ICT Advanced Market Structure | The ONLY Video You Will ever Need
Summary
TLDRThis video script delves into market structure analysis for traders, emphasizing the importance of understanding uptrends and downtrends, and identifying swing highs and lows. It simplifies market structure into strong and weak points, guiding viewers on how to spot these points on a 1-hour timeframe chart. The presenter illustrates practical examples, showing how to use these insights for trading decisions, and encourages viewers to apply these concepts for better trading strategies.
Takeaways
- 📈 Market structure is essential for traders to understand liquidity and trends.
- 📊 Uptrend markets are characterized by higher lows and higher highs, while downtrend markets make lower highs and lower lows.
- 🔍 Swing highs and lows are short-term indicators, used to identify market movements.
- 🌐 Intermediate term highs and lows are identified by two previous short-term swing points and can also be influenced by inefficiencies in the market.
- 🏁 Long-term highs and lows are determined by intermediate term highs and lows, providing a broader view of market trends.
- 📉 Strong highs and lows are classified as intermediate and long-term points, while weak highs and lows are short-term.
- 🕒 The 1-hour time frame is preferred for identifying swing points with high probability.
- 📉 Market imbalances, when filled, can signify intermediate term highs and are crucial for trading decisions.
- 🔄 Understanding the weakest link in the market, either strong highs or weak lows, is vital for choosing the correct liquidity pool.
- 📋 Back-testing real market examples helps to apply the concepts of market structure in practical trading scenarios.
- 💼 The role of a trader is to anticipate retracements and target weak points in the market structure for potential trading opportunities.
Q & A
What is the primary focus of the video script?
-The primary focus of the video script is to explain the concept of market structure in trading, particularly how to dissect a marketplace through liquidity, highs, lows, and algorithmic theory.
What are the different types of highs and lows discussed in the script?
-The script discusses short-term highs and lows (weak), intermediate term highs and lows (strong), and long-term highs and lows.
How are swing highs and swing lows defined in the context of the script?
-A swing high is defined as when the middle wick is higher than the previous and next wick. A swing low is when the middle wick is lower than the previous and next wick.
What is an intermediate term high according to the script?
-An intermediate term high is either a swing high or swing low that has two previous short-term swing highs and swing lows around it or has tapped into an inefficiency like a bearish fair value gap.
How are long-term highs and lows determined in the script?
-Long-term highs and lows are determined by having two intermediate term highs or lows around them, with short-term highs or lows within those intermediate term points.
What is the importance of understanding market structure for traders?
-Understanding market structure helps traders identify trends, potential entry and exit points, and the overall strength or weakness of the market.
Why is the 1H hour time frame preferred for framing market structure according to the script?
-The 1H hour time frame is preferred because it provides the highest probability swing high and swing low points, which are crucial for identifying market structure.
What is meant by 'imbalance' in the context of the script?
-Imbalance refers to a significant price movement to one side, which is later corrected or filled, indicating a potential reversal or continuation of the trend.
How does the script suggest traders identify the weakest link in the market?
-The script suggests identifying the weakest link by looking at the presence of strong highs above or weak lows below the current price, indicating potential sell-side or buy-side liquidity.
What is the significance of a 'bearish fair value gap' in the script?
-A bearish fair value gap signifies a price level that the market has previously rejected, indicating potential resistance and a good place for traders to consider short positions.
How does the script recommend traders execute their trades based on market structure?
-The script recommends traders to execute their trades by anticipating retracements to weak points identified through the analysis of market structure, using order blocks and fair value gaps as retracement levels.
Outlines
📈 Understanding Market Structure for Trading
The speaker introduces the concept of market structure as a key component of trading. They explain how traders use market structure to analyze liquidity and identify strong highs and lows, as well as algorithmic theory. The video aims to simplify market structure into an actionable process. The speaker emphasizes the importance of recognizing uptrends and downtrends, defining them as markets making higher lows and highs (uptrend) or lower highs and lows (downtrend). They delve deeper into identifying swing highs and lows, intermediate-term highs and lows, and long-term highs and lows, which are essential for understanding market movements. The speaker also introduces the concept of strong and weak highs and lows to help traders identify key points in the market.
