The ONLY Market Structure Lesson You'll EVER Need (Step by Step) — Transcript

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1. 0:00Market structure one of the most
2. 0:01important aspects of price action
3. 0:03trading and while it seems simple most
4. 0:05people get it wrong so buckle up because
5. 0:07in the next 10 to 15 minutes you're
6. 0:08going to know everything you need to
7. 0:10know to become a master of Market
8. 0:12structure and stick around to the end
9. 0:13because there's something waiting for
10. 0:14you there that will take your learning
11. 0:16to the next level so what is market
12. 0:18structure it's just the way the market
13. 0:19moves uptrends consolidation and
14. 0:22downtrends these are the three phases of
15. 0:24Market structure and this is what they
16. 0:26look like the idea is we buy through
17. 0:27uptrends sell through downtrends and
18. 0:29stay out during consolidation during a
19. 0:31trending move not consolidation moves we
20. 0:34get two phases impulses and Corrections
21. 0:36impulse moves are PR Trend moves and
22. 0:39Corrections are pullback moves why does
23. 0:41this happen because the market is an
24. 0:43auction in an uptrend for example there
25. 0:44will be points where buyers want to buy
26. 0:46but they're not happy paying the current
27. 0:48price to actually buy that contract or
28. 0:50asset so buying slows in the short term
29. 0:52easing the market until it reaches a
30. 0:53price that people are happy to pay when
31. 0:55a good buying price is met people buy
32. 0:57and the next impulse starts again quite
33. 0:59simple right so so why is it so hard to
34. 1:01understand and what makes it difficult
35. 1:02well the first place people go wrong is
36. 1:04in Reading highs and lows incorrectly to
37. 1:06read structure we look at higher highs
38. 1:08higher lows lower highs and lower lows
39. 1:10but because markets move across
40. 1:11different time frames sometimes we can
41. 1:13get caught up looking at the wrong lows
42. 1:15and the wrong highs to avoid this we
43. 1:16want to view structure as waves so
44. 1:19instead of looking at every small up and
45. 1:21down move we want to look at structure
46. 1:23in big phases like this this keeps you
47. 1:25in tune with the overall trend Direction
48. 1:27instead of getting you lost in every
49. 1:29small push and this leads me on to the
50. 1:31second Point substructure versus swing
51. 1:33structure the waves we just drew out are
52. 1:35swing structure and the small moves that
53. 1:37happen within are substructure it is
54. 1:39possible to take advantage of these
55. 1:40smaller substructure moves as they are
56. 1:42valid Trends inside of the larger Trend
57. 1:44itself we're going to talk about this
58. 1:46very soon so let's have a go at mapping
59. 1:48structure for this example we're going
60. 1:50to GB AUD on the 1H hour time frame now
61. 1:53we can see we had a trend shift here
62. 1:54shifting us into an uptrend now we're
63. 1:56going to map the swing structure so in
64. 1:58terms of the Swing structure we are
65. 2:00seeing multiple breaks of structure
66. 2:02which are taking us to the upside and we
67. 2:04can also clearly see the market is
68. 2:06making higher lows along the way so this
69. 2:08is clearly an uptrend it's not a
70. 2:10downtrend now how exactly do we Mark the
71. 2:13swing structure are we going to consider
72. 2:15every tiny little Nuance in the trend no
73. 2:18we are not we are going to move with the
74. 2:19bigger picture and view this as waves so
75. 2:22there we have Wave 1 that's the impulse
76. 2:25wave two that's a correction wave three
77. 2:27is the next impulse wave four four is
78. 2:30the correction wave five is another
79. 2:32impulse wave six is a correction and
80. 2:35then wave seven would lead us all the
81. 2:37way up towards this point just here
82. 2:40because this really is not too much of a
83. 2:42viable breaking structure being just a
84. 2:43wick and this would actually signify the
85. 2:46larger wave so you've seen there how we
86. 2:48Mark out structure as a wave instead of
87. 2:50actually trying to look at every single
88. 2:51little move now sometimes when I'm
89. 2:53teaching someone they come to me and
90. 2:55when they're in their early days they're
91. 2:56actually looking at every single little
92. 2:58movement like this and considering
93. 2:59considering this is the larger Trend
94. 3:01Direction and then getting confused
95. 3:02because they're like well the Market's
96. 3:04changing direction every few seconds how
97. 3:05am I supposed to keep up with this well
98. 3:07in reality we're not we just want to
99. 3:09move with the big picture we don't need
100. 3:11to worry about little candle movements
101. 3:12like this and the intricacies of each
102. 3:14small move what we need to do is focus
103. 3:16on that big picture remember earlier I
104. 3:18mentioned the concept of substructure
105. 3:20the smaller Trends inside of the larger
106. 3:22Trend well we can actually trade these
107. 3:23as their very own Trends so breaking
108. 3:25down structure even further in this
109. 3:26example we can start to look for the
110. 3:28smaller opportunities inside of the
111. 3:30bigger move so now working with the same
112. 3:32piece of structure that we just looked
113. 3:33at in that structure mapping example we
114. 3:35are going to look at the substructure
115. 3:36and swing structure of the market so
116. 3:38let's mark on the swing
117. 3:40structure and now let's mark the sub
