All language subtitles for 2 Mechanical Internal Structure + CHoCH

okay so now we have looked at the basic market structure theory and we've looked

at it on you know really nice sort of simple

uh utopian examples on those you know line chart diagrams those annotations

obviously when we go to apply that in the real market it's a little bit

different because we're going to be looking at japanese candlestick charts

okay so

before we kind of get into that i just want to do a very very kind of overview

quick recap of what we just looked at in the previous lesson right so let's say

price is in a british market and it is trending to the upside so price makes a

swing high it pulls back to you know potentially

form that swing high low right but it's only once price moves to the upside and

it actually breaks swing structure so it breaks this swing high this is what we

call a boss okay we refer to boss as the break of swing structure so price breaks

this swing high to now form a higher high

it's only once we get that breaker structure that we can then look back and

know for 100 certainty where the swing low is okay so the swing low is then the

lowest point that went on to break the swing high but we only can confirm where

that high low is where that swing high low is only once price breaks a high now

of course you know we we can anticipate down here

um when we're looking to trade that potentially this may be the high low

forming right and we can buy down here but we never know and it's never

confirmed that this is the high low until we get that break of structure

okay so then price break stretches the upside and it starts to form that higher

high so what do we expect after a break of structure we expect a pullback on

that time frame so the first concept that we've looked at to help us

potentially signal when that swing runs so when this

swing run may be finished and when the pullback may be starting is a change of

character okay so change of character is when the

internal structure so everything between the swing high and the swing low

everything in between that i just keep it very very simple and i refer to that

as internal structure so all of the little price movements that you'll see

between the big swings in price i simply just refer to those as internal

structure okay so when we get that swing break of

structure and we form that swing higher high

to give us a signal that potentially the swing run this big you know pro trend

move is over and that the pullback is starting the swing pullback is starting

we can look for the internal structure to first switch bearish okay not the

swing structure but the internal structure we look for the first sign

that that may be shifting bearish to facilitate the swing to pull back so

what i mean by that is you'll see little movements like this in price on the way

up okay they're not swing pull backs they're just small

minor movements right and eventually after making a series of

internal higher highs high lows higher highs high lows higher highs eventually

you'll see price move down and it will take out that internal

low to make an internal lower low okay so there's little movements in price the

first time that kind of shows that sign of weakness right after a series of of

higher highs high lows higher highs higher lows higher highs and then we get

that shift and we take out that internal low to make a lower low that is what we

refer to as a change of character okay so at this point here when that first

happens the internal structure is now bearish okay but the actual trend that

we care about the swing trend is still bullish right because the swing low is

down here right this low here so this here would be the range right you can

mark that out with a horizontal line the current range you were within that is

the swing low okay and now at this point let's say we assume this

is a swing high we can then mark that out and and say this is our swing high

here okay so now the internal structure has had a

change of character so the internal structure has switched bearish but the

swing structure is still bullish okay now we can anticipate that we're going

to get that swing pull back all right and the internal structure will most

likely make those internal lower lows and internal

lower highs now to anticipate where the next high

low may form right so that we get that next thing move

one of the things that we can look for is for the internal structure

to switch bullish okay so we look for the internal

structure to have that bullish change of character okay so it's that first sign

that potentially the internal structure is shifting to uh realign itself with

the bullish swing trend okay because the internal structure was

bearish at this point right it's making a series of internal lower lows and

lower highs but then eventually we get that internal higher high right where we

get the bullish change of character okay and now the internal structure right all

of this has now realigned itself because this is now bullish which is in line

with the swing trend decay and the swing trend is this low to this high right so

that's essentially what we're using change of character for it's extremely

aggressive because all it is is it's the first little little sign

that the internal structure is shifting whether that be bearish up here right

where we get that bearish change of character that can potentially signal

it's not a guarantee but potentially signal that price or the swing is now

pulling back to have that swing pull back right and then when we get a

bullish change of character that is the first potential signal uh from a

structure standpoint that now the internal structure has now realigned

with the swing structure because they are now both bullish right and that is

just one signal that we can use that potentially the higher low is now

forming and price is going to go on to target that weak high okay but you must

understand that this uh concept on its own change your

character on the internal structure it's very very aggressive okay so this is why

