All language subtitles for 8 MTF Market Structure

so just to very very briefly summarize what we know so far from the previous

few lessons in the technical analysis module

a bullish trend or bullish order flow in the market

it is shown by structure forming a series of higher highs and higher lows

so therefore a bearish trend or bearish order flow in the market is shown by

structure forming a series of lower lows and lower highs and whenever price

breaks structure with an expect what we expect a pullback on that time frame

so then we looked at the concept of strong and weak highs and lows which is

also based on the idea of expectational order flow

so a strong low is a low that caused a high

so if a swing low actually does its job by taking out a swing high and causing

that break of structure if that low causes the higher high then we assume

that is a strong low and it will now be protected because you know it took a lot

of money in order to break that high so now there is a vested interest in those

institutions right that they do not want to see that low break because they do

not want to be stopped out of those positions

so it is these strong swing lows are what make up the high lows in a

bullish trending market and it is those higher lows that we are trying to catch

and up and position ourselves in long to capitalize on that next bullish leg and

once we are in that higher low we are then going to try and target price to

make the next higher high so we're targeting that weak high being broken to

form a higher high so obviously the exact opposite to that

is a strong high and these are highs that did their job by causing lows so if

a swing high does its job by taking out a swing low then we can assume that is a

strong high and that high will be protected

and these strong swing highs are what make up the lower highs in a bearish

trending market and it is those lower highs that we are

trying to catch and position ourselves in short to capitalize on that next

bearish leg and we're trying to target price to take out that weak low right to

make the next lower low now price can pull all the way back up

to that swing high that lower high in a bearish market

but we run with the assumption that price will not trade higher and it will

not close above that swing high because it is a strong high and in

theory that high should be protected to keep the bearish trend intact

however eventually a strong high or a strong low

it will of course be broken because trends do not last forever

so a change of character is when we see a failure of expectational order flow

because bullish structure starts changing to forming bearish structure

right and vice versa so if price is trending to the upside in

a bullish market and then we see that they swing low so what a strong low then

gets taken out so that we see a swing bus a swing breaker structure to the

downside then this first break of structure is defined as a change of

character and we now have a confirmed bearish trend change because price has

formed a lower low after a series of high lows

however price can also just break minor structure so an emboss or substructure

so an s boss and this can also be viewed as an

internal change of character so a minor or substructure break it can

signal that a swing run has ended and that the swing pullback has now started

so then it can also signal when that swing pullback has now finished and the

next swing run may be about to begin so that we can anticipate that the

higher low in a bullish market may now be forming or a lower high in a bearish

market may now be forming so this can obviously help us with our trading

decisions but because minor and substructure

breaks are not as significant as swing structure

this means that changes of character based only on m bosses or s bosses they

can give us full signals it can give a full signal that a swing

run has ended or that a swing pullback has finished so what we can do is use

other concepts you know techniques and tools in our analysis toolbox

to help us build more confidence and more evidence to increase our ability

to stay out of trading those full signals and those traps in the market so

in turn you know actually increasing our strike rate on catching the true turning

