23d • General discussion
📚 Important Lesson: SOS — Shift of Structure
A lot of traders have asked me to explain what a clear SOS (Shift of Structure) actually looks like, so here’s a simple breakdown.
SOS (Shift of Structure) is one of the most important confirmations in our strategy. It helps confirm that the market may be changing direction after reaching an Area of Interest (AOI).
🔍 Where do I look for SOS?
I look for the SOS on the 2H, 1H, and 30M timeframes, choosing whichever timeframe provides the clearest structure.
- If the SOS isn’t clear on the 2H, I move to the 1H.
- If it’s not clear on the 1H, I check the 30M.
- If I start from the 30M, I work my way back up to the 1H and 2H to find the clearest confirmation.
🚨 Key Rule:
NO SOS = NO TRADE.
An AOI alone is not enough.
Just because price reaches an AOI does not mean we should enter immediately. We wait for the market to show a clear Shift of Structure before considering an entry.
⚠️ Most Important Rule
For me, the SOS is only valid when it forms on the correct side of the AOI:
BUY → SOS must be above the AOI
SELL → SOS must be below the AOI
🟢 For a BUY
- Price reaches a Bullish AOI.
- Buyers step in.
- Price breaks the previous structure and creates a Higher High (HH).
- This break is the Shift of Structure (SOS).
- The SOS shows that buyers are gaining control.
- After the SOS, we wait for a pullback before looking for an entry.
🔴 For a SELL
- Price reaches a Bearish AOI.
- Sellers step in.
- Price breaks the previous structure and creates a Lower Low (LL).
- This break is the Shift of Structure (SOS).
- The SOS shows that sellers are taking control.
- After the SOS, we wait for a pullback before looking for an entry.
🎯 Remember:
AOI = Location
SOS = Confirmation
Pullback = Entry Opportunity
No SOS → No Trade.
I’ll add two examples below: Valid SOS vs. Invalid SOS so you can clearly see the difference.
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📚 Important Lesson: SOS — Shift of Structure
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