All language subtitles for 5 Market Structure Basics Walkthrough

so hopefully you've had a good go at mapping out the concepts that we have

learned so far on market structure across the four-hour time frame from

start of april until around the middle of august in 2021

of course in a four-hour chart now if you haven't already done so and if i

haven't convinced you um yeah it's kind of giving you one last nudge to you know

give it to go even if you just do the string structure

i really do think you'll get a hell of a lot more out of the video that were you

know or watching me about to go through all

of this market structure if you've at least

attempted it yourself but anyway i won't run on about that anymore longer let's

just dive straight into this so where we left it at the end of march

right we were playing within this swing high and this swing low right so now

we're playing with an asparagus range now obviously of course because we

obviously have the benefit of hindsight now we can see that the trend reversed

here and we did break structure to the upside but if we were in the live market

this is literally how i'd be thinking right purely now of course just just

based on looking at one time frame alone and only using the basic concepts that

we've looked at okay obviously as we go throughout the course right we're going

to learn a lot more and we can bring that into it but for now we're just

purely thinking in terms of one time frame and only using those baker basic

market structure concepts okay just do kind of want to put that as a

disclaimer out there first so at this point in time if we were in the live

market i would essentially mark that out as my high and that was my low and this

is the four hour range we are playing with it right after we get our for our

break of structure right because that's confirmed our lower high what do we

expect after a four hour break of structure we expect a four-hour pullback

how do we know when that four-hour pullback may be about to begin we look

for a change of character so we can look for that minor breakage structure to the

upside okay what do we get we get a movement down we're going to minor

pullback right because it fails to break that candle's low and then we do get the

break of that candle is low so because we take that low what does that mean it

means we have a high which is here we have a minor high so then when we get

that break of that minor high to the upside we have a minor break of

structure so we can uh mark that on it's quite subtle but it is there and this is

really where you have to be paying you know attention to the details and you

know really keeping your eye out on it so let's zoom right in so we can see

this so then we get that change of character to the upside we then pull

back to form that internal higher high sorry and then that higher low and what

do we get we get another minor break of structure

all right because we had that minor break there so now we've got we're with

minor breaker structure here right so we get another minor break of structure

there so in fact let's mark this on i know it's very very pedantic right it

can seem a bit over the top but i promise you as we go throughout the

course and we start to build on concepts especially with ma with multi-time frame

analysis right you're going to really understand how why it's so key to pay

attention to all of these little details um yeah just because it can make a

massive difference to your strike rate and the reward to risk ratio that you

may achieve in the market so

we've had those two minor minor breaks of stretching to the upside um but what

are we expecting the whole time we are expecting whoops the four-hour trend to

remain bearish right and we are expecting that this lower high should be

a strong high because it took out the low and so in theory this high should

hold and price should not trade any higher so as price is coming back up

towards that high right and we're expecting that lower high how can we

potentially know when the pullback may be ending and the next swing run may be

starting we can look for that bearish change of character right to the

downside so the internal structure is then back in sync with the overall swing

structure so what do we have we have a movement up

we have a minor pullback but then we continue we have a movement up and then

we have a minor pull back here because you can see how this candle fails to

breach that camera's high so that's a minor pullback and then we do take out

that high so again you know this this kind of minor trends continuing but then

what happens then we take out that minor low so now we have a minor breaker

structure we have that bearish change of character back in line with the swing

trend so now potentially that can be a signal right that the pullback is over

and we're about to take this low okay so that is then a trading idea that we can

use to run for a trade down towards this low but then what happens price goes

down it has a minor pullback and it continues that bearish momentum right it

takes the slow but because it takes that low what does it mean it means that this

is a minor high and price then takes that high so now we have a bullish

change of character again to the upside right

we get that minor breaker structure and we

the internal structure has switched bearish now at this point we're still

playing within the bearish range right the swing range is still bearish so we

can still expect a four hour lower high to form however at this point when you

see that internal change of character again that's going to again switch

bullish at a minimum you can potentially expect that this high is going to get

run because it should be a weak high right because it's failed to take out

that low at a minimum now price can take out that high right it could come up it

could come up here it could then get another change of character right

another bearish internal structure change trend change and then we could go

from here and then that could be the lower high right as long as this high is

not breached and we don't get a closure above okay but in this case as you can

see we do actually get that trend change we do get a closure above and now we

have a confirmed um bullish trend change here

let's get that drawing back there we go so now we are bullish get

rid of this orange drawing so we can keep the charts nice and clear and then

let's duplicate this by holding down control and dragging and then we can

draw a nice straight line by holding shift so now we get that high high

and that breaker structure now at this point where is our swing low well it's

not this low here it's not this low here it remains to be that low that we

already had right because this is the lowest point that led to the break of

structure

so what do we expect after four hour break of structure we expect a four-hour

pullback how do we know when that four-hour pullback is about to kick in

and the spring run is going to end where we can look for a change of character so

