Essentials To ICT Market Structure
Summary
TLDR本视频脚本为交易者提供了如何在外汇市场中确定交易方向的指导。讲师强调了理解不同时间框架的重要性,并根据交易风格(如头寸交易、摇摆交易、短期交易或剥头皮交易)选择适当的时间框架。介绍了市场结构的概念,包括如何使用月度、周度和日度图表来分析市场趋势,并强调了关键支撑和阻力水平在确定交易方向中的作用。此外,还讨论了如何结合市场概况和价格行动来提高交易决策的质量。
Takeaways
- 😀 交易者需要教育自己以确定交易方向,这是交易中最重要的任务之一。
- 🤔 交易者面对多种时间框架时,可能会感到困惑,需要学会如何结构化地分析价格。
- 🕵️♂️ 交易者应明确自己的交易时间框架,如日内交易、短线交易、摇摆交易或头寸交易。
- 📈 对于不同风格的交易者,市场结构分析的时间框架会有所不同,例如,摇摆交易者会使用日线、4小时线和1小时线。
- 🔑 理解市场结构是交易的关键,它包括识别趋势、反转模式或市场整理阶段。
- 🏆 交易者应使用最高时间框架来确定交易前提,使用中间时间框架进行交易管理,最短时间框架用于交易时机。
- 🔢 交易者应利用市场结构分析来寻找最优的交易入口,例如,在价格达到关键支撑或阻力水平时。
- 💡 市场结构分析包括识别和标记摆动高点和低点,以建立交易框架。
- 📉 在下降趋势中,市场结构的破裂可能预示着新的卖出机会。
- 🛑 交易者在交易时应考虑“灰色区域”,即价格行动的不确定性,以及如何在不确定性中做出决策。
- 🎯 选择方向性偏差并不意味着保证盈利或准确性,交易者应该接受市场的不确定性,并在概率的基础上进行交易。
Q & A
什么是交易者在交易时的主要功能?
-交易者的主要功能是在不同的时间框架中找到自己的交易方式,理解价格行为,并确定交易方向。
为什么理解不同的时间框架对于新交易者来说可能是一项艰巨的任务?
-理解不同的时间框架可能对新交易者来说是一项艰巨的任务,因为存在多种时间框架,如月线、周线、日线、4小时线、1小时线等,它们可能会让人感到困惑,如果交易者不清楚自己需要关注什么。
交易者应该如何确定自己的交易风格?
-交易者应该根据自己的个人特质来确定自己是定位交易者、摇摆交易者、短期交易者还是剥头皮交易者。这个模块会提供一般性的指导,但最终需要交易者自己探索和成长。
为什么建议新交易者从短期到日内交易开始?
-建议新交易者从短期到日内交易开始,因为这样可以提供最即时的反馈,帮助建立坚持计划所需的信心。与定位交易相比,短期交易和日内交易的设置更频繁,有助于新交易者学习和成长。
在交易中,如何利用市场结构来确定交易方向?
-交易者可以通过分析不同时间框架的市场结构来确定交易方向。例如,对于定位交易,可以使用月线、周线和日线;对于摇摆交易,可以使用日线、4小时线和1小时线。市场结构分析有助于交易者理解当前市场是处于趋势、反转模式还是整理阶段。
什么是市场轮廓(Market Profile)?它如何帮助交易者?
-市场轮廓是一种分析工具,可以帮助交易者理解市场是处于趋势、反转模式还是整理阶段。通过市场轮廓,交易者可以更好地衡量当前的市场结构,从而做出更明智的交易决策。
交易者如何使用支撑和阻力水平来确定交易方向?
-交易者需要理解关键的支撑和阻力水平,因为这些水平是确定交易方向的基础。无论使用哪种交易模型,如果不理解关键的支撑阻力水平,就很难确定交易方向。
什么是“杀伤区域”(Kill Zone)?它在交易中扮演什么角色?
-“杀伤区域”是指交易者选择进行交易的特定时间段,如伦敦开盘、纽约开盘或伦敦收盘。在这些时间段内,市场活动更为频繁,交易者可以利用这个时机进行交易,以期获得更好的交易结果。
为什么交易者不应该期望每天都能完全正确地预测市场方向?
-交易者不应该期望每天都能完全正确地预测市场方向,因为市场是复杂的,存在不确定性。成功的交易更多地依赖于概率和风险管理,而不是追求完美的预测。
如何使用摆动高点和摆动低点来构建市场结构框架?
-交易者可以通过在不同的时间框架上标记摆动高点和摆动低点来构建市场结构框架。这有助于交易者识别当前市场是在短期还是长期的价格摆动中,并据此做出交易决策。
什么是“敌对高点”和“敌对低点”?它们在交易中有何作用?
