Market Structure

Question 1

What fib level would be a healthy retrace?

Answer 1

.386 or even .5, if retracements are too shallow, it is not healthy as the asset is not grabbing enough liquidity to continue.

Question 2

What should we be trading with?

Answer 2

The trend

Question 3

How to determine high low or low high?

Answer 3

Two OPPOSITE color candles in a row. Exception if 2 opposite candles are contained within a previous candle in the path. If so skip the pull and go to the next.

Question 4

How do we confirm a higher low?

Answer 4

When the previous higher high is TOUCHED again. Notable we don’t need a close, however, we wait for a close to get confirmation for entry.

Question 5

Is an equal high considered a BOS?

Answer 5

No

Question 6

What template is used for an SFP

Answer 6

Red X

Question 7

Why do we identify BOS?

Answer 7

Identify and confirm OB, identify areas of supply and demand/help identify the trend, determine if the trend is gaining momentum or getting weaker?

Question 8

How to determine if a trend is getting weaker?

Answer 8

Each BOS is decreasing in overall size.

Question 9

After getting the transition BOS, what should we typically do for best RR?

Answer 9

Wait for retrace

Question 10

What does the internal structure confirm on the primary pull?

Answer 10

We are targeting the higher high or lower low

Question 11

Each higher TF expansion leg will have?

Answer 11

Various levels of internal structure within.

Question 12

What are examples of internal structure?

Answer 12

Draw in a daily, then can draw the 4, 1, 15, 5, etc

Question 13

What is needed if we are going to rely on lower TF confirmations?

Answer 13

Higher confluence zone (i.e. order block, FIB on larger MS leg, POC, etc). Have we hit the 50% retracement on the larger pull?

Question 14

When should we TP?

Answer 14

Take partial profits out at pivot points on internal level higher up from trade. For example, if take a trade on 3, take some out at previous 15 min swing point.

Question 15

When to move SL?

Answer 15

When see internal break go against you after a move in your direction.

Question 16

What should we keep in mind if price transitions without mitigating demand/supply?

Answer 16

It can ALWAYS go back for it.

Question 17

If we are in a trade where multiple higher TF structures have broken in our favor, should we panic on lower TF breaks going against us?

Answer 17

NO!

Question 18

Can we start an internal pull from the lower high on the expansion pull?

Answer 18

YES! If investigating a 4 hr expansion leg down, you can always investigate starting your internal pull from the beg of the expansion leg. I.e. if 4 hr leg down, start your two hour pull at the lower high when trying to determine where you get MS transition. Keep in mind the example of a 2 hour pull that broke bullish only to go back bearish to mitigate a OB that didn’t get tapped.

Question 19

Is internal structure allowed to flip and maintain trend?

Answer 19

Yes. For example, if waiting for a 4 hr higher low, it is completely normal for 1 hr/2hr structure to flip bearish. We wait for the flip back to bullish on the 1/2hr structure to confirm the 4 hr higher low is in.

Question 20

Should we trade old SFP levels?

Answer 20

Depends. Don’t just trade an SFP of an old high like many do. However, if the high relates to current MS, on the way up for example we wicked the current higher/high, AND it was an old liquidity level, then we have a targeted low related to current structure.

Question 21

Should we try to trade weak highs/lows in no mans land?

Answer 21

No! Only apply in areas of support/resistance that make sense. If we are already in an area of supply and demand then we use the approach.