we get the break we get a minor pullback but then price continues bullish right

and then for me this is just a minor pause and then we get a break and now

this for me is a bit more of a sustained pullback right it's it's a it's a much

larger so for this for me it's just a minor pullback it's just a pausing price

section right it's just a couple of candles when you compare it to kind of

you know the overall price action that's why this for me yeah it's not the

biggest of pullbacks but it's a lot more significant than something like this

okay so you can see the slight difference there of why i was happy to

classify that swing structure and for me this is just minor structure right

now this again it's not the most glorious of

swings in the world but for me you can see right big money stepped in it's a

decent enough of a move there for me to count that as a sharp kind of pullback

and that for me is swing structure so i would then mark that out as my swing

high and now as we start to pull back price

that we are now playing in right is between this high and this low all the

way down here so technically price can pull all the way back and still remain

bullish okay so how do we know that this pullback may be about to kick in well we

do get a change of character there because we take the minor low but we

only spike it but remember for me personally i'm happy

to view that internal change of character um

with type 2 mapping so i'm happy to just see a wick break now some of you may

just want that kind of closure and that will be a bit more conservative and in

that case you never would have used that as a minor breaker structure and that

potentially may have uh

saved you or you know helped you to avoid looking for potential short

entries to play that deeper pullback because as you can see

when we did get that change of character and we got that spike of the low if you

then use that as a potential signal that we were going to get a deeper pullback

right and you waited for that internal lower high to come in potentially you

got short somewhere around here price starts to go in your favor then

you just end up you know potentially taking a break even or a loss and you

know you're wondering why well that's just because

taking these minor breaks of structure right these these internal changes of

character especially with just a wick break it's aggressive right so

you have to pick and choose your battles of when you are going to do that if you

are looking to to actually use that you know to trade from right if you're gonna

go uh counter trend there um so of course as we go through the course you

know when we learn more more concepts and more more

analytical tools that we can use we can then build you know more confluence and

more evidence um rather than purely just looking right at a minor breaker

structure a change of character in order to take counter-trend trades okay

so but it's just to kind of have that

understanding of you know why it can be aggressive and why it can give you false

signals so then we get another four hour break of structure to the upside

right we then form that higher high so where is our swing low it's the lowest

point that broke the high from where the pullback kicked in so the pullback

kicked in that's our last point and then we go up and then we are now playing

within this new range here right quite a tight range um

now here there's not really a change of character to the downside right because

we kind of just pull straight back we don't break anything in the leg to the

left but what happens this is kind of a bit

more messy price action but i do kind of want to talk about this okay because

this is kind of the difference between substructure breaks and minor breaks of

structure so this is our swing high this is our swing low

we start to pull back right then we form that internal lower high right that

substructure low and then that substructure high now we come down and

we try to form that you know that internal lower low but we fail to and

then we break this high to the upside but that high there

that is just a sub structure high so that means we only

have a substructure break okay so in this case that does end up

essentially being a change of character in a way because then we get that

internal pull back again and then we end up actually getting that swing structure

break so let's just kind of go over that so remember kind of what we looked at in

the previous video in the theory is that you'll get a swing movement upright and

then you'll get that sub structure pull back right so these are all substructure

breaks here right substructure low gets broken it's a substructure break again

another substructure break let's say we have one more that's a substructure

break but then when we break up to the upside right that is a minor break of

structure as we then break this leg of price action that forms okay so then

that gives us a nice change of character and then we can potentially look to take