points and the true continuations in the market

now one of those tools that we just looked at in the last lesson was the

concept of premium and discount pricing and we can see that waiting for price to

pull back into discount prices in a bullish trend will lead to a higher

probability of that change of character being a true signal that that swing

higher low has actually formed and obviously if price was in a bearish

trend it would be the opposite right so we'd be waiting for price to pull back

into those premium prices that will lead to a higher probability of that change

of character being a true signal that the lower high the swing lower high has

actually formed and that the bearish trend is ready to continue

now in this lesson we're going to add an even more powerful tool to our toolbox

by harnessing the power of market structure by looking at multiple time

frames together so multi-timeframe analysis is pretty

much what it says on the tin right it's when you analyze multiple time frame

charts together so using multiple time frames in

conjunction with each other it's pretty much like seeing a completely new

dimension of price action which can dramatically alter your perception of

the data so when you master this you will

significantly improve your trading returns because you will improve both

your strike rate and the average risk to reward that you can actually achieve in

the market so multiple time frames gives you the

whole complete picture compared to just using one time frame which is what we

have done so far so analyzing multiple time frames

effectively what it's going to do is it's going to give you that time to

enter a trend just as it's about to begin so you can get right in at the

start but it will also provide the indication that you maybe need to exit

your position just before that trend or that run is about to come to an end

so developing the skill is going to really allow you to capture those huge

high time frame moves you know potentially those weekly or even monthly

runs but you are entering with the accuracy

and the precision of timing your entry on the intraday time frames those lower

time frames even all the way down to the second time frames and that's how you

achieve those huge risk to award trades so on the weekly time frame one weekly

candlestick will contain the price action of five daily candlesticks

30 4-hour candlesticks and 120 one-hour candlesticks

so obviously one daily candle will be made up of 24 hours worth of price

action and so on so you can clearly see that you know as

you start from those higher time frames then you work your way down and down

going lower will give you more price action which is going to give you more

information and therefore it's going to give you more confirmation

so you can be extremely accurate with your entry points and your analysis but

whilst making sure that you are still trading with the overall higher

timeframe bias and you're still trading with the dominant trend of the higher

time frames on our side so time really is power

now the longer that a setup has to marinate you know the more powerful and

delicious the move will be right it's a bit of a horrible analogy but that's

essentially kind of how it makes sense in my head so essentially the more

orders and liquidity that have been stacked over time to then fuel that

large move so for this reason analysis on the

higher time frames always takes precedence over analysis on the lower

time frames so the monthly time frame is more

significant than the weekly time frame the weekly is more significant than the

daily the day is more significant than the four hour for more than the one hour

right and so on all the way down to the minutes and the seconds time frames

so this is why we always always always take a top down approach

so we always start analysis on the higher time frames to develop our higher

time frame bias and then we slowly work our way down to refine and refine and

increasing our timing accuracy now the higher time frames are not

necessarily a specific time frame it is just any time frame that is essentially

higher than the one that you were looking at and the same goes for the

lower time frames and it's going to be different for every trader depending on

their own unique trading style now the reason that we use candlestick

charts in our analysis is due to their unique ability to condense a vast amount

of information into a small neat and manageable graphic display

so by analyzing what is essentially just a colored shape on your screen

you can interpret tons of stuff you can interpret direction acceleration

deceleration strength weakness choppiness you know where there's supply

where there's demand and where there is liquidity amongst many other things

within the market all just from analyzing candlesticks on

a chart but the paradox with candlesticks

however is that their greater strength is also their greatest weakness because

by condensing a large amount of price information into a manageable visual

display those candles lose a lot of important

data that occurs within the lower time frames

and it's this data loss that can often cause misleading signals or fail to

provide a signal when necessary so you can kind of think of candles as

representing the tip of an iceberg so while they provide you know a really

excellent sign of what is ahead there is a lot more that looks beneath the

surface so for the most part you know the

exposed tip of an iceberg is enough for the captain of a ship to you know

recognize the near the the need to steer around it but every now and then an

iceberg will remain fully submerged below the water and provide no

indication of its existence above the surface

so without appearing below the water the captain's likely to steer a ship and

crash straight into it right so in trading using a lower time frame

is the same as peering below the surface and the more time that you spend in

front of your charts the more you will really realize that all of the time

frames are very intimately connected to each other

so when price is trending right we've seen

this a million times out in this case a bullish trend price moves up it pulls

back to form a higher low and then it breaks structure again to the upside to

form a higher high and so on now each of these movements up and down

are called runs so price impulse is up and then it corrects back and then

impulses up again and then it retraces back right and that is the heartbeat of

the market now collectively all of these runs

together make up what we then call a trend

now are you ready for what is the major

major major key in unlocking the secrets to

understanding and harnessing the extreme power of multi-time frame analysis

you are fantastic well the secret source here is

that a run on a higher time frame is a trend on a lower time frame

so a run on a higher time frame is a trend on a lower time frame

sounds pretty simple right well when you get your head around this and when you

fully fully understand on the charts it is when the power of multi-timeframe

analysis will really start to click and you will massively increase both your

strike rate and your reward to risk ratio at the same time which is the holy

grail in trading right increasing both of those simultaneously

so price action ultimately forms the candles and the price action on the next

highest time frame so we use the price action on the higher

time frames to predict the next phase of the market

so whether that phase is a pro-trend run or whether that phase is just a counter

trend pullback it's those phases that are made up of

price action back on the lower time frames

so those higher time frame runs they are made up of lower time frame price action

and then that then forms the higher time frame candles and market structure which

