1. Structure Flashcards
(37 cards)
When looking at a financial instrument……..
Market structure is the most important thing.
What is a BOS?
Break Of Swing Structure
How do we map valid structure breaks (BOS)?
When mapping swing structure we need to see a body close above/below the high/low.
IF price wicks the high/low, we then need to see a body close above/below that wick
What is Swing Structure and what TFs do we mainly use?
Swing Structure -> Defines our market directional bias.
The areas that cause the true swings or Highs/Lows.
We mainly use 4H & M15 swing points.
What are Swing Points?
Swing points (HHs/HLs LHs/LLs) The areas that cause the new High/Low.
In a bullish market -> Lowest point that led to the BOS
In a bearish market -> Highest point that led to the BOS
For EU, how many pips are needed to classify a pullback and a new swing point as valid?
1D
4H
M15
1D = 100 pips (2x candles that trade higher/lower) 4H = 40 pips (2x candles that trade higher/lower) 15 = 13 pips (2x candles that trade higher/lower)
What is Internal Structure and iBOS?
When price is trading within a swing leg and breaking Hs/Ls this is internal structure (iBOS)
In a Bullish market, we see a series of……..
Higher Highs (HHs) & Higher Lows (HLs)
In a Bullish market, we want to Buy……..
At the HL - likely in discount of the swing leg
In a Bullish market, we want to Sell……..
After we break swing structure (previous HH) and tap into HTF Supply.
Looking to Sell into Discount forming the HL
In a Bearish market, we see a series of……..
Lower Lows (LLs) & Lower Highs (LHs)
In a Bearish market, we want to Sell……..
At the LH - likely in premium of the swing leg
In a Bearish market, we want to Buy……..
After we break swing structure (previous LL) and tap into HTF Demand.
Looking to Buy into Premium forming the LH
What TFs make up our Structural Narrative?
1W
1D
4H
What TF do we use for our true Directional Bias?
M15 → True Directional Bias
What is “Market Phase”?
Why is it important?
Are we Pro Trend or in the Pullback Phase?
It’s important to understand what Phase we are in and what this will look like on the LTF.
1D Bullish
4H Pro Trend bullish
15M Pullback bearish
What are the 2 types of market structure?
- Swing Structure
2. Internal Structure / Ranges
What is MTF Structure and when do we use it?
Multi Time Frame Structure.
We use multiple time frames to understand our overall HTF structural bias.
What is Sub Structure (sBOS / iBOS)?
Internal structure contained within a swing leg
Breaks nothing within the leg
What is Minor Structure (mBOS / iBOS)?
Internal structure contained within a swing leg
Breaks internal structure.
Can also be a CHoCH.
What are MTF Swing Points?
Each Time Frame will have it’s own Swing Structure
M15 swing structure within -> 4H swing structure within -> M15 swing structure
What is the overall idea of trading market structure?
To wait for our structural TFs to align.
For example. if 1D & 4H are Bullish -> Wait for M15 to change bullish.
What is a Strong High/Low?
Breaks swing structure
Aggressive move away (V-Shape)
Ideally sweeps liquidity
We never actually know if something is Strong until after the BOS
We can use EOF -> Anticipate what is likely to be strong/weak
What is a Weak High/Low?
Fails to break swing structure
Slow/rounded move away
Doesn’t sweep liquidity
Following EOF -> Likely to be run (especially if we get a CHoCH towards the potentially weak High/Low)