out that swing high now what happened in this case is what i'm going to draw now

right i'm going to draw this section of price action here is we

had our swing movement up then we had that substructure pull back

right now let me draw this again we had the movement up and then we had that

pullback we had that little movement up here

right this section of price action here now price came down and it tried to take

out that substructure low but then it failed and then it took out this high

but this is just a substructure high right it's not really significant at all

it didn't really achieve anything so although that is kind of a you know it's

somewhat of a bullish signal because price is taking out a high to form a

higher high but it's not the greatest right it's not

that strong and in this case price does come down and then it does go

so in this case it works out but the reason why substructure is kind of the

weakest and the most irrelevant and not really the best to be kind of using for

trade ideas is because um you know when price comes back down

here if you see that as a high low and the change of character it's ready to

buy in this case yes right this bit here it does work out but a lot of the times

what can happen is that was the movement down this was just a little bit of a

complex pullback to then continue and actually get that true substructure

break and then we get a little bit of complex pullback and then we come down

and then finally we get the minor break of structure and then we're ready to go

okay so substructure can get you know a little bit complex sometimes um but i

kind of just wanted to talk through that about you know how the markets are

perfect and sometimes those kind of weak signals can end up being um you know

profitable ones but as long as you're trading with the overall swing trend

you'll generally you're not you're not going to have too many

headaches so yeah again i can appreciate this stage the difference between

substructure and minor breaks of structure kind of when we're playing

within the range can get very confusing at times so if you are ever confused

don't worry about the classification of s boss and emboss too much right don't

stress about it just delete sort of any internal structure you may have drawn if

you're confused and just go back to where is your what you know where is my

swing high where is my swing low okay i now know the trend that i'm working

within and it just clears it all up and now you know that ideally you want to be

looking for longs okay until proven otherwise until that low is taken

and that way you can't go too wrong so anyway let's draw on uh our substructure

sorry our swing structure break which we then get here

right so where is our swing low at that point where's the lowest point that took

out the high which will be this low here and then we continue up

so what do we expect after a four-hour break of structure we expect a for our

pullback how do we know when that four-hour pullback is going to kick in

well we look for a change of character right so this one's a little bit more

subtle but we have the movement up you see how all of these candles break the

prior candles high so they're all part of the up move then we have a minor

pullback right and then we continue up and then this candle here right we get

an inside bar because it fails to take out the previous counter's high so for

me that is a minor pullback then we do take out that high right so then that

would be a low and the price comes down and we do get a change of character in

here which is that signal that weakness has come in and potentially we're going

to get that deeper pullback but then also spike that minor low there as well

but it is short-lived okay um this is kind of why you know minor breaks a

structure like that and changes character

are you know they're the first initial sign we may be getting a deeper pullback

but when you're fighting the trend right it can give you a few full signals or

you know it can be very very short-lived and the overall impulsive trend will

take over so again we had that minor movement up that minor the high there so

we had a minor break of the low there it's our initial change of character

price comes down it comes back up it forms a minor high then it forms that

low right but then it takes that high so then we

get another bullish change of character to the upside giving us giving us that

sign that the pullback may be over and then we come up we do spike the low but

we fail to close above it and then we get our next four-hour break of

structure to the upside okay so it's not the most beautiful bit of price actually

in the world um but it is just good to understand what's going on so it's kind

of where the pullback started so you can mark it there or you can mark it from

the high um it's kind of up to you at that stage i probably would mark it from

the the highest point it just cleans up a little bit there now where is our

swing low it's the lowest point before the high was broken which in this case

was clearly uh that low there and then we get the next swing leg up so

for me that's just a very very minor pullback so that's not swing structure

then we get that movement up what do we expect after before i break a structure

we expect the pullback how do we know when the pullback is going to kick in

when we get a minor breaker structure when we get that change of

uh character so just going to draw that on so we get

a nice minor breaker structure there to the downside now at this point right

even though we know we are bullish and that is our swing high right we can look

potentially for counter trend shorts if we wish to be aggressive and do so so we

get that change of character to the downside price then pulls up pulls back

up and then you can look for a short here there is a supplies in here but of

course we'll get into that later and then you can look for this movement here

now obviously it's short-lived we failed to breach that low and then we continue

the overall bullish trend so you may be thinking you know

is it really ever worth kind of taking these counter trend shorts well kind of

what you have to start thinking about is if we just measure the size of this

bearish move right and it's only pretty much one or two candles but that

movement there is about 75 pips now again we're going to get into this a

lot more detail in future lessons but when we start to use multi-timeframe

analysis we start to drill down into our entries you're essentially going to be

learning right how to enter with five four three and even two pip stops and

sometimes even lower for some of you might want to do that so if you imagine

you know let's just be conservative and let's say a five pip stop right and you

make a 75-pip move right at its peak all right you do the maths on that uh my

mental mass is not my strongest but i believe that's about 13 14 r and with a

five pip stop right that's an insane return just for literally a quick

counter trend play in the space of you know four to eight hours right so that's

kind of why we're being so pedantic about structure here on just one time

frame and looking at every little break um and you know using that to our

advantage okay of course this applies to every single time frame you don't have

to be you know using this to then go and look for those day trading entries right

