Market Structure

So, here we will start to combine diÉerent things together. Things you should already know.

Daily direction, 60-minute timeframe, m15/m5 development.

All of the above will essentially get us to pressing that button, choosing whether we want a trade or not.

“Daily Timeframe is important to not only determine direction, but also to see where price is at on the map. In terms of the bigger picture, making it super easy to understand where price might expand to on the bigger timeframe. ”

We focus on things like the liquidity range, 20-40-60 days. Where we look at local highs/lows. Focus on the characteristic of every Weekday -> Monday - Friday being the consolidation days, where everything in-between tends to be the expansion days.

Does not mean that Monday can never be an expansion day. It’s not common, but this happens for a reason. Every reaction has a predisposed action. This could be something happening over the weekend, closing on Friday near some major PDA area. Price will expand into that PD array, and then reverse from it. Forming that LOW/HOW.

When this happens, usually the first half of the week is active, and it then gets super quiet Thursday Friday. Our Daily timeframes usually are then high on the Thursday session. We see the market cap the week there most likely.

It’s all relative to how much distance there is towards our main DOL. Sometimes we get that expansion on Friday if there is still leg room to move.

Messy price action

“We wont always be able to predict what happens the next day.”

This is often due to the fact that price has been messy, or if data releases are too heavy or lack releases.This is when we let our lower end of FLOW dictate our narrative, such as H4 | H1.

Not having the higher timeframes in sync, as mentioned, will take oÉ our stage factor. That is clear by now. That is just as dangerous as trading your ETF alone. You should know by now that sometimes your ETF alone looks so amazing, but your H1 will have pressure from the opposing side. Then your perfect trade will turn out to be a quick loss due to not having a clear vision of what was happening on the higher timeframes.

The worst scenarios are when we lack FEEL HTF narrative, and no FLOW narrative. Then all we have is our ETF - FLUX.

This is like driving a car at 130 km/h in heavy fog in the rain with summer tires.

We can steer, we can break. But we don't see anything.

“Forget about the markets then OR focus on quick 10-20 pip targets, with STD Deviations.”

The logic is that we don’t rush into anything. No clear direction, no DOL and if FLOW state is out of sync, you simply cannot apply the rules you have made for those scenarios. You must adapt, it is only dangerous if you apply the wrong edge in the wrong conditions. We can still drive, take smaller trades, risking less and reducing the targets.

When the market shows us clear daily direction, with momentum, 60m timeframe is locked and syncedready to bounce, and our ETF is great on-top of that. We will full gas pedal to the medal.

• FEEL (Weekly | Monthly) - ! "

• FLOW (Both DAILY and H1) - ! "

• FLUX (ETF - M15/5/1) - ! "

If all three are good, we have the best conditions = A + execution.

As each state goes oÉ, we lose a grading letter

No Feel intact = B

No Feel and flow intact = C

etc...

So, this helps us identify that each setup is not merely the same. Give it a place, a grading system. Understand that there is a scale of logic behind setups that are better to execute versus ones that are not.