Market Structure Shift is BS (ST Model) - Ep 23

Summary

In this video, the speaker introduces their unique trading strategy, the SD Model (Sharp Turn Model), which bypasses traditional market structure shifts in favor of using fair value gaps. They explain how fair value gaps, created by large institutional orders, are more significant than market structure shifts for accurate trade entries. By combining timeframes and focusing on displacement and retracement into a discount array, traders can achieve high-probability entries without the need for a market structure shift. The speaker emphasizes self-sufficiency in trading and invites viewers to explore advanced techniques in their mentorship program.

Takeaways

• 😀 Fair value gaps can be used for market entries without needing a market structure shift, a concept that the author personally discovered through their own studies.
• 😀 A market structure shift (MSS) typically involves a displacement above a swing high, and this displacement leads to potential future market movements, often forming intermediate-term lows or highs.
• 😀 The author stresses the importance of self-sustainability in trading and encourages individuals to put in the work, study, and discover their own techniques rather than relying on others.
• 😀 The ST model, developed by the author, combines two rules and aims to offer easier, stronger, and more reliable entry strategies, bypassing the traditional MSS.
• 😀 The ST model focuses on entries based on bullish or bearish fair value gaps, using displacement and retracement within discount arrays, which simplifies the entry process without requiring an MSS.
• 😀 Displacement and retracement are critical concepts in the ST model. A displacement equals a fair value gap, and when combined with proper retracement into discount arrays, it offers high-probability entries.
• 😀 The fair value gaps created by large institutional orders play a more significant role in understanding market movement than the market structure shift itself.
• 😀 The methodology is not random; it’s a step-by-step mechanical process that leads to high-probability trades based on consistent rules and patterns.
• 😀 The ST model is fractal in nature, meaning it can be applied to any time frame, and by combining different time frames, traders can gain clearer insights into the market structure and find accurate entries.
• 😀 The mentorship program, where these concepts are taught, has already seen success, with students amassing significant assets under management, thanks to the application of the ST model and fair value gap strategies.

Q & A

What is the primary focus of the video script?

The primary focus of the video script is to explain how traders can enter the market without needing a market structure shift by using fair value gaps (FVG) and the SD (Sharp Turn) model, which offers a higher probability entry strategy in trading.

What is the significance of fair value gaps (FVG) in trading?

Fair value gaps (FVG) are considered crucial in the script as they indicate market inefficiencies or displacement, which are important for determining entry points. The script suggests that FVGs provide a more accurate and reliable way to trade than relying on market structure shifts.

What is a market structure shift, and why is it commonly used in trading?

A market structure shift occurs when price moves past a recent swing high or low, signaling a change in market direction. It is commonly used because it helps identify potential reversal points or trends in the market. However, the script emphasizes that market structure shifts may not always be necessary when using fair value gaps.

How does the SD (Sharp Turn) model differ from the market structure shift model?

The SD (Sharp Turn) model combines displacement and retracement into a single method, allowing traders to enter the market based on FVGs without waiting for a market structure shift. It is portrayed as a more mechanical and accurate way to enter trades with higher probability.

What role do time frames play in the SD model?

Time frames play a critical role in the SD model. By combining multiple time frames, traders can refine their entries. For instance, a bullish FVG on a lower time frame can signal an entry even before a market structure shift occurs.

Why is the SD model considered stronger than just relying on market structure shifts?

The SD model is considered stronger because it focuses on price displacement and FVGs, which reflect the true market inefficiencies caused by large institutional orders. This approach is seen as more practical and accurate for predicting market moves than relying solely on market structure shifts.

What is the importance of mechanical, step-by-step guidelines in the SD model?

The mechanical, step-by-step guidelines in the SD model are essential because they provide a systematic and repeatable method for entering trades. The script emphasizes that following clear rules, such as entering after displacement and retracement into a discount array, ensures consistency and higher probability in trading.

How does the concept of displacement relate to fair value gaps (FVG)?

Displacement refers to a sharp price move that creates a gap in the market, known as a fair value gap (FVG). Displacement is essential because it signals a significant shift in market sentiment, leaving behind inefficiencies that traders can exploit for entries.

What is the purpose of using the SD model for both higher and lower time frames?

The SD model is versatile and can be applied to both higher and lower time frames. On higher time frames, it helps establish the overall market bias, while on lower time frames, it provides precise entry points for trades.

How does the SD model help traders with early entries before a market structure shift occurs?

The SD model allows traders to enter the market based on a single fair value gap (FVG), even before a market structure shift takes place. By focusing on the displacement and retracement patterns, traders can spot high probability entries early, without waiting for a full market structure shift to confirm the move.