you could be doing this on the monthly chart or even the quarterly chart and

then you'd be you know looking at daily pullbacks anyway but i'm getting ahead

of myself i don't want to talk about market structure but it's just kind of

just to just to if some of you are you know maybe thinking like what

why are we looking at all these tiny little breaks on one time frame but that

is the reason why so that's why we're going to spend a lot of time just

getting very very comfortable with this and and really understanding you know

looking for those internal changes of character

looking for those minor and substructure breaks understanding where they are

occurring right within the swing and so on and so forth so yeah there was a bit

of an opportunity there but um yeah then we eventually end up

causing that break of structure but you know where was there another potential

sign that this wasn't really going to work out well in order for price to pull

back up to form that internal lower high what did it have to do i had to break

minor structure to the upside so we kind of got that bullish switch again

and that's why then we pull back down we had a grab liquidity below that low

again another concept we'll talk about later and then that fueled the move to

the upside and then we had another break of structure so then that becomes our

for our high uh right we form that higher high and

then we pull back so i'll try and go a little bit quicker now so hopefully guys

are kind of picking up how we are viewing the market

so this would be our high

there we go now where is our low it's the lowest

point that took out the high so not this one but this one here of course that

one's pretty easy to spot and then we get our pullback so let's

see um look at that minor high minor low we

don't quite reach that high and then we breach it here right and then we're

bullish and then we get that high high there

let's mark out our new higher high now this break gets

a little bit more interesting because we actually do get

a break of structure to the downside right and now the four hour finally

switches bearish all right so that is our swing high

that's the highest point that then took out the low and then that for me it's a

decent enough of a pullback i don't know why i didn't get the right tool there

there we go all right that's a decent enough of a

swing pullback and then we take out that low so i personally would be marking

that out as a swing structure there

so then we have our high and then we break the low but we see how

we're kind of just retracing straight away so that's not really a great sign

that we're going to be continuing that trend right the fact that buyers have

stepped in as soon as we've broken that low so you know potentially you can also

use that as a warning sign that price may be about to

um reverse so for me we do get a bit of a pullback there you could potentially

classify that as swing structure for me personally i'm not i kind of see this as

a bit of a pause and one move down so that's my one swing leg in price

so for me this here is just a minor break of structure right because we took

that minor low which means that this is a minor high and then we get that minor

break of structure there to the upside so let's just draw it on

all right okay and then we get the four hour

switching bullish again so that bearish trend was very very short-lived but you

can see how there was a couple of warning signs that potentially that was

going to happen and now we are playing within quite a large

uh swing range up here right so where was our swing low it was the

lowest point that took out that high now at this point right we've got quite a

big range to play with that would be our high that would be our low the price can

pull all the way back down here right and it's still bullish until that low is

taken out so what do we expect after a four-hour break of structure we expect

before our pullback how do we know the pullback is going to kick in we look for

a change of character now in this case we don't get a minor breaker structure

because we don't break anything in this leg here but what do we get we get a

substructure break right this is a sub uh

sub low here right because we get the

pullback we fail to make that high high and then

we break that low so that's just a substructure break so potentially you

know you could see that as a low high you may want to get involved in but

remember substructure break is a lot less confluent so you may want to be

looking at other concepts that we're going to learn later to add you know

more evidence that potentially that this is a good counter trend short to take

but just understand that that is a substructure low so then we get a double

substructure break there right that's the second one and then i guess we get

you know another little pull back there and we get another one to the downside

now what's another indication uh that this um

uh actually just kind of knows this

interest we don't really breach because that would be where the minor low is for

me so we kind of pull back with substructure that whole time right we

don't really breach that low and then what do we get we then get the minor

break uh we get the minor high taken we get that minor break of stretch to jumps

up to the upside to that emboss right it's a little bit messy to see but

essentially how that would have looked when it formed that was the high that

then took the low then that high got taken price pulled back in to form the

high low and then we're off again we get another minor breaker structure so

that's two minor breakthroughs to the upside now and now we're heavily

bullish and we finally take that swing high to form a higher high all right so

that would be a higher high there let me actually draw on the breaker structure

then when we take that high so you can see how a few times it tried to break up

higher here but we failed to get that camera closure above so you need to make

sure you're always waiting for the candle closure before you start trying

to like because sometimes see when you're in the live market you can see

this candle forming at one point in time it's gonna look like it's closed above

but you can't suddenly just going yeah we've broken bullish now and you know

looking saying that this is a four-hour low you must must wait for the candle

closure on whatever time frame you're looking at before you're even thinking

about um you know adjusting your structure and defining where your new

swing trend is okay that's really really important because what this essentially

is it's just a liquidity grab to fuel and move to the downside but again

getting ahead of myself we'll we'll discuss this in much more depth in later

lessons so yeah drawn on the new swing high this is quite clearly our swing low

right the lowest point that took out that high

now we'll expect after a fire breaker structure we expect to pull back how do

we know when the pullback is going to kick in we look for a change of

character right that's our minor low because it took the high and then the

low got taken so now we have a change of character we pull back up to form that

lower high right um that internal lower high because we never take out the swing

high so this can potentially be a good counter trend swing opportunity to look

to push down to you know a minimum target that next internal low we then

try to break lower but we don't we break up to the upside we get that minor

breaker structure there and then we get the true swing breaker structure and

then we form the higher high right so you can see kind of how all that

minor and substructure pairs together right i hope this is

really really starting to kind of sink in now and you can see how we put all of

the pieces of the puzzle together right so we've got that amount of minor

breaker stretches to the downside bit of a counter trend opportunity but it was

short-lived and then the bullish trends continued

all right so then we get that swing higher high up here so where is our

swing low well it's the lowest point that took out that high so it's not this

point here but it's this point here right so we are

bullish right until we take out the slow but what ends up happening we do

actually take out the slow and we do switch bearish right because we then get

a candle closure below this low now could we have anticipated that pullback

or that reversal happening well let's see

so price moves up now that would be my minor low because

that's a minor pullback and then all of those candles continue to break the

prior candles high so that means it's all part of the up move now we get a

pull back here it tries to take out the minor high but

it fails to do so and then price comes down and takes out this low here so at

that point that for me is just a sub structure break let me zoom right in so

you guys can see all right this here is just a substructure low it's just a

substructure break it's not until we get the break that low in the prior leg

right that minor low that's when we get the emboss this is just an s boss okay

so you may want to mark both of those out separately here i'm just going to

mark the emboss for now all right just just kind of save some

time and keep the charts nice and clear as well

so we get that money breaker structure so at that point of course we don't know

that the trend is going to reverse until we get that closure down here but that's

