Market Structure Playlist

innercircletrader.net/market-structure

July 3, 2024

To make it easier, we have enlisted all the market structure articles below. Lets go
through them one by one & thank me later.

(1) Market Structure in Trading – Beginner to Pro

(2) 3 Step Guide to Master Valid Pullback in Trading- SMC

(3) Break of Structure (BOS) – Understanding Market Structure

(4) Change of Character (CHOCH) in Trading – Market Structure

(5) How to Identify Higher High and Higher Low in Bullish Market

(6) How to Identify Lower High and Lower Low in Bearish Trend

(7) Break of Structure VS Change of Character – BOS vs CHOCH

(8) Inducement After Break of Structure (BOS)

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everyone.

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ictpdf.com

1/1
Market Structure in Trading – Beginner to Pro
innercircletrader.net/tutorials/market-structure-in-trading

January 14, 2024

What is this?
Do you want to master Market Structure in trading to trade like a pro ?

Market structure is basically the real price action of market which tells us about the
current trend of market either bullish or bearish and if there is no trend ( sideways
market).

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

In this article we will be explaining the Market Structure in trading from basic to advance
level.

Now lets start with defining the Market Structure.

What is Market Structure in Trading??

Market structure in trading is the real price action of market including swing highs, swing
lows and inducement. It tells us if the market is in a trend or sideways. If its in trend either
the trend is bullish or bearish.

Using market structure we can decide either its a good market condition to trade or not.
And market structure helps us to trade reversals and continuations of the trend.

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Types of Market Structure in Trading?

On the basis of trend of the market, structure has 3 major types which are listed below.

(I) Bullish Market Structure

A bullish market structure in trading refers to a financial market where prices are
generally rising or expected to rise and it is also known as bullish trend.

In bullish market structure prices make higher highs and higher lows by breaking previous
swing high which is called break of structure. Until price does not break its previous
higher low it is expected that market will continue its bullish trend and will break previous
high.

As you know “Trend is our friend” so in bullish market we look for buying opportunities
mostly after break of structure when price retraces down and takes inducement we opt to
buy after confirmation.

What is this?

(II) Bearish Market Structure

A bearish market structure in trading refers to a financial market where prices are
generally falling or expected to fall and it is also known as bearish trend.

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I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

In bearish market structure prices make lower highs and lower lows by breaking previous
swing low which is called break of structure. Until price does not break its previous lower
high it is expected that market will continue its bearish trend and will break previous low.

What is this?
As you know “Trend is our friend” so in bearish market we look for selling opportunities
mostly after break of structure when price retraces up and takes inducement we opt to
sell after confirmation.

(III) Sideways Market Structure

A sideways market structure, also known as a horizontal or ranging market, refers to a
financial market where the price of an asset trades within a relatively narrow range
without showing a clear trend in either direction.

In a sideways market, the price moves horizontally, fluctuating between a certain swing
high and swing low, creating a trading range.

This market condition is good for scalping on lower time frame but to do an intraday or
swing trade using market structure you should wait for break of structure for clear
direction of market.

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What is this?

What is Best time frame to identify Market Structure?

Market structure appears across all time frames and different time frames often display
different market structures.

Just For example, while the overall market structure on the higher time frame may be
bullish and the lower time frame structure may be bearish as the market pulls back,
awaiting the influx of buyers to continue the higher time frame move.

Higher volume is represented on higher time frames, which means more market
participants and more reliable sentiment. This generally results in a more consistent
market structure.

On lower time frames, the market structure can often be less predictable and choppy from
highs to lows.

The best approach is to have a clear understanding of the market as a whole. This
includes low time frame, medium time frame, and high time frame structure. Think about
each time frame and align the market structure as top down analysis.

Pros of using Market Structure in Trading

Not only does market structure provide us with a clear overview of current market
conditions and trends, but it can also help us to catch good continuation and reversal
trades as well.

When using market structure to trade always look left and find valid inducement, execute
a trade after confirmation when price grabs inducement.

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What is this?

Cons of using Market Structure in Trading

Remember that the market can do anything at any given moment. Uncertainty of the
market must be embraced and accepted. While market structure can provide clues, there
are absolutely no guarantees in trading and it only takes just a moment to reverse the
trend.

Market structure principles may appear quite simple, but the complex details can take
many years to master.

Final Thoughts

While using market structure in trading, we should keep in mind that no strategy is
foolproof in trading, so you should not risk all your capital on this strategy.