we can then use in our analysis to help us forecast the next hard time frame run

so that's essentially the cycle of multi-time frame analysis that is the

fractal order flow so we analyze the higher time frames so

that we can forecast those large runs and trends but we then drop down and

then we analyze the lower time frames to not only to help us time our trade

entries and our exits with a lot more accuracy

but we also use them to confirm what may be happening on the higher time frames

so this really is essentially the secret source of how we achieve the holy grail

of a high reward to risk and a high strike rate strategy so what happens on

the higher time frame first must happen on the lower time frame so let's take a

few examples and we're quickly going to go on the charts so if you are sitting

in a dark room with your brightness turned up my charts are unfortunately

white so just you may want to turn down your brightness so you don't blind your

eyes you have been warned okay so we have seen that a run on a

higher time frame is a trend on a lower timeframe so what does that actually

mean in reality well as we now know right what do we have when we have a

bullish trend we have a series of higher highs we pull back to form what maybe

potentially be a higher low which is then confirmed when we break that high

we break that swing high we break structure to form a higher high we pull

back to form a higher low we make a series of higher highs higher lows

higher highs and then when that high low is broken and we form a lower low that

is then when we get a confirmed trend change and then we pull back to form a

higher high lower low higher high and lower low now each of those phases so

the pro trend run the counter trend pullback the pro train run the counter

trend run the ball called runs right each individual part is called a run and

overall that will give us our higher time frame trend right so in this

example the blue line is our high time frame structure

so again higher time frame can be any single time frame it's just higher than

the one then the other time frame you will be

comparing it to right the lower time frame is the one in the orange line

so like i was saying we have those pro chain runs and then there's pull backs

which also runs um and they collectively make up a trend and then again we have

the pro trend run is now bearish the pullback is a counter trend run and that

makes a overall bearish trend right

now on the lower time frames that bullish leg right where the higher time

frame is forming higher highs it will also be forming higher highs and higher

lows on the lower time frame but because price is fractal what you

will see is price will make higher highs higher lows higher highs higher lows and

higher highs now as the higher time frame wants to have a pullback right

what may happen depending on what lower timeframe you're

looking at is a lower time frame we'll switch trend in order to facilitate the

higher time frame to pull back so then you see that we take that low out right

we get that first change of character with a lower time frame then switch is

bearish we get a confirmed double low lower high and lower low however that

bearish trend on the lower time frame is reasonably short-lived why because the

higher time frame is bullish and it was just a pullback right it was just a

counter trend higher timeframe pullback whilst the lower time frames were

bullish now when we expect a higher time frame

high low to form what do we expect in the lower time

frames to give us confirmation that this may be forming because remember a higher

time frame or a low on any time frame right so a higher low is never confirmed

until we get that break of structure so we never know where it's going to be but

what can we use to potentially confirm we can look for a change of character

but more specifically in this case we can look for that change of trend on the

lower time frame the orange line here where we get that higher high we get the

pull back and then we get the higher time for a break of structure right and

we continue to form that series of higher highs and then again price starts

to end the hard time frame run after the hard time frame break of structure what

do we expect we expect a higher timeframe pullback now what can the

lower timeframes do it can then change trend to show or confirm that the hard

time frame pullback is now commencing it's a lower time frame now switch is

bearish lower high lower low lower high lower low and then it switches bullish

again giving us a signal that the pullback may be over the hard time frame

pull back be over the lower time frame now

switches trend to switch bullish again give us indication that the next higher

timeframe pro trend run may be happening so now we can target that weak high

right whilst the lower time frames remains bullish until we get all the way

up here now what can sometimes happen right

depending on what you know how how big of a gap between the higher time frame

you're looking at and they are the lower time frame is that when your higher time

frame starts to pull back

the other lower timeframe that you're looking at it doesn't always have to

switch bearish right because sometimes you could have quite a big swing move up

on that lower time frame and then when the higher time frame

starts to pull back here you will see a substructure lower high and lower low

right this is a substructure break but at that time this is the swing low this

is the higher low on the lower timeframe and that is the higher high now when the

higher time frame pulls back to form a higher time frame higher low right

this low here on the lower time frame is never breached so actually they both

stay bullish this whole time but you just see that substructure break and

then you see that minor break of structure and then the switch is bullish

again right and we get the high right so just kind of want to drive that point

home there wants to delete some of these drawings to clear up this all up is that