your first real solid sign that we're gonna get you know that pullback of

course we've pulled back quite deep any anyway at that point and the sub

structure break there was also an indication but anyway we get that

bearish trend change there so then that becomes our new

swing low all right and this is our swing high now at this point we are

bearish right this is the new range we are playing in the minute we get that

that break below for me personally that is confirmed bearish and

now what i am expecting i'm expecting a pullback to kick in how do we know when

the pullbacks started when we get that minor breaker structure to the upside

which is what happens here how do we know when that pullback is going to end

and we're going to get that lower high we wait for a minor breaker stretcher to

the downside right we wait for that change of character what happens is we

get a minor pullback we're gonna move it up right we get that minor pullback we

take the high and then what happens we take that minor low right as soon as we

get that break below there that is now your first real solid sign that the

lower high may be in place and now we can start using that as a real solid

trade idea to look for shorts to at a minimum run this low right run this weak

low with the potential right we could be holding much longer for the start of a

new bearish trend so

hopefully this is really really starting to sync out sync it now right we know

how to map our you know true swing points but then it's using the minor

bricks of structure and you know potentially substructure breaks as well

if you want to be a bit more aggressive to show us when those swing runs are

ending right when the pullback has officially started and then again you

know when the pullback started here we get them on a break of stretches to the

upside right we want to short because we know we're bearish we're expecting the

strong lower high to hold right we're expecting to target this weak low

because it hasn't taken out the high how do we know when the lower high has

potentially formed well we can use that change of character to wait for the

internal price action to switch bearish again which is in line with our new

overall bearish swing trend right so now everything should be in sync right now

it's really high probability to start looking to short all of these lower

highs right to then target this weak low at the bare minimum okay

now one last point i want to kind of make about this as well up here is that

um you know you can be more aggressive and

you can say you could see that substructure break to the downside and

you could start looking for shorts this whole time and looking for this move

here maybe you want to be a little bit more conservative and you want to wait

for minor breaker structure right and you look for these little pullbacks and

then you could be looking for that short there right and you could just be

looking for a quick move to this weak low or you could be anticipating this

long-term bearish trend change right um and you want to get really in really

early and potentially you're trying to get into this move right which is quite

aggressive so that's one way of trading one sort of type of personality now you

may want to be a lot more conservative and you may only want to trade with the

trend right with the swing trend and now look what happens if you're really

really patient right this whole time you just wait for this breaking stretch to

the downside before you even start to think about shorts

now you don't just jump in shorts down here right and sell sell at a really

poor area of value right really poorly priced level no you're patient you wait

for that pullback to kick in right you look at that minor breaker structure to

the upside that change of character and now what do you do you don't just start

selling as soon as we're kind of you know near the high you wait for

confirmation because although we've had a bearish trend change

there's no guarantee right that you know we're

gonna stay bearish for a while price could easily just come down here and

then continue up right just because we've had a break of structure it

doesn't mean that we have to continue bearish for a while right it's all

probabilities so what can we do for even more confirmation we just wait for that

change of character again that internal structure to switch bearish which is

when we take that low there and now you've stacked

so much confluence in your favor you've been so patient right for a number of

days now and what look what happens you can pretty much sell around here right

pretty much at the same levels where you could have potentially taken loads of

losses right when you're only using substructure breaks or minor bracelet

structure and you're trying to get in really early compared to being really

patient and you can still pretty much get in at the same level okay and the

reason why i say that is because although the substructure break and you

know this minor breaker structure does in this case work out and it did

anticipate that long-term trend change what happens if

since the start of april every time you saw a bearish minor breaker structure or

a bearish substructure break that you kept taking shorts and trying to swing

for the fences expecting this what happens like

and then this is happening the whole time to

other people right they're getting in short they're getting smashed they're

getting short they're getting smashed they're getting in short they're getting

smashed they're getting short they're getting smashed they're getting short

again smash they're getting short okay maybe they make a bit of money or you

know maybe they try and get greedy they think that the long term trade is

kicking in now then what happens they get smashed or they take a break even

again maybe a bit of money maybe not break even or they get smashed and it

keeps going okay now eventually they got it in they call the top of the market

and they can post on instagram you know look really really cool to kind

of all their you know their random stranger mates get some nice clout um

you know because they called the top in this potential move but you know you

didn't see how many times they got smashed or how many losses they took or

you know how many gray hairs that they got this whole time trying to fight the

