Class 4- Basic Market Structure

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Market structure tells the direction of the market.

Basic Market structure

Basic Anatomy of candles.

wicks are also called shadows. these are foot prints of smart money.

Waves

There are two types of waves

  1. Impulsive Waves
    • The wave which breaks a level
  2. Retracement/Correction (Both have slight different)

S: Support,
R: Resistance

Impulsive wave vs retracement

Market trends

  1. Bullish trend
    • High breaks again and again but market holds lows
  2. Bearish Trend
  3. Sideways / Range / Accumulation / Distribution
    • Accumulation happens before uptrend move
    • Distribution happens before down trend
General Market behavior
Higher Highs and higher lows
lower lows and lows highs in down trend

How to mark higher low

Higher low is marked after higher high breaks, its also called external high. Deepest point after higher high breaks, Its the extreme Point of Interest. Its marking should be perfect

Hint: Higher Low is most important point

HH and HL Labeled

We will consider candle closing as break out. If only wick breaks HH we will not consider it.

we will study retracements in next class.

first retracement is not valid we will not consider it. details will follow.

first retracement is completely inside last green candle.

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