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The MOST Valuable Market Structure Video You'll Ever Watch — Transcript

by Brad Goh (The Trading Geek) · 7,690 words · 1,072 segments · language en · Watch on YouTube

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0:00If you only ever watch one market
0:02structure course, make it this one.
0:04Because if you can't read market
0:05structure, you can't trade. It's really
0:08that simple. You can have the best
0:10trading strategy in the entire world,
0:12but if you don't understand who's
0:14actually in control of price, you're
0:16going to keep entering at the wrong
0:17time, getting stopped out, and wondering
0:20why the markets always seem to be going
0:22against you. Now, I know this because
0:24when I first started trading, I blew
0:26seven accounts making those exact
0:28mistakes. But after seven years of
0:30trading and over $3 million in trading
0:32profits, I've learned that reading
0:34market structure doesn't have to be
0:36complicated. In fact, just yesterday, I
0:38made over $310,000
0:40trading the London session, taking both
0:43buy and sell positions using the same
0:46market structural principles I'm about
0:47to teach you today. So, in this video,
0:49I'm going to break down everything you
0:50need to know about market structure.
0:52from identifying swing highs and lows to
0:55understanding break of structure, market
0:58shift, internal structure and liquidity.
1:00But more importantly, I will show you
1:02how to put everything together using
1:04real trades that I've taken, including
1:06my winning trades, my losing trades, and
1:08the exact setups that I look for. Now,
1:10before I teach you anything, let me show
1:12you the trades that you're going to see
1:13in this video. So, the first trade is a
1:15long position on GU, which I made 170K
1:19in less than 12 minutes. absolutely
1:21diabolical. The second trade was on GU
1:24again, right, which is pretty much a
1:26sell position. The first trade was like
1:28a buy position on GU. After I exited
1:30that one, I actually went in again and
1:32went for a sell position because I
1:34realized that the market was actually
1:36continuing its bearish structure. So, I
1:39entered for a sell, made 140K, and this
1:42one was in around 50 minutes, right? So,
1:44if you add up both trade, technically I
1:46kind of made like 310K in an hour. Once
1:49again, both of these trades have been
1:51documented live from entry to exit on my
1:54second channel, Brad Trades. So, if you
1:56want the receipts, go and check out
1:57their YouTube channel. By the end of
1:59this video, you will see exactly how I
2:00read market structure to identify both
2:03selling and buying opportunities just
2:05like what I've done right here. Now, one
2:07of the biggest reasons traders lose
2:09money is because they don't know how to
2:11read market structure properly. You can
2:13understand support and resistance
2:15levels, liquidity, and even have the
2:17perfect entry model, but none of that
2:20matters if you can't identify who's
2:23actually in control of price. That's why
2:25market structure is the foundation of
2:28everything I do as a trader. Before I
2:31even think about entering a trade, I
2:32need to understand what the market is
2:34telling me. I need to understand the
2:36heartbeat of the market. I need to see
2:38the skeleton of the market. But here's
2:40where most traders get confused, right?
2:42Because when you learn market structure,
2:43you are usually shown these perfect
2:45textbook examples of, you know, in an
2:48uptrend, price will create higher highs
2:50and higher lows. In a downtrend, price
2:52is creating lower highs and lower lows.
2:54But then when you open a real chart,
2:56just like what you can see on the screen
2:57right now, it's nowhere near that simple
3:00because in this case, price actually
3:02went down, pulls back, goes down, but
3:04then it starts creating higher highs and
3:05higher lows right here before it
3:07continue going down even further. So if
3:10that's the case, is this a uptrend or is
3:12this a downtrend? This is where a lot of
3:14people get confused, right? Because of
3:15the fact that price is just not as easy
3:18as it seems on the textbooks. Price is
3:21messy. There are pullbacks, there are
3:23fake breakouts, there are consolidation,
3:26there are conflicting signals
3:28everywhere. And that's exactly why you
3:30need a mechanical set of rules. Because
3:32once again, the goal isn't to see what
3:34you want to see on the chart. is to have
3:36a repeatable framework that tells you
3:38what price is actually doing regardless
3:40of the market conditions. So to simplify
3:42everything, you just got to understand
3:44that the market can only move in three
3:46ways. It can only do three things,
3:48right? It can either go up, go down, or
3:50go sideways. But as we all know, price
3:53doesn't just go up in a straight line
3:54like a beam stock, right? Price has to
3:56go up, pulls back, goes up, pulls back,
3:58and then goes up. Same thing when price
4:01is going down. It doesn't go down in a
4:02straight line. has to go down, pull
4:04back, get more fuel, go down, pull back,
4:07and then go down. Right? That is why in
4:09traditional market structure sense, we
4:12say that in a downtrend, price is
4:13creating your lower highs and lower
4:14lows. In uptrend, price is creating your
4:16higher highs and higher lows, which is
4:18pretty much like an indicator that tell
