MARKET STRUCTURE
MASTERCLASS
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FREE PDF GUIDE
Part 1 of 2
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THE BASICS
BULLISH MARKET STRUCTURE BEARISH MARKET STRUCTURE
The formation of Higher Highs and Higher Lows in succession (uptrend). The formation of Lower Lows and Lower Highs in succession (downtrend).
A Higher Low is only confirmed once the previous High is broken (BOS) A Lower High is only confirmed once the previous Low is broken (BOS)
which then leads to the creation of a new Higher High. w h i c h t h e n l e a d s t o t h e c r e a t i o n o f a n e w L o w e r L o w.
Expectation
Reality
After a BOS - we expect a pullback on that timeframe 💡
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SWING HIGHS & LOWS
BULLISH MARKET STRUCTURE BEARISH MARKET STRUCTURE
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SWING HIGHS & LOWS
BULLISH MARKET STRUCTURE BEARISH MARKET STRUCTURE
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STRONG/WEAK HIGHS & LOWS
IN A BULLISH TREND: IN A BEARISH TREND:
Tr a d e a w a y f r o m S t r o n g L o w s Tr a d e a w a y f r o m S t r o n g H i g h s
Ta r g e t We a k H i g h s Ta r g e t We a k L o w s
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TREND CHANGE
IN A BULLISH TREND: IN A BEARISH TREND:
the expectation is that price will continue to the expectation is that price will continue to
make higher highs and higher lows. 📈 make lower highs and lower lows. 📉
A B u l l i s h Tr e n d C h a n g e i s c o n f i r m e d o n c e A B e a r i s h Tr e n d C h a n g e i s c o n f i r m e d o n c e
price breaks a Swing Lower High to create a price breaks a Swing Higher Low to create a
Swing Higher High (Bullish BOS). Swing Lower Low (Bearish BOS).
Confirm a Trend Change when the Expectational Order Flow fails ✔
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MECHANICAL MARKET STRUCTURE ⚙
Confirmed Swing High
BULLISH MARKET STRUCTURE (a significant pullback KEY POINTS 👇
that meets your pip size rule)
IN A BULLISH TREND:
SWING LOW: Lowest point that caused the Swing High
SWING HIGH: A significant pullback that meets your pip size rule
IN A BEARISH TREND:
SWING HIGH: Highest point that caused the Swing Low
SWING LOW: A significant pullback that meets your pip size rule
EXAMPLE:
A minimum Swing pullback on EURUSD must be at least:
H4 —> 80 pips
M15 —> 30 pips
C R E AT E Y O U R O W N R U L E S 👇
1. D e c i d e o n w h a t p a i r / i n s t r u m e n t a n d t h e s p e c i f i c
timeframes you want to create rules for
2. T h e n j u m p o n t h e c h a r t s a n d s i m p l y d r a w o n S w i n g S t r u c t u r e
purely using your own judgment of what ‘looks’ like a
significant swing pullback
3. T h e n m e a s u r e t h e p i p s i z e o f a l l o f t h o s e p u l l b a c k s
4. T h e n u s e t h e m i n i m u m a v e r a g e p i p s i z e a s y o u r n e w
Confirmed Swing Low
(lowest point that caused
mechanical rule ✔
the Swing High
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STRUCTURE MAPPING
Type 1
Conservative
STRUCTURE MAPPING : CANDLE WICKS
BREAK OF STRUCTURE : CANDLE BODIES
Swing Structure (BOS)
Internal Structure (iBOS)
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STRUCTURE MAPPING
Type 2
Aggressive
STRUCTURE MAPPING : CANDLE WICKS
BREAK OF STRUCTURE : CANDLE WICKS
Fr a c t a l S t r u c t u r e ( C H o C H )
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MARKET STRUCTURE MASTERCLASS
3 TYPES OF MARKET STRUCTURE👇
1. SWING
Swing is King and should always be our main focus taking precedence over all types of Structure (BOS)
Mapping - Candle Body Close
2. INTERNAL
Internal Structure is larger movements/swings in price contained within our Swing Range (iBOS)
This helps us navigate our way through price action when Swing Ranges become large & complex
Mapping - Candle Body Close
3 . F R A C TA L
Fr a c t a l S t r u c t u r e i s s m a l l e r m o v e m e n t s i n p r i c e c o n t a i n e d w i t h i n o u r I n t e r n a l R a n g e ( C H o C H ’s )
