All orders
Rules
Specification
Let's break it into parts this is the Market Structure :
1. Trends ( it should identify what trend we are currently in from bigger Time frame 1 day/ 4 hours and scale down to 15 minutes and 5 minutes )
A. Uptrend : properties that define a Uptrend
·When price create higher highs (HH)
·Higher lows (HL)
This is classified as a Uptrend
Rules it should follow :
·Looking for buys in Uptrend
·Price break HH and doesn't break HL (respecting HL)
B. Downtrend :properties that define a downtrend
·When price create Lower lows (LL)
·lower highs (LH)
This is classified as a Downtrend
Rules it should follow :
·Looking for sells in downtrend
·Price break LL and doesn't break LH (respecting LH)
2. Order block : an area where there has been a large concentration of limit orders waiting to be executed.
A. Uptrend (order block)
Is defined by:
Last selling candlesticks that price left at the HL taking the wick of both the open and the close / or the body of the open and close of the that selling candlesticks is plotted in a block (order block) This is our Demand : the quantity of an asset that I am willing to buy (Enter) . This I call my Point Of Interest (POI)
·Demand
Downtrend.......LL
Uptrend........HL
Strong.......Uptrend.......HL
Weak......Downtrend......LL
B.Downtrend (order block)
Is defined by:
Last buying candlesticks that price left at the LH taking the wick of both the open and the close / or the body of the open and close of the that buying candlesticks is plotted in a block (order block) This is our Supply : the amount of an asset that is available where am willing sell (Enter) . This I call my Point Of Interest (POI)
·Supply
Downtrend.......LH
Uptrend........HH
Strong.......Downtrend.......LH
Weak......Uptrend......HH
3. Liquidity : areas in the forex market where there is a high concentration of buyers and sellers, leading to tight bid-ask spreads and high trading volumes.
A. Buy side Liquidity
· Buy market to eliminate sellers
B. Sell side Liquidity
·Sell market to eliminate buyers .
This is the structure I use to analyse the Market I will go deeper into details with entry ,exit ,risk management ,.
4. Change of market Character (CHOCH)
A. CHOCH occurs when the Market changes a trend to a other trend using a specific structure.
· Switch from Uptrend to Downtrend
The market was on a Uptrend and fails to respect by breaking the HL This is CHOCH price will eventually change it's character to an Downtrend .
· Switch from Downtrend to Uptrend
The market was on a Downtrend and fails to respect by breaking the LH This is CHOCH price will eventually change it's character to an Uptrend .
B. From what trend to what trend.
Uptrend to Downtrend
Downtrend to Uptrend
C. What causes CHOCH
· Failure of respecting a trend Rules
· Failure of respecting an order block
D. Where can we find CHOCH.
Uptrend
HH
HL
Downtrend
LL
LH
· When the Market get into your Order block it most creates CHOCH in lower time Frames.
E. What happens if the break the CHOCH's order block.
· Momentum is too strong
· Find that you on a minor CHOCH