118. 3:44structure the swing structure is the
119. 3:46impulse moves and the substructure is
120. 3:47the correction moves the pullbacks okay
121. 3:50so as you can see although the larger
122. 3:51trend is bullish we do see smaller
123. 3:53bearish opportunities happening within
124. 3:55we can see that we have a valid
125. 3:57downtrend actually happening inside of
126. 3:58the correction this is where we can take
127. 4:00advantage of the substructure to take
128. 4:02trades that are counter to the higher
129. 4:04time frame swing Trend but entirely
130. 4:06valid using a lower time frame so for
131. 4:08example here inside the hourly we could
132. 4:10drop to the 15minute and look for
133. 4:1215minute bearish opportunities
134. 4:14throughout this structure so for the
135. 4:16sake of example I'm going to dig into
136. 4:17this movement here and show you where
137. 4:20the substructure opportunity came in
138. 4:22okay so using this piece of price action
139. 4:24we can see we have the impulsive
140. 4:25movement this was the larger hourly move
141. 4:27and now we are looking for a corrective
142. 4:29move now of course we do not want to
143. 4:31execute upon any trades until the market
144. 4:33sentiment has shifted so being on the
145. 4:3515minute we would want to see a
146. 4:3715-minute break in structure which would
147. 4:38come at this level now if we get that
148. 4:40all good we can go for a substructure
149. 4:42move if we don't get that that's fine we
150. 4:44will just be continuing with the higher
151. 4:46time frame swing
152. 4:49structure now as you can see we've just
153. 4:52broken the trend here by forming a lower
154. 4:54low with a body closure so what we could
155. 4:56do now is look for opportunities to sell
156. 4:58through this Valley 15-minute Trend so
157. 5:01why are we doing this if we know that
158. 5:02the high time frame is bullish well the
159. 5:04reason for that is simply because we
160. 5:07have a valid lower time frame Trend so
161. 5:09this actually comes back to the fractal
162. 5:11nature of the market now the market
163. 5:12moves in a way where the same patterns
164. 5:14are repeated across multiple time frames
165. 5:16and this is a great example of that we
166. 5:18can actually see a valid hourly Trend
167. 5:21but we can also go and see a valid
168. 5:2215minute Trend both of which may provide
169. 5:25valid trades now when you're taking a
170. 5:28trade like this because we're moving
171. 5:30against the higher time frame even
172. 5:32though we're moving in a valid 15-minute
173. 5:33Trend here we do want to make sure we
174. 5:35are employing a break even strategy or
175. 5:37trailing stops or doing something that
176. 5:39will save us when the market doesn't
177. 5:41reach our targets because obviously if
178. 5:43the high time frame trend is bullish the
179. 5:45high time frame trend has more weight
180. 5:47that means that we're not always going
181. 5:48to get our targets filled therefore
182. 5:50meaning sometimes our trades May reverse
183. 5:52after moving in profit so we need to
184. 5:53make sure we're protected from that and
185. 5:55in an Ideal World locking something in
186. 5:56as well through trailing stops so as you
187. 5:59can see see this trade has now played
188. 6:00out and we would have actually added
189. 6:01here 3.5r that we wouldn't have seen if
190. 6:04we weren't using this substructure swing
191. 6:05structure methodology now you could
192. 6:07obviously refine this to your strategy
193. 6:08or execute the trade however you want
194. 6:10the concept I'm trying to show you today
195. 6:11is just the trend so you can see that
196. 6:13both the biggest swing structure and the
197. 6:15smaller substructure can provide
198. 6:16opportunities for traits the hard part
199. 6:18is differentiating what is Swing
200. 6:20structure and what is substructure and
201. 6:22the best way to do that is by looking at
202. 6:23the market as waves the next rule you
203. 6:25should consider is how far you should
204. 6:27look to take your substructure trades
205. 6:29before taking profit you shouldn't try
206. 6:30to extend substructure moves past the
207. 6:32highs or lows of the Swing structure
208. 6:34moves so if we're in a swing uptrend and
209. 6:36we are taking a substructure sell we
210. 6:38should look to take profit at or before
211. 6:40the demand Zone at the bottom of the
212. 6:41Swing structure move this way we know if
213. 6:43the market continues to move in the
214. 6:44uptrending fashion we are out of our
215. 6:46sell move before we get destroyed this
216. 6:48way we capitalize on the whole pullback
217. 6:50or correction but we don't try to take
218. 6:52the market too far and instead we keep
219. 6:54moving with the larger swing Trend if
220. 6:55you enjoyed that hit the link in the
221. 6:57description that's going to take you to
222. 6:58my free course where you can learn more
223. 7:00about Market structure supply and demand
224. 7:02liquidity macroeconomics and other Core
225. 7:04Concepts that are going to tenfold your
226. 7:05trading performance trading with the
227. 7:07trend is the most secure way to make
228. 7:09money in the markets and now that you're
229. 7:10armed with the knowledge on how to do
230. 7:12that I suggest you go and back test
231. 7:14build up a data set and then learn from
232. 7:15your personal perception of the market
233. 7:17with that being said don't procrastinate
234. 7:19don't waste time get to
235. 7:28work