we expect the lower time frame to change trend right in order to facilitate a

high timeframe pullback but it's not a hard and fast rule right sometimes it's

not always going to switch bearish in order to do that especially if the time

frames are reasonably close so imagine how a hard time frame in this case is

the four-hour chart and the orange line our lower time frame

is the 15-minute chart that's not a massive gap between those two time

frames so a lot of the times you will see that you'll get a four hour pullback

like here and the m15 will never switch trend either okay so sometimes that will

happen right and then we move up we form a

higher high on the lower time on the higher time frames right

and then this is again where potentially right we're going to obviously look at

more confluence as we learn more concepts as we go later in the course

but just to get you thinking let's see we see a big higher time frame level up

here big supply zone and we are anticipating that potentially the higher

time frames the four-hour chart may reverse and the trend may end and we may

get a lower low so we want to be aggressive we don't have to do this we

could wait for the four-hour to switch bearish first we could do but maybe we

want to be a bit more aggressive and we want to anticipate that the four hour is

going to reverse what we can do is drop down to a lower time frame so let's say

the 15-minute chart and we can wait for the 15 minutes to switch bearish so when

the orange orange line takes out that high low to form a lower

low and we get that bearish trend change at a minimum that can signal that the

four-hour pullback is starting right because we can still expect a four-hour

higher low at this point right because we expect this to be a strong low

because it took out the height so when we get that 15-minute change of

character and the 15-minute switch is bearish at minimum we can expect the

four-hour chart to pull back but we are also anticipating that

potentially we may get that four-hour break of structure

so the point here is that if you're anticipating a higher time frame

reversal you can wait on the lower time frames to

wait for the lower time frame to switch bearish first so when we take out that

low on the lower timeframes we are now confirmed bearish from the lower

timeframes right and we can position ourselves short with the anticipation

that potentially this will break but of course it's not confirmed until we get

that movement there now when prices then bearish let's say

in the m15 and the price which is bullish again showing us that now the

four hours likely to pull back to form that lower high right and now when is

that pullback going to be over well the m15 is going to switch bearish again

right now we can have confidence that the lower high may be in place right

it's never a guarantee because the m15 could switch bearish and then it could

switch bullish again and we could have a deeper pullback it may want to come up

higher right and then it could switch bearish again right the m15 and now the

lower high could be in place but we're just trying to stack probabilities in

our favor and one of the concepts that we use right is changes of character

looking at multi-timeframe analysis waiting for that to switch bearish and

now that can give us an indication that potentially the four hour low high is in

place and we are now ready to run this low so now you can really kind of see

that that fractal relationship right with uh you know the time frames where

what will happen on a higher time frame so this this switching bearish or this

run you know putting back it's going to happen first on a lower timeframe so

you're going to get that bearish trend change and then the four hour will

potentially switch bearish okay so yeah i hope you make that makes sense

this is quite a reasonably simple and clean diagram looking at two

just two time frames together but let's take a look at a slightly more

complex example

okay so this diagram is a little bit more messy as there's a little bit more

going on but let's just slowly go through it and see what we have here so

this time instead of just looking at two time frames we have four time frames

now we have them as the daily the four hour the m15 and the m1 but again this

is not time frame specific this can apply to any set of time frames that you

wish to view as just as long as they are in time order okay so what i mean by

that is this could be your monthly right this could be your daily this could be

your four hour and this could be your m15 right they just need to be from the

higher time frame and we work our way down but in this case let's keep it

simple right the gray line is our daily timeframe so as you can see here it's

kind of faded at the back but we have a daily higher high

the daily then pulls back and then we have the next daily pro

trend run there now as the daily moves up right as we've just seen what would

that be on the four-hour chart that would be a series of higher highs and

higher lows on the four-hour chart right as the daily makes that run now what can

give us an indication that the daily is about to switch bearish we get a lower

low right the four-hour switch is bearish we then get a lower high and

then we get a lower low now what can give us an indication that

the daily high low is in place we can see the four hour switch bullish again

right so it doesn't quite switch push straight away right but then it switches

bullish there and now that can give us an indication that potentially the daily

higher low is in place and now potentially we're going to get that

break of daily structure and we're gonna get that daily high and the four hour

continues bullish and then finally we get that daily break of structure and we

continue on making higher highs and higher lows right so that's the

relationship in this case between the four hour chart

and the daily chart but what do we also have within those four hour runs right

that's a run that's a four hour pullback which is a run that's a run that's a

full pullback well then within each of those runs right a run on a higher time

frame is what it's a trend on a lower time frame so that four hour pro trend

run right that one move up on the four hour chart is made up of a series of

high highs and high lows on the 15 minute chart right we have that trend

within there now when that four hour pro trend run that high high comes to an end

