows.
259
00:13:34,845 --> 00:13:34,995
We.
260
00:13:35,610 --> 00:13:38,579
Our swing low and our swing
high of our swing structure.
261
00:13:38,880 --> 00:13:41,910
We know that any price action
that forms within this range
262
00:13:41,910 --> 00:13:44,459
of price is our sub structure.
263
00:13:44,464 --> 00:13:46,860
And then once we start going pro
trend, it's our minor structure.
264
00:13:47,610 --> 00:13:52,140
I also mentioned that we would be
looking for a point of demand or a grab
265
00:13:52,145 --> 00:13:56,310
of liquidity to constitute a formation
of a higher, low, as we can see.
266
00:13:56,310 --> 00:13:59,910
We have range created demand
right here, as well as Wix.
267
00:14:00,150 --> 00:14:04,560
So a couple different options to look for
demand zones within this point in price.
268
00:14:05,865 --> 00:14:09,435
And what we can see is price also
creates a low, we sweep that liquidity.
269
00:14:09,435 --> 00:14:12,015
We create our change of character,
and then we continue to the upside.
270
00:14:12,015 --> 00:14:14,265
So if we were looking for entries,
this would be a great spot.
271
00:14:17,025 --> 00:14:19,425
And now what I'm gonna do is I'm just
gonna quickly jump down to the 50 minute
272
00:14:19,425 --> 00:14:21,075
we'll review all of this bit of structure.
273
00:14:21,780 --> 00:14:24,569
I don't want to make this video too
long, but I also want to show a couple
274
00:14:24,569 --> 00:14:28,170
different flavors of this inaction
because some of these four hour
275
00:14:28,170 --> 00:14:29,910
points don't have minor structure.
276
00:14:29,910 --> 00:14:30,780
They only have sub structure.
277
00:14:30,780 --> 00:14:34,020
Some don't have clear sub structure or
minor structure, and we're just seeing
278
00:14:34,025 --> 00:14:35,939
breaks and others have good examples.
279
00:14:36,360 --> 00:14:41,760
I also explained the concept
of the variance between higher
280
00:14:41,760 --> 00:14:43,110
timeframe structure as we had.
281
00:14:43,110 --> 00:14:43,290
Right.
282
00:14:43,900 --> 00:14:45,610
We were able to filter
that out a little bit.
283
00:14:45,760 --> 00:14:48,640
We'll probably see some examples
of that on the 15 minute as well.
284
00:14:49,000 --> 00:14:51,700
So what I'm gonna do, just so
we don't jump too far ahead.
285
00:14:52,570 --> 00:14:58,120
We're going to do bar replay to that
point and we'll go to the 15 minute
286
00:14:58,480 --> 00:15:01,120
and we'll just backtrack again.
287
00:15:01,150 --> 00:15:03,700
We'll start in the same spot
we did on the four hour chart.
288
00:15:04,890 --> 00:15:07,110
just to showcase this
a little bit further.
289
00:15:07,350 --> 00:15:07,650
Okay.
290
00:15:08,340 --> 00:15:11,400
So what we have here again is
we'll just start from this point.
291
00:15:11,400 --> 00:15:14,580
We have created a new
swing leg in structure.
292
00:15:14,580 --> 00:15:16,590
We have a swing load here
and a swing high here.
293
00:15:16,590 --> 00:15:19,590
We've just switched to bear bullish
from bearish on the four hour.
294
00:15:19,920 --> 00:15:21,840
We're still bearish on the daily.
295
00:15:21,840 --> 00:15:22,170
So.
296
00:15:22,470 --> 00:15:25,560
We're just waiting to see what happens,
but we're looking at structure.
297
00:15:25,560 --> 00:15:27,330
We're trying to understand
what's happening here.
298
00:15:27,330 --> 00:15:30,720
And this is the reason we're able to use
these three different types of structure.
299
00:15:30,720 --> 00:15:32,970
We're using it to understand
what's happening on the charts.
300
00:15:33,270 --> 00:15:36,750
So we can see is once we create this
high, we start creating sub-structure,
301
00:15:36,810 --> 00:15:38,550
we're creating lower lows and lower highs.
302
00:15:39,120 --> 00:15:43,170
We do get a very minor change of
character as we can see that price
303
00:15:43,170 --> 00:15:45,180
just barely breaks structure here.
304
00:15:45,180 --> 00:15:48,150
I can't draw a straight line
today, but get the idea.
