Class 5- Market Structure 2

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Internal Vs External structure

Things usually are not that simple
Mark External structure. in between everything is internal matter.

In bullish structure latest HL is VERY Important

In bearish market Lower HIGH is VERY Important

For trend continuation Higher lows should be safe

Valid/Invalid Retracement

Valid retracement is when a momentum candle with low volume breaks below the last buy candle. Last buy candle identification is also im as in above pic last buy candle is with tick mark the green candle next to it is inside that candle. its called inside candle not independent buy candle.

Another Example
In this example higher low is not broken this is actually liquidity sweep.
best strategy is to take trade After Liquidity sweep.
Not a valid retracement as red candle closing is not below green candle wick
first green candle is valid independent candle. others are inside bars.
Bearish market structure

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