📉 Applying Market Structure Analysis
The speaker demonstrates how to apply market structure analysis using real market examples. They discuss the use of the 1-hour timeframe for identifying key swing points and imbalances in the market. The video shows how to identify intermediate-term highs as areas of potential resistance and how these can be used to make trading decisions. The speaker also explains how to use order blocks and fair value gaps to identify entry and exit points for trades. They provide a detailed walk-through of a trade setup, including setting a stop loss and taking profit, and how to read market reactions to these levels.
💼 Executing Trades Based on Market Structure
The speaker concludes the video by discussing the execution phase of trading based on market structure analysis. They emphasize the importance of identifying strong and weak points in the market and targeting weak points for potential trades. The video provides examples of how to anticipate retracements and use them to target weak points for profit. The speaker also mentions their private mentorship program, offering daily lessons on technical analysis, fundamental analysis, psychology, risk management, and live trading for those interested in deepening their trading knowledge.
Mindmap
Keywords
💡Market structure
💡ICT
💡Liquidity
💡Uptrend and Downtrend
💡Swing high and Swing low
💡Intermediate term high and low
💡Long-term highs and lows
💡Strong highs and Strong lows
💡Weak highs and Weak lows
💡Imbalance
💡Fair value gap
Highlights
Market structure is key for dissecting a marketplace through liquidity, highs, lows, and algorithmic theory.
Understanding market structure can revolutionize your trading approach.
Uptrend and downtrend markets are defined by higher lows/higher highs and lower highs/lower lows respectively.
Swing highs and lows are identified by comparing the middle Wick to the previous and next Wicks.
Intermediate term highs/lows are swing highs/lows with two previous short-term swing highs/lows.
Long-term highs/lows are identified by intermediate term highs/lows with short-term highs/lows inside them.
Strong highs/lows refer to intermediate and long-term highs/lows, while weak highs/lows refer to short-term highs/lows.
Using the 1H hour time frame provides the highest probability swing high and low points.
Imbalances in the market can be identified by retracements into and out of certain price levels.
Traders should identify the weakest link in the market to choose the best liquidity pool for trading.
Strong highs indicate price should not take out that high point, providing resistance levels.
Weak lows are potential entry points for short trades in a downtrend market.
Backtesting raw examples of market structure in action on the 1H time frame.
CPI data can create significant price action, affecting long-term highs.
Bearish fair value gaps can be classified as intermediate term highs, providing resistance.
Traders should anticipate retracements targeting weak points in the market.
Order blocks and fair value gaps are retracement levels to target weak points.
The video provides practical examples of how to identify and trade market structure.
The presenter offers a private mentorship program for further trading education.