305
00:15:48,150 --> 00:15:49,470
I'll zoom in just a little bit more as.
306
00:15:50,655 --> 00:15:52,845
and one of the biggest things about
market structure, whether it's swing
307
00:15:52,845 --> 00:15:56,295
structure, whether it's minor structure,
whether it's sub structure is how do
308
00:15:56,295 --> 00:15:59,985
we break structure and what happens
next after we break structure, if we
309
00:15:59,985 --> 00:16:04,454
see that price break structure, but
immediately retraces or reverses, or
310
00:16:04,459 --> 00:16:07,814
is just wicking, chances are, that's
not a substantiated break of structure
311
00:16:07,814 --> 00:16:11,355
because if I draw an actual line on this
from this high to this high, we can see
312
00:16:11,355 --> 00:16:13,035
that we have broken and closed above.
313
00:16:13,334 --> 00:16:14,084
And what happened next?
314
00:16:14,084 --> 00:16:14,745
We immediate.
315
00:16:15,165 --> 00:16:16,905
Broke back down, closed below.
316
00:16:16,905 --> 00:16:18,735
And then we started to
run back to the downside.
317
00:16:19,064 --> 00:16:22,635
So yes, this is the creation of
new minor structure, but this is
318
00:16:22,635 --> 00:16:25,155
not very valid, minor structure.
319
00:16:25,155 --> 00:16:26,685
And if we just look to the left.
320
00:16:27,240 --> 00:16:29,940
We can see that we do have
some sort of supply zone prices
321
00:16:29,940 --> 00:16:31,050
tapped into at numerous times.
322
00:16:31,050 --> 00:16:32,250
And then we started to fall.
323
00:16:33,060 --> 00:16:36,150
And what we can also see is we've
now created a range in price, which
324
00:16:36,150 --> 00:16:39,630
could be used as a potential supply
zone or reaction point in the future.
325
00:16:39,660 --> 00:16:42,930
And as we can see prices now, continuing
to make lower lows and lower highs,
326
00:16:42,960 --> 00:16:47,160
we create a range, but we still are
contained within that sub structure.
327
00:16:47,220 --> 00:16:49,590
We come down much lower.
328
00:16:50,745 --> 00:16:54,464
we create a new, lower, low, and
then once we see this bit, we
329
00:16:54,464 --> 00:16:56,385
get a true change of character.
330
00:16:56,895 --> 00:17:00,795
We've created a new high, and we'd be
looking from this swing low to this
331
00:17:00,795 --> 00:17:02,235
swing high of our minor structure.
332
00:17:02,235 --> 00:17:05,685
So as long as everything's trading
within this bit of price action,
333
00:17:05,714 --> 00:17:06,825
it's still minor structure.
334
00:17:06,825 --> 00:17:10,065
But as we can see, even within the
minor structure, we're seeing sub
335
00:17:10,065 --> 00:17:12,704
structure within it to get a better
understanding of what's happening.
336
00:17:12,885 --> 00:17:15,585
And we can see is within this minor
structure, we're creating lower lows and
337
00:17:15,585 --> 00:17:17,534
lower highs until we get to this point.
338
00:17:17,895 --> 00:17:23,115
Break to the upside, creating a new,
higher high within this sub structure,
339
00:17:23,115 --> 00:17:26,895
which is within this minor range,
which is within this larger swing
340
00:17:27,464 --> 00:17:29,325
structure here on the 15 minute chart.
341
00:17:29,775 --> 00:17:32,625
And this is where it gets a little
bit market structure inception,
342
00:17:32,625 --> 00:17:33,675
because like I said, we have.
343
00:17:35,295 --> 00:17:37,545
Swing structure we're
between this swing range.
344
00:17:37,695 --> 00:17:39,014
We've now created minor structure.
345
00:17:39,014 --> 00:17:41,835
We're operating between this minor
structure range, and we're now creating
346
00:17:41,835 --> 00:17:45,555
sub structure within that minor range
until we actually move to the upside.
347
00:17:46,035 --> 00:17:49,875
But as we can see, if we just continue
moving on, we break to the upside.
348
00:17:49,875 --> 00:17:51,524
We now have formed a new high.
349
00:17:52,170 --> 00:17:52,830
Just right here.
350
00:17:52,830 --> 00:17:55,770
So we're now contained within
this bit of price action.
351
00:17:56,160 --> 00:17:58,410
This is a break of minor
structure right here.