4:19us that the next high is higher than the
4:21previous high. The next low is higher
4:22than the previous low, which means price
4:24an uptrend. That's really the theory,
4:26right? It's really just as simple as
4:27that. And then when price is in a
4:29consolidation when it's just doing like
4:31a sideways when no structural highs is
4:35being formed or structural lows is being
4:37formed like there's no break of
4:39structure whatsoever. It's neither a
4:41uptrend nor a downtrend right which
4:43means this is a period of uncertainty
4:45where the buyers and sellers haven't
4:47decided who's in control. So yeah market
4:49structure is pretty much the way price
4:52forms highs and lows over time. That's
4:54all market structure is. And by
4:57identifying the patterns we are able to
4:59see whether the buyers or the sellers
5:01are in control of price. So in this case
5:03on NQ the NASDAQ we can see price is
5:06pretty much creating your lower highs
5:08and lower lows right because this high
5:10is lower than the previous high. This
5:11low is lower than the previous low which
5:13indicate to us that price in a downtrend
5:16which means sellers are in control of
5:18price. In this other example where price
5:20is creating a higher highs and higher
5:22lows, this indicate to us that price in
5:25the uptrend and this tell us that the
5:27buyers are in control of price. But then
5:29when we see a consolidation just like
5:31this where the market is going sideways,
5:33this means that we just don't know right
5:35the buyers and the sellers they are tie
5:37right now. What matters is what happens
5:40after the consolidation because that
5:42determines who has taken back control of
5:44price. So in this case after the
5:46consolidation price broke out to the
5:47upside and continue creating higher
5:49highs and higher lows indicating that
5:51the buyers have took control of price.
5:53Now by the end of this video I want you
5:55to be able to answer these four
5:57questions with a lot of confidence. Is
5:59the market trending up, down or
6:01sideways? Where are the swing highs and
6:03lows? Is this a pullback or a reversal?
6:06And last but not least, who is in
6:08control of price? Those are the four
6:10questions. Every section from now on
6:12will answer each one of them. So now you
6:15already kind of know whether the market
6:16is trending up, down or sideways which
6:18means the first question is done. Let's
6:20talk about the second question which is
6:21where are the swing highs and the swing
6:23lows because this determine the range
6:25which we should pay attention to. So now
6:27allow me to show you the one rule
6:29everything else in this video is built
6:31on and that's how to identify the
6:33correct swing highs and swing lows that
6:36actually matter. Now most traders just
6:38draw every high and low they can see.
6:40like they look at a blank chart just
6:42like this and they assume that oh this
6:43is a high this is also a high this is
6:46also a high and this is also a high oh
6:48and this is also a low and this is also
6:49a low and then they wonder why their
6:51chart looks like a mess right it's like
6:53if you identify all of these as swing
6:55highs and swing lows then ultimately you
6:58will not be able to find out what is the
7:00area where you should really pay
7:02attention to I personally don't do that
7:04I've got one mechanical rule for finding
7:06the swing highs and lows that actually
7:08matter so basically What I want to do is
7:11to map out my break of structure first.
7:13So when I see price creating these lower
7:15highs and lower lows, I start from the
7:18left. I try to map out every single
7:19break of structure I can see. So price
7:22goes down, pulls back, creates a lower
7:24high, and then comes down and take out
7:25this last high right here. Very obvious
7:28sort of break of structure that we have
7:30down here. So in this particular
7:31instance, I can map that out as my
7:33bearish break of structure. All right.
7:36And then later on price goes down, pulls
7:37back, creates a new lower high, comes
7:39down, take out the low right here.
7:40Again, another bearish break of
7:42structure right here. Now that I've
7:44marked out my most recent breakoff
7:46structure, right, which is really where
7:48price took out the last low in this
7:51downtrend. This is where we can start to
7:54identify our swing high and our swing
7:56low. So our swing high is always going
7:59to be the highest point that led to the
8:01break of structure itself. So in this
8:03case price went up here, pulls back,
8:05goes up, pulls back, goes up, pulls
8:07back, goes up, pulls back, goes up and
8:09then later on comes down, pulls back,
8:10goes down and breaks structural. So over
8:12here, this is where a lot of traders get
8:14confused like, oh, is this a swing high?
8:16Is this a swing high? Is this swing
8:17high? Is this swing high? Is this the
8:18swing high? There's so many different
8:20highs right here. So I define the swing
8:23high as the highest point that led to
8:25the breakoff structure. So in this case,
8:28you want to ask yourself, which one of
8:29these high is the highest point? That's
8:32always going to be my mechanical rule to
8:33identify my swing high. So, is this
8:36higher than this one? Yes, it is. Is
8:37this higher than this one? Yes, it is.
8:39Right. Is this the highest among all of
8:41these picss right here? All of these
8:43little highs that we can see right here.