as we go throughout the course you're gonna learn how to pair this with a hell

of a lot more compliments okay but obviously we need to learn each

concept on its own and really master that before we move on to the next uh

you know piece of confluence that we use um just so you know we really really

need to understand it okay so

in theory that this is how we kind of define the difference between swing

structure and internal structure and then how we are using breaks of

structure so that's when a swing higher swing low is broken that's a breaker

structure a boss and then this here the internal

structure i basically only will will draw on uh when we get those initial

changes of character okay so i'm not going to draw on every time an internal

low is broken like this okay because for me it's pretty irrelevant it's very tiny

structure it doesn't mean a lot all i care about is the first time the

internal structure shifts okay so when it's making a series of internal higher

highs higher lows higher highs higher lows the internal

structure when the first time that internal structure then makes a lower

low i then will mark that out as a change of character likewise i'm not i'm

not labeling all of these okay because that's just the internal structure

staying bearish but then once we get that first sign of an internal higher

high right where it takes out the internal lower high to make a higher

high i will then mark that as a change of character okay so i'm not marking all

of this in here because it's pretty irrelevant

okay now one thing i'll add as well is i'm

only really looking at changes of character uh in the live market when i'm

trading when it comes into areas of of high value okay so obviously we're going

to learn this later in the course but let's say we have a nice big demand zone

down here and and this poorly drawn orange

rectangle uh is where i would be looking to buy what i'm going to wait for is a

little bit of confirmation and i'm just looking for that internal change of

character right the entire structure to switch bullish okay just because it

gives me that little bit of confirmation that potentially the internal structure

is now shifting in my favor it's confirming this level that i was

interested in buying from i've just waited for a little bit more

confirmation to see the internal structure switch bullish okay so when we

get that change of character i'll then mark that out and then i'll potentially

look to get along okay we're going to get into this as we go but i just want

you to understand now that i'm not labeling um you know everywhere really

because change of character is very aggressive okay because this internal

structure here if i actually get rid of it what you'll see in the live market is

you'll get that initial bearish change of character up here and then price may

pull back a little bit okay and then it may move up up here and then you've got

a bullish change of character that is a bullish change of character okay because

it's the first time the internal structure has now switched bullish okay

but where are we we're quite high up in the leg and what can happen is it can as

you've seen before in the previous lesson it can move up a bit and then we

can get a bearish change of character right then we make internal level lows

lower highs level lows and then we make an internal higher high and now we've

had a bullish change of character okay and it could go up a little bit and then

it could come back down again right and it can happen a lot because it's very

very aggressive it's just the internal structure switching so this is why we

try and pair change of character with all the other concepts that we're going

to learn okay i just want you to be getting thinking about that right now

that change of character is a great signal but it's very very aggressive

okay so the moment you first see that various change of character up here that

is not a guarantee that suddenly we're going to pull back okay so if i get rid

of all of this what could very easily happen

is uh i get the paint brush there we go is we could get that bearish change of

character but it could be a full signal and literally price could just continue

upright and the swing train can be very strong and it can keep going so this is

why on its own right it's not you know a great signal but you need to understand

how we map it and use it first and then we'll add more confluence as we go okay

so hopefully you're sort of beginning to understand the difference between swing

and internal structure okay so swing structure and internal structure really

the two main things in terms of market structure

that i pay attention to right that they're they're the the two

most important things if you can always identify where your swing high is and

where your current swing low is right then you can draw out the swing range

within and then all i'm looking for is that first internal change of character

and i will label that right so on and so forth i'm not drawing on all of these

breaks of the internal lows because they're relevant to me and then once we

get that next change of character i'll then label that as well okay now as we

go through the course you're gonna learn exactly when it's relevant and when i

pay attention to it but for right now i know i keep ranting about it but i have

to really make this clear to you now i know it seems a bit pedantic but if you

really understand this exactly everything will become hopefully

a lot more simple um as we go on so before we kind of look at an example

right now on actual candlestick charts what i kind of want to also explain to

you is the lesson you are watching right now

and the lesson that you were going to watch next after this

both of these lessons are being added to the course after the course was

initially recorded okay now the reason why i'm doing that

is because since i initially recorded the course i have just ever so slightly

um simplified my view on how i use uh and

map out my market structure okay so these two lessons here are just to

really help you keep things as simple as possible and this is why i'm really

being pedantic here and trying to explain that the two main things i'm

concentrating on when it comes to structure is the swing highs the swing

lows and then basically how i map internal structure and that i only

really care about that initial change of character on the internal structure

that's really all i care about but then obviously i'm trying to only pay

attention to that in high value areas okay but you're going to learn how to

identify those high value areas at a later date

so if i can keep it simple this lesson right here right now is we're gonna

focus on internal structure how we map it

and then how we use change of character and in the next lesson after this we're

gonna look at how i map swing structure and how you can define it mechanically

okay so this lesson's internal and change of character the next lesson is

going to be swing structure and then from then on then we're going

to look at the full chart walkthroughs just keeping it simple to one time frame

and that is where you're going to see how we combine both

swing structure and internal structure together

okay so hopefully that makes sense right so this lesson is going to be about just