This helps us anticipate Internal Structure turning points
Mapping - Wick Breaks
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T H E L AW O F S T R U C T U R E
SWING
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Ru
ing
Sw
C
ou
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Tr e
Tr
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Pr o
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Sw
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Pu
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Cou
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end
Ru
ing
Swi
Sw
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Pu l
Tr e
lba
Pr o
ck
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T H E L AW O F S T R U C T U R E
INTERNAL
n
Ru
PT
al
Int
ern
k
ern
ac
Int
CT
llb
al
PT
Pu
In
Ru
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I n t e r n a l Tr e n d s w i t c h e s B u l l i s h
rn
rn
al
confirming end of Swing pullback
al Ru
te
In
Pu
CT
llb
tern
ac
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b
ull
k
PT In
PT
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CT
Inte
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I n t e r n a l Tr e n d
ull
switches Bearish
b
ac
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to facilitate Swing
PT I
llb
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al R
pullback
Pu
nter
ern
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PT
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nal
Int
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Inte
In
Run
PT
CT
rna
l Ru
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P T — > Pr o Tr e n d
C T — > C o u n t e r Tr e n d
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T H E L AW O F S T R U C T U R E
F R A C TA L
Fr a c t a l Tr e n d s w i t c h e s B e a r i s h
confirming end of Internal pullback
Fr a c t a l Tr e n d
switches Bullish
to facilitate Internal
pullback
CH —> CHoCH
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T H E L AW O F S T R U C T U R E
Example 1
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T H E L AW O F S T R U C T U R E
Example 1
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T H E L AW O F S T R U C T U R E
Example 1
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T H E L AW O F S T R U C T U R E
Swing High
Chart Example
Swing Low
EURUSD | Daily Timeframe
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T H E L AW O F S T R U C T U R E
Example 2
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A P P L I C AT I O N E X E R C I S E
A p p ly t h i s t h e o r y t o t h e c h a r t s …
1 O p e n Tr a d i n g V i e w a n d d e c i d e o n t h e p a i r / i n s t r u m e n t y o u w a n t t o a n a l y s e ( e . g . E U R U S D / G B P U S D / B TC U S D ) u s i n g t h e s e a r c h w i n d o w ( t o p l e f t ) .
2 Open a new chart layout for the exercise (top right) and start with a completely blank chart with only Japanese Candlesticks showing.
3 Now decide on the timeframe you want to analyse (e.g. Daily or H4) and start the exercise from the beginning of 2022 (or before).
4 If you are analysing EURUSD you can use the pip rule guideline below for mapping your swing structure or create your own rules (see page 7).
5 O n c e y o u ’ v e i d e n t i f i e d y o u r S w i n g S t r u c t u r e ( B O S ) y o u c a n l o o k f o r t h e s m a l l e r I n t e r n a l S t r u c t u r a l b r e a k s t o c o n f i r m t h e s t a r t / e n d o f y o u r S w i n g Pu l l b a c k s ( i B O S ) .
6 O n c e y o u ’ v e i d e n t i f i e d y o u r I n t e r n a l S t r u c t u r e ( i B O S ) y o u c a n l o o k f o r t h e Fr a c t a l S t r u c t u r a l b r e a k s t o c o n f i r m t h e s t a r t / e n d o f y o u r I n t e r n a l Pu l l b a c k s ( C H o C H ’s ) .
PIP RULE GUIDELINE
A minimum Swing pullback on EURUSD must be at least:
H4 —> 80 pips
M15 —> 30 pips
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