overall predominant trend okay so don't get me wrong i'm not trying to put you

off trading counter trend or trading those pull backs because i'm gonna show

you how you do it safely and with tons and tons of confluence so that you you

stack the probability in your favor but not only that you're also going to

understand to manage your expectations of how far that counter trend move is

going to go how far that pullback is actually going to go and you're also

then going to be able to take warning signs from the market when it is

communicating to you that that pullback is now over so let's say you took a

really nice short here right and let's say you're running really really nice

profits right yes potentially we could come much lower all the way down towards

this low right but you're not going to be greedy because you're a professional

trader you're going to not be attached to the outcome of the trade that you

want right because you might want the profit that you could get if price comes

down here right but you're not going to do that you're going to keep neutral and

you're going to look at what the market is telling you and if you see that

bullish change of characteristic upside you're going to use that as information

right that potentially the pullback is over and then you will incorporate that

into your management decision right whether that means that you are taking

full profits and closing the trade whether that means you're going to

partial out some of your profits you know maybe that means you're going to

look for a hedge position and then take a long trade right there's some more

advanced concepts that we'll get into later in the course but i just want you

thinking about now why all of this is so so important why

market structure is king and why we are spending so much time going through this

you know count or by candle and really making sure you know this because if you

get this right first that's why everything else falls in line everything

else becomes so much easier and i promise you if you don't nail this down

first and you blast you all the videos you do all the concepts you think you

kind of you know roughly get it i promise you two three maybe in six

months time i guarantee you you'll be coming back to

this and you'll be watching this to go right okay i'm going to take everything

step by step again i'm going to take it all apart right just like we looked at

at the the olympic lifter right we're just going to practice the deadlift

right and we're going to nail that first because if you haven't got the deadlift

you're never going to be able to do the rest of the cleaning jerk right you

might be able to do those separate parts on their own right you may be able to do

the jerk you might be able to do the front squat you might be able to do the

clean right but you're never gonna be able to do a very heavy cleaning jerk in

one go if you can't deadlift so this is kind of my way of giving an analogy of

what kind of market structure is it it's the base

um to everything but anyway let's keep going i think this is

really really useful to do so oh yeah as i was saying we had that for

our lower high right we had the changes of character to the downside and then we

took out the weak low so i am gonna i'm gonna try and go a little bit quicker so

i'm not gonna go through every little bit of you know internal structure but i

kind of just wanna talk through the swing points just so you can sync it up

with kind of what you have done on your charts okay so when we took out that low

where was the highest point it was this point up here so we are then playing

within that high and this low here right and this isn't like now i can't help but

go through this because i just think it's so useful right what do we expect

after for our breaking structure we expect to pull back how do we know when

the pullback is going to start we see a change of character right there's your

minor high which takes up the low then we get our change of character we get

that minor breaker stretcher to the upside right so then we can potentially

look to play those counter trend longs but we know that this high should hold

right and this low should be run because it's a weak low because it didn't take

out the high so when we're looking to catch the pro trend shorts and we want

to know where the lower high is what can we do well we just wait for a change of

character back to the downside right so we're bullish this whole time with the

internal structure we then take the high so this means that this is a low right

and then what happens price comes down it takes the low which means the

internal structure has now changed bearish again right we get that change

of character to the downside as we break that minor low wait for the pullback

we get short and we make a ton of money targeting that weak low at a

minimum right again i'm not trying to hype you up but this is literally just

what we're doing day in day out every time i hop on the charts

it's the first thing i'm looking at a structure and i literally i speak to

myself like a kid like where are we structure where is my high where is my

low am i expecting a pullback right has the pullback you know have we got that

minor breaker structure to show me that the pullback is starting have we now got

that change of character again to show me the pullback is over where is my week

high where's my week always my weak low that's where i'm going to target all

right same thing every every single time and

it's the first first thing i'm looking at

okay so

we get the break of the low here's our lower low here right

here's our high up here now we get the pullback

again this one we don't get a minor breaker

stretcher to the upside right because it's quite a clean push if we took this

high up here right if price came all the way up that would be a minor break of

structure okay but again we would not be bullish unless we took out that high

there but what do we get we get substructure breaks because we get a bit

of a pullback that's a substructure break that's a substructure break there

but then what happens is we then take the low that's that first change of

character that first bearish low so that is a minor breaker structure because it

essentially breaks this leg of structure that then formed so that's a minor break