8:45Yes, it is. Okay, cool. Then that
8:47becomes a swing high. So, this is where
8:49I'll mark this right here as my 1 hour
8:52swing high. Now, what about the swing
8:53low? Right? Because now that we have
8:55identified the swing high, which is
8:56really just half of the equation, we
8:58need to identify the swing low in order
9:00to define our swing range, which is once
9:03again the area where we want to focus
9:05on. So this is where I'm looking at a
9:07price action that we have right here
9:08that happened after the break of
9:10structure, right? Because you can't
9:11identify the swing low like somewhere
9:13around here since price has literally
9:15taken out the last swing low, which
9:17means it got to be below where the swing
9:19low was previously at right now. So it
9:20got to be somewhere around here. And my
9:23mechanical rule is where is the lowest
9:25point that led to the pullback itself.
9:28So in this case, this is where price
9:30comes down, take out the last low,
9:32starts consolidating and then starts
9:34pulling back. Right? So where is the
9:36lowest low that led to the pullback
9:38itself? Right? So we come down here once
9:41again. We are analyzing the market
9:42structure that we have down here and you
9:44can see the price action is making
9:46something like this. There's multiple
9:47lows being formed right here. I want to
9:49find the lowest low that caused price to
9:52start pulling back. So in this case, the
9:54lowest low is most likely going to be
9:56this low right here. Really just as
9:58simple as that, guys. I pretty much
10:00managed to identify my swing high and
10:02swing low just by using the mechanical
10:04rules I have to analyze market
10:07structure. Once I'm done with that, then
10:09now I can clearly define that, hey, this
10:11is actually my swing range right here.
10:13which means I'm only going to pay
10:15attention to what price does in this
10:18range. This also means that I'm not
10:20going to pay attention to what price
10:21does here, here, here, here. None of
10:24this matters to me, right? All of
10:25this is just noise. This is what
10:28actually matters. When you actually do
10:30this, now you're able to focus on the
10:31present moment. Now you're able to focus
10:33on the current market conditions instead
10:36of getting distracted by all of this
10:38uh noise that you can see on
10:39the left hand side. Now what if price is
10:43somewhere around here? So price haven't
10:46broken the structural low right here. So
10:48if this is the case, we cannot put this
10:52as the swing high because the rule for
10:54the swing high is that it's got to be
10:56the highest high that led to a break of
10:58structure. So in this case, this is the
11:00highest high. But did it lead to a break
11:02of structure? No, not yet. Right? So if
11:06that's the case, the swing high is going
11:08to be at the previous highest high that
11:10led to the break of structure, which is
11:11going to be this one right here. And
11:13then in this case, the swing low is
11:15going to be this low right here, right?
11:17Which is the lowest point that led to
11:19the pullback itself. So now fast forward
11:20to where price is currently at right
11:22now. Let's move our swing high back in
11:24where it should be. And this is where we
11:27can see clear as day that all right,
11:29this is the new swing range. And in a
11:33downtrend, we are expecting price to
11:34create a new lower high right here for
11:36price to continue going down and break
11:39structure. Right? And this is where you
11:40can see price is just creating that
11:42lower highs and low low dynamic that we
11:43have established in at the start of the
11:45video itself. Now, basically the thing
11:47that confirms a swing high or low is the
11:51break of structure. So let's take a
11:54closer look at exactly what counts as a
11:57break, right? Because once again, this
11:58is where a lot of traders get faked out.
12:01So I like to define terms, right?
12:02Because a lot of people start getting
12:04confused and start to over complicate
12:05things and next thing you know they're
12:08just making face noises. So what is a
12:10break of structure? A break of structure
12:12is how you know the trend is actually
12:15continuing. It's the point where price
12:18took out the last low in a downtrend and
12:20where price took out the last high in
12:22the uptrend. So in this case, this is
12:24the break of structure. Now, once again,
12:26like I said, a lot of traders get faked
12:28out right here because not everything
12:31that looks like a break is a break.
12:33Here's what I mean. In this example
12:35right here, we can see that this is the
12:38swing low. So, we are pretty much
12:40expecting price to take out that swig
12:42low in a downtrend. So, let's continue
12:44to monitor what price does right here.
12:46Price goes down [music] and this is
12:48where it pierce right through that swing
12:51low right here. Now in this case I would
12:54not count that as a break of structure
12:56even though it took out the last low.
12:58Reason being the candlestick that took
13:00out the last low did not close below
13:03that low. Right? You can see this
13:04candlestick right here. It opened around
13:06here. It went all the way down here
13:09created the low of the candlestick and
13:11then it left a trail behind ended up
13:13closing above right here. So this is the
13:16closing price. So it closed right here
13:19and this is where the previous low is at
13:22over here. So you can see the close is
13:25actually above where price is currently
13:27at. So I try to be as mechanical as
13:29possible so that there's no room for
13:31guesswork whatsoever. So this is where I
13:33wouldn't constitute this as a valid
13:35break of structure since it's just a
13:38weak break and it's not a candlestick
13:40body close because a lot of times this
13:42could just be a liquidity sweep where
13:44price will pretty much came down here
13:46take out this low and then just reverse
13:48and hit back up, right? So if that's the
13:50case, it's a false breakout. It's not
13:53actually a valid break of structure. So
13:55if you're looking for a sell right here,
13:57you place a stop loss, you would have
13:59gotten stopped out just like this that
14:01you can see on the screen right here. So
14:03what we want to see is ideally a
14:06candlestick body close like what we have
14:08right here. So after the week break
14:10price retrace, right, retrace over here
14:13and then later on it came down here and
14:14took out that last low give us a huge
14:18bearish candlestick right here. And look
14:20at where this candlestick actually
14:22closed. It closed around here and you
14:24can see this is very low, right? I mean
14:26like significantly lower than the
14:29previous low, right? So this is where we
14:30can count this now as a valid brick of
14:33structure because now the candlestick
14:35body has finally closed below the low.