Plus to mitigate your risks, you should always trade with stop loss in place to keep your
equity safe.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

5/5
3 Step Guide to Master Valid Pullback in Trading- SMC
innercircletrader.net/tutorials/3-step-guide-to-master-valid-pullback

January 28, 2024

Are you struggling to identify valid pull back in trading?

No worries, in this article we will be explaining the valid pullback in 3 simple steps.

Pullback is just a retracement in impulsive move but valid pullback has some
identifications which are explained below.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

Now lets start with defining the Pullback.

What is Pullback in Trading?

Pullback in trading is basically a retracement of an impulse move which can be with a

single candle or number of candlesticks.

What is this?
Bearish candlesticks in a bullish move and bullish candlesticks in a bearish move are
simply called the pullbacks.

What is Valid Pullback in Trading?

As we discussed earlier pullback is a retracement move, but every retracement is not a

valid pullback.

We will be dividing valid pullback in two types listed below.

Valid Pullback in Bullish Market

As you know when prices move higher its called bullish market, So in bullish market the
bearish candles are simply the pullbacks.

But to identify a valid pullback in bullish market you have to check following things.

(I) Mark the highest bullish candlestick before the pullback candlestick.

(II) Mark the low of that highest bullish candlestick.

(III) Check if the low of that highest bullish candlestick is grabbed by the pullback
candlesticks.

(IV) Check that after low (of the highest bullish candlestick) being grabbed the high (of the
highest bullish candlestick) is broken.

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For grabbing the low , you just have to check if price went below the low no matter
by just a wick or candlestick closing

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What is this?
But for breaking the high closing of candlestick above the high is compulsory

A real market example is shown below in the picture.

Valid Pullback in Bearish Market

As you know when prices move lower its called bearish market, So in bearish market the
bullish candles are simply the pullbacks.

But to identify a valid pullback in bearish market you have to check following things.

(I) Mark the lowest bearish candlestick before the pullback candlestick.

(II) Mark the high of that lowest bearish candlestick.

(III) Check if the high (of that lowest bearish candlestick) is grabbed by the pullback
candlesticks.

(IV) Check that after high (of that lowest bearish candlestick) being grabbed the low (of
that lowest bearish candlestick) is broken.

For grabbing the high , you just have to check if price went above the high no
matter by just a wick or candlestick closing

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What is this?
But for breaking the low closing of candlestick below the low is compulsory

A real market example is shown below in the picture.

NOTE : This all phenomenon of valid pullback may happen with a single candlestick or
number of candlesticks.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

3/3
Master Break of Structure Trading – BOS in Forex
Explained
innercircletrader.net/tutorials/break-of-structure-bos

January 15, 2024

What is this?
Break of structure in trading refers to a
smart money concept, which indicates the price breaking its previous structure in the
direction of its current trend.

BOS indicates the continuation of trend and traders utilize it to maximize their gains.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

In this article you will get to know about the break of structure from its formation to
identification and to to use with real market examples.

You can continue reading the whole article or jump to the section you are most interested
in:

But before going in-depth of break of structure you should also know about Inducement

What is Break of Structure in Trading?

Break of structure is basically a continuation of market trend by breaking its previous

structure.

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Break of structure helps us to catch continuation trades in the market and it also helps to
identify the market trend.

What is this?
Bullish break of structure indicates higher
prices in future while bearish break of structure indicates lower prices in future.

You can see the example of BOS in the picture given below:

How to Identify Break of Structure in Trading?

But before going in-depth of break of structure you should also know about Inducement

Because the break of previous structure after taking the inducement is the valid break of
structure.

On the basis of market trend break of structure can be divided into two types which are
explained below.

(I) Bullish Break of Structure

When price is in bullish trend it makes higher highs which means it always breaks its
previous high making a new high and this is called bullish break of structure.

What is this?

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

2/7
But break of structure is incomplete without inducement so a break of structure in bullish
trend happens when price grabs the inducement and breaks the previous high making a
higher high.

You can see the real market example of bullish break of structure in the picture given
below:

If price breaks previous high without grabbing the inducement it is called a minor break of
structure and in this way a new high is found but the previous low remains intact.

You can see the example of bullish Minor-Bos in the picture given below:

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What is this?

(II) Bearish Break of Structure

When price is in bearish trend it makes lower lows which means it always breaks its
previous low making a new low and this is known as bearish break of structure.

