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Understanding Market Structure Dynamics

1) Price delivery forms market structure, with long-term frames (LTF) building swing points from higher time frame (HTF) data in a top-down manner. 2) HTF highs and lows act as structural swing points for the LTF, creating support and resistance zones (SNDs) that can indicate future points of interest (POIs). 3) A break of structure (BOS) may signal either higher or lower prices ahead or a momentum reversal from the buy or sell side, as institutions drive all price movement.
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0% found this document useful (0 votes)
1K views1 page

Understanding Market Structure Dynamics

1) Price delivery forms market structure, with long-term frames (LTF) building swing points from higher time frame (HTF) data in a top-down manner. 2) HTF highs and lows act as structural swing points for the LTF, creating support and resistance zones (SNDs) that can indicate future points of interest (POIs). 3) A break of structure (BOS) may signal either higher or lower prices ahead or a momentum reversal from the buy or sell side, as institutions drive all price movement.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Structure and Time

Momentum shifts / Reversal Structure


Key Points
- Price delivery forms market structure
HTF swing High - A completed trend change from Bullish to bearish
- LTF builds HTF swing Points (top down) momentum / Bearish to bullish momentum is created
CTF

in Phases
swings

-HTF highs and lows are LTF structural swing points


HL 's and LH 's

- swing highs and lows create SND . Future POI's HTF range

are formed in these zones



LTF BOS

- A BOS can signal Higher or Lower Prices, or a


Reversal from sell-side or Buy-side liquidity.
Of HTF POI
HTF Swing LOW
itigation

- BFI's (intitutions) are behind every price movement A

HTF Swing High D

qµµ
c premium delivery

Market Structure intro


B

50 OB
-

I
.

" "" s

- Structure = highs and lows LH's and HL's


"
' ""
se

highs and lows are structural swing points, these


- swing points are fractal meaning they will be
/
B

present on muliple timeframes. µ, ,


going ↳w

a
Bog

- when looking at swing points think Timeframes



Sell to buy
- delivery

Timeframes intro
HTF
Swing point Phases
- All timeframes are the same data. we view it via candlesticks Major structure

(ABCD)
H

- LTF and HTF both Show BFI intentions


AB-impulse
LH
LH
major
- check the candle closes throughout a session Discount structure

LH
BC-sideway price delivery (creating future liquidity)
minor structure

CD- impulse (into a HTF mitigation)


LH

(H LH
major
- LTF swing points move inside HTF swing points
LH

structure
LH

HTF range vs LTF range


Dis cont T c
LL

(ABC)
LH

- Example of Pullback to create a LH


HL

HL
LH

A counter trend BOS of M1 swing Point can AB-impulse (Reaction) BOS (intention $) (supported by Previous liquidity) (future POI)
HL

HL

create a BOS of M5 swing Point, then LL


B- sideways Price delivery (creating liquidity to support future prices)
retrace on all TF as an RTO until it LL
C- mitigation within a new range (PD arrays) creating LH's or HL's
reaches a Premium of an HTF range to - Price can mitigate at any time , it does not have to
continue trend. be straight away, it can be a POI for the
future to be mitigated.
- Trade M1 trend shifts will happen at HTF POI (mitigation)

Momentum - LTF swing reversals become HTF POI's as they


become HTF Swings
Momentum revolves around time and distance 30 bars
bars

- more candles, less distance or less candles, more


to

distance Types of HTF mitigation


- By Paying attention to the speed of price overtime, it
shows if price moves are sustained or
unsustained.

µ"✓
impulse. Bearish impulse is Price mooring win momentum
quickly to the downside in the trend direction
Think about the law of Effort
BOS

HTF POI

Trend Structure
HT F POI
- Trend structure gives a bias for the assumed =
direction

µ§
1305
- A Trend will maintain its HL (Bullish trend)
H HH

or LH (Bearish trend)
As long as swing highs and swing lows are
*

maintained within the trend we can assume µ , ±

trend continuation
#

• A Trend is not an uptrend until a HL is formed HL confirmed


uptrend confirmed

not Just a HL
vice versa

• A trend is not a downtrend until a LH is formed


not Just a LL

Strong Highs and Strong lows


Range Structure
- a strong rejection of higher or lower prices
- Price is contained within two Price levels. is a fast change of direction. The aggression
- this will define your TF structural Shown is BFI activity, these highs and
BFI Protected

aggressive H
swing high and cow. Price delivery lows would be protected by BFI's movements

will remain inside the range till the - a strong high or cow will be sustained by
Future mitigation

H/L is taken.

tutti
.¥nM
an aggressive move and will usually create
- BFI's stack 1000's of Lots inside a range. a future POI to be mitigated.
BFI will initiate price out of a range - can be seen everywhere
causing a BOS of a price swing, we then • Aggression (speed
know orders were starred
• cause a swing BOS "
• range areas:
• created a HFF mitigation- momentum Shifts
- Premium (sell from)
- when an old high or cow is taken out
.÷÷:÷÷÷:
- Equilibrium (failing to maintain above (below)
price action changes
- Discount (buy from)

BOS (Break of Structure)


weak Highs / lows
- a BOS is to initiate a momentum shift
- A weak rejection of Higher or Lower Prices can be a
or a continuation of Trend Structure
slow or fast move as creates a false move as no weak high
- a BOS of a swing high is a BFI runs
HTF Swing was taken out / price
through
initiation $

HTF Highs and Lows = Swing Structure Price delivery:


LTF Highs and cows within a range = Swing structure • Slow change of direction
- what was the cause of the BOS? • No sewing Structure BOS
- is this a noticeable BOS (speed and aggression) • Not created at HTF Mitigation $

- is this a continuation or an SMS after a HTF - No apparent aggression, did not break Significant Structure ←
easy to take out

mitigation No aggression> Slow change of direction liquidity


= weak low and High which now becomes future
liquidity

BFI initiation
- once BFIS have stacked their orders
within the range the THEN drive
the price to create a Bos in the INI BOS L

direction they want to move it.


- this is called an initiation INI BOS H
BOS H

- its a very clear aggressive movement


in one direction.
- BFI's are manipulating Price in the direction
they want to move it

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