💥Weekend Learning: Simple Approach to Market Structure💥

Oct 22, 2022

I try to draw a simple market structure for trading range and trend. Lets check details about market structure.

Trading Range:
Trading range is where both buyers and sellers are active and trade. On the range market we see 2 sided liquidity. Above range that is buy side LQ and below range that is sell side LQ.
If one side LQ sweep happens, we can expect the other side sweep too.
USDJPY 4H Example of Trading range and LQ Sweep:

I recommend to avoid trading in trading ranges and wait for clear breakout, but if you want you can use the buy low, sell high strategy. Check out my September 15th analysis on bitcoin to understand what I mean by buy low, sell high👇🏽

Trend
When market is not moving within trading range, moving fast(creating inefficiency) or creating series of HHs and HLs if buyers in control, LLs and LHs if sellers in control. We are going to learn about market structure after trading range breakout or break of prior high and low.

1. Break of Trading Range Happens(4H Timeframe):

2. After Break of Trading Range or Prior High/Low, Always Expect PB. When PB ends look for entries in direction of trend(15M Timeframe):

Check out the 15M chart for CHoCH opposite side on trend. When happens, sign of PB!
3. If CHoCH happens in direction of HTF trend, signaling the trend resumption(15M Timeframe):

4. Trend Resumption(4H Timeframe):


Tips:
1. You check the 4H chart and if you see a movement more than 40-50pips, its another sign for beginning of PB:

2. CHoCH in 15M Timeframe is just a signal for beginning/end of PB. Nothing is 100% in the market.
3. You can use premium/discount areas as filter to check the end of PB:


**You can combine the market structure stuff with supply/demand zones and find entries.**

What do you think about this chart? Feel Free and Comment Below!