- So here we go to market structure
- Higher highs higher lows lower highs lower lows break of structure and change of characteristic... I mean what is higher high ??
That is what many people say to themselves when they hear such stuff - First to understand the market you need to see the actual structure of a market how is it built up how to trade and grab opportunities right but you need a graph that shows data of market e.g candle graph so how to read it firstly green means price moved up red means price moved down,but how do I trade? That's the question you ask right you need to seize the opportunity by recognizing higher highs and lower lows these are the points where the candles move in favour of one direction following the direction with a little movement on opposite side of trend you can identify them easily by just seeing the graphs with time frames more than of 1hr easily to know the actual momentum of price
- Next is support and resistance these are just key levels that a price might hit and reverse it's trend after hitting these remain for a lot of time for even weeks and months sometimes but they also break due to sudden shifts to market as market itself is not static but dynamic it is always moving, support and resistance only change when either Bos(break of structure) happens or ChocH(change of characteristic) happens
- Bos it happens when price breaks through the original support or resistance it's trend is so huge that it creates a fresh new support/resistance due to this a swing in market is produced those who find it quicker than others benefit from it also it's quite rare most of the time it fails but when given the best understanding of graphs most professional traders use swings for their profits
- ChocH it is likely rare as Bos but there is a huge difference in this and Bos,Bos means breakthrough from the driction of trend while ChocH means price suddenly breaks opposite levels than the trend it is heading towards like the price should be moving towards resistance but ends up breaking a support level in this case Manny markets become less volatile and market sometimes start moving sideways in a shock
- Sideway market is the worst market because it's hard to trade as price can suddenly go up then suddenly go down and if Bos happens and you have traded in opposite direction then bye the market has kicked your butt
- Never trade in a sideways market until you see a strong candle