Transcripts
Market structure is one of the most key
components of trading I believe how ICT
and Smart M concept Traders look at
Market structure is one of the best ways
of dissecting a Marketplace through the
teaching of liquidity strong highs
strong lows as well as algorithmic
Theory but like many ictt Traders you
probably get overwhelmed with all the
information and can't yet piece it all
together don't worry I got your back and
in this video I'm going to break down
Market structure into a simple process
that's really going to revolutionize
your trading before we get into to the
video make sure you guys are following
me on Instagram lots of free education
on the market maker model as well as
this is where you guys can reach me if
you guys have any questions or want to
talk to me direct so we all understand
the concept of uptrend and a downtrend
market with an uptrend Market making
higher lows higher highs higher lows
higher highs pretty simple downtrend
Market making lower highs lower lows
lower highs lower lows right simple as
well but let's go even deeper inside of
this up Trend and downtrend it's
complied of these three metrics as we
can see here in this depiction a swing
high is classified as when the middle
Wick is higher than the previous Wick
and the next Wick so this middle Wick
being higher than the one to its left
and Its Right would classify this as a
swing high and for a swing low the
middle Wick being lower than the
previous Wick and the next week would
then classify this as a swing low these
would be your short-term highs and lows
next an intermediate term high would be
classified as a swing high or a swing
low with two previous short-term swing
highs and swing lows as you can see in
this depiction we have this swing High
Point with two swing high points to its
left and to its right so the middle part
up here would then be classified as our
intermediate term high as well as an
intermediate term high can also be a
swing high or swing low that has tapped
into an inefficiency so you can see
price action has came up into this
bearish fair value Gap and then left it
this would then be classified as an
intermediate term High we'll talk about
this more later so last but not least we
have the long-term highs and lows which
in this depiction we have this long-term
High which has these two intermediate
term highs to the left and to its right
and inside of those intermediate term
highs we have these shortterm highs
as you can see intermediate term High
short-term highs this middle part this
highest high here would then classified
as our long-term high so to make this
even more simplistic let's classify
intermediate term highs and lows and
long-term highs and lows as strong highs
and strong lows and let's classify
short-term highs or lows as weak highs
and weak lows let's get to the back
testing raw examples of this in action
when framing my market structure I like
to be on the 1H hour time frame this
gives me the highest probability swing
highs and swing low points inside of the
marketplace so we can clearly identify
that we've had this massive imbalance to
the downside and we've came up into this
imbalance filled in the imbalance and
then we came lower remember what we said
in the depiction when we have an
imbalance and we come back up into it
and then leave it that then classifies
as an intermediate term high so this
would then be classified as our Strong
high High meaning price should not take
out this high point so when we're
entering the marketplace and we're
choosing which liquidity pool that we
want to seek either buy side or sell
side liquidity we have to understand
where is the weakest link inside of the
marketplace we clearly see we have
strong highs above us we clearly see
that we've been inside of a downtrend
Marketplace so this gives me better odds
than not that the weakest link inside of
the marketplace would be then sell side
liquidity meaning this would then be
classified as a weak low because we have
strong highs above us inside of this
downtrend next we can classify another
intermediate term high can you guys
guess which one it would
be be this because we have this swing
high and then this swing High to the
left and to its right so this would then
be classified as our another
intermediate term high so coming into
the marketplace this morning as the
market comes up into this level there
should be a lower time frame order block
inside of this range which I would then
like to get short at stop loss above the
swing High targeting this sell-side
liquidity and this is what I would then
look for when coming inside of the
marketplace so as we can see here on the
one minute time frame we have this last
up close candles let me Mark this out
just like so and extend it now coming
into the M15 time frame we've identified
the two intermediate term highs as
strong high points and we went down to
the M1 time frame to then look at this
M1 bearish order block so as the Market
opens up I'd like to get short inside of
this bearish order block stop loss Above
This High targeting this sells side
liquidity pool because we understand
that the cell side is the weakest link
and these high points should now be
respected let's see what
happens we open up price Taps up into
our entry and then take profit is hit
down into sell side liquidity just like
so coming back on the H1 time frame see
where the marketplace stopped here we
took out this shortterm low but we
didn't even get near this intermediate
term low as you can see this would
classify as an intermediate term low
because we have this shortterm low to
the right of it and then this short-term
low to the left of it and as you can see
here the marketplace came lower took out
this short-term low but didn't even tap
into this intermediate term low before
then reversing higher now coming to the
marketplace this day we had CPI we have
