Market Structure Analysis and Trading Strategy

Previous high, short-term high, and $8.30 in the morning.

That starts the hunt, basically.

That's what $8.30 in the morning is to me.

So we're looking for an old high to be violated.

It does.

So here, then it breaks.

There's a break in market structure.

Swing low.

There's a candle right here.

That sets the stage.

Now you have a opportunity.

Does price draw back up into the fair value gap after this candle breaks below here and

giving you a bearish market structure shift?

Yes, it trades up into that fair value gap.

You can go short there.

And again, you could target this old low here or that low that was annotated before we zoomed

in and look at the beautiful delivery there.

Hypothetical short from here and hypothetical cover here.

You would log that in your study journal.

Again, there's that fair value gap, and that's your candle that would be considered as an

ideal entry.

And the discount old low as a target, right there.

So your charts would look just like this.

In any open space like over here, you would just type in whatever important factors that

you found insightful about this example.

How long did it take?

How long did it take from the market structure shift occurring?

How much time did it take to get up into the fair value gap?

That's real important.

How long did it take before it went from your entry down to your target in time?

How much heat or drawdown would you have weathered getting short?