14:38So in an uptrend it's pretty much the
14:39same thing like in this case let's say
14:41this is the high right here and in this
14:44case price peels past this high and the
14:48candlestick body close above the high
14:50right here. So this means that this
14:52right here is a valid break of
14:53structure. And in this other example
14:56where price went up there and tried to
14:58take out this high right here, you can
14:59see the candlestick body did not close
15:01above the high. So this does not count
15:03as a valid break of structure. This
15:05could just be a liquidity sweep and you
15:07can see what happened after the sweep.
15:09Price continue coming down here. Now
15:10once again it's very important for you
15:12guys to actually understand [music]
15:14this, right? Because this allow you to
15:15discern what is a value breakup
15:17structure and what is a false breakout.
15:19Now back to the example that we have
15:21went through at the start of this video.
15:23Remember what I mentioned when I say
15:25that price is pretty much going to be
15:26creating lower highs, lower lows, higher
15:28highs and higher lows. It will never
15:30ever move in a straight line. Well, it's
15:32because of the concept of imbalance and
15:34balance. The market will never ever move
15:36up in a straight line because it will
15:38never have like this imbalance move
15:41where it just sustain forever. It has to
15:44find balance, right? before it can have
15:46imbalance again and then you have to
15:47find balance and before it can imbalance
15:49again. That's just the nature of the
15:51market. That's just how and why price
15:53move because of the fact that there's
15:55just not enough orders that can cause
15:57price to sustain and just keep on
16:00pumping up like a freaking rocket.
16:01Right? At some point of time it has to
16:03stop, get more fuel and then it can
16:06continue going up. Right? So we define
16:08this as imbalance and then this move as
16:11balance and then this next explosive
16:14move as imbalance and then followed by
16:16balance and then imbalance again. So
16:18balance is pretty much the pullback that
16:20tends to happen after the imbalance
16:22move. So applying the same concept to
16:25what we can see right now on the charts,
16:27you can see price just start collapsing
16:29very aggressively. Lots of selling
16:31momentum, lots of selling pressure,
16:32price just collapsed right here. And we
16:35all know that this move does not happen
16:37forever. Price can't just keep on
16:40falling down to like $0. All right?
16:42Maybe some penny stocks does that but
16:44not big indexes, not currency pairs
16:47unless the economy is going to. So this
16:49means that what we can expect after a
16:51huge continuation move, a huge imbalance
16:53move is the balance phase where we can
16:55expect price to start pulling back. So
16:58the cycle goes like this. Inbalance,
17:00pull back to balance itself out.
17:02inbalance again, pull back to balance
17:04itself out, imbalance again, pull back
17:06to balance itself out, and you can guess
17:08the next phase, which is the imbalance
17:10phase again. So basically after a break
17:13of structure, you should anticipate a
17:15pullback, right? You should pretty much
17:16expect a pullback to start to happen.
17:19And this is where you can either trade
17:20the pullback, right? You can trade the
17:22counter trend and trade this mini
17:23uptrend that's being formed right here.
17:25Or you can trade the continuation, which
17:27means try to sell and be part of the
17:29next imbalance move to the downside. Now
17:32once again a pullback just like this
17:34where you can see price start shifting
17:35bullish in the short term it doesn't
17:38mean that the downtrend is over it just
17:41means that price is finding a new
17:43balance. So yeah that's the concept of
17:45balance and imbalance. Once you
17:47understand balance and imbalance you
17:49will start seeing the same pattern play
17:52out over and over again. And that is the
17:55concept of orderflow. I call them the
17:57four phases of autoflow. And once you
17:59see them you can't unsee them. So
18:01remember just now when we talked about
18:02how there's imbalance, balance and then
18:05imbalance again. So let's zoom in at
18:07what happens during the balance phase.
18:10So during the balance phase, this is
18:12what price tend to do. It start ranging,
18:14right? Starts consolidating, right? This
18:16is where the market is going sideways
18:18and buyers and sellers are fighting it
18:21out. So like I said, they are playing
18:23the tug of war. But then later what
18:25happens is that eventually one side
18:28gains control either the buyers or the
18:30sellers and this leads to the initiation
18:33phase where price break out of the
18:36consolidation and create the imbalance
18:38move that we talked about earlier. But
18:40after the imbalance price doesn't just
18:42like go up straight and straight and
18:44just go to the boot just like this. No,
18:46before that has to happen price will
18:49move on to the next phase which is the
18:50mitigation phase which means price comes
18:53back to the zone right the consolidation
18:55usually mitigate it fill up the
18:58remaining buy orders that weren't filled
19:00the first time around during the
19:02breakout and then now they have all the
19:04orders they need to push price up which
19:06brings us to the final phase of
19:09orderflow which is continuation phase
19:11where price carries on in the direction
19:13of the breakout right so this range,
19:16initiation, mitigation and continuation.