352
00:17:58,410 --> 00:18:01,290
This is a minor structural high,
a new minor structural high.
353
00:18:01,380 --> 00:18:04,140
And then what we can see within
the minor structure is that we are
354
00:18:04,145 --> 00:18:05,910
creating lower lows and lower highs.
355
00:18:05,940 --> 00:18:07,350
We break sub-structure creating.
356
00:18:07,845 --> 00:18:10,365
Minor structure within this is
getting a little bit confusing.
357
00:18:10,365 --> 00:18:14,865
I know, but as we can see, then
price is moving back to the downside.
358
00:18:14,865 --> 00:18:16,275
We didn't break and close below.
359
00:18:16,275 --> 00:18:17,565
We're still within.
360
00:18:17,655 --> 00:18:20,504
And then price runs breaking minor
structure, and then eventually
361
00:18:20,504 --> 00:18:21,795
breaks that swing structure.
362
00:18:23,175 --> 00:18:26,865
If I lost you a little bit on
that, I apologize, but what
363
00:18:26,865 --> 00:18:29,555
this showcases very eloquent.
364
00:18:30,159 --> 00:18:33,970
At least I think is that structure exists.
365
00:18:34,000 --> 00:18:37,240
The three different types of structure,
but price is incredibly fractal.
366
00:18:37,240 --> 00:18:40,090
And I think this is a really great
example of how fractal price is.
367
00:18:40,330 --> 00:18:41,440
We had swing structure.
368
00:18:41,500 --> 00:18:42,909
We started to create sub structure.
369
00:18:43,330 --> 00:18:44,740
Then we created minor structure.
370
00:18:44,770 --> 00:18:48,340
We were contained within the minor
structure here, creating sub structure
371
00:18:48,345 --> 00:18:49,659
within the minor structure we created.
372
00:18:50,300 --> 00:18:51,050
Minor structure.
373
00:18:51,290 --> 00:18:53,659
We created more sub structure
within that minor structure.
374
00:18:53,659 --> 00:18:57,560
And then we started to see the break
and we were able to understand what was
375
00:18:57,560 --> 00:19:01,040
happening between all of this range,
because we understand the three different
376
00:19:01,040 --> 00:19:04,939
types of structure and what it means, but
the big thing as well, that we just add
377
00:19:04,939 --> 00:19:08,689
on top of all of that is not only is this
just happening on the 15 minute chart,
378
00:19:08,689 --> 00:19:11,840
we're also seeing the four hour chart
creating higher highs and higher lows.
379
00:19:11,840 --> 00:19:14,780
So we know that our expectation is
that price is to move to the upside.
380
00:19:15,199 --> 00:19:17,990
Of course, we also know, in this
example, we have a daily barrier
381
00:19:17,990 --> 00:19:19,610
right here being daily structured.
382
00:19:20,355 --> 00:19:23,265
And if price wants to remain
bearish, we just simply don't
383
00:19:23,265 --> 00:19:25,215
have to violate that high.
384
00:19:25,305 --> 00:19:27,555
But even then, if we're looking at
this point, we're within a supply
385
00:19:27,555 --> 00:19:30,225
zone, price is just pushing forward.
386
00:19:30,705 --> 00:19:31,245
So we're looking.
387
00:19:31,784 --> 00:19:36,764
Structure within a supply zone, a
four hour slash daily supply zone.
388
00:19:36,770 --> 00:19:38,235
We're looking at the market structure.
389
00:19:38,445 --> 00:19:42,254
If we're looking for a potential sell
in this area, we would be looking for
390
00:19:42,254 --> 00:19:47,294
price to switch or have a change of
character from bullish to bearish.
391
00:19:47,459 --> 00:19:49,320
And in this case, we're just
looking at the order flow.
392
00:19:49,320 --> 00:19:50,610
We're looking at the market structure.
393
00:19:50,850 --> 00:19:54,449
We have not seen any indication
of a change in character
394
00:19:54,449 --> 00:19:55,889
from bullish to bearish.
395
00:19:55,949 --> 00:19:58,860
And then what this is giving us
an indication based on four hour
396
00:19:58,860 --> 00:20:02,310
structure, and then looking at the
price action within the 15 minute is
397
00:20:02,310 --> 00:20:03,659
that we're still continuing bullish.
398
00:20:04,534 --> 00:20:07,625
Although we are in a higher
timeframe supply zone.