purely looking at internal structure how we map it how you change your character

then the next lesson i'm going to show you how to sort of mechanically define

when your swing high and your swing low is because what i mean by that is when

price breaks this swing high to form a swing higher high and it moves up right

at this point we can get a bearish change of character here like we have

and that can signal that potentially we're going to get that swing pull back

okay but it doesn't necessarily mean that

this is the swing high just yet because price could keep going up the bearish

change of character all of that is is the internal structure shifting bearish

to give us a signal that potentially we're going to have a swing pullback

okay but when we get that various change of character it's just a signal but it

does not define that this is now the swing high

okay because what can happen is price can continue going up all right so what

i need to see is i need to see a significantly sized pullback but we're

going to look at that in the next lesson okay so hopefully i'm not confusing you

necessarily here so right now i'm going to go on with it right we're just

looking at internal structure these little movements in price action then

the next one we're going to swing stretcher and then we'll combine them

both together on the chart walkthroughs okay i'm sorry i know that's pedantic

and i'm probably taking about 10 or 15 minutes here

but i just really really have to make this simple because i'm getting you know

a few questions from from you guys when i start out this can be a little bit

confusing but if you nail this now i promise you everything will become so

much more simple in your training okay so let's take a look purely at internal

structure and how we use that to identify change of character okay so

if we just concentrate on this little uh sort of

thing that i've drawn here on the left right and we'll look at the stuff on the

right in a minute so purely for internal structure

uh the reason why these candles are all the same color is because i want to

really drive the point home that when we're looking at internal structure

the color of the candle is irrelevant so what i mean by that whether it's a

bullish candle or whether it's a bearish candle that has nothing to do with

whether price has pulled back or not okay

so you'll see this will make sense to go

through it right so a minor high is when price moves up to the upside okay right

with this one candle now what happens with the next candle this candle here

you see how it trades higher than the previous candle right that means it's

still part of the up move so we have a a candle move to the upside and then we

have another candle move to the upside because it breaks the prior candles high

so for me these both of these candles are all part of the up move right but

then what happens with this candle here this candle it fails to break the

previous candles high right so it fails to be you know part of this up move here

just because for it to continue being for that for the internal structure to

continue being bullish it would need to break this candle's highs here but it's

failed to do so right and we've now had this move down here so even if this

was a bullish candle right so relevant all that matters is it didn't break the

prior counters high so now means we've had that internal pullback okay so what

that now means is this becomes that minor high right that internal high that

fractal high whatever you want to call it there are tons of different names in

the training industry um all for very similar things unfortunately and i

appreciate that makes it very confusing so i'm trying to keep this as simple as

possible and kind of going forward i think the

easiest way is just to refer to these as minor highs and lows okay so for me all

i'm looking for is for price to break the previous candles high and that

continues to tell me it's part of the up move and in the moment that we get a

candle like this right where it fails to break the prior candles high that now

means that price has pulled back so now i can mark this out as a minor high

right because it means prices come up and it's pulled back okay so that gives

me a high now the opposite to that is a low right

you can see here price moves down the next candle breaks the prior candles low

you see how it works below okay a wick is enough right it can be a candle

closure or a wick all i care about is wicks okay type two mapping for when i'm

looking at internal structure okay i've written that over here so for internal

structure i'm purely looking at uh i draw that the line on the wick

and the price can close or wick above it okay wick breaks are fine

for swing structure i want to see a candle closure but we'll look at that in

the next video okay so again when we have a low what happens

price moves down the next candle breaks this low so it's part of the dow move

did the next candle break the prior candles low no it didn't so now we have

price pulling back okay so what that gives us is a minor low right so here we

have a minor high price moves up it pulls back here we have a minor low

price continues to move down then it fails to break that counters low so now

we've had a pullback okay so hopefully that makes sense so now if we kind of

come over to here where we have you know a series of price action what has

happened price has moved up then the next candle breaks this candle's higher

case that's all part of the up move so you can keep drawing a straight line

this candle fails to break this candle's high okay so now we have had a pullback

right then what happens

now this right so we have that down move now this candle here it has failed to

break this candle's low okay so this is a minor low now right because what's

happened now prices pull back up so now we continue to the upside and then we

take out this high here right and that confirms our minor low right so now this

becomes my new low once we take this high out here okay so then we move to

the upside all right now this kind of fails to

break the count as high so we start pulling back right