-敌对高点是指在它两边有较低高点的价格点,而敌对低点则是两边有较高低点的价格点。在交易中,这些点可以帮助交易者识别潜在的支撑和阻力水平,从而找到可能的交易入口。
Outlines
📈 确定交易方向的基础
本段介绍了如何通过市场结构来确定交易方向,强调了解不同时间框架的重要性,并根据交易风格选择合适的时间框架。提出了作为外汇交易者,理解市场结构和价格行为是至关重要的。讨论了不同交易风格的适用时间框架,如日内交易者应使用1小时和15分钟图表,而波段交易者则可能使用日线和4小时图表。同时建议新交易者从短期到日内交易开始,因为它们可以提供即时反馈,帮助建立信心。
📊 多时间框架市场结构分析
这一段详细讨论了如何使用多个时间框架来分析市场结构。强调了交易者应专注于最高时间框架的交易,而交易管理则由较高或中等时间框架完成。例如,波段交易者可能会使用日线图来确定交易前提,然后在4小时图上管理交易,并使用1小时图来确定具体入场点。同时指出,理解关键的支撑和阻力水平对于确定市场结构至关重要。
📉 市场结构与价格行为
本段深入探讨了市场结构的概念,包括如何识别牛市和熊市的市场结构,以及如何利用市场概况来分析趋势、反转模式或整合阶段。解释了市场结构的构建,如价格反弹至关键阻力位时的预期反转,以及如何识别和利用市场结构的转变来确定交易入口。强调了在不同时间框架下观察价格行为的重要性,并如何通过市场结构分析来预测可能的价格移动。
📌 支撑阻力水平与市场结构
这一段讨论了支撑和阻力水平在市场结构分析中的作用,以及如何利用这些水平来确定交易策略。解释了在价格达到新的整合区域时,如何识别和利用短期的支撑和阻力水平。同时,讨论了如何通过观察价格行为来确定市场结构的转变,并利用这些信息来寻找最佳的交易入口。
🔄 价格波动与市场结构的转变
本段进一步阐述了价格波动和市场结构转变的概念,包括如何在价格达到新的支撑或阻力水平时识别潜在的交易机会。讨论了如何在价格跌破短期低点后,使用中长期图表来寻找额外的交易入口,以及如何利用价格波动来预测市场结构的变化。
📍 利用摆动高点和低点构建市场结构
这一段介绍了如何通过识别摆动高点和低点来构建市场结构框架,并利用这些信息来预测价格移动。讨论了如何使用摆动高点和低点来确定市场结构的牛市或熊市,并如何利用这些信息来寻找交易机会。同时,强调了在不同时间框架下识别和标记摆动高点和低点的重要性。
🕒 交易时机与市场结构
本段讨论了交易时机的重要性,以及如何结合市场结构和时间因素来确定交易入口。强调了在特定的市场开放时间(如伦敦开盘、纽约开盘)进行交易的重要性,并如何利用这些时间窗口来提高交易的成功率。同时,讨论了如何根据市场结构和时间因素来管理交易和设置止损。
🤔 交易中的不确定性与概率思维
最后一段强调了交易中的不确定性,并鼓励交易者采用概率思维来处理市场结构和交易决策。讨论了如何接受市场的不完美可见性,并在交易中保持灵活性和适应性。同时,提醒交易者不要期望每天都能完美预测市场方向,而是应该专注于与市场同步,并在条件成熟时采取行动。
🏆 成功交易的心态与方法
这段视频脚本的结尾强调了成功交易的心态,包括接受市场的不确定性,保持低风险和低行动水平,以及控制情绪和期望。讨论了如何通过一致地从市场中获取利润,而不是追求每天交易或每月获得大量点数。同时,鼓励交易者在灰色地带中找到自己的位置,确定适合自己的交易时间框架,并在相应的市场结构内进行交易。
Mindmap
Keywords
💡市场结构
💡交易方向
💡时间框架
💡支撑和阻力
💡交易风格
💡市场轮廓
💡多时间框架分析
💡交易信号
💡风险管理
💡盈利目标
💡灰色区域
Highlights
确定交易方向是交易者面临的主要挑战之一,本模块旨在帮助教育交易者如何确定交易方向。
作为外汇交易者,理解不同时间框架如月线、周线、日线等是至关重要的,这有助于结构化地分析价格。
了解你的交易风格,如定位交易、摇摆交易、短期交易或剥头皮,是交易成功的关键。
建议新交易者从短期到日内交易开始,因为它们提供即时反馈,有助于建立信心。
专业交易者在应用市场结构时,会考虑3到6个月甚至一年的时间框架来确定交易方向。
市场结构分析的关键在于理解价格行动和市场趋势,如牛市或熊市。
市场结构的转变通常发生在价格达到关键的支撑或阻力水平时。
交易者应利用市场剖面分析来确定市场是处于趋势、反转模式还是整合阶段。
理解关键的支撑和阻力水平对于确定交易方向至关重要。
市场结构的分析应从最高的时间框架开始,然后逐步细化到较短的时间框架。
交易者应专注于三个时间框架,以构建市场结构的框架,并找到最佳的交易入口。
在交易中,要接受不确定性,并学会在灰色区域中操作,不要期望完美的能见度。
交易者应学会在伦敦开盘、纽约开盘或亚洲开盘等“杀戮区域”进行交易。
选择一个交易方向并不能保证盈利或交易结果的准确性,交易应基于概率而非完美场景。
交易者应控制交易频率,保持低风险和低行动水平,以维持现实的期望和舒适的交易生活。
市场结构分析提供了一种避免交易复杂性的方法,帮助交易者简化决策过程。
交易者应根据市场结构和个人交易风格,选择适当的时间框架进行交易。
市场结构分析强调了在不同时间框架内识别和利用关键支撑和阻力水平的重要性。
交易者应利用市场剖面和价格行动来确定市场趋势,并据此制定交易策略。
交易者应学会识别和标记敌对的高点和低点,以帮助识别市场结构和潜在的交易机会。
市场结构分析要求交易者理解价格行动的复杂性,并在不确定性中找到交易机会。
Transcripts
okay folks essentials to market
structure and this module is going to be
really based upon the premise of looking
towards helping you educate yourself in
determining trade direction this is
probably one of the most reoccurring
email inquiries and posts that you see
in the forums on baby pips directed to
me it's my goal obviously to share a
little further amplification on some of
the concepts that I use in determining
trade direction and hopefully this will
be insightful for you but what do we do
when we sit down in front of the charge
what's the primary function as a trader
well you as a Forex trader you want to
be finding your way through price and as
a new trader I can understand how
daunting this task may be because
there's so many different timeframes you
have your monthly weekly daily four-hour
one hour fifteen minutes or five minutes
our one minute chart you have tick
charts all these different time frames
it's very bewildering sometimes if you
don't understand really what it is you
need to be doing and breaking the down
breaking down price in a uniform
structured way so the first thing I'm
gonna really counsel you on is your
primary objective is to know your time
frame that you're trading okay and it
gets back to what type of trade are you
going to be are you going to be a
position trader you're gonna be a swing
trader a short-term trader are you gonna
be a day trader or a scalper I can't
teach you how to find the correct style
trader that's within you that's all part
of your personal makeup so this module
much in the same capacity my other
modules have been they're gonna speak in
general terms okay but it's going to
give you enough insight for you to be
able to determine what it is that you
need to be focusing on for you to find
the most optimal way of trading for you
yourself okay because each of us are
going to be different as you grow and
you mature as a trader you may be multi
timeframe based in terms of trading in
other words I consider myself a dynamic
trader simply
because I can trade any one of these
time frames now I excel in the short
term to swing trading area but I can de
trade and I can scalp but I prefer not
to it would be my advice to you is if
you can try to work within the short
term to day trading in the beginning
because it's going to give you the most
immediate feedback and it's going to
give you the confidence you need to be
you know sticking to a plan because
obviously as a position trader you don't
have a whole lot of opportunities
materializing you that frequently swing
trading again saying capacity it's going
to be a little a little a little while
between each setup so it's gonna be
harder for a new trader looking to find
themselves to wait between the signals
and stick within that specific framework
for trading so short term trading and
day trading and scalping let's avoid
that for now but we will talk about how
you can utilize these concepts for
scalping but again short term and day
trades if you are brand-new to price
action those are very rewarding because
they give you the immediate feedback new
traders sometimes need so let's talk
about what the professional perspective