399
00:20:07,655 --> 00:20:11,675
So, and what we expect when price taps
into a supply zone is that we would be
400
00:20:11,675 --> 00:20:15,784
looking for cells, but this is how we're
able to identify when things are changing.
401
00:20:15,784 --> 00:20:18,034
We already have that indication
down here when the four hours
402
00:20:18,034 --> 00:20:19,175
started to change character.
403
00:20:19,564 --> 00:20:23,524
But of course we know with multi
timeframe analysis is if the
404
00:20:23,524 --> 00:20:28,425
daily's on a bear, And is starting
to pull back to form a lower high.
405
00:20:28,545 --> 00:20:31,875
The four hour can more than likely
put in higher highs and higher lows.
406
00:20:31,935 --> 00:20:35,895
Before we see that new, lower, low
being formed on the daily chart.
407
00:20:36,225 --> 00:20:39,585
We're looking for some sort
of catalyst between daily
408
00:20:39,585 --> 00:20:41,925
structure in this case to form a.
409
00:20:42,854 --> 00:20:43,635
Lower high.
410
00:20:43,695 --> 00:20:48,975
And in this case, we have a supply zone
at the extreme of this swing structure.
411
00:20:49,245 --> 00:20:50,985
We're looking at price action within that.
412
00:20:51,014 --> 00:20:53,625
And we're starting to see that although
the four hour is still bullish,
413
00:20:53,985 --> 00:20:56,834
when we tap into that supply zone,
we would be expecting to see some
414
00:20:56,840 --> 00:21:01,544
sort of clear reaction and switch
from bullish to bearish on the lower
415
00:21:01,544 --> 00:21:04,455
timeframes and have that translate,
see a change character on the four
416
00:21:04,455 --> 00:21:05,685
hours to continue to the downside.
417
00:21:06,074 --> 00:21:06,344
But we.
418
00:21:07,425 --> 00:21:08,085
and what ends up happening.
419
00:21:08,085 --> 00:21:10,995
We run that daily swing point and
we start to create a bull trend
420
00:21:10,995 --> 00:21:12,764
and continue moving to the upside.
421
00:21:13,485 --> 00:21:15,075
So it took a little bit longer
to explain that, but I think
422
00:21:15,075 --> 00:21:16,305
that was a really great example.
423
00:21:16,815 --> 00:21:17,835
And then we can just move on.
424
00:21:18,014 --> 00:21:21,254
We can see that we created a swing load
here on the 15 minute chart, and we
425
00:21:21,254 --> 00:21:26,115
moved to the upside and similar to this
bit on the, on the four hour chart is
426
00:21:26,115 --> 00:21:29,175
we created an initial high, and then we
started to create sub structure within it.
427
00:21:29,415 --> 00:21:33,044
What we can see is we did create
minor structure here, but what
428
00:21:33,050 --> 00:21:34,514
ended up happening is price.
429
00:21:34,890 --> 00:21:36,930
Fails to really actually break this high.
430
00:21:36,930 --> 00:21:40,890
So as, as it stands right now, once
we've created this minor structure, price
431
00:21:40,890 --> 00:21:44,250
is trading within this range and we're
just waiting for something to happen.
432
00:21:44,255 --> 00:21:48,360
We know we're trading in a larger
four hour and 15 minute range of
433
00:21:48,360 --> 00:21:52,740
structure, and we're just waiting for
minor structure to really take over.
434
00:21:52,740 --> 00:21:57,780
We have potentially catalysts to
continue price at a higher, low,
435
00:21:57,780 --> 00:21:59,970
we have a demand zone right here.
436
00:22:00,180 --> 00:22:00,630
We also have.
437
00:22:01,485 --> 00:22:04,335
Potential structural liquidity that
we could look to run again, we'll
438
00:22:04,335 --> 00:22:05,715
discuss that in the future section.
439
00:22:06,165 --> 00:22:08,415
And then what we can see is
price breaks to the downside.
440
00:22:08,415 --> 00:22:11,205
We create a new, lower, low, and then
if we just look at this, we have our
441
00:22:11,205 --> 00:22:14,865
change of character or specifically
a change of character here as well.
442
00:22:15,495 --> 00:22:20,415
And what we can see is price then creates
more minor structure, runs the high,
443
00:22:20,475 --> 00:22:24,405
but again, doesn't break and close above
this high to what that ends up doing
444
00:22:24,405 --> 00:22:26,295
is it marks our high as this point.