19:20And this is how we draw our supply and
19:22demand zones. So in this case, where
19:23price break to the upside, this is
19:25actually our demand zone, right? So this
19:28is a demand zone, which means when price
19:30pull back to this demand zone, it's
19:32going to fill up more buy orders and
19:33that give the fuel the market needs to
19:36continue going up. So if price break to
19:38the downside right this is where now we
19:41have a supply zone and we can expect
19:42price to mitigate that supply zone and
19:44continue to the downside. Now very very
19:47important thing to note after price move
19:50to the downside it has to break
19:52structure. If it doesn't break structure
19:54is not a valid zone. So in this case
19:57after price break out to the downside it
20:00came down and took out that last low
20:02right here giving us a break of
20:04structure. So this means that this is a
20:07valid supply zone. However, if it didn't
20:09broke structure whatsoever, right? Like
20:12let's say price is just like this and
20:13there's a supply zone right here. This
20:15cannot be counted as a valid zone yet,
20:18right? Because we want to see that break
20:20of structure right here. So when it
20:21comes to drawing a supply and demand
20:23zone, you basically just want to draw it
20:24from the highest point of the
20:25consolidation to the lowest point of the
20:28consolidation including the wicks
20:30itself. Right? Just like what I've done
20:32right here. Okay? Okay. So you can see
20:34this becomes the entire demand zone. And
20:36as you can see this is a very clear
20:38representation of orderflow where price
20:40consolidate creating the range phase,
20:42initiation phase, mitigation phase and
20:46continuation phase itself. And this is
20:48the demand zone and notice where price
20:50pull back to it pull back to this
20:52demand. Fill up more buy orders before
20:54it can continue going up. So yeah, if
20:56you are trying to trade this and you are
20:58trying to trade the breakout and you
21:00fail to trade the breakout, do not enter
21:02right here. Do not try to chase price.
21:04[music] You got to let price come to
21:06you. Wait for the mitigation phase and
21:08then this is where you can search for
21:10another one of your trading opportunity,
21:12right? To trade the continuation itself.
21:14So this chart that you can see on the
21:15screen right now is pretty much the
21:17chart that I've used to make 310K
21:20live trading GBUSD yesterday in an hour
21:24or so. Right? So you can see right here.
21:27This is the trade which I entered for a
21:29buy position made me 170K. And this is
21:32the one where I entered for a sell
21:33position later on and made me 140K
21:36itself. And once again I pretty much
21:39applied the same market structure
21:40principles that I taught you guys
21:42throughout this entire video. Now before
21:44I walk you through both of these trades,
21:45I got something important to announce.
21:47The rules that I just covered are the
21:49easy part, but spotting them live while
21:52price is moving is a completely
21:54different skill. That's exactly what
21:56I'll be doing with you live on real
21:59charts at my upcoming live trading boot
22:01camp, the market mechanics summit from
22:04November 26th to the 28th. So, make sure
22:06you grab your spot with the first link
22:08in the description because we're going
22:09to cover a lot more than market
22:11structure. We're going to go through the
22:13entire mechanical trading system that
22:15I've used to make millions of dollars.
22:17Now, let's get back to the charts. So,
22:18on this trade, as you can see right now,
22:20we are on a 15-minut time frame itself.
22:22We just gotten a break of structure,
22:24right? which means at any given moment
22:26price can start pulling back to create
22:29like the new lower high. So I was pretty
22:32much anticipating that price is going to
22:34pull back because of the imbalance and
22:37balance thing that just talked to you
22:38guys about right after a break of
22:39structure right here. We are
22:41anticipating price to start pulling
22:43back. So I opened a lot charts and I
22:45realized that hey we are in London
22:47session price will start pulling back
22:49right now. But then I was looking for
22:51more confluences that were pretty much
22:53allow me to enter for a buy. So I zoom
22:55out and I saw that hey price is pretty
22:57much approaching this demand zone that
22:58we have right here. And we know that
23:00whenever it approach the demand zone
23:02there's going to be buy orders in the
23:03market itself. Right? So I went down to
23:05my lower time frames and this is where
23:08things started to get a lot more
23:09clearer. You can see after this break of
23:12structure right here, price shifted
23:14bullish to facilitate the pullback to
23:17this last high that we have right here.
