Market Structure

Market Structure To define the market structure we will observe the sequence of high and lows of the market SAB indicato

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Market Structure To define the market structure we will observe the sequence of high and lows of the market SAB indicator, it is included in a new version of the TFX Control indicator, but this should be somewhat visual, it is not necessary an indicator that tells us what the market structure is, we must have the ability to see it with the naked eye. We need to see harmonic movements of the price, I mean the context when I see in a bullish structure strength in the rises and weak in the retracement. We are going to separate the market into two phases, ​Rally Phase​ and ​Drop Phase​, when we see higher highs and higher lows we know we are in the ​Rally Phase​ and when we see lower lows and lower highs we know we are in the ​Drop Phase​.

Sequence of a Trend Strongest and weak continuous movements will define the trend, I am going to show you a diagram of what can be expected technically from a sequence, but I clarify that this is not accurate, timing is very important to stay within an idea in the market.

The beginning of the sequence is a Fakeout, price makes a trap and changes direction, what follows is strong rally and weak retracement we will observe approximately 4 clean breaks.

Then comes a movement that is known as "symmetry", price makes a strong rally and reacts in the middle of the momentum, without any visible support, after that happens a fakeout and price breaks the minimum, that is the change in trend, which we call "Structure Breaker".

this whole sequence can be expected in the Drop Phase, as I always say, practicing and observing all this in a simulator helps to better identify the sequence. I personally never saw anything from Ifmyante on this subject, instead Hanzo talks about 3 rally movements and phase change, Mansor Sapari only indicates that the entry is at FO or QML level (it is the same, he speaks of QML, but it is the same ) to the opposite FO or QML. I personally do not follow "to the letter" this sequence, I look for confluence between TF, if I see H4 in the drop phase and in H1 I also observe a drop phase I will try only sells, of course if trend is very extended and near a demand or support I will not try. This is how I establish and I consider that the different ones must be classified TF: Intraday: 5´, 15´ Short term: 30´, 1 h, 4h, Daily Long term: Weekly, Monthly NOTE: close attention when the same support or resistance match in different spaces temporary as this will give more chances to A possible bounce upon reaching them. Possible duration of an operation (according to temporary space in which we will operate and sticking to a trend) Monthly: it can last several years Weekly: it can last several months Daily: can last several weeks 4 Hours: can last several days

1 Hour: it can last 2 or 3 days ½ Hour: can last 1 or 2 days 15 minutes: it can last from 0 to 1 day 5 minutes: it can last 0 days Keep in mind that the spaces large temporary influence small ones by what would be a very good strategy to establish the trend in a large temporary space and enter his favor every time he gave a buy signal at smaller temporary spaces, until it terminate the trend of temporal space big. The smaller the temporal space in the one that operates the most noise will be so it will be more hard to follow the market. Traders that operate in temporary spaces under 5 minutes will be exposed to movements that have more to do with chance than with the market situation.