is when we're applying market structure
well obviously for position trades this
is going to be anywhere between three to
so much as six to eight six months to a
year in terms of duration now I don't
have a whole lot of types of trades like
this but every three or four months in
the marketplace whether it be in stocks
or commodities or Forex there is a
specific swing that manifests itself and
we talked about that in other videos and
other teaching I'm not going to cover
that here but if you are that type of
trader obviously the three time frames
that you would utilize to break down
market structure for your particular
market would obviously be monthly the
weekly and the daily okay monthly being
your highest timeframe your weekly being
your midline or mid-level
timeframe and then you have your daily
that would be your short-term now as a
swing trader okay your premise for
breaking down market structure will be
comprised of a look
at the daily the 4-hour and the one-hour
chart okay
your setup will be based upon what you
see on the higher time frame the daily
much in the same capacity for a position
trade the monthly will be your position
trade premise nor is if we are
considerably overbought you know there
should be some kind of a topping
formation on a monthly chart you would
look to see market structure breakdown
on the weekly and daily they facilitate
a short position well on a swing trade
model you utilize that same measure of
market structure by utilizing the
highest timeframe for swing trades and
this approach would be the daily chart
and then breaking that down into 4-hour
chart and then lesser price action study
in the one-hour chart so you'll be
timing on the one hour you will be
managing on the four hour and the
premise or the trade idea would be built
upon the highest timeframe which would
be the daily chart okay and the swing
traders model here if you're a
short-term trader obviously the duration
of time for these types of trades could
be anywhere between one day to as much
as a week or so swing trading is about a
week or more in terms of trade duration
and I forgot to mention that but for
short-term trades you'll be using the
4-hour chart for your trade premise or
your directional bias and then on the
one-hour chart that would be your trade
management or mid-level time frame and
then your 15-minute chart would be
utilized for your timing for entry and
possibly looking for early reversal
signs that your trade may be petering
out and it's time to take profits for
day trades obviously yeah you can see
it's the one in our chart and be a
highest timeframe you would be managing
your trade on the 15-minute time frame
and your five-minute chart would be
utilized to enter now it's not to say
that you can't use a 5-minute chart on
the short-term swing and position trades
for entry okay I'm giving you the
framework for at least having three time
frames across
the spectrum of your training and how
you break down market structure over
these three specific time frames for
each individual trading model will give
you again the building blocks to flesh
out what you need to see in terms of
directional bias okay so let's take a
look at a closer look at price action
and market structure now the keys to
multiple time frame market structure
okay are rather simple where is your
focus your focus should be on the
highest of the three time frames trades
will be managed by the highest or mid
time frames okay in other words if you
are a swing trader you're going to be
utilizing that daily time frame to
manage or the 4-hour chart to manage
your trade okay but the daily is going
to be utilized to facilitate the trade
premise in other words that's going to
give you your directional bias
okay the market structure that is one
the daily chart that's framing your
swing trades okay once you get into a
trade you would be managing that trade
on a four hour time frame and you would
just use the respective time frames we
just talked about in the previous slide
and then your one hour chart would be
used for timing purposes okay so the
shortest time frame in that regard for
swing trading would be the 60-minute
chart so your entry signals would be
derived from having studied the market
structure on the daily and the four-hour
then your one-hour chart was facilitate
the specific entry point okay so you
know what you would do your entry
concepts and techniques on the one-hour
chart for swing trades the highest
probability trades are made in the
higher time frame direction okay now
there are going to be instances where
the higher time frame premise may be
bullish but you're approaching a key
resistance level so that may be trumped
so that's where we're gonna go back to
the core essentials to technical
analysis that being support resistance
trumps everything okay without the
understanding of key support resistance
levels you're not going to get to a
directional bias regardless of what
trading model you're using position day
trading whatever it is if it's not
framed on the premise of keys for
resistance levels it's probably going to
be a struggling point for you as well
okay so you have to go back to the core
essentials to my concepts and just sound
trading all together key support
resistance levels are where it's all at
okay without those all of these lines
and all these procedures that we're
going to be covering here and what we've
covered in previous videos and such is
going to do no good to you okay so you
have to understand what is a keys of our
