Class 6 Market Structure 3 ChoCh MS

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Difference between retracement and correction

retracement is common in a trend. its around 50-60% of the impulsive move
correction is deep retracement almost 100% of impulsive move.

New traders always try to capture reversal. its bad and dangerous

CHOCH/MS

First clue of reversal

Price usually breaks above CHOCH. This is why we don’t sell on CHOCH

BOS Break of structure

when HL is broken second time

when confirm Higher Low breaks second time

Trend Alignment

1H is bullish but in its retracement 5 min is bearish. we can sell but we should check 1H level to set target.

If 5 min BOS and gets bullish we will take bullish trade as higher time frame is supporting. Its called structure base trading

get out of trade as early as possible. if its against the higher time frame trend

15M, 5M, 1M if we are against the tend then get out early.

big targets come with the trend

Bearish example. 4H is bearish. but on its retracement 15 min will be bullish. we can trade but we need to exit on 4H level

One going against the trend we should trade on BOS but with the tend we can trade on MS only.

over all trend is bullish but on M15 it was bearish as it was a retracement. so on MS entry should be made on retest. in current case the retest was on order block.

This was exactly the place where i sell at top and got liquidated as i didn’t know the market structure at that time and ignored higher time frame.

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