it stretches the downside pull back in all right into a nice supply zone again

we'll get into that and boom target the weak low and then you end up you know

being in a huge huge trade there if you ideally held on

to some of the volume on your trade and then we get a massive swing leg down

so let me just draw that across

okay so yeah hopefully this is making a hell

of a lot more sense now so big big swing leg down now for me this

is just kind of a minor pause in price action amount of pullback when you kind

of consider it it's all relative to kind of the current price action we are

seeing right this really for me is the true swing leg down and this is all just

part of the complex pullback but

what do we expect after for our break of structure we expect the four-hour

pullback but this is a really good example right of what did we have before

as soon as we broke that four hour low we're gonna pull back straight away now

as soon as you see that brake construction online market you can't

just suddenly think in your head that right price has to pull back now because

we've had to break a structure because look how big is this movement you know

nearly 300 pips right in the space of what three days that's 100 pips a day

when you're a dollar that's a big volleyball full of a big volatile move

right when you compare it to the other price action

so the minute you see that four record stretches to the downside if you're

trying to buy you know this whole whole time you're looking for those longs

you're gonna get smashed right don't do that it's not intelligent

trading so at being a bare minimum with only the concepts that we've learned so

far what do we do we're very very patient and we just wait for that change

of character if we are to start to look for those longs or if we are to start to

manage our trade and expect that four apple back to kick in right so we have

we have the minor low pull back to from the minor high we then

take that low which means that this is a minor high so then we get that minor uh

breaker structure to the upside so actually let's mark this on right

now again if you view this as a swing structure that's absolutely fine but

just be very very consistent and make sure you continue to do that

so we take that minor breaking structure so because we've had a minor break

structure this also means this is all minor structure now as well so we take

that high now here this is interesting right because what's happening when you

actually look at price action so when we have that first minor breaker structure

you know we get a decent close above and we get another candle that goes but then

we pull back then what happens when we take out this high well we barely barely

close above it with this candle and then the next candle pretty much just wicks

it and retraces straight away so you can see kind of you know with this heavy

momentum that price is really shocking to go higher every time we break an

internal high sellers are stepping back in so when we try and take this high

again what happens we don't even close above this we literally just wick it

grab the liquidity and then we come back down

so then what happens we get that change of character again right to

the downside so this is where you can either kind of take the kind of the

lowest point of that minor high or you can be a little bit more aggressive

right it's going to depend on how you want to do things right and you can look

at that as your first real kind of minor low now why is that a minor low

because what we have is an inside bar so price

comes down it moves up it pulls down here you see that because

it failed to cut the previous counter's high and now all of these candles break

the previous candles high so that's all part of the internal up move so that's

why you can consider that as an eternal move or you may want to take that low

there right it's up to you obviously the slightly higher one is a bit more

aggressive so essentially we get that change of character to the downside and

now what can we expect we can expect that the four hour lower high is in

place and then we can expect that price to run the week four hour low so then we

take out this low down here and then let me drag that across there

okay so we don't get that confirmed lower low until this candle closure here

at 6am london time on the 1st of july which then means that this is now our

swing high now we have a little bit of a pullback here it's quite a big 4 hour

candle but it kind of retraces straight away so for me i'm not really going to

classify that as you know major swing structure it's more just minor but then

we get a bit more of a sustained pullback so for me that would be our

swing low all right

now i'm not going to go through every song a little bit and i'll keep saying

that but i do kind of want to speed this up a little bit i'm going to kind of try

and just stick to the sort of just marking out the major spring

structure here and then sort of any key talking points

that arise right so we get that pull back we break the low

again what do we get we want to break a structure to show prices pulling back

then we come up right and then we come down and we take the low again so then

this becomes our next break of structure

all right so you can see those strong lower highs i've held the whole time

price has never ever traded above them and that's why this trend can go on

longer than you think and it's just easier right i promise you it's easier

to just run with the blind assumption that the trend you know is gonna

continue right um okay so where are we lost my train of thought there this so

we take the low here so we retrace back where's the highest point that took the

low that is our low there all right and then we get the pullback

and then let's see when do we take this low so remember with breaks of structure

to form that lower low i need to see a candle closure so it tries multiple

times multiple times we don't get that confirmed until this candle here so

literally if i draw it to this candle here right at this point in the market

before this candle forms right at this point in the market you do not know

that this is the lower high right until we get this candle closure here so you

have to be really really patient because if you imagine that's gonna look like a

big bearish candle at some point and you're gonna really be convinced that we

have broken lower and that potentially we are now you know within this range

right but we're not we're not until we get that closure there so it's really

really important okay that you make sure you wait for candle closures but we do

eventually get that that is our low we then do have a bit of a decent pullback

and then we are playing within this high here and this low here but we fail to

ever close below that low and we do eventually

get a four hour trend change as we take out this swing high here

all right now there were a lot of warning signs right that that was about

you know potentially about to occur other than being you can see right every

time price tries to take out the low look at the buyers stepping in right it

tries to close down buy a step in trying to close down buy a step in right we

keep getting minor breaks the structure to the upside again we try to come down

with a lot of momentum right a lot of moments coming in

stop dead right in its path buyers are defending these lows okay and then what

do we get we start to get these substructure breaks to the upside right

and then we get another one right and then we get another one you can see then

we're starting to form these in a series of internal higher lows right and it's

starting to show you the balls are potentially taking control but of course

we don't have that confirmed until we get that high high there so then the

four hour did switch bullish but of course we can now see that that did not

last very long okay but what do we expect after a four

hour breaker shows to the upside we expect a four hour pullback how do we

know that that swing run may be finishing and the pullback may be

starting we get a change of character we get that minor breaker structure to the

downside right we take out this minor low here why is that a minor low well

it's a minor low because it took out the high right so you need to see price take