But break of structure is incomplete without inducement so a break of structure in bearish

trend happens when price grabs the inducement and breaks the previous low making a
lower low.

You can see the example of bearish break of structure in the picture given below:

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What is this?
If price breaks previous low without taking out the inducement it is called a minor break of
structure and in this way new lower low is formed but the previous lower high remains
same.

You can see the example of bearish Minor-Bos in the picture given below:

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Best time frame to Identify Break of Structure?

Market structure appears across all time frames and different time frames often display
different market structures.

What is this?
So you can identify break of structure in any time frame by marking the previous
structure.

The best approach is to have a clear understanding of the market as a whole. This
includes low time frame, medium time frame, and high time frame structure.

Think about each time frame and align the market structure as top down analysis.

How to Trade Break of Structure in Forex?

In bullish market when price breaks the structure you should mark inducement and wait
for price to retrace back and take inducement.

When price grabs inducement you can look for buy trades with confirmations like Market
Structure Shift or trend reversal in lower time time frames.

In bearish market when market breaks the structure you should mark inducement and
wait for price to retrace back and take inducement.

When price grabs inducement you can look for sell trade with confirmations like market
structure shift or trend reversal in lower time time frames.

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ICT MSS vs BOS

As we have discussed earlier break of structure indicates break of previous structure

(high/low) after taking out the inducement.

While ICT market structure shift indicated the break of Swing Low or Swing High.

So the difference between the break of structure and market structure shift is just
inducement.

Break of structure indicates the larger shift in price trend while the market structure shift
indicates the initial shift in the structure.

You can see the picture below explaining BOS vs MSS:

What is this?

Final Thoughts

While using break of structure in trading, we should keep in mind that no strategy is
foolproof in trading, so you should not risk all your capital on this strategy.

Plus to mitigate your risks, you should always trade with stop loss in place to keep your
equity safe.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

7/7
Change of Character (CHOCH) in Trading – Market
Structure
innercircletrader.net/tutorials/change-of-character-choch-in-trading

January 15, 2024

What is this?
Do you want to master change of character the core element of Market Structure in
trading to trade like a pro ?

Well in this article we will be exploring core element of market structure called change of
character (CHOCH) from its identification to its use with examples.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

Change of Character in trading is the first indication of trend reversal in the financial
markets and it helps to catch good trend reversal trades.

Now lets start with defining the change of character (CHOCH).

What is Change of Character in Trading?

As obvious from the term, change of character signals possible change in the trend of
market either from bullish to bearish or bearish to bullish.

It is basically a break of structure but in opposite direction of previous trend which

indicates change of market trend.

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On the basis of market trend change of character can be divided into two types which are
explained below.

(I) Bullish Change of Character

Bullish change of character is the reversal of market trend from bearish to bullish and it
happens at the end of bearish trend.

As you know in bearish trend price makes lower lows and lower highs, at the time when
price changes its trend it breaks its structure in opposite direction making a higher high.

Like previously price was making lower highs but at the time of change of character price
breaks lower high and makes a higher high.

What is this?
And in this way the series of lower highs comes to end and a new series of higher highs
starts which means trend has reversed from bearish to bullish.

(II) Bearish Change of Character

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

Bearish Change of character is the reversal of market trend from bullish to bearish and it
happens at the end of bullish trend.

As you know in bullish trend price makes higher highs and higher lows, at the time when
price changes its trend it breaks its structure in opposite direction making a lower low

Like previously price was making higher lows but at the time of change of character price
breaks higher low and makes a lower low.

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And in this way the series of higher lows comes to end and a new series of lower lows
starts which means trend has reversed from bullish to bearish.

What is this?

What is Best time frame to identify Change of Character?

Market structure appears across all time frames and different time frames often display
different market structures.

So you can identify change of character in any time frame by marking the previous
structure.

The best approach is to have a clear understanding of the market as a whole. This
includes low time frame, medium time frame, and high time frame structure. Think about
each time frame and align the market structure as top down analysis.

How to Trade Change of Character?

In bullish CHOCH when market changes its character from bearish to bullish you should
mark inducement and wait for price to retrace back and take inducement.

When price grabs inducement you can look for buying opportunities with confirmations
like market structure shift or trend reversal in lower time time frames.

In bearish CHOCH when market changes its character from bullish to bearish you should
mark inducement and wait for price to retrace back and take inducement.