and it pulls back right that counter trend for our pullback what happens the

m15 breaks a low it forms a lower low and it switches bearish right and we

come back now when that four hour high low is likely to be in place what is

going to happen the m15 will then switch bullish we're going to break the

structure that change of character in the m15 and we'll move up so on and so

forth and then we'll break that low pull back break the high again okay so you

can see that the m15 trend makes up the four hour runs right and that four hour

trend makes up the daily runs okay so on and so forth so then

you can start to see how you're piecing those three times frames together to

really give you an indication so like i was saying right when when we look at

the gray line the daily line and we have price forming that higher high

now what can be the first indication that the daily pullback is going to

occur well the one that we looked at is to wait for the four-hour low to switch

bearish which is like the four hours of the green dots the bullish trend right

then it comes down and we get the red dot here because we get a four hour

lower low so that then confirms that the the daily chart

potentially is pulling back now and we have a lower high sorry a higher high

here on the daily chart right but how could we potentially get even even

earlier if we were a bit more aggressive is we could look at the m15 and we can

go okay the m15 has broken stretches the downside which tells us that the four

hour may be pulling back now potentially the four hour we can anticipate is going

to switch bearish and because we think that before maybe switching bearish then

we can anticipate that actually we're gonna get a daily pullback so that means

that we'll see a sustained four-hour daily trend and we saw that first on the

m15 right the m15 told us when it formed a lower low that the four hour was going

to pull back and when the fora switched trend and broke that low to

form a lower low that told us that the daily was pulling back right and the

same thing here the first thing that happens is the m15 switch is bullish

which gives us a sign that potentially we're gonna get that four hour counter

trend pullback right because the four hour is bearish at this point but the

m15 had to switch bullish to give us that first sign

all right and then when the 4r came up here and broke that four hour lower high

to form a higher high that then tells us that potentially the daily higher low is

now finished the pullback is over and we are about to switch bullish and get that

