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