resistance level so if you are looking
at the highest timeframe for your
particular model that will hopefully
draw your attention to whatever key to
support resistance level at that point
in price action obviously you can always
go out to a daily and weekly just as a
you know a catch-all as far as whatever
time frame you're trading if you just
look at a daily and weekly in terms of
support resistance those will be helpful
to you now the market profiles will also
assist you in market structure analysis
concepts that means I'll be in a
trending market are we in a reversal
pattern or formation or that type of
profile in the market place and are we
in a consolidation preparing for a
breakout scenario okay so market
profiling is essential to helping you
and assisting you in measuring what the
current market structure is okay now are
we bullish or bearish
all right when we're looking at market
structure we're referring to market
structure what are we speaking about
what's the what is the work trying to
get at okay well if you look at a price
rally up and then price hitting a major
resistance level we're going to assume
for a moment that this is your higher
time frame okay and I'm going to keep it
generic because that way you can apply
it to whatever your higher time frame is
based on the model trade it you are
aiming to be as price rallies up into
what we perceive as a higher level key
resistance level price never moves in a
straight line
okay so there's going to be a
consolidation a price move up another
consolidation a price move up and then
as price makes it into this resistance
level then we'll be anticipating a
reversal so when markets start to break
down
taking out the short-term swing lows in
here
this short-term swing low on the highest
timeframe for your particular trading
model once that breaks this would be the
catalyst for you to say okay this is
probably going to be an optimal trade
entry based on the higher time frame
chart of your profile okay so for an
example let's just say that this is a
monthly chart and you're looking for a
position trade okay if the monthly hits
a key resistance level like this and it
comes down takes out a short term low
and the monthly we know now that market
structure has broken okay so we have a
market structure shift right here okay
now we don't know what price is doing
over here this is all in the future
we're anticipating these types of events
in terms of price action but until we
actually get that and starts trading we
can't deal with that yet so it's all an
anticipation and our anticipated
anticipatory model as far as our
framework and thinking about price
action this is what we would expect to
see once this structure has been broken
okay
but as price starts to rally up we don't
anticipate seeing a breakthrough this
resistance level okay if we arrive this
as a possible resistance level we would
expect a retracement for a little trade
entry but then we would zoom in in this
area right here okay I want a weekly
timeframe to hone in on more key shorter
term timeframe price levels and then by
zooming in okay we would possibly see a
shorter term optimal trade entry or
respective cell pattern to you know
convince us even further that this is
probably going to be a sell scenario and
if we move down into a daily and see
something even similar to that okay you
would have all these nesting confluences
of implied resistance levels once a hard
time frame market structure is broken
down and then we would be able to
position ourselves in sync with a
top-down approach with market structure
okay and then as price starts to trade
down this is the gray area all these
areas where there's missing gaps
okay that's intentional okay we don't
know what's going to take place between
the time where we see an entry point and
where we expect to see price get to in
terms of our targets and we'll talk more
about that later on but this is the gray
area where you have to be comfortable
with okay because you don't know what's
gonna happen from we our entry point and
you're expected exit point okay you
don't know if it's going to go down
there okay you don't know if it's gonna
reverse and take you out of the tree
okay but the overall framework okay or
price structure okay this is how market
structure is built okay this is a price
rally and a decline okay we have
consolidation if we expect to see some
kind of a rally in here something's
bullish that we would expect to support
at as price starts to rally up okay we
could be utilizing our mid-level
or shorter term level timeframes tick to
see bullishness okay we want to see
support being held resistance being
broken
okay and every time price starts to pull
back and retrace in here the market
structure concept that you would be
utilizing it would be to simply look for
optimal trade entries okay for buys you
would be looking for reflections to buy
you would be looking for type to trend
falling bullish scenario so in other
words in all this area here you'd be
looking for price finding support and
resistance being broken okay so that
it's that simple that's the whole
framework behind market structure and as
price rise up into another shorter term
or a me it's from resistance level in
here price will hopefully find some
support okay but if it does start to
break down be comfortable with price
coming back and blowing out previous
lows in here okay there may be an
important load that's taken place and
trailing stop loss orders would be
trailed up below that particular point