445
00:22:26,295 --> 00:22:28,605
So we're still operating on a 15 minute.
446
00:22:29,580 --> 00:22:34,230
between this low and this high, and
we're just waiting to see if price
447
00:22:34,230 --> 00:22:39,150
continues moving to the downside to
take the low, or if we continue to
448
00:22:39,210 --> 00:22:40,620
move to the upside and take the high.
449
00:22:40,625 --> 00:22:43,500
So what we can see is once we create
this high, we start to create really
450
00:22:43,500 --> 00:22:46,560
choppy price action, but we're
creating lower lows and lower highs.
451
00:22:46,920 --> 00:22:47,220
Again.
452
00:22:47,250 --> 00:22:49,770
If we just look at this bit of
structure, we can see that we
453
00:22:49,770 --> 00:22:53,040
break and close just barely above,
but what ends up happening next?
454
00:22:53,400 --> 00:22:55,740
We immediately retrace and close below.
455
00:22:55,740 --> 00:23:00,075
So although this did form minor structure,
It's not very strong, minor structure.
456
00:23:00,075 --> 00:23:02,175
And what we can see is we
then continue creating more.
457
00:23:02,175 --> 00:23:04,875
Sub-structure creating
lower lows and lower highs.
458
00:23:04,875 --> 00:23:08,205
It's not only until we get to this
point here on the 15 minute chart that
459
00:23:08,205 --> 00:23:09,915
we see a true change of character.
460
00:23:10,215 --> 00:23:13,274
Although if we were to look at price
action, see it on a one minute in this
461
00:23:13,280 --> 00:23:16,155
particular area, more than likely we're
going to see a change of character
462
00:23:16,155 --> 00:23:20,804
because we know price is fractal, but
we're also using the 15 minute as clues.
463
00:23:20,804 --> 00:23:23,745
And then as we can see price
runs creating a new higher high.
464
00:23:25,005 --> 00:23:27,435
and then we can look at this
bit of price action as well.
465
00:23:27,435 --> 00:23:30,315
So now we have our swing load
here, and initially we would
466
00:23:30,315 --> 00:23:31,935
probably view this as our high.
467
00:23:32,115 --> 00:23:34,595
We could see that price
creates sub structure.
468
00:23:36,090 --> 00:23:38,310
And we can see even on a
lower timeframe, this would be
469
00:23:38,310 --> 00:23:39,570
considered a change of character.
470
00:23:39,570 --> 00:23:41,909
But if we were just looking at this
more from a 50 minute lens, which
471
00:23:41,909 --> 00:23:45,720
we are can see that price comes
down, comes back up, comes down.
472
00:23:45,780 --> 00:23:48,120
We're really trading within
this range right now.
473
00:23:48,750 --> 00:23:50,669
If I can draw a little bit
straighter, that would be great.
474
00:23:50,730 --> 00:23:52,320
And what we can see is
we eventually break.
475
00:23:52,320 --> 00:23:54,449
We create minor structure and we
continue moving to the upside.
476
00:23:54,449 --> 00:23:58,320
So in essence, what's happened is
we've created a 15 minute swing point.
477
00:23:58,870 --> 00:24:01,270
But this is where a variance
can come into place.
478
00:24:01,270 --> 00:24:03,190
We'll just move that bit of price action.
479
00:24:03,550 --> 00:24:06,280
If we go back to the four hour
chart, what we can see very
480
00:24:06,280 --> 00:24:07,480
clearly on the four hour chart.
481
00:24:07,485 --> 00:24:11,920
And this is a really great tip in
terms of understanding if a pullback
482
00:24:11,920 --> 00:24:14,930
is a true pullback, or if it's
not, especially when we're really.
483
00:24:15,250 --> 00:24:17,590
In relation to multi
timeframe market structure.
484
00:24:17,590 --> 00:24:21,909
So as we can see here on the far hour, we
did get this small dip in price and then
485
00:24:21,909 --> 00:24:23,530
a move to the upside on the four hour.
486
00:24:23,530 --> 00:24:26,919
We did not consider that as structure
because it's not a substantiated pullback.
487
00:24:27,070 --> 00:24:31,120
When we see an impulsive leg, we
wanna see an actual, true pullback,
488
00:24:31,125 --> 00:24:32,889
not a pause in the markets.
489
00:24:32,889 --> 00:24:37,330
So we wanna see something substantial
and we don't get that here.
490
00:24:37,750 --> 00:24:38,679
And then what we can see is we do.