breaker structure right but it all happened on the m15

first the m15 is your first potential indication that everything

above is about to switch right so on and so forth so this kind of

circle here where i've just kind of essentially viewed this as a magnified

section of price action right so if we were to essentially just carve this bit

of price action out and then zoom right into it what we can see is just part of

that daily leg right that one daily leg is that gray line that one daily run is

made up of what it's made up of of a four hour trend with a series of higher

highs and higher lows those four hour runs that single run

there that pro trend move is made up of a trend on an m15 time frame the orange

line when the four hour wants to pull back the m15 will most likely switch

bearish until it's finished its pullback then it will switch bullish right and

then the four hour will continue and all of that is just part of one daily leg

so the four hour is bullish during the daily leg the bullish daily leg dim m15

is bullish during the four hour leg then bearish

and then bullish again so it switches trend multiple times in just one daily

run and then what do we also have

within the m15 single run there like that pro trend 15 move

the dotted line here is the m1 the one minute chart so that one 15 minute move

is made up of a multiple series of higher highs and higher lows on the m1

when the m15 is about to pull back we get a break of structure on the m1 the

m1 switch is bearish and it has a trend right so on and so forth right hopefully

you really started to see how all of it is connected and it all does the exact

same thing except just the lower time frame you go the quicker it happens

so this is why it all comes back to this very simple sentence that a run on a

higher time frame right that that one straight move is a run that one straight

counter trend move is also run but those runs are made up of trends on

a lower time frame so that lower time frame trend essentially has to change

for that pullback to occur right and then it changes again for that pullback

to go um and then the more you zoom out the more you'll see

so right if you were to kind of copy and paste this whole section of price

section right you know multiple times up above

right and we had the daily chart going on like this and then you have all of

the moves within that right and then you have you know that's all the four-hour

chart very horribly drawn here and then within that you've got the you know the

the m15 right making all of that all within there and

then you'd have the m1 or within that right and you have this continuing then

what would that be overall on the monthly chart you would see one line up

one pullback and one line up right and that's just

the fractal nature within the fractal nature within the fractal nature of

everything that is going on there so let's take a look at kind of one last

example a theoretical example in the charts just so we can kind of start to

now piece together um a bit more how we can kind of you know base a trade idea

um around this concept so this particular sort of line chart

diagram of price action you should be getting pretty familiar with now right

but kind of building upon this exact same example each lesson now with

each new concept that we learn so let's slowly go through this with

everything that we now know about the fractal expectation of order flow and

that they run on a higher time frame right is a trend on a lower time frame

so we always start on the higher time

frames for our overall directional bias then we work our way down right for that

timing and increased refinement so in this case the four-hour chart is bullish

we have a series of higher highs higher lows and then we get that break of

structure what do we expect after a break of

structure we expect a pullback on that time frame so because this is a

four-hour time frame we expect a four-hour pullback right now

once we start to see uh price pull back on the m15 time frame

so in this case the m15 is the blue line right if there was say you know a minor

and 15 low here price would then break that low we would see that miner break a

structure on the m15 to the downside that can then give us a signal that

perhaps the four hour swing run is now over right because we have seen that m15

change of character right when we get that substructure break here as well

confirming now that the m15 is bearish right we have a bearish trend on the m15

the blue line to show us that the four hour chart may want to pull back

so now the m15 has changed character and the m15 is bearish the four-hour chart

is now likely pulling back we can expect price to pull back below the equilibrium

right below this red line which is the equilibrium of this swing move so down

anywhere into the discount pricing that is where it's most likely or the highest

probability doesn't have to right but most probability where price will pull

back on the four-hour chart so looking at the m15 bearish trend

right we can see it forming a series of lower lows and lower highs right and

then we can mark out the premium discount of the m15 trend as well if we

want to take these trades right so this would be pro and 15 trends because the

m15 is bearish and we can take those kind of short term intraday trades in

the direction of the m15 trend but we have to be aware that it is

against the four-hour trend so although we are pro and 15 and we can be looking

for shorts we have to be aware that this bearish trend is probably not likely to

continue that long and as soon as we start to get down towards sort of the

discount of the four hour bullish leg

right it's becoming lower and lower probability to be

looking for shorts because at any point in time that four hour higher low could

kick in right and we could then start that next swing run to the upside

so when price has now pulled back into the discount pricing right so as i was

saying there's an increased probability that the four-hour higher low right may

form now we don't know

when or if the four-hour higher level form it's just our expectation okay the

m15 could stay bearish the whole time right and it could break this low and

then the the four-hour would then be bearish

right but until that happens we run with the assumption that it's

more likely and more probable that a higher low will fall

now to give us you know increased confirmation that a

high low may be forming and that we're not just going to continue and reverse

the downside on the four-hour chart we can wait for a bullish m15 change of

character to occur right we don't have to but right now i'm just talking kind

of about a really high probability example okay we'll kind of get into more

advanced ways in which we can get in much earlier but for now we're just

looking at kind of this this this i guess high probability utopian example

in the markets okay just so we understand the concept

so the m15 is bearish we're now in the four hour discount of the bullish leg

and we are waiting for the m15 to switch bullish again to confirm that the higher

time frame intentions are true and that we're potentially going to get that four

hour higher low to then target that next bullish swing run so now that we get

that change of character that after a series

of lower highs and lower lows on the on the on the m15 chart the m15 chart now

switches bearish now we don't just want to buy straight away of course you can

but we want a little bit you know more increased refinement for that so what do

we expect after an m15 breaker structure we expect an m15 pullback now how far is

that m15 pullback likely to occur well we never

know for certain but we can use the premium and discount of this four-hour

leg right to look to buy within the discount prices to increase our

probability to increase increase our strike rate and increase our risk reward

so when price is pulling back what can we do

to give us an indication that the m15 high low may be in place and the m15 and

the for our leg is about to you know get that next bullish leg we can drop down

to another lower time frame and in this case the orange line is the m1 right so

we're just dropping down again and again to give us more indication to get all of

these uh time frames in sync to sh you know to

give us that extra confirmation that everything is about to happen okay so in

this case the m1 is bearish right for the m15 to pull back what's going to

happen the m1 is going to switch bearish so we're in a bearish trend in the m1 so