okay so as price dips back down all
that's going to do is give you another
opportunity to get long okay now again
let's think for a moment this is the
higher time frame premise okay this is
the highest time frame chart when we
start seeing this consolidation here and
we see the higher level resistance
though because these are all known in
advance this is why we have support
distance studies done this is all part
of our top-down analysis seeing where
price may be reaching for so if we start
seeing price rally up in here and in
consolidate again and this is another
higher level key resistance level if
price continues to maintain support and
breaks above all of these short-term
highs in here
the market structure implies that we
could possibly see a leg from this low
or whatever low would form back here to
this high duplicated on the retracement
here from this low to this high
the same thing could be said with market
declines and reversals going along every
time we see a consolidation
consolidation is you want to study these
for shorter term more dynamic support
resistance levels these areas are more
easily tradable because they have
discernible price levels they're very
clear we don't know how it's going to
take price from these consolidations to
the next consolidation we don't know
that we anticipate that gray area that's
missing these little pieces of market
structure that's missing I left that out
because I want you to think like this
okay it's if it's a little confusing now
I understand but if you apply this same
general I don't want to say profile but
this diagram okay in other words in
terms of how I have price lows
illustrated here if you look at how
price declines actually materialized
you'll start to see these lows form like
this and inside of those consolidations
and in every swing low deforms there's
going to be a discernible hostile trade
entries or reflection patterns or
generally fractal patterns okay so you
would apply these concepts okay with all
the other concepts which you previously
discussed but looking at obviously a
higher level key support level down here
as a catalyst okay so as price moves
from a consolidation down into a new
consolidation much in the same capacity
we just saw with the bullish move
reaching up into a higher level
resistance level we could be seeing a
consolidation in here with this higher
level reason support level down here
this would be where price may be
reaching for so if it's consolidating
here we could look for a move from
whatever high forms here to this low
okay duplicated from this high or
whatever high forms in this area down to
this low okay so while this diagram is
fragmented okay
think of in terms of the market maker
profiles that I just recently shared
with you guys this year you see that
same premise here as well I don't need
to draw the lines in here you can
actually probably remember by the way
the profile was given to you you can
actually see it in here okay so as
prices engineered to go lower down into
a support level ultimately to trade
higher this is the building blocks that
we work with okay now because we have to
live in the gray area and not expect a
simple black and white premise to
trading when we see a consolidation here
and price move down to a new area
consolidation and price moves down to a
new cup area consolidation and then we
have short term breaks on market
structure okay in other words we have a
shift in Marcos trucker right here as
price trades down the net support level
again this is all assuming this is the
highest level of your three time frames
that you're trading with for your
particular trading model when you see
this shift in market structure here we
would anticipate seeing a bullish move
higher but here's where we enter a new
level of gray when we move into this new
consolidation in here this may not
always translate into even higher prices
going out like we have here implied it
could be just reaching up to go back to
this range from this old high to this
look remember inside the range concepts
okay so you have to have that in mind so
that's why if you're going to be getting
long down here you'll expect to see some
type of profit taking here right and you
would be able to see that utilizing your
mid-level chart okay for your swing
projections okay we'll talk about that
more as we go on but generally as you
see price come down in here every time
price retraces and gives you new optimal
trade entries that's what you're looking
for you want to see price holding
support breaking resistance okay on this
side of the support level being found
but as we're trading down into that
support level we're anticipating market
structure to break lows and in find
resistance break lows
fine resistance break lows fine
resistance okay so every new
consolidation if we're expecting price
reaching down to our higher level
support level okay on a highest level
chart that's why we do our analysis on
the highest level because you want to
see where price is probably reaching for
and by seeing where the highest level
chart in our particular trading model is
reaching for again we don't know for
certain that they're always going to get
there but if you look in these higher
level charts it's going to give you the
highest probability in terms of success
if price doesn't get to these particular
points and we start seeing early market
shifts in March structure this could be
a catalyst for you know another type of
trade okay we could possibly get along
