I have some questions pls help me out how do i proper get my market structure and daily bias analysis right
@MartialChartsFX
Hey!
I think the first place we should look is at what you’re doing now for daily bias and how you view market structure.
You may be closer than you think.
Market structure is basically how price moves. Higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend. Look for these patterns on the higher time frames (like daily or 4H) to get your bias.
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As someone already said and I quote “Market structure is basically how price moves.”
Now, how these price moves could be interpreted differently depending on your strategy. Take for example, market structure according to price action would be identifying higher highs and higher lows in an uptrend, and lower highs and lower lows in a downtrend.
I think to best answer your question enough, you have to tell us the strategy you adopt.
In an established consistent downtrend, price closes lower than the previous day 55-60% of the time: it closes up a similar percentage of the time in a similar uptrend.
The difference from random - 50% - is real and is replicated on all trends in