Forex Market Structure Explained

One of the primary instruments in a dealer’s. device belt is understanding market. structures so on this video i’m going to. tell you. every thing you need to learn about market. structure. welcome back to the channel everyone my. name is artie and that is the transferring. common a show the place we talk about. every thing day trading to maintain you. worthwhile okay so you’ve got in all probability heard. this word being thrown around on all of. these youtube videos. market structure is among the most. necessary issues you should perceive. because market construction. gives you a sense and course of which. means the price is headed. let’s bounce right into trading view and that i. have gbp jpy. up on the display screen and that i wish to present you. two. of the principle things that you should. focus on when taking a glance at market. construction. so value motion literally does three.

Things it either goes. down goes up or consolidates. so as long as value action is doing one. of these. three things it is in construction okay so. looking at this example. on euro usd you can see we have a excessive. a low a higher excessive a higher low a. larger excessive. the next low and so forth and so forth. all the method in which up this value this. is market construction this market. construction is. clearly showing a transparent and concise. uptrend. in order you start to see market structure. being shaped and higher highs and higher. lows. that’s whenever you get in on a place so. as quickly as this greater low gets. formed you place ready on the lengthy. side now you may be pondering to your self. well arty how do i do know when to get out. you anticipate a break in market structure. you wait for the price to now not. create higher highs and better lows. in order you presumably can see on the highest of this.

Uptrend. we had our greater excessive we had our larger. low. after which right right here it did not make a. higher high. this space proper here is a break in. market construction. then you probably can see the new construction begin. to be fashioned making a decrease low and a. decrease excessive. and a lower low and a lower excessive this. right right here. is the realm that you just get out of your. trade so for this specific trade once. you waited for. your new construction to be fashioned and also you. actually just wrote it out. until there was a break in market. construction you’d have gotten. 393.2 pips out of this. one trade now you might be asking your self. why am i stopping it right here instead. of taking it as a lot as the highest as a result of that. was the very best worth. nobody is nostradamus and nobody can. anticipate the best. worth of a movement so it would be. pointless for me to put it up here and.

Say that you would have gotten 607 pips. like. no person would have anticipated that this. actual value is the very best. so that you wait for the break in market. structure and this is able to have been. your exit point so let me get into the. actual specifics. of this commerce we begin to see market. structure be fashioned right right here it is. created a better low. and so that you waited for this candle to. finish. that’s your entry point you know that. once value motion breaks market. construction. your commerce is not legitimate so that you. maintain your cease loss. just under that previous market. construction. as worth creates a new higher low. you move your cease loss to that space. and slightly below not exactly on it because. generally wix will stop you out. and right here you have a brand new larger low. being fashioned so now. this area is your cease loss as the price.

Keeps going up. you retain transferring your stop loss up to. these greater lows. at all times maintaining you in profit on this. commerce as a end result of you know that when the. market breaks its market structure. that is when you know the price goes. to go the other method then once we lastly. stand up right here. that is your new stop loss worth goes up. to create a brand new higher excessive. a new greater low breaks market structure. proper right here and as it passes. past your earlier cease loss this is. when your commerce closes. and so right there you’ve made 395. pips but now you see that market. construction is broken. with fairly giant bearish engulfing. candles. so this can obviously be your new signal. for a. quick place so you instantly get in. on this. keeping your stoploss a snug. distance above that earlier high. and watching the structure continue on.

Making lower lows and lower highs. all the way in which all the way down to right here as soon as the market. construction is damaged. again so taking this trade out you bought. an. additional 427 pips i mean this is. just about. all that you should know in case you are. longterm trend trading. that is going to be your bread and. butter always commerce. with the development the development is decided. by market structure. and just to make clear you’ll have the ability to continue to. do that. you keep seeing your new entries and also you. await. breaks in market structure so here is. your lengthy position. then here’s your short place some. trades are. big some trades are small and then some. trades like this one. completely break even now why does it. happen on this one. that is the third segment of market. construction. that is referred to as consolidation when price. is consolidating that means. it is stuck in a spread between two.