but i won't label this as my low until it takes a high

okay so this one this is one thing that maybe this here doesn't explain very

clearly but this hopefully should make it very very clear that when price moves

up it pulls back okay and that that is a

pullback so as soon as price pulls back that that for me i'll mark out as a high

in a bullish market right this is the high the internal high

right but it's not until price comes back up and breaks it it can be a wick

or a candle body closure but it's not until that high is broken that i can

then look back and go that this is my low okay but i always use the nearest

low and this is it okay all right so then price continues up

move they all break the prior account as high then price pulls back okay because

it fails to break out this candles high so i'd mark that out as my new internal

high right and it's only once price comes up and wicks it then i can look

back right and i'm just looking at the nearest candle okay and here okay this

becomes my new low right that is a low that took out the high

now what happens is price goes up but then it pulls back right and then it

takes out the low so now we have our change of character okay so you can see

how when you have loads of price action like

this i'm not labeling every little break like this with all of the orange lines

i'm only labeling it when the internal structure shifts from bullish so all of

this is bullish and then we get a bearish change of

character okay because this is the first time that the internal structure takes

out that low to form an internal lower low so that's the only one a label on

because that's the only one i'm interested in because it just shows me

that we've gone from bullish internal structure to the moment we wick break

this we now have bearish structure okay so then price comes down it all breaks

the prior candles low then this candle fails to break the prior counters low so

that's part of the pullback right and then we come down and we continue the

bearish movement okay so when we take that low this would be the nearest high

but i'm not going to label it because i only care when the bearish internal

structure switch is bullish okay so we have a dow move we have an up move

right and then we break that internal low to keep forming a lower low right we

continue trading down now we pull back okay fine but nothing happens right we

continue to stay bearish because then we continue to make a lower low okay cool

not interested i'm not interested but then what happens then we pull back and

we wick break that most recent high okay so that is a bullish change of character

right so hopefully this is starting to make sense

but what will really really make this clear is right now we're going to hop

onto the actual charts and we're going to go through some price action and i'm

going to load it candle by candle and you can really understand this so again

this is very pedantic it's very slow we're taking it slowly but you really

need to understand this so there's no confusion when we go forward okay so in

the live market i will only ever label on what i call the change of character

which is when that internal bullet structure first shifts the bearish

structure right but i'm not labeling on every little minor you know breaking

structure here whatever you want to call it until it does the opposite right

until it goes from bearish to bullish and we get that first internal higher

high after a series of internal lower uh lower highs okay

all right if you're a little bit confused don't worry what we're gonna do

now is go on the charts and we're gonna go through it watch this video as many

times as you have to to make sure you understand this before you move on okay

actually one just quick thing i want to add before we look at a price action

example um is well an example like this so let's say the internal structure is

making a series of higher highs and higher lows okay so price keeps moving

to the upside right now let's say price comes into a

nice supply level that we like and we see price move down okay and it moves up

like this and then it moves down like this

okay let me zoom in at this point here

right this is where you have to be careful

is i'm seeing some people would label that

as a change of character because they see this slow get taken and they think

that this is a lower low but that is not a change of character that is not a

valid low for what i'm looking to be broken the reason why this is not a

valid low is because this low here where my mouse is that low did not achieve

anything okay so in a bullish market

for a low essentially you know the one that we care about to be significant it

needs to have done its job so it needs to have taken out a high

in this instance this low did not do anything it did not take out this high

so this point here when price comes down and takes out this low the internal

structure has not shifted bearish right and the reason why it has not

shifted bearish is because this is the current internal low

and this is the incurrent tonal high right because you can see here higher

high higher low higher high higher low higher high high low right this this

continues right this low breaks the high to form a high high and now here we're

just putting back we have not broken the current low and we have not broken the

current high so price can do anything it wants within here right within the

internal high internal low it can go up it can come down it can you know go with

whatever it doesn't matter right at the moment the internal structure is still

bullish so you have to be really careful in the

live market that you do not mark a change of character on a low like that a

low that did not achieve a high or obviously the other way around a high

that didn't achieve a low okay because at the moment we're still training

between this low here and this high here okay so

let's say right to make this really really clear

that price has come into a obviously you're going to learn about this later

in the course uh but price has come into a nice supply level right where we would