the high that gives you your low and then when price takes the low that is

your sign of weakness then what happens price ranges for a bit but essentially

it forms that internal lower high and we take the low again so what do we get we

get another minor breaker structure to the downside

right because below we come back up and then we get another

minor breaker structure to the downside again right we get one here

and then we get another one now

at this point right we still have to assume that the foil is going to stay

bullish but you know these counter trend shorts are still becoming high

probability because you can see the weakness stepping in right we keep

breaking minor low to the downside with a lot of momentum right so it's not

to know that we we would definitely know that we're about to reverse but it just

means that potentially you can hold your shorts right so if you got in short

potentially when you first saw that initial change of character and you

traded that internal lower high here as long as you keep seeing you know that

those minor breakthrough shots to the downside and price doesn't

break up to the upside that it doesn't give a bullish change of character you

can hold on to that short and look you would have ended up being a huge trade

and you would have ends up and you know being in a reversal trade without even

knowing price was going to reverse right so that's just sometimes the power of

when you are trading those those counter trend um short positions right at really

good price because even if you just push it back you know down towards the low

right as long as we never switch british again on the internal structure you can

end up being in a huge trade so then we take the low that remains as

our higher right because that was the highest point before the low broke um

now for me again this is just a minor pullback this is all one part of the

swing trend and then we get a bit more of a pullback so

we're almost there guys this becomes our swing low okay now what

do we expect after a four hour break of structure we expect a four hour pullback

so when can we expect that when we get a change of character right so we get a

minor pullback we take the low which means that we have a high here right

then we take the high we get our change of character we're going to pull back we

can look for those counter trend longs and then we can trade that up okay but

remember it's just a counter trend for our pullback because now we expect the

four hour to stay bearish now this is quite a clean push so there's nothing in

the leg there to give us any price action all we get is a substructure

break there that alright that's the substructure break there but we don't

get the minor breaker structure until we come down and take the slow hair right

and then we try to get that breaking structure we don't initially get it but

then we do and we finally get that swing low down here

all right and now we are within uh this new bearish swing range here so yeah

that brings it to end to the end hopefully you're all still awake

um i appreciate that was long right and now some of you who are a bit more

advanced may have found this a little bit pedantic and a little bit over the

top um you know i don't want to go on another rant now about just how

important this is i think i have really you know really driven that point home

um but yeah for those of you who who know

who did have a go at this and map it before don't worry if you mapped it

different to me right for a few reasons one

it doesn't matter it's all about practice um you know just just hopefully

listen to my thought process the way that i view structure see if that makes

sense to you see if that resonates with you

but remember everyone's going to view the market slightly differently so

[Music] just the main point i would always

always make is there is no true right or wrong way of doing things okay if anyone

tells you there is just ignore them but what i would say and what and this will

apply to anything in trading is just be consistent if you do want one thing one

way always do it that way right bring a method to the madness be consistent and

that will give you your your highest probability of getting consistent

results right because as long as you are consistent in the way that you do things

and the way you analyze things right then what happens is you can

collect data based on how you do your your stuff in

the market and if you collect data right and it proves to be profitable

what has that done it means the way that you have done things right it could be

the complete backwards way of what i've just shown you but as long as you always

do it that backwards way and you collect data to prove that it works

congratulations you have just found your edge in the market

now please go and do that and repeat that consistently and you will make

money right that is all we're trying to do we're just trying to you know make

sense of it all be consistent with what we do and apply it again and again and

again right be the casino apply your edge and let it play out

okay right over um yeah have a go at this

go back over what i've done or at least have a go at this if you haven't done it

already and then what i would do is go back even further right you know go and

look at old price action now if you want to be even a bit more advanced what you

can do is use something called bar replay now if you have your free account

on training view only i do believe that this feature will not work i think you

need to have at least the minimum subscription payments so the cheapest

tier payment i believe i might be wrong but i'm pretty sure but if you do have

it you know i would highly recommend you you do use this you know trading view

it's a tool of our business uh you know invest in yourself invest in your

business take this seriously i really would recommend it but anyway bar replay

essentially what it allows you to do is kind of simulate sort of the back

testing environment so you can take it back to wherever all right obviously i

mean you can do it with your drawings on that can also be useful but um also

practice without your drawings right now you can press play and it'll play like

that or what i would recommend is if you hold shift and then press the right

arrow on your keyboard it will bring it forward bar by bar so then what you can

do is you can practice simulating in the live market where bye bye bye you will

draw on your highs and your lows and then you'll try and anticipate like you

know when you see your your minor breaks a structure you can go okay the

pullback's kicking in and then you can start to visualize it because obviously

it's a lot easier in hindsight when you're just going through like this but

when you start to practice it a little bit more you'll see where those full

signals are um and you know where you get

you know where the full signals are but also when they do work out right and

that's how you're really really going to get just

just so experienced with this man i just can't

can't drive this home enough anyway i'm going to stop it there so this video

doesn't go on for two or three hours um yeah hopefully you took some value

practice this show your charts in the community and if

you want any feedback as well be more than happy to take a look at them

all right