Prices. now it is not two actual prices but it. gives you. a more horizontal versus you know an. angled path of which way the worth. is going so whenever you. see these consolidations you can begin. drawing your box round it this field. signifies the world that the price is. consolidating. in i don’t keep in mind the wicks. as a result of the wicks don’t really matter. it is extra about the our bodies when that. candle closed. particularly on a better timeframe like. this on the 4 hour chart now it. clearly indicates that the value is. caught. in this vary i don’t suggest that you just. attempt to trade. ranged pricing whereas it is consolidating. it’s extremely troublesome. it is annoying and it’s boring as a result of. the worth actually is not shifting that much. so how do you know when the. consolidation period is over you are. waiting. for one specific thing to occur you’re.

Waiting for it to break out of the range. come again to retest the vary after which. proceed. in the reverse direction the same goes. for the downside if it were to break. via. it wants to return again and retest it and. then proceed in that path. so dragging our little box out somewhat. bit more. we are ready to see that thing occurred exactly. proper right here the value got here as a lot as check the. higher finish of the range once more. got here down and began to type market. structure. in the upwards path it broke. through that consolidation vary. got here back to retest it and then. skyrocketed so how do you commerce this how. are you aware the place your entry level is. okay i brought this in a little bit. closer so once more you’re ready for that. break and retest right. so proper right here at this point you see. that is the excessive level. of it breaking out of the structure you.

See the value action start shifting down. and simply above this area this excessive level. that it created. this is the place you’re going to create the. order to be positioned. as the value goes up to it so it’s going. to be a stop order so you’ve your. order positioned. already right right here the worth is going. down you are not nervous about that. the worth bounces up you don’t even have. to be watching the charts and you know. that once the price goes. up it is going to execute your order and. it will maintain going up on the. upside. then like we mentioned earlier than you keep. transferring your stop loss to these higher. lows. then as soon as market structure is damaged. proper right here. this is going to be your take profit a. nice 200 pips and a one to four threat to. reward ratio. now this takes a very long time and diligent. hours of watching charts understanding.

The forex pair that you are looking at. you want to perceive fundamentals as. well. and that is literally simply bare buying and selling. i’m not utilizing. any indicators i am not using shifting. averages i’m not using. anything a lot of people are pro. no indicators and simply bare buying and selling however. i am on the other facet we have computers. and we have expertise to help us. so probably the greatest indicators that i. like to use. when serving to me decide in my. commerce if it is actually going to go in. that course. or serving to me get in slightly bit. earlier okay so this indicator known as. pip hunter and it really helps you get. into the trade. earlier and maintain it longer it provides you. key indications on when to purchase and when. to sell. so utilizing this exact same area and. overlaying the pip hunter indicator on. here. what the pip hunter indicator does is.

Actually present you momentum. when the price has upwards momentum it. reveals you this huge inexperienced cloud beneath. the price action. identical for when the price is going down it. exhibits you a giant pink cloud. in order you probably can see proper here we began. our uptrend. it got here again to retest this transferring. common and as quickly as the value began to go. up from that moving common we actually. get a purchase indicator right here signaled. by the blue star. so once this candle closes we get in on. a protracted place. and as soon as the pip hunter indicator prints. a white star. indicated right here that’s your. indication to get out of the trade. showing that it goes to have. downwards momentum so right here. at this point that is the place you are going. to get out of your commerce as quickly as this one. candle closes. so looking at our trade that we did simply. using naked trading no indicators.

Whatsoever we would have gotten 218 pips. so let’s write that down proper here so. we don’t overlook let’s take away that long. place and drag this. out to the place the price would have gone. so we’d have gotten out right right here. at this white star. and our stop loss actually would have. been under the earlier candle to that. indicating buy. candle so previously we had a one to. 4 threat to reward ratio. presently we’re at a one to 6 risk to. reward ratio. and we’re getting 330 pips out of this. one trade. that is a further 112 pips. just using an indicator to assist you make. the transfer. now i get it understanding market. structure and fundamentals is totally. paramount for anyone. day trading however we have computer systems and. technology to assist us. and help us in our course of getting us. extra worthwhile so should you guys need extra.