When price grabs inducement you can look for selling opportunities with confirmations
like market structure shift or trend reversal in lower time time frames.

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What is this?

Final Thoughts

While using change of character in trading, we should keep in mind that no strategy is
foolproof in trading, so you should not risk all your capital on this strategy.

Plus to mitigate your risks, you should always trade with stop loss in place to keep your
equity safe.

Change of Character CHOCH PDF Download

You can download below ICT change of character choch in PDF for free. This PDF is
sponsored by ICTPDF.COM.

Download PDF

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eBook on ICTPDF.COM.

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ictpdf.com

4/4
How to Identify Higher High and Higher Low in Bullish
Market
innercircletrader.net/tutorials/higher-high-and-higher-low

May 7, 2024

Do you trade using SMC market structure and are you struggling to identify higher high
and higher low in live market?

Don’t worry! In this article we will teach you every thing about the identification of higher
high and higher low in bullish market.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

Before going forward if you are new to SMC, you are recommended to master following
market structure concepts.

(I) Market Structure

(II) Break of Structure (BOS)

(III) Change of Character (CHOCH)

(IV) Inducement

How to Identify Higher High in Bullish Market?

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As you know in bullish market price makes higher highs, but every high is not a structural
high.

To identify a valid higher high in bullish market you have to identify Inducement
first.

After identifying the inducement wait for price to make a Swing High and retrace down to
sweep the inducement.

When price sweeps the inducement, the last swing high formed before sweeping the
inducement is marked as the valid higher high.

And when price breaks above the higher high it is called valid break of structure.

Every time when price breaks the structure to the upside you have to look for inducement
sweep to confirm the higher high.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

How to Identify Higher Low in Bullish Market?

As you know in bullish market price makes higher lows but every low is not a valid higher
low.

To confirm a low as a valid higher low you have to follow the steps explained below.

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When price sweeps the inducement and confirms the higher high, look for the formation
of Swing Low.

After the formation of swing low if price moves up and breaks the previous high then the
last swing low formed at liquidity sweep is marked as the valid higher low.

Every time after a break of structure to the upside you have to look for a liquidity sweep
and then a next break of structure to confirm a higher low.

How to Identify Structural Low after Bullish CHOCH?

To identify a structural low after bullish CHOCH, you have to mark the last lower low
which was made before the CHOCH.

The last lower low of bearish trend is marked as structural low when market changes its
trend from bearish to bullish. Because the bullish trend starts from that low.

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And then after every break of structure you have to look for an inducement sweep and a
break of structure to the upside to confirm the higher low.

How to Identify Structural High after Bullish CHOCH?

As you know CHOCH mean change of character and when market changes its trend from
bearish to bullish you have to mark a higher high.

To identify a structural high after bullish CHOCH you have to identify the inducement and
wait for the formation of swing high.

After the formation of swing high when price sweeps the inducement, the last swing high
is marked as valid structural high.

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As the trend is bullish so price will expectedly rise and break the previous high making a
new high, after every break of structure you will look for inducement sweep to confirm the
higher high.

Can We Mark a Higher High without an Inducement Sweep?

No! to confirm a higher high sweep of inducement is necessary.

If price breaks a high without sweeping the inducement then it is called “Minor Break of
Structure” and your high just shifts but the overall market structure remains same.

Can We Mark a Higher Low without an Inducement Sweep?

No! to confirm a higher low sweep of inducement and break of structure to the up side are
crucial.

Without inducement sweep and a break of structure to the upside you can not mark a
higher low.

Is Market Structure a Reliable Trading Method?

Yes market structure is one of the most reliable trading method.

But to achieve good results you should learn it properly and mark the structure accurately.

Can We Trade using Market Structure Alone?

If you master the market structure properly then you don’t need to look for any thing else.

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You can trade using market structure method without using any indicator or something
else.

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How to Identify Lower High and Lower Low in Bearish
Trend
innercircletrader.net/tutorials/lower-high-and-lower-low

May 8, 2024

Are you a SMC trader using market structure and struggling to mark lower high and lower
low in bearish market structure?

Don’t worry! In this article we will teach you all about the identification of lower high and
lower low with examples.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

After studying this article and spending time in practice you will gain ability to identify
lower high and lower low like a pro.

But before going forward if you are new to SMC, you are recommended to master
following market structure concepts.

