1. Structure Flashcards
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)
What is a CHoCH and where do we look for them?
CHoCH -> Change Of Character -> First time we see a shift in order Flow
We look for them inside of Valid POIs -> Ideally after a sweep
What does a Bearish CHoCH look like?
Inside a valid POI (Supply) following a Sweep we want to see a HIgh get taken and straight away a Low get taken.
We can use Wick Breaks
We can use Inside Bars
We can use internal structure
What does a Bullish CHoCH look like?
Inside a valid POI (Demand) following a Sweep we want to see a Low get taken and straight away a HIgh get taken.
We can use Wick Breaks
We can use Inside Bars
We can use internal structure
How can we validate a m15 ChoCH?
Check the m5 for a BOS
What is a trading range and how do you map it and trade it?
- IF price is trading within a swing High and Low (or L/H) we are inside a range
- We map iBOS rather than swing structure.
- Try and map clear internal “swings/moves”
- Trade the edges (70/30) & look for POIs/CHoChs and shifts in OF here.
What are Order Flow Ranges?
Simply HTF POIs -> S2B/B2S PA -> Where orders are stacked.
OF Ranges are simply LTF Structure.
1D OF -> 4H Structure
4H OF -> M15 Structure
M15 OF -> M5 Structure
Explain OF Ranges & POIs inside?
Look for POIs inside the ranges (ones that break it & extreme)
- IF price taps into a POI inside range = M1 Entry
- IF price taps into a refined POI = Seconds entry
- IF price doesn’t hit a POI = Wait for M15 BOS
Explain how using OF Ranges can lead to consistency?
- Real consistency comes from taking continuations → Following the ranges
- Follow OF and mitigations (some will be left → Mitigated at a later date)
How do you Map/Draw OF Ranges?
- Draw them from -> Left to Right (B2S or S2B)
- Similar to mapping structure
- Mark out ebs/flows/swings → Don’t get too granular → Just data on different timeframes
Explain OF Ranges & CHoCH.
- CHoCH -> Shift in OF
- LTF -> BOS/ Break of D/S
Explain how OF Ranges behave during a Pullback. Phase.
- OF Usually gets disrupted
- Pullback Phase can be messy
- Once OF aligns with structure → They are usually respected until the objective is complete.
OF is most powerful when…
Used with Structure and when we get structural alignment.
We need to always think about it from a HTF perspective
- Once 4H shifts OF → Understand what that will do on the LTF (m15)
- We can wait for LTF to shift OF and align at key areas (POIs, HTF OF)
