Market Structure and Trading Strategies
Previous high, short-term high, and eight thirty in the morning.
That starts the hunt, basically. That's what eight thirty 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.
This 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 a 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? Okay. 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?
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