(I) Market Structure

(II) Break of Structure (BOS)

(III) Change of Character (CHOCH)

(IV) Inducement

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How to Identify Lower Low in Bearish Trend?

As you know in bearish trend price makes lower lows, but every low is not a valid
structural low.

To identify a valid lower low in bearish trend you have to identify Inducement
first.

After identifying the inducement wait for price to make a Swing Low and retrace up to
sweep the inducement.

When price sweeps the inducement, the last swing low formed before sweeping the
inducement is marked as the valid lower low.

And when price breaks below the lower low it is called valid break of structure.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

Every time when price breaks the structure to the downside you have to look for
inducement sweep to confirm the lower low.

How to Identify Lower High in Bearish Trend?

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As you know in bearish trend price makes lower highs but every high is not a valid lower
high.

To confirm a high as a valid lower high you have to follow the steps explained below.

When price sweeps the inducement and confirms the lower low, look for the formation of
Swing High.

After the formation of swing high if price moves down and breaks the previous low then
the last swing high formed at liquidity sweep is marked as the valid lower high.

Every time after a break of structure to the downside you have to look for a liquidity
sweep and then a next break of structure to confirm a lower high.

How to Identify Structural High after Bearish CHOCH?

To identify a structural High after bearish CHOCH, you have to mark the last higher high
which was made before the CHOCH.

The last higher high of bullish trend is marked as structural high when market changes its
trend from bullish to bearish. Because the bearish trend starts from that high.

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And then after every break of structure you have to look for an inducement sweep and a
break of structure to the downside to confirm the lower high.

How to Identify Structural Low after Bearish CHOCH?

As you know CHOCH mean change of character and when market changes its trend from
bullish to bearish you have to mark a lower low.

To identify a structural low after bearish CHOCH you have to identify the inducement and
wait for the formation of swing low.

After the formation of swing low when price sweeps the inducement, the last swing low is
marked as valid structural low.

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As the trend is bearish so price will expectedly fall and break the previous low making a
new low, after every break of structure you will look for inducement sweep to confirm the
lower high.

Can We Mark a Lower Low without an Inducement Sweep?

No! to confirm a lower low sweep of inducement is necessary.

If price breaks a low without sweeping the inducement then it is called “Minor Break of
Structure” and your low just shifts but the overall market structure remains same.

Is Market Structure Method Reliable for Trading?

Yes market structure is the most reliable method for trading if you learn it properly and
mark the structure accurately it will have great results.

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What is Break of Structure and Change of Character –
BOS vs CHOCH Explained
innercircletrader.net/tutorials/break-of-structure-vs-change-of-character

April 21, 2024

What is this?
Break of structure in trading refers to the break of previous high in bullish trend and break
of previous low in bearish trend which indicates the continuation of trend.

Change of character in trading refers to the break of previous low in bullish trend and
break of previous high in bearish trend. CHOCH indicates the reversal of trend.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

You can continue reading the whole article or jump to the section you are most interested
in:

What is Break of Structure (BOS)

When price breaks its structure in direction of previous trend its called break of structure
(BOS) its a trend continuation pattern.

As you know in bullish trend price makes higher highs, Each time when price break a
previous high and marks a new high its known as bullish break of structure.

But in bearish trend price makes lower lows so every time when price breaks previous
low and makes a new low it is called as bearish break of structure.

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Traders utilize break of structure to identify the current trend of market.

You can see the example of break of structure-BOS in the picture given below.

What is Change of Character (CHOCH)

Change of character refers to the reversal of market trend either from bullish to bearish or
bearish to bullish.

CHOCH is also a break of market structure but in opposite direction.

If price is in bullish trend but it breaks it previous low (higher low) and makes a lower low,
it will be termed a “bearish change of character” as price changed its trend from bullish to
bearish.

Like wise if price is in bearish trend and it breaks its previous high (lower high) making a
higher high it will be marked as “bullish change of character” as price changed its trend
from bearish to bullish.

I have launched my ICT Trading strategies PDF eBook . You can check it out here at
ictpdf.com

What is this?
Traders utilize change of character (CHOCH) to identify the reversal of market trend.

You can see the example of CHOCH in the picture given below:

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BOS vs CHOCH

Aspect Break of Structure Change of Character

Definition It is a trend continuation pattern. Its a trend reversal pattern. Price

Price breaks its previous structure breaks its structure in opposite
and makes new structure in direction of previous trend.
previous direction.