be looking for price to potentially uh well let's just say keep it simple

potentially have a bearish move from this box here okay so what we would do

uh potentially is wait for a bearish change of character first to confirm

that this level is going to hold so we would look for for the internal

structure to first switch bearish okay so again forget about swing structure

we're purely just looking at the small movements in price those small internal

movements at this point here we want to see a

bearish change of character and where that where that change of character line

would be for me would be if i mark it out it would be this level here okay

uh bear with me one second there okay so this would be my most

recent internal low right that i would need to see go for the internal

structure to shift from bullish currently it would need to wick break

this at least for it to switch bearish okay so breaking this low here is

irrelevant it's nothing because it's between the internal high and between

the internal low so if i'm waiting for this line to go but price does not break

it okay let me just drag this across all right price does not yet break it and it

continues to the upside right i'm not just now going to wait for this low to

go because now we have a new low this is the new internal low why is this

new internal low is the new internal load because it broke the high okay so i

move my change of character line up to here and now if i was waiting for that

bearish changing of character before looking to potentially sell i would be

waiting for this low to go okay because this is my most recent no now because it

it took out the took out the higher okay but remember again don't want to confuse

you but i would always take the most recent low okay the nearest low when

we're looking at internal structure so to explain that let's say price comes

down it comes up like this then it has another little pullback and then it goes

up like that okay so the internal structure is still

bullish it's now formed an internal higher high because it took out this

internal high here now where is my most recent internal low

where is the low now that i would need to see be broken in order to get a

bearish internal change of character

it's not actually this low okay this low here right it's the nearest low so it

would be this one here okay because that's the last uh internal pullback

that we had okay so you can see how it's more aggressive

than what we do for swing structure because if this was swing structure i

would be taking the lowest point that took out the high okay so the lowest

point in this pullback right the lowest point

that took out this high that would be here but for internal structure i'm more

aggressive i want to look at the nearest low okay that i would need to see go

right so then likewise if we were in a bearish market right and the internal

structure is making lower lows and lower highs

right and then price did this and then broke that high there

again let me zoom in so you can really see it

right this for me is not a bullish change of character

okay this high here did not achieve anything

it needs to take out the load for it to be a high that i am interested in okay

so currently the internal structure is still bearish

because this was the last internal break okay so this is the current low and this

is the current high okay so price can do anything at once in

here but at the moment until this high here goes

the internal structure is still bearish okay so

at this point here if price was coming down into

let's say a a a a nice demand level right it took me a while to get out of

my mouth but there we go this nice demand level here

let me get rid of this orange line right and i wanted to get long but i'm waiting