23:19So I was like if I know that to be true,
23:21let's enter for a buy position. But
23:23instead of entering for a buy right here
23:26or right here, I waited for price to
23:28create a pullback and then waited for
23:31confirmation to tell me that it's going
23:32to continue going up. And this is where
23:34I entered for a buy right here. And
23:36notice where I targeted. I targeted the
23:39nearest lower high, right? The nearest
23:41supply zone because this is where price
23:43is potentially going to go to before it
23:45starts reversing and literally on the
23:48dot right after I exited the trade,
23:51price started reversing against me,
23:53right? So, if I were just a minute late
23:55or 5 minutes late, I would have
23:57potentially still be in the trade itself
23:59or maybe even end up losing the trade
24:01itself, right? If I place my takeprofit
24:03at the wrong place or if I enter at the
24:05wrong timing. So this is why
24:07understanding market structure is so
24:08important because it allows you to
24:10understand where to enter and where to
24:12target next. Now to show you the next
24:15trade that I have taken right here. This
24:17was like an hour or so or rather 30
24:20minutes after I exited the first trade.
24:23This is where I set myself down and I
24:25re-evaluated the market conditions.
24:27Right? I started continue looking for
24:29trading opportunities and I was like
24:32okay this is an interesting one because
24:34after this has happened right we can see
24:37that now this becomes the new lower high
24:40or rather it's potentially going to be
24:42the new lower high I cannot confirm yet
24:44but hey potentially it's going to be the
24:46new lower high since this high is pretty
24:48much lower than the previous high itself
24:51right here this is where later on price
24:54went up there pulls back and it broke
24:57structure Right? So this kind of gave it
24:59away where price came down here and took
25:02out this low right here giving us a
25:05proper internal fractal market shift
25:08right here. Pretty much just a market
25:10shift that indicate to us that this
25:12uptrend is over. This pullback is over
25:14and right now we are shooting to the
25:15downside. Now I entered for a sell right
25:18here because of something which I call a
25:20fractal market shift. This is where
25:23price took out the last fractal
25:24structure. Right? So in this case price
25:26took out this factor structure and
25:28that's why I enter for sell right here.
25:30So this is more of like a advanced
25:32concept that I tend to go through with
25:34my students in the 1% club itself. So
25:36I'm not going to go through it here
25:37because it might make things a little
25:38bit more confusing that it usually is.
25:41But basically what happened is that
25:42after price took out this low right
25:44here, I was pretty much anticipating for
25:47price to start going down and the next
25:49continuation phase to happen. Right? And
25:52you can see this is where I entered for
25:53a sell over here. And notice what price
25:55does on a micro level, right? Price
25:58pretty much repeated that same sort of
26:00like market structure, that same sort of
26:02autoflow pattern that I've explained
26:04where price pretty much did the range
26:06and then initiation, mitigation, and
26:09continuation. Right? Same thing right
26:12here. Range again, initiation,
26:14mitigation, and then continuation. In
26:17this case, there was some liquidity
26:19sweep here and there, which is something
26:21once again a little bit more advanced.
26:23So I I don't really want to cover it in
26:24this video itself. But you can see what
26:26happened is that it pretty much followed
26:28the same sort of market structure
26:30pattern and it created your lower highs,
26:33lower lows and you can see slowly but
26:35surely it went down there and smashed
26:37our TP right here after creating one two
26:42break of structure right here. No, three
26:45break of structure right here. Multiple
26:47break of structure. So it's it's that
26:49lower high and lower low dynamic right
26:50here. And once again, I targeted this
26:52previous high right here because
26:54objectively speaking, this is where
26:56price is gravitating to it because this
26:59is where we can potentially expect some
27:01form of buy orders in the market. And
27:04notice what price does once again. Right
27:06after we exited the trade, price to
27:08reverse and go back up here. So, if we
27:10were just a little bit late, we would
27:12have actually got caught in this little
27:15move right here. Now this is all done on
27:18the 1 minute time frame which is why
27:20happened so fast. Like you can see this
27:22one took about less than 30 minutes.
27:25This one took about less than an hour or
27:28so. Now you must understand that price
27:30is fractal which means that whatever
27:33patterns you see on the 1 minute time
27:34frame you will see the exact same
27:36patterns on the 1 hour, 4 hour, daily,
27:39weekly time frame. Which means whatever
27:41market structure principles I've taught
27:43you in this video, not only does it work
27:46across all time frames, but it also work
27:48across all asset classes, be it stocks,
27:51futures, crypto, commodities, options,
27:55whatever you name it. As long as he has
27:57like a financial chart like a financial
27:59market, as long as like a asset with a
28:01bit and ask price, you can apply these
28:03principles. Now, one tip that I have for
28:05you guys is that you want to trade from
28:08strong structure and target weak
28:10structure. What I basically mean by that
28:12is that we know that in a downtrend,
28:14price is creating these lower highs and
28:16lower lows. What you want to do is to
28:18trade from the strong highs, right? So,
28:20in a downtrend, the highs are strong and
28:23the lows are weak, right? So, this is a
28:24strong high and this is a weak low. We
28:26call it strong because it literally has
28:29the power, the strength to take out the
28:31previous low, right? So, that is why we
28:33call it weak. It's just a terminology to
28:35just tell us who's in control of price.