in here and maybe even reach up into the
range from the high to this low here
that may be a means of profitability it
should be a good reward to risk scenario
here okay you know three to one could
still exist within that front at that
framework of price action okay but again
even if that happens we can still take
some short-term trades in here
but that may be a very very short-term
bias only taking you up to a higher
level bias to get lower support levels
here taken out okay in other words it
used the you're gonna have to blend some
concepts here the inside the range
concepts simply looking at lower lows
and lower highs okay if we do get a
short term bounce in here between the
high that's formed here and the low here
just could be creating another awesome
trade entry to get that fulfillment of
this lower level support level down here
now again we've seen this diagram before
assuming that we have a high up in here
reaching into resistance as price breaks
this short term low here the market
structure is broken so as price starts
to retrace every time retraces we're
looking for new selling opportunities
but if we see a previous swing as we see
here see this price swing here okay if
this level is taken out here if we get a
retracement or another additional sell
signal this is where we use swing
projections just on price we're not
using Fibonacci you can but just looking
at simple price action alone this low to
high once it's broken
you can start taking this same
measurable swing from this point here
down to that same level and project it
lower okay and you get somewhere in this
area here now I purposely allowed the
diagram to be a little bit farther
because I teach to exit on the trade
before the actual objective is met okay
so every time we see a broken swing okay
this is a swing that's broken here in
other words this low here or whatever
load would have formed in here I'm
assuming that you can see this as this
as a swing when it's broken right here
we went below here if we retrace back
into it okay I've also purposely drew
this a little bit past what would be
expected as resistance I've purposely
allowed this to move beyond this low
here to illustrate how support
resistance can be gray as well it's not
black and white you're going to have to
allow some flexibility with price so
when it starts to pull back deeper
okay this still could set up the optimal
trade entry okay and while this isn't
the exact level price was able to stave
off a rally it still was working with in
the previous range here and this pie
here as well so we're still within
bearish market structure so don't be
lulled into thinking this is going to be
a long to go higher assuming again this
is a higher level of resistance level
and again every little short-term
retracement here could be a catalyst for
an additional entry using our smallest
of the three time frames again this is
all modeling off of the highest time
frame okay and then assuming once we get
this broken down this swing low here
broken we could utilize the mid-level
chart for additional entries and or
managing of a position that's already
been assumed based on the highest of the
three time frames now as price also
breaks down these swings just swing up
once it's broken
okay this is an engineered swing okay
you see this in price action all the
time okay it's a measured move it's very
simple taking this low to this high
whatever that range is subtracted from
that same point here and project it
lower okay
that's the measured swing here is a
measured leg move you have the high down
to a low here price starts region
retrace in here we could see this as an
intermediate term price swing okay or
price leg so we have a measureable swing
here that we can use for projections
then we also have a measurable lake okay
so we have the first leg and price down
here and when we trace back utilizing
the framework that's based on this swing
up okay so we're blending two concepts
here a swing that's broken okay and
within a bearish market structure then
we also have a retracement back into a
previous support broken it should act as
resistance okay and notice how this low
here I try that more less imply that
price could be reaching for even a
shorter term support that's broken as
resistance so what might look real clear
and discernible on the charts it may not
be as clear-cut as that but we would
expect this to be an enemy in term
retracement for a new leg down and
that's when you would you expect to see
the high to
here on this Lake repleted repeated and
protected from this highway of reforms
here down here and that would look
similar to what we'd expect when you see
and we had some highs and lows enemy
term high is obviously a high that has
lower highs on either side of it okay
and any return low is a low that has two
higher lows on either side of it so it's
very easy to see it's simply looking at
your candles and your bars on your
respective time frames and when you see
these note them okay and by noting them
you'll have whatever ways you want to
have it
I'm delineating and denoting that with
these little circles here it could be
anything on your charts you could have
stars you can you just you know type
enemy in term high whatever you can put
the little arrows on it whatever it is
that you use to identifying that that's
your way of doing it but it's important
you understand where they're at and when
they start to nest out like this okay
you can classify enemy a term too now