for that shift in internal structure to shift bullish and i'm waiting for that

bullish change of character this would be the the chalk line the change of

character line whatever you want to call it this is the internal high that i am

waiting for to be wicked at least to show me that the internal structure is

shifting from bearish to bullish and we're getting that bullish change of

character so this is the high currently okay now

if price then comes down right and then takes the low whereas my

nearest internal high it's gonna be here okay so now at this point and wait i

move my line and i'm waiting for this high to go okay so then now if price

moves up and takes out this high then we've had the bullish change of

character and then we can look for price to come back and get long okay but let

me do the other example all right just to make it just to show

you when it's a little bit more i don't want to say complex but just sometimes

slightly different is let's say right so currently this would be our

high right at this point because that was the last high that took out a low so

this is my last internal high that uh that i need to see go right foot

structures shift now let's say that price pulls back and it doesn't break it

and then price comes down it messes around a little bit and now we get the

break of the low here the internal low now where is my nearest internal high

right it's not the highest one it's the nearest one so now this becomes my

change of character line this becomes my my internal high that i need to see be

broken for the internal structure to switch bullish okay so when we get that

okay boom now we've had our change of character

okay so hopefully you can kind of start to see how i view it um where sometimes

price touch can be a little bit more complex with internal structure we

always want to pick the nearest when it's bearish right when i pick the

nearest high that took out the internal low

and when the internal structure is bullish right and we break this high and

we're waiting for it to switch bearish we need to want we want to look at the

nearest low that took up the high okay swing structure is different swing

structure we always pick the lowest and when it's here we would always pick the

highest but we'll get into that in the next lesson okay so just try to keep it

simple and just try and focus on internal structure for this lesson and

please watch this entire lesson on repeat until it really sinks in before

moving on okay it doesn't have to be complicated but i appreciate uh when you

first come to this or maybe you've had other different ways of viewing the

market you know you kind of just need to empty your brain out put a fresh slate

in and view it this way

right okay so let's do uh it from here and what i'm gonna do is basically mark

out my current internal high and my current internal low so again forget

about swing structure right now and all of that we're literally just using this

sort of super mechanical way to look at the internal price action so

at the moment this would be kind of my my highest point right my internal high

and i just look back to see where is my most recent so remember for internal

structure we're always looking at the nearest low and high okay so this one's

quite uh obvious in this regard because this would be that internal lowercase so

we can draw our low from here so let's play this forward

and wait for uh price to shift okay so now we have

pulled back right this candle has failed to break

the prior accounts high so we definitely know that this is our internal high now

all right so let's play forward i'm just waiting for the high or low to be wicked

okay now we've licked wicked the high to make another internal higher high where

is our most recent internal low it would be this candle here okay

so mark that to there all right and now we can

change this up to here and play the next candle okay that broke the prior count

as high it's all part of the out move next candle broke the prior candles high

so it's all part of the out move uh okay it's good to go forward okay

that's part of the up move

okay now we have pulled back a case and now we are potentially um well we just

put him back so just wait for the internal height okay now it's been

wicked okay so we've formed a higher high now we can bring this upwards to

our most recent low okay so it seems quite simple but there are some um price

action examples where it can get a little bit more tricky sometimes to

figure out okay now we pull back nothing's happening right okay now we

have taken out that internal low right remember we'll need a wick break to form

a lower low right so now the internal structure for me has switched bearish

this is what i call a change of character right so now prices pull back

to form a lower low where is my new internal high well it's the most it's

the nearest point okay from from where this movement is so if we look at what

the price action uh occurred um we had a movement up

all right then we pull back then this candle failed to break the

prior counters low so that's that's a pullback right but then this candle

also failed to break this prior camera's lower right so three inside bars here

which is when it gets a bit confusing right but because this was the last

candle to not break that prior count as low that is still a pullback and then we

go okay so if you look back that's all part of the down move and there we go

okay so this becomes um our internal height it's a little bit confusing when

there's inside bars here okay but if you refer back to uh that little diagram i

have which shows you what a minor high in a minor low looks like right this is

where we have that pullback because this fact this candle first to break the

prior counters low all right so this becomes our new internal high once this

low goes okay so now we've had a bearish change of character this becomes our

internal low right now that's part of the down move

okay as part of the dow move right now we've had that that pullback

right with internal structure because we failed to break the prior counters low

that's fine but the internal structure is still bearish to basically sit on my

hands and waiting for either the high or the low to go

okay now the low has gone we've made a lower low an internal lower low so i'd

mark that out there but where is my most recent internal high now it's this

candle here okay

so that becomes my nearest internal high right all part of the dow move

then these two cameras are white candles they are part of the pullback okay so

these are inside bars if you don't know already an inside bar is a candle that

fails to break the prior cameras high or low so trade it's within so uh if i draw