491
00:24:39,870 --> 00:24:41,520
A more true pullback.
492
00:24:41,520 --> 00:24:44,969
And if I just play price forward,
we can see price continues
493
00:24:44,969 --> 00:24:46,379
to move to the downside.
494
00:24:46,740 --> 00:24:50,850
If we go back to the 15 minute chart,
what we can see is where I drew that line
495
00:24:50,879 --> 00:24:52,560
was the high that we were looking at.
496
00:24:52,740 --> 00:24:56,729
And again, there's nothing wrong with
viewing that as a 15 minute high cuz as
497
00:24:56,735 --> 00:25:00,179
we would see, we'd broke the high, we're
looking at this as our previous swing low.
498
00:25:01,034 --> 00:25:02,355
, but then we create this high.
499
00:25:02,355 --> 00:25:02,955
We break that.
500
00:25:02,955 --> 00:25:06,225
So when we now have this as our low,
but again, on the four hour, we're
501
00:25:06,225 --> 00:25:08,385
still in an overall bullish trend.
502
00:25:08,385 --> 00:25:10,125
We have not created a swing point here.
503
00:25:10,125 --> 00:25:15,435
So the impulsive four hour range
that we're building is to this point.
504
00:25:15,435 --> 00:25:17,985
But on the 15 minute,
we're seeing a variance.
505
00:25:18,014 --> 00:25:20,985
We're starting to see price pulling back.
506
00:25:21,075 --> 00:25:24,345
Once again, we're starting to switch,
we're seeing a change of character.
507
00:25:24,825 --> 00:25:25,965
So what we can see is we break.
508
00:25:26,520 --> 00:25:28,860
So as we can see, we break the
high, we're creating a higher high,
509
00:25:28,860 --> 00:25:30,540
and then we start to break down.
510
00:25:30,600 --> 00:25:36,540
We create a lower, low, lower,
high, lower, low, and then
511
00:25:36,545 --> 00:25:38,460
we'll just keep looking at this.
512
00:25:38,460 --> 00:25:40,080
Let's get rid of these
squiggles real quick.
513
00:25:40,440 --> 00:25:42,510
So we can see is we're
caught between this range.
514
00:25:42,510 --> 00:25:43,980
We break to the downside.
515
00:25:45,375 --> 00:25:50,294
So we're now looking at something to
this tune and we continue breaking down.
516
00:25:50,415 --> 00:25:52,695
And then what we can see here
is we get a change of character.
517
00:25:52,695 --> 00:25:55,034
We're breaking down, break the highs.
518
00:25:55,065 --> 00:25:57,915
We start to switch, creating
minor structure, minor
519
00:25:57,915 --> 00:25:59,625
structure, minor structure.
520
00:26:00,014 --> 00:26:02,445
And what we can see is we're
starting to see pullbacks.
521
00:26:03,225 --> 00:26:04,485
We break the high, but what do we do?
522
00:26:04,485 --> 00:26:05,595
We barely break.
523
00:26:05,595 --> 00:26:06,885
And then we immediately retrace.
524
00:26:06,915 --> 00:26:08,595
We end up creating a lower, low.
525
00:26:09,044 --> 00:26:11,024
So what we know is this
pullback was not true.
526
00:26:11,835 --> 00:26:13,695
And what we can actually see
is when we're looking at.
527
00:26:14,580 --> 00:26:15,270
Structure.
528
00:26:15,330 --> 00:26:17,460
This was the high that we would use.
529
00:26:18,540 --> 00:26:23,910
We can see as this low just gets run,
but it doesn't break and close below.
530
00:26:23,970 --> 00:26:26,850
Not that it's a big deal cuz as we
can see, we break the high, we're
531
00:26:26,850 --> 00:26:29,310
still making more minor structure
because again, we're still caught
532
00:26:29,315 --> 00:26:31,590
in the overall larger swing range.
533
00:26:32,190 --> 00:26:34,140
And what we can see is price then.
534
00:26:34,710 --> 00:26:37,290
Creates this point, if we just look
to the left as well, and this is
535
00:26:37,290 --> 00:26:40,110
where supply and demand comes in and
understanding sub structure and the
536
00:26:40,110 --> 00:26:43,470
relationship between that and minor
structure within all of these swing
537
00:26:43,470 --> 00:26:45,180
ranges, because what's happening.
538
00:26:45,824 --> 00:26:48,675
in this swing range is a
battle of supply and demand.