long term because if we have lower highs
on either side of it okay this would
classify this is a long term high that
would also allow you to expect to see
much longer term price swings okay so by
nesting out and marking off your swing
highs and swing lows on your respective
time frames you start to build a
framework that's needed to be able to
discern if you're in an area term or
short term price swing and within your
market structure now that leg that we
were talking about earlier can be seen
here by having that mu term High Noon
'add so this is a mu term price leg and
then here's your ne a term retracement
okay and then you would see obviously
the next leg down would be replicated so
you can see the range between this low
to high is exactly what you see here
causing you to expect or anticipate
price movement back here if you're in a
trade still once you've retraced you can
expect a hold on to that trade to get
back down to these low
here which would obviously hopefully be
a higher level support level to also
converge and have a confluence of
reasons to expect to take some profits
there
now by having all these things in the
forefront of your mind and having
specific price legs and price swings and
how they nest together it's important
you understand that the framework of
your market structure is derived from
the highest level the three time frames
you're trading with that's where your
the framework or the or the basis of
your trade is built upon your mid-level
chart is used to zero down into a
smaller time frame expecting to find
support resistance levels that may not
be discernible on your highest time
frame then your lowest time frame is
used for your entry and we're going to
talking about that specifically here
assuming we've built the premise of
market structure and assuming that it's
bullish okay everything we're talking
about here would be obviously reversed
for selling scenarios but assuming we
have a bullish market structure okay
where a swing trader let's say for a
moment that our highest timeframes
suggest that we have a bullish March
structure underway we've traded off of a
higher level support level and price has
given us a broken market structure to
the upside okay so there's been a market
structure shift short-term highs have
been broken on our highest level time
frame chart our mid-level time frame has
allowed us to zero in and find a key
support resistance level now we have
this higher level key support resistance
level that's also converging with our
mid-level support resistance level okay
in that same support resistance level
may be a confluence of maybe it be a
pattern that overlaps with that specific
that level okay and we now have a bias
okay this bias is bullish it does not
mean every single day you're going to
get a trade that's gonna materialize as
a bullish move and see profitability if
it was if it was just that simple guys
everybody would be multimillionaires and
be it we'd be we don't you know we'd all
be Warren Buffett's
super-rich so obviously you know it's
it's not that easy you have to have some
discernment and it allow for some you
know failure because it's going to
happen but assuming that we have that
that premise
okay our bias is to buy it doesn't mean
that traders can't make money going
short this specific day or timeframe
okay it just means that you are gonna
stick to being a bull at this particular
day or a particular timeframe okay so
with that and with that in mind we
always go back to our key premise of
trading within kill zones
okay so you want to be doing your
entries and your kill zone times London
open New York open London close or Asia
okay but assuming we have already
arrived at our time of day when we're
going to be trading okay we already
understand that the kill zone when it's
going to begin we already have our key
supporting resistance level already
identified and we know where price
should get to before we do anything and
that's going to be basically this little
area right here so when we're going to
be seeing price hopefully at some point
moved down to that level here this is
our action point this is where we take
action we do the entry here and it could
be on a limit basis or it could be a
market order but we're utilizing time
and price theory okay so this is what it
looks like in in your mind there's
nothing happening yet you anticipate
these events unfolding within a specific
time of day with a specific bias in mind
okay you want to see these things line
up and I think what happens is you guys
send me emails you talk about on the
internet posting on baby pips forums you
know I don't know what the bias is for
today here's here's the secret every day
the bias is both directions every day
the bias is both directions think about
that
there's traders making money going long
and short that day but you have to
decide on what it is that you're trading
based on your time frame in your profile
like as a trader are you a short trend
trader swing trader are you a position
trader and
you're looking for the bias that you're
holding to line up with price action
okay
you can't force price action to do what
you want it to do you can only get
yourself in sync with what price may be
doing and allowing you a ride okay so
with that assumption we're looking at
price here and with the bullish premise
that we would be expecting to see higher
prices if we get down to this support
level okay so we've established at the
higher time frame of the three time
frames we used for market structure