Occurence It occurs in both bullish and bearish It occurs only at the end of trend
trend whenever price continues the when price changes its trend
trend. either from bullish to bearish or
bearish to bullish.

Significance It is significant in identifying the It is significant in identifying the

current trend of market and its reversal of current market trend.
strength.

Example
In bullish trend break of previous In bullish trend break of previous
higher high and formation of new higher low and formation of new
higher high. lower low.

In bearish trend break of previous In bearish trend break of previous

lower low and formation of new lower high and formation of new
lower low. higher high.

What is this?

Which is More Reliable BOS or CHOCH?

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As we discussed earlier both BOS and CHOCH are break of structure but their directions
are opposite.

So both BOS and CHOCH have same reliability with the difference that BOS offers the
continuation of trend while CHOCH offers the reversal of price with more pips.

Can We Trade on the basis of BOS alone?

Yes you can trade on the basis of break of structure when you have identified the market
trend correctly.

But for executing a trade you should look for extra confirmation.

Does Closing of Candlestick necessary for BOS and CHOCH?

Yes after close of candlestick break of structure and change of character are confirmed.

Without closing of candlestick we can not mark a BOS or CHOCH.

BOS vs CHOCH PDF Download

You can download below ICT bos vs choch in PDF for free. This PDF is sponsored by
ICTPDF.COM.

What is this?
To learn complete ICT Trading strategy step by step, you can buy ICT Trading PDF
eBook on ICTPDF.COM.

4/4
Inducement After Break of Structure
(BOS)
 18  8,231
Ayub Rana • July 11, 2024 Last Updated: October 14, 2024

In this article we will uncover the secrets of inducement after break of structure.

As you may have noticed sometime after break of structure price does not sweep inducement and
continues its move so,

(I)Should we wait for price to take the inducement created before break of structure(BOS).

(II)Will it create new inducement?

(III)How to identify new inducement?

If you are new to my blog and don’t know about the inducement then I will recommend you to
first study What is Inducement in Forex – Market Structure and then continue reading this article.

Before going toward core concept of inducement after break of structure you should have
knowledge about minor break of structure.
What is Minor Break of Structure?

(I) In Bullish Market

After major break of structure when price moves up without sweeping inducement and makes a
Swing High

You have to wait for price to close above that swing high.

This scenario, known as a minor break of structure, results in a shift of the price high while the rest
of the market structure remains unchanged.

(II) In Bearish Market

After a major break of structure, when the price moves down without sweeping inducement and
forms a Swing Low, you need to wait for the price to close below that swing low.

This scenario results in a shift of the price low while the rest of the market structure remains
unchanged.
What is Inducement after Break of Structure?

As we discussed earlier price sometime continues its move after break of structure and it does not
pull back to sweep inducement.

In this scenario if we wait for the price to sweep the first inducement then we not get the trading
opportunity.

So we wait for price to create a new inducement and then grab it.

After that we can look for trading opportunity and structural highs/lows will also be confirmed.

(I) Inducement after BOS in Bullish Market

As you know in bullish market structure price makes Higher High and Higher Low, When price
breaks the previous high its called break of structure and the Valid Pullback before the BOS level is
marked as inducement.

But if price does not grab it and continues to move bullish then we wait for a minor break of
structure to find a new inducement.

When a minor break of structure happen mark the lowest low and highest high of bullish price leg
which broke the swing high.

Now find a Valid Pullback in that bullish price leg and it will be the inducement level.
In this way you can look for each new inducement whenever price moves up without sweeping the
inducement.

(II) Inducement after BOS in Bearish Market

In a bearish market structure, the price makes Lower High and Lower Low. When the price breaks
the previous low, it is called a break of structure, and the valid pullback before the BOS level is
identified as inducement.

If the price continues to move bearish without grabbing the inducement, we wait for a minor break
of structure to identify a new inducement.

When a minor break of structure occurs, mark the highest high and lowest low of the bearish price
leg that broke the swing low.

Next, identify a Valid Pullback within that bearish price leg, which will serve as the inducement
level.
This approach allows you to look for each new inducement whenever the price moves down
without sweeping the previous inducement.

Final Thoughts

It’s important to mention here that while market structure can provide valuable insights yet they
are not foolproof and should be used in conjunction with other technical analysis tools and
indicators.

Additionally market conditions can change rapidly, so it’s essential to consider other factors before
making trading decisions and always use stop loss to keep your equity safe.