539
00:26:48,915 --> 00:26:52,905
Quite simply, we have an established
trend that we can see we're creating
540
00:26:52,905 --> 00:26:56,715
higher highs and higher lows on the four
hour and now on the daily chart as well.
541
00:26:56,834 --> 00:26:59,205
And what we're seeing between
each of these legs of swing
542
00:26:59,205 --> 00:27:02,024
structure on the lower timeframe
is a battle of supply and demand.
543
00:27:02,024 --> 00:27:03,465
We have a supply zone right here.
544
00:27:03,615 --> 00:27:04,935
We can see an aggressive push away.
545
00:27:05,264 --> 00:27:08,115
We can see other supply zones
here they're getting respected.
546
00:27:08,415 --> 00:27:14,175
And then what we can see here is once we
hit this point, Fail this supply zone.
547
00:27:14,175 --> 00:27:17,955
So we're starting to create a
new variance within the overall
548
00:27:17,955 --> 00:27:18,885
structure that we're seeing.
549
00:27:19,095 --> 00:27:22,425
We're starting to see demand taking
over, but then we see this supply
550
00:27:22,425 --> 00:27:26,505
zone getting respected and price,
continuing to downside a little bit more.
551
00:27:26,505 --> 00:27:32,595
But again, all that I'm trying to
convey here is that this little bit of
552
00:27:32,595 --> 00:27:36,555
structure right here was the variance
between the four hour and the 15
553
00:27:36,555 --> 00:27:38,625
minute and what we were able to do.
554
00:27:38,625 --> 00:27:40,635
And what we are able to do is understand.
555
00:27:41,595 --> 00:27:45,075
This on the 15 minute breaking
structure and starting to create a
556
00:27:45,075 --> 00:27:50,595
down trend does not mean that price
action is going to continue bearish
557
00:27:50,625 --> 00:27:54,525
because we're able to look at multi
timeframe market structure and see.
558
00:27:55,245 --> 00:27:56,145
What does that actually mean?
559
00:27:56,145 --> 00:27:56,985
On a four hour chart?
560
00:27:57,015 --> 00:27:59,955
It gives us a better understanding that
this is more than likely a pullback.
561
00:27:59,955 --> 00:28:03,345
And then if I just play price forward,
what can see is we end up running the
562
00:28:03,345 --> 00:28:06,765
previous swing high and continuing our
series of higher highs and higher lows.
563
00:28:07,215 --> 00:28:10,875
Now, if we'd use this point as four hour
structure, then we would be looking at
564
00:28:10,875 --> 00:28:14,625
it in a slightly different lens, cuz we'd
likely use something like that as low.
565
00:28:14,625 --> 00:28:17,805
And we'd get really confused in
this spot cuz as we can see, this is
566
00:28:17,805 --> 00:28:19,545
just a minor pause in the markets.
567
00:28:19,735 --> 00:28:22,435
As this is the full
impulsive range that we see.
568
00:28:22,675 --> 00:28:26,305
We see an actual substantiated,
pullback change of character, minor
569
00:28:26,305 --> 00:28:28,225
structure, cuz what's happening here.
570
00:28:28,285 --> 00:28:30,595
This is all sub structure, right?
571
00:28:30,595 --> 00:28:33,415
Like that again, we
create minor structure.
572
00:28:33,445 --> 00:28:35,035
We come to the downside.
573
00:28:35,035 --> 00:28:37,075
We don't actually break and
close below, so we're still
574
00:28:37,075 --> 00:28:38,275
maintaining minor structure.
575
00:28:38,275 --> 00:28:43,465
And then we come to the upside and create
a new swing structural higher high.
576
00:28:44,475 --> 00:28:49,215
So I hope this example showcases the
importance of understanding the three
577
00:28:49,215 --> 00:28:52,125
different types of structure, how we
can use them from a multi timeframe
578
00:28:52,125 --> 00:28:56,745
perspective, how we incorporate supply
and demand, because it's so important
579
00:28:56,750 --> 00:28:59,895
to understand when we're creating
swing structure, where we'd be looking
580
00:28:59,925 --> 00:29:02,115
for potential pullbacks to complete.
581
00:29:02,115 --> 00:29:05,355
So if in a bull trend, for example, we're
creating higher highs and higher lows.
582
00:29:05,355 --> 00:29:09,225
When that higher, low is going
to form, we would pair that with
583
00:29:09,315 --> 00:29:11,054
the formation of sub structure.