study is now bullish okay we assumed
that we have a very respectable support
level down here okay so if price trades
back down to that level within a kill
zone we're going to be taking action
here to buy okay and always simply do at
that point is you wait you wait until
the kill zone starts and when price gets
that specific point you use whatever
entry technique or concept you're going
to be utilizing for your trade entry it
could be optimal trade entry it could be
reflection it could be a Grail it could
be a stinger it could be any any one of
the trading patterns that you're
utilizing but it's happening at a key
support resistance level with the higher
time frame of the three front timeframes
you use for market structure giving you
your bias so when you have that this is
your action plan this is what you do you
don't do anything else okay this could
be a sell pattern here okay for someone
that's a very short term trader okay and
trades down in date they've made money
from this point here here
that's not your trade okay so don't try
to force more out of the concept than
its intended okay you're just simply
looking for a bias for your style of
trading okay it doesn't mean that you're
gonna be right all the time
okay so take that out of the equation
all you're doing is looking to get
yourself in sync with whatever price
action is doing based on your premise or
your style of trading
all right obviously this is a very
simple approach to dealing with
directional bias but it's meant to help
you avoid deal for complication that
tends to happen with traders okay and
it's usually the new traders to try to
add all these things to it and squeeze
all the tools into giving them a
directional bias with the expectation
falsely albeit that they're gonna always
know what direction the parts going to
move every single day and I'm going to
tell you guys off they're not doing this
almost 20 years and I don't get it right
every single day okay
you know the secret is to my trading I
simply wait until everything lines up
that I'd like to see where the majority
of all my tolls not all of them the
majority the things that I'd like to see
based on my understanding what markets
suggesting to me in other words or what
profile are we in are we overall ripe
for reversal are we in a trending
condition
are we in a consolidation area where you
know I don't want to be taking any kind
of trading you know with the expectation
that we're going to have a trending type
of event unfold because we're gonna be
working within a large consolidation I
use that as my building blocks and then
by using the market profiling to give me
the initial clue as to where we may be
trading then I start looking at actual
individual market structure concepts on
the three time frames that I use for
whatever type of trading I'm doing at
the time because I am dynamic I move
from one time frame or profile trading
to another one week I may be simply a
day trader in other weeks I'll be a
short trend trader and I wish there's a
way for me to teach that premise from
moving from one dynamic to another I
can't so it may be disappointing to you
but this is a limitation on me as a
mentor I just I don't know how to
communicate that but I can give you
concepts and approaches to do specific
styles of trading and you just have to
wait for the opportunities where price
action gives you that sweet spot in
terms of being able to apply it
okay so by selecting a directional bias
this does not guarantee profitability
it's very important you understand that
nor does it guarantee accuracy in either
your trade direction and/or your trade
results one traders bias may be bullish
okay and they're looking for bias and
that may exist inside the realm of
another traders sell bias they both can
be correct and make money and even see
both their respective profit objectives
achieved they both can be wrong and make
money despite their respective profit
objectives not being achieved again it's
not being about being quote-unquote
correct
it's about being profitable however they
both could simply lose money and neither
trade idea come to fruition there is no
black and white it's very important you
understand that as a trader you must
enter the gray and be comfortable with
the less than perfect visibility trades
with the the foresight that you're
expecting don't exist nobody has a
crystal ball I don't have it I'm still
trading on the probabilities not the
perfect scenario there's no perfect
scenario okay you as a trader will see
trades and materialize that will provide
you plenty of profit taking potential
live there don't expect 100% it's not
gonna happen okay I guarantee you the
only thing 100% is going to happen is
you're going to go nuts expecting an
impossibility find your timeframe as a
trader determine the market structure
given for that time frame trade within
that respective market structure and
perform your targeting on the highest
and mid-level time frames and I promise
you you'll have more than enough trades
laid at your feet
but it's not about trading every day and
it's not about capturing a thousand pips
a month okay it's about consistently
harvesting profits out of the
marketplace keeping risk low and your
action level low
don't try to trade a whole lot keep your
trading controlled that way you're going
to control your emotions your
expectations will be kept realistic and
you're going to live comfortably
in the gray
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