then we wait for price ideally to pull back into the discount of the m15 leg

and then we wait for the m1 to switch bullish so when we get that change of

character on the m1 when we get that minor break of structure that can now

give us a good indication that potentially the m15 higher low is in

place right confirming the four hour higher low now we can what do what after

an m1 break of structure we expect and then one pullback and then we can wait

for the m1 to pull back into the discount of the m1 leg right again

giving us even more confirmation extra refinement that can now be our first m1

higher low confirming the m15 high low confirming

the four hour higher low confirming that the trend is going to stay intact and

now all systems are go to now target the weak for our

higher high right this would to to to target the weak high because it never

took out the low so in theory this should be weak and now we had all the

confirmation all the time frames are now in sync and this is a very very high

probability area to then look for that swing position with m1 or even you know

15 second potential even five second refinement

right which we're gonna get into and you have now just used all of that to get

insane refinement insane confirmation to capture the four hour leg and

potentially further right we could be at the bottom of the start of a daily trend

and you can that is essentially the secret source of how you achieve these

high risks toward um yeah high strike rate trades where you wait for all time

frames to be in sync and then you target those higher time

frame um yeah expectations of where you see price will go so

hopefully it's all starting to make sense hopefully it's yeah just starting

to click now i'll just go through a few more things and then we'll hop on the

charts after this to show you um you know how this actually looks in reality

and price action uh yeah really just start to get a lot of practice so we can

get very very familiar yeah and comfortable with it

so as we have clearly seen price is fractal

what happens on the higher time frames must first happen on the lower time

frames now when we are mapping our structure on

the charts i would highly recommend that you use a set number of time frames to

do so now the reason why is because

if you start flicking through an endless amount of different time frames you can

end up just fitting the price action to the narrative that maybe you want to see

and you'll most likely just end up getting thrown about by the markets in

the long run so if you want the best possible chance

of achieving consistent results and what is ultimately a random game then you

need to be consistent in the variables that you have personal control over

right so i'll give you a kind of general

example that is kind of based more on my own current personal training style

so i use the daily time frame to give me my overall high time frame perspective

now i will also look at the monthly and the weekly time frames but i will only

be looking at those you know once a week really because the price action on those

time frames and you know the market structure on those time frames they're

not really going to be changing that often right the monthly and weekly gonna

take weeks and months to to sort of play out and shift

so i'll then use the four hour time frame to give me my overall narrative so

this is where i really start to build the story of price action and then i'll

drop down to the m15 the 15 minute time frame to give me more

of an immediate bias so essentially that's the direction that i want to be

training in that's what i use the m15 for and i'll drop down to the one minute

time frame and sometimes lower so sometimes i use the seconds time frames

to just give me that extra timing that i need to execute my entries

so essentially the way that i use the daily time frame is to show me when is

the four hour trend likely to turn around

so if the daily is on a bullish run right and it breaks a daily high to form

a higher high what do we then expect

we expect the daily to pull back right so the daily time frame is then telling

me that the four-hour chart is likely and potentially to switch bearish soon

uh bearish soon so that the daily chart can then start its pullback right

but then because i'm only expecting just a daily pullback

i can then know that the four hour bearish trend is probably not likely to

last very long right because it's just a daily pullback

so then when i analyze the daily and i think that it has now pulled back to an

area of fair value where the daily higher low is likely to form

i then use that information to tell me that the four hour bearish trend is now

more likely to end and then the four hour is likely to switch bullish again

to continue the daily bullish pro trend run

so that's how i use the daily chart for market structure

it's mainly just to help me see when the four hour trend is likely to turn around

so then when i'm looking at the four hour chart i'm essentially asking myself

you know whether the four hour is in a continuation phase or if it is in a

counter trend pull back phase and then that will then determine how

aggressive or conservative i will be with my entries and with my management

depending on whether i will be trading against the four hour trend or if i'm

trading with it i will then use the m15 to give me

confirmation of when the four hour continuation phase may be ending and the

counter trend pullback may be starting and vice versa so i also use that to

show me when the counter train pullback is finished right when the four four

hour pullback is finished the m15 then switches trend again to show me that the

four hour continuation run may be about to commence

and then finally the one minute time frame

and sometimes lower is then used for that last extra bit of timing to confirm

those turning points in the m15 right and this is where i will then look for

my entry models to enter my positions okay so the four hour and the m15 for me

personally just those two time frames alone are

probably where i spend over 95 of the time looking at and analyzing when i'm

on the charts and just yeah just looking at the market

i will only drop down to the m1 time frame when i've seen everything i need

to see and price is already in my higher time frame points of interest when it's

in an area of higher timeframe value and that is only then when i will use the m1