this one see how it trades within this high here and this low here that makes

it inside bar and then you see how the next candle is white as well and that's

because it's another inside bar that trades in between the high and low of

that inside bar okay so i use an indicator for this uh if you go up to

indicators and you just search for inside bar

right i think i use like uh what's by this guy here but they're all pretty

much the same if you add that to your charts you can see up here will be over

here and you can hide it right that's what it looks like without it and then

that's what it looks like with it it's just to help you and it can really help

you uh for a few things as we get through the course right because we use

it for supply and demand zones as well i'm getting a little bit ahead of myself

but essentially these these candles they fail to to break the pride counters

lower height so what that tells me is when i see that it it's part of the

pullback at this point okay so now we have a break of the internal

low where is our nearest internal high right it doesn't stay up here it becomes

this high here right because this is our nearest internal high

all right and then we can shift this down here

okay that that's part of the down move right that's part of the down move they

continue to break the prior candles low now we have that pullback right because

it feels to break that prior count as high so now we just wait for either the

high or the low to go

did that get wicked looks like it didn't it traded exactly

the same it needs to break it okay so we are still bearish on the internal

structure and now we form the lower low okay

so at this point where is our most recent high well you can take this high

up here which is pretty much exactly the same and put it there but this is where

i am even more aggressive okay and i will always take the most recent inside

bar if there is one okay so this for me would become my newest my nearest

internal high okay and now this becomes my most recent low

part of the dow move

part of the down move

part of the up mover case and now we've started that uh internal pullback

wait for the high or low to be wicked okay now we've taken out that low to

form a lower low so we can now draw that down to here whereas our most recent

high it's this point here okay so we don't put it all the way up to here like

we would with swing structure we look for the nearest higher k because if you

look at price what happened is price came down

it moved up it came down it moved up and then all of these candles broke the

prior candles low okay so that's all part of the down move so our most recent

internal lower high is up here okay so at this point if the internal structure

right obviously it's bearish if it was to switch bullish

this would be the level that i would have marked out on my charts i would be

waiting right for this high to go for there to be a bullish change of

character okay so i'm not i'm not mapping out the internal high in the

tunnel like this and constantly adjusting it with price and live market

the reason why we're doing this exercise is so you can understand how to read the

internal price action because remember all i am interested in really from a

change of character perspective or from an internal structure perspective is

when i'm looking for obviously bearish at the moment on the internal structure

but i'm waiting for it to switch bullish if i was looking you know for that for

that bullish change of character okay so now

again we make another lower low and then that becomes our new range okay so i'm

going to leave that there i'm not going to keep going because i want this video

to be you know hours long hopefully you're understanding how sort of to read

internal structure but what you'll see as we go through the course is i'm not

drawing on all of that i'm not marking every internal structure break all i

care about is the first time that that internal structure switches from bullish

to bearish or switches from bearish to bullish and that would be my change of

character okay so we can label some of these on so like you see how price came

up it pulled back to form that internal lower low and then went up to form that

internal higher high but then what happened then we took out

that uh i'll just mark out with the chalk line right we then took out

that internal low to make a lower low okay so that would be the bearish change

of character from that wick there that i would then mark on and what is that

signal that signals that potentially we're going to be pulling back now okay

now the internal structure stays bullish for a fair amount until what so

this is where we came down remember we came up and then we moved down right so

then this was my internal high this was my internal low but what happened

did price come up and break it i don't think it did no it didn't break it

remember it didn't break above it so we never got a bullish change of character

the internal structure stayed bearish the entire time and then we continued

training to the downside right all of these candles here broke the prior

candles low it's all part of the dow move so at that point this is where i'm

very very aggressive with where i mark my most recent high i have it on the

nearest inside bar um

so then this was here price pulled all the way back up but it never broke that

internal high right so it stayed bearish the entire time and then we broke this

low okay and then this is where um yeah we've just continued to stay bearish

okay so um hopefully that makes sense of kind of how i map the internal structure

um you know yeah i i don't know how if i can explain

it any clearer than that um if it is a little bit confusing watch it um as many

times as you need but essentially

how we're going to use this in the live market

is only looking for when that internal structure shifts from

either bullish to bearish or bearish to bullish and we essentially use that to

signal that a pullback may be starting or a pullback may be ending okay so i'm

going to leave this video here now in the next video we're going to look at

how i map swing structure and how you can kind of

use a mechanical method for that and then from the videos then onwards we're

going to look at how we combine them both together and we're going to kind of

do those full uh in-depth chart walkthroughs

okay so just remember as well i've added this these kind of this lesson and next

lesson in ad hoc to the course so since the course

was initially filmed so you may hear me refer to

um minor breaks of structure or

substructure breaks but all of that all i'm referring to is what we've gone

through today in this lesson it's just the internal structure

okay so all i care about is the big swings um and the internal structure and

essentially just refer to that as minor structures so yeah hopefully that's kind

of help you help you to keep things simple and but if you're a little bit

confused don't worry watch just a few watch this through a few times and as we

go through the next lessons the penny will start to drop and you'll

see how we read price action okay