28:37And in the uptrend, price is creating a
28:39strong lows and weak highs, right? So,
28:42we are expecting price take out the
28:43highs. So, what you want to do is to
28:45trade from strong structure and target
28:48weak structure. So, in the downtrend,
28:50you want to trade from the strong highs.
28:52So, you want to sell the strong highs
28:54and you want to target the weak lows.
28:56[music] And in the uptrend, you want to
28:58buy at the strong lows and target the
29:00weak highs. Right? So in this particular
29:02example that you can see on the screen
29:03right here, what I've done is that I
29:05have entered for a buy at the strong low
29:07and I pretty much targeted the next
29:10high. And when I entered for a sell
29:12right here, I pretty much targeted the
29:15next low, right? You can see this is the
29:17next low right here. Obviously on a
29:20micro level, you can see all of these
29:22little inner breakup structure on a one
29:24minute time frame. In this case, you
29:26could potentially trade from the strong
29:28highs and target the weak lows right
29:31here. Trade from the another strong high
29:33like maybe somewhere around here and
29:35target this week low right here. So
29:37yeah, that's pretty much how you trade
29:39market structure. Now that's kind of all
29:41you need to know about market structure.
29:42One thing that I kind of forgot to
29:44mention is market shift, right? So like
29:46I said, market shift is pretty much
29:48where price took out the strong
29:50structure, the last strong structure
29:53causing a reversal in the trend
29:55direction, right? So if price is
29:57creating your higher highs and higher
29:59lows just like this, we are pretty much
30:01expecting price to continue higher highs
30:03and higher lows. But then eventually the
30:05sellers will take control of price and
30:07this is where price will come down and
30:08take out a strong low. So when price
30:11take out a strong low, this is where we
30:12got a market shift which is pretty much
30:14a shift in structure, a shift in trend
30:17direction which does that it's going for
30:19uptrend to a downtrend and then now we
30:22can expect price to create your lower
30:23highs and lower lows. Right? So a market
30:25shift is pretty much a break of
30:27structure where price break a strong
30:28structure and right now the trend
30:30direction is changing. So yeah, in the
30:32example that you guys can see previously
30:34on NQ, this is pretty much that last
30:37swing high that we have established
30:39right here. So in order for us to see
30:42that the market structure for NQ is
30:45shifting from bearish to bullish, from
30:47downtrend to uptrend, what must happen
30:49is that price must come up here and take
30:51out this last strong low high, right?
30:53The last swing high. And remember, we're
30:56going to get a candlestick body closing
30:58above the high, right? So you've got the
30:59market shift. Then now we can expect
31:01price to create that higher highs and
31:02higher lows and shifting from a
31:04downtrend to uptrend. So if you're
31:06trading with the trend, you can go from
31:08shifting your position from sell to buy
31:12to trade with the direction. Now the
31:13last tip I'll give you guys is to make
31:16sure that you understand how to trade
31:18using multiple time frames. Now one of
31:20the biggest reasons traders stay
31:22confused is because they keep switching
31:25time frames without knowing what each
31:27one is supposed to do. So let me just
31:29make this really really simple for you.
31:31You always want to start off with the
31:33higher time frame, right? So in this
31:35case, I started off with the 1 hour time
31:37frame. Once you're done with that, then
31:39you can go to the 15minut time frame and
31:42then slowly you can work your way down
31:43to the 5 minute time frame when you look
31:45for your entry. Now I personally will
31:47recommend you to map out your market
31:48structure on the higher time frame
31:50first. Right? Identify your trend
31:52direction, map out your breakoff
31:53structure, identify your swing high and
31:55your swing low. Once you're done with
31:57that, you should also map out the same
31:59sort of things, right? Like apply the
32:00same principles on the medium time
32:02frame. So in this case, I did it on the
32:041 hour time frame. Next, I'm doing it on
32:06the 5m minute time frame. I'm applying
32:08the exact same principles. When you go
32:10and do that, you start from top to
32:12bottom. What you tend to do is that you
32:14are able to make better decisions,
32:17right? because now you are able to
32:19actually figure out who's actually in
32:21control of price rather than guessing
32:24that whether the 15-minut is bullish or
32:26bearish. Now you can actually apply the
32:28same principles on all the different
32:30time frames and figure out a proper
32:32bias. So remember every single time
32:34frame should serve a different purpose.