or lower for my execution because if you're just sitting on the m1 chart all

day you're going to see tens or not hundreds of entries a day and you're

literally going to get slapped about by the market and you're going to wonder

why trades aren't working out or why they're turning around straight away and

it's because the m1 is going to be constantly changing trend every few

minutes so that's why we build the higher time

frame narrative because it's the higher time frame moves right those higher time

frame runs and those higher timeframe pullbacks it's those higher time frame

phases that i am personally interested in trading because that's where the high

reward to risk is so i'm just solely using the m1 for

increased refinement to get a tight entry and to get a tight stop-loss

but also to give me that extra extra piece of confirmation to make sure as

many time frames as possible are in sync and confirming what i think i'm seeing

so again for me personally the four hour and the m15 are my most

important time frames when it comes to market structure

so in very very simple terms the four hour gives me my overall higher time

frame bias and then the m15 shows me sort of the intraday direction that i

want to be trading in now we'll get into all of this in even

more detail as we go through the rest of the lessons and specifically in the

trade plan module where we will discuss the different time frames and you know

the criteria that you may personally want to use for each of those time

frames depending on your own style your own trading personality and whatever you

know lifestyle constraints that you may have because of course you know some of

us may have full-time jobs some of you may be part-time some of you may be

trading full-time and that really will depend okay but again we'll get into

this in a lot more depth later on but here's another very simple overview

of how you could utilize a set number of time frames for market structure if

perhaps you wanted a slightly more longer term perspective you know like i

was saying potentially if you have a full-time job you know where you can't

actively monitor the charts on those very low time frames

so essentially you can use the monthly time frame for your hard time frame

perspective the daily for your narrative so you know seeing if you're trading a

daily pullback or if you're trading the daily pro trend run

and then you will use the four hour to give you your immediate bias of the

direction that you actually want to trade in before finally dropping down to

the m15 to use that for your execution to time your entries with more

confirmation and refinement so make sure you use multiple time

frames to you know really know the higher time frame narrative and then

actively monitor the lower time frame price action and allow the trade setup

to present itself now in the next lesson we're about to

hop on the charts and actually apply all of this theory to you know real world

market examples but before we do that in a minute i just want to end this theory

lesson on one last example to make this really important point hopefully

starting to really sink in if it hasn't already

so when we are in a four hour bearish trend

the expectation so the expectation order flow is for the four hour to keep

forming lower lows and lower highs and that is what we are anticipating

until we are proven otherwise but as we now know in order for the four

hour to create a new lower high we need to see a bullish trend form on

the lower time frames so that the four hour can actually pull back right

so we will first see that shift in order flow on the lower time frames to switch

bullish which then signals to us that the four hour may be now pulling back

to form that potential swing lower high now when price eventually pulls back and

it returns to our previous four hour lower high

because the overall four hour trend is bearish

and there should be a strong lower high our expectation is for price to sell off

from this area right however it does not have to

remember anything can happen in the markets anything so as price develops

around this area our mission is to observe its development and listen to

what the market is telling us in a neutral state of mind

so the lower time frame structural development within those higher time

frame points of interest that can really help guide us to be in

the flow of the market and execute accordingly and be in harmony with the

market now i know sometimes it can be pretty

confusing because on the one hand i'm saying that

we are supposed to be completely neutral in the market

but then on the other hand at the same time

we do have a trend bias and we have the expectation of order

flow so surely these two things are

contradictory right how can you be neutral but also have a directional bias

and have an expectation of the direction of order flow

well this is essentially how you do it you understand what is the more probable

situation but you are not attached to that outcome having to happen

you don't care either way you just let the market show you the way

and you adapt to what it shows you so all of the technical analysis tools

and the concepts that we use they're just a mechanical framework to

help guide us through the order flow of the market

so as bruce lee says be like water my friends

flow with whatever way the market wants to go

let the lower time frames give you the confirmation to show you the higher time

frames true intentions don't fight the market from within

with your own bias and your own attachments

master it from above that is how you evolve toward the light