these two swing high points this
intermediate term high and now we can
classify this as a long-term High
because this was the high that had this
intermediate term High to the right of
it and these intermediate highs to the
left of it so this is now our long-term
high so if the marketplace can see
higher prices it would probably take out
this high but we're still trusting that
this long-term High remains intact
because this would classify us as our
long-term high and let's see what
happens Marketplace comes up it takes
out this high but it leaves the
long-term High
intact just like we anticipated now
coming into the next day we can see here
that we have this intermediate term high
that longterm
high and now we have another
intermediate term high right here why is
this an intermediate term High because
this is the high that came up into this
bearish fair value gap before then
giving that rejection to the downside so
we could classify this coming into the
marketplace as a strong high and if we
can go down into a lower time frame here
and identify a bearish shorter block I
would then choose this as a level of
resistance to then get short inside of
the marketplace targeting back below
these lows as sells side liquidity
continuing that Trend to the downside so
Market's about to open here we come up
into that bearish order block I would
then take a short inside this bearish
order block stop loss Above That Swing
High targeting back below these lows
continuing that Trend to the downside
because we understand this is a strong
High the weakest link inside of the
marketplace is these shortterm lows so
we're going to want to see the
marketplace reach lower prices
continuing that bearish Trend to the
down
side and we can clearly see that we did
not come back up into the Strong high
instead we found rejection inside of
this beish sh block continuing that move
to the downside so coming into the next
day here we have seen the previous day
come up into that bearish water Block
Level we had that strong High it did not
reach up into that strong High instead
found rejection that then take out these
weak lows right and then coming into the
overnight session here we can clearly
see that we had this intermediate term
High here price came up into looks like
a lower time frame order block inside of
these long Wicks here failed to take out
this intermediate term high before then
seeing that drop to the downside so
coming into the marketplace this morning
I understand that we have now created a
high and the weakest link would then be
these previous daily lows so any form of
retracement that we get inside the the
marketplace this morning I would then be
looking for lows targeting the sell-side
liquidity because I understand we've
been in a bearish trend we have strong
highs above us and we have weak lows
below us I'm going to then capitalize
and taking out on those weak lows so my
job as a Trader now from a analysis
standpoint is complete now it's time to
execute and set of the marketplace on
the lower time frames targeting this
cells side liquidity so coming into the
M15 time frame here we can clearly see
that we have this bearish Fair value Gap
I'm going to take a short inside of this
bearish F value Gap stop loss just above
that high here targeting these lows here
for about a 2 to one hour and this would
then be my trade idea for the
day and as you can see here smooth as
butter we come back up into that bearish
for Val Gap and then drop to the
downside the high here that comes up
into this bearish for Value Gap is now
classified as an intermediate term High
and let's just say we missed out on this
trade if we can get some type of
pullback here into this bearish fair
value Gap then I'd want to take a short
here stop loss up here right targeting
back down here for about a one to one
maybe a 1 to
two just just say we missed out on this
trade and we had an opportunity right
here let's see if this trade would then
play it out with this intermediate term
high above
us we come back up into that bearish fad
Gap and just like so price action did
not break Above This bearish fad Gap it
did not even come back up here into this
intermediate term High it came back up
into a fair value Gap stopped and then
dropped lower taking out this week low
this short-term low point we between
this intermediate term high and this
swing low which one do you think is the
marketplace most likely going to want to
take out this short-term low because it
is the weakest link so when coming in
inside of the marketplace it's
identifying where is the strong points
and where is the weak points and then
targeting those weak points inside of
the marketplace and then your job as a
Trader when coming into the marketplace
and when executing is to anticipate that
retracement targeting those weak points
and I give you guys many examples here
very simple examples of order blocks as
well as fair value gaps as retracement
levels inside of the marketplace for you
then to target those weak points and
continue the overall Market structure so
that's going to be it for video I hope
you guys learned a lot from this video
maybe rewatch it a couple times to
really soak up all the information that
I gave you as well as hit that like
subscribe and comment any questions you
guys have or what you guys want to see
next I'm Arkham be safe I have released
my private mentorship where I give daily
lessons on technical analysis
fundamental analysis psychology risk
management as well as live trading and
much more for your trading success if
that's something you guys wish to check
out and want even more content and gems
from me not share it anywhere else it
will be the first link in the
description or the first link in my
Instagram bio if you wish to follow me
on there as well @ Arkham trades thank
you for watching
5.0 / 5 (0 votes)