32:36The higher time frame should allow you
32:37to understand the trend direction who's
32:39in control of price. The medium time
32:41frame should allow you to have the
32:43location which is where to map out your
32:44supply and demand zones and also
32:47identify the sort of like the internal
32:49structure and the lower time frame
32:51should tell you when to enter. And like
32:53I said earlier remember price is fractal
32:55which means all the patterns you see on
32:57the lower time frame exists on the
32:58higher time frame and that also means
33:00that the price have to shift has to
33:03change trend on the lower time frame
33:05first before it can change trend on the
33:07higher time frame. So, in this
33:09particular instance right here, before
33:11price can took out the swing high on the
33:131 hour, it has to get a market shift
33:16over here on the 15-minut time frame
33:18first. That's just the nature of the
33:20market. Now, let's talk about the most
33:22common mistakes that my students tend to
33:24make. I'm going to be honest, I've made
33:25pretty much every single one of these
33:28mistakes myself and I see my students
33:30make them all the time. And honestly,
33:32none of these mistakes are about not
33:34knowing the rules. They happen when you
33:37know the rules but you're impatient,
33:39you're emotional, or you're looking at
33:41the wrong time frame. And every single
33:43one of these stupid mistake cost you
33:45money. So let's just quickly go through
33:46each one of them. Now the first mistake
33:49is starting your analysis on the lower
33:52time frame like the 5 minute or the 1
33:54minute time frame. A lot of people they
33:56tend to do this because they want to
33:57make money fast. But the more you try to
33:58rush your process, the longer it will
34:01take, right? So what you want to do is
34:03that you want to always start with the
34:06higher time frame. And if you look at a
34:085minut time frame and you are confused
34:09as to like where price is going just
34:12zoom back out right I always like to say
34:14when in doubt just zoom out zoom back
34:16out to the higher time frame itself.
34:18Mistake number two is switching time
34:21frames without knowing what each one is
34:23supposed to do. Right? Like I mentioned
34:24earlier every single time frame should
34:26serve a different purpose. So make sure
34:29you use that time frame for that
34:31specific purpose. Make the time frame
34:33serve you not you serve the time frame.
34:35And the third mistake is trading
34:37consolidations. Right? I personally
34:40would just recommend you guys not to
34:42trade consolidations, not to trade
34:44sideways market because you can try to
34:46sell here or buy here but end of the day
34:48you don't know for sure whether price is
34:50going to come down to the low or price
34:52is going to go up to the high. A lot of
34:54times you could just be stuck in the
34:55messy meter itself and you are just
34:56going to lose a lot of money. Mistake
34:58number four is treating a weak break as
35:01a valid break of structure. Like I said
35:04earlier, when you get a candlestick
35:05break, it's not a break of structure
35:07yet. You has to wait for the candlestick
35:10body to close. A lot of my students what
35:12they tend to do uh if they are beginner,
35:14if they're just starting out, they will
35:16enter for a sell right after price take
35:18out that last high even though there's
35:20only a week break. and then they will
35:21see a price goes up against them just to
35:23realize later on that it's actually a
35:25liquidity sweep. So you want to be very
35:27patient, wait for the candlestick body
35:29to close below the previous low. So and
35:31the last mistake is trading your belief
35:33about the market. I like to say that
35:35most traders don't trade the market.
35:37They trade their belief of the market.
35:39They trade what they think will happen
35:41instead of what price is actually doing.
35:43What you want to be doing as a
35:44professional trader is to trade what
35:46price is currently doing, right? not
35:48what you hope or wish it would do. No,
35:51what price is currently doing. You have
35:53to be as objective as humanly possible.
35:55Put your bias aside, right? Put your
35:57perception aside and just focus on
35:59price. And you are able to do that if
36:01you really map out your market structure
36:02properly. So yeah, if you catch yourself
36:04doing any of those stupid mistakes, just
36:06stop, take a pause, take a bre, zoom
36:09out, and always come back to your
36:11mechanical rules. So that's everything
36:13you need to know about market structure.
36:15To be honest, that's kind of like the
36:17tip of the iceberg. There's a lot more
36:18stuff that I didn't really go through
36:20like internal structure and fractal
36:22structure because if I go through those
36:24stuff, this video will end up being like
36:275 hours long or 5,000 hours long. But
36:30yeah, I didn't wanted to confuse you
36:31guys too much, overwhelm you guys with
36:33too much concepts. Consider how this is
36:35like the first market structure
36:37masterass. If you guys want a part two,
36:40part three, comment down below and just
36:42let me know. Now, you can take all of
36:43these concepts and start marking out
36:45your charts today. But knowing how to
36:47analyze the market and knowing how to
36:49trade the market are two completely
36:52different things. If your entry is off,
36:54if your risk management is off, if the
36:57timing of your trade is off, all of
36:59these analysis is absolutely useless.
37:01And that's exactly what we'll fix
37:03together live at my upcoming live
37:05trading boot camp, the market mechanics
37:07summit from November 26 to the 28th. I'm
37:11going to go through all my market
37:12mechanics concepts with you. I'm going
37:14to help you build a mechanical trading
37:15system live. I'm going to show you my
37:18complete trading routine. I'm going to
37:19walk you through advanced market
37:21mechanics concepts and just give you
37:23everything you need to get funded,
37:25become a profitable trader. So, if
37:27you're interested, click the first link
37:29in the description and go and reserve
37:31your spot right now, right? Because the
37:32tickets are getting sold out very, very
37:34fast and you definitely don't want to
37:36miss your spot. So, yeah, with that
37:38being said, grab your ticket right now.
37:39And as always, remember you're just one
37:42trade

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