584
00:29:11,430 --> 00:29:14,460
So, for example, if we're in a up trend,
creating higher highs and higher lows,
585
00:29:14,670 --> 00:29:16,680
we are expecting a higher, low to form.
586
00:29:16,830 --> 00:29:17,639
We'd be using demand.
587
00:29:17,639 --> 00:29:21,600
Those as potential points of information
of where higher, low would likely form.
588
00:29:21,600 --> 00:29:26,760
Before we start to continue moving back
to the upside to break the previous
589
00:29:26,760 --> 00:29:28,230
high forming a new higher high.
590
00:29:29,189 --> 00:29:32,129
And the importance of what
the substructure and minor
591
00:29:32,129 --> 00:29:33,419
structure actually represents.
592
00:29:33,419 --> 00:29:36,689
And it allows us to have a better
understanding of the order flow
593
00:29:36,689 --> 00:29:38,820
that is present on the charts.
594
00:29:38,909 --> 00:29:42,000
And I feel like this example right
here was a really great example
595
00:29:42,000 --> 00:29:45,960
as well of when you have a supply
zone on a higher timeframe.
596
00:29:45,965 --> 00:29:49,620
So the four hour in the daily, and you're
seeing price action tapping into it.
597
00:29:49,770 --> 00:29:53,520
You're trying to build a short
trade idea and you're using the
598
00:29:53,520 --> 00:29:56,639
concept of sub structure and minor
structure to understand that.
599
00:29:57,585 --> 00:30:01,155
Supply zone was not going to
hold and that we were shifting.
600
00:30:02,445 --> 00:30:05,504
Bearish daily structure to
bullish daily structure.
601
00:30:05,504 --> 00:30:08,655
And we had the indication right here that
the four hour was starting to switch.
602
00:30:09,075 --> 00:30:13,875
But again, we know that on a multi-time
frame perspective, that if this is
603
00:30:13,875 --> 00:30:16,665
the daily trend we're putting in
lower lows and lower highs, this on a
604
00:30:16,669 --> 00:30:20,895
four hour can be something like this,
a bull trend crudely drawn, we're
605
00:30:20,895 --> 00:30:22,095
creating higher highs and higher lows.
606
00:30:22,095 --> 00:30:25,274
Before we get a change of character that
then forms lower lows and lower highs.
607
00:30:26,475 --> 00:30:28,935
But we're looking for
that catalyst to switch.
608
00:30:29,805 --> 00:30:32,745
from creating those higher highs
and higher lows on a lower timeframe
609
00:30:33,105 --> 00:30:36,255
to, and go back in line with the
higher timeframe to complete that.
610
00:30:36,255 --> 00:30:40,695
But if something changes and we have that
point, but we don't see that happening
611
00:30:40,695 --> 00:30:44,865
and we're starting to understand the lower
timeframe order flow, the lower timeframe
612
00:30:44,865 --> 00:30:48,855
market structure, using sub structure
and minor structure in conjunction
613
00:30:48,855 --> 00:30:50,205
with the multi-time frame picture.
614
00:30:50,445 --> 00:30:54,735
It allows us to be in line with the
market and understanding what is
615
00:30:54,735 --> 00:30:56,505
more than likely going to happen for.
616
00:30:57,495 --> 00:30:59,865
Market structure, such a powerful concept.
617
00:31:00,165 --> 00:31:06,105
Definitely take time to fully understand
this, apply this to your charts, dig into
618
00:31:06,105 --> 00:31:09,375
all of the structural points, the swing
structure from the daily, the four hour
619
00:31:09,645 --> 00:31:11,534
start building the 15 minute within it.
620
00:31:11,540 --> 00:31:13,605
And just making sense of everything.
621
00:31:13,610 --> 00:31:15,975
If you have a four hour price
range, look at the 15 minute.
622
00:31:15,975 --> 00:31:17,324
See the substructure that's created.
623
00:31:17,555 --> 00:31:19,895
Wait till the minor
structure starts to play out.
624
00:31:19,895 --> 00:31:21,065
You get that change of character.
625
00:31:21,185 --> 00:31:25,055
Then you can start to understand when
the trend is now taking back over
626
00:31:25,115 --> 00:31:27,605
and it gives you so much more clarity
on how to approach market structure
627
00:31:27,605 --> 00:31:31,835
and the things to be looking for
as price is printing on the charts.
56278
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