Market Structure: Seeing In Swings

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Market Structure is simply making distinctions in price flow. its putting structure around what looks like chaos so that we have a way to measure and orient ourselves to any market in any timeframe. When I look at a market, I want to see objectively in swings.

Swings are the common thread that weaves through all markets and timeframes, providing a clear indication of who is in control at any given moment. They consist of distinct components and follow a process, forming the foundation of my trading strategies and setups.

Market Structure Definitions:

Confirmed Swing High/Low: A new high confirms a
swing low and a new low confirms a swing high.

Relative:
Major Swing: The largest reaction leg in your frame.
Minor Swing: the next largest reaction leg.

Balanced/Relative Swing: Same size reaction legs.

Expanded Swing: Reaction leg larger than previous reaction leg.

Components of a Swing:

Impulse Leg: The leg that takes out a previous high or low.

Reaction Leg: The retracement or pullback after the impulse leg.

Impulse Leg Shelf: a small range at the end of an impulse leg

Reaction Leg Shelf: A small range at the bottom of a reaction leg
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Since price hit the swing low before the buy-stop entry, the trade is no longer valid, and orders are canceled.
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