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Market Direction

The document discusses determining market direction and trends. It states that markets move in waves forming higher highs and higher lows for uptrends, and lower highs and lower lows for downtrends. It recommends analyzing the 4-hour timeframe to determine the overall market direction and looking for breaks of structure, where a candle closes above or below a high or low point, to identify changes in trend. Lower timeframes can also provide short-term direction but not the overall market movement. Understanding trends is key to determining when to look for buy or sell opportunities.

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Pksh Lwagun
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1K views4 pages

Market Direction

The document discusses determining market direction and trends. It states that markets move in waves forming higher highs and higher lows for uptrends, and lower highs and lower lows for downtrends. It recommends analyzing the 4-hour timeframe to determine the overall market direction and looking for breaks of structure, where a candle closes above or below a high or low point, to identify changes in trend. Lower timeframes can also provide short-term direction but not the overall market movement. Understanding trends is key to determining when to look for buy or sell opportunities.

Uploaded by

Pksh Lwagun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MARKET DIRECTION

The movement of market is accurate most of the time. Market moves in wave forming Higher High(HH),
Higher Low (HL), Lower High(LH) & Lower Low (LL).

Where is the Market going???


First of all, we need to have a good knowledge about Market Trend. Either Market is in upward direction
or is in downtrend. If the market is in Uptrend we look for buy opportunity and we look for sell
opportunity in downtrend.

How do we know Market Trend??


As I have described in course content as well. In Uptrend, we look for HH and HL considering Break of
Structure (BOS). And same rules apply on Downtrend market as well (LH, LL, BOS).
On which timeframe we look for Market Direction?
Basically we look at higher timeframe (HTF) for overall market direction. 4H is considered best to know
market direction. We can use Lower timeframe (LTF) for market direction as well but this won’t give us
overall direction. We can us LTF for short term to hold our trade.
For valid BOS the candle has to close above or below high/low point.

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