Dec '23 (edited) • General Trade Discussion
Structure 101
Yesterday, I noticed a lot of students commented they didn't quite understand market structure.
We go into market structure in far more depth in our high-level coaching programs, but attached is a basic illustration of price structure.
Trends are caused by smart money which is banks, institutions, and very large funds.
Remember *they* not us move markets with their massive positions.
Uptrends are created because they protect their positions at the lows.
And in downtrends they are protecting their positions at the highs.
(Slightly more advanced note below)
There's simple structures, but the market also creates more complex structures.
In order to navigate complex structures remember a HH and LL qualifies a HL and LH.
There's no HL or LH without a HH or LL respectively.
Let the market show directional strength with a break of structure. Creating a new HH/LL before marking a swing point as your new HL/LL.
I hope this helps!
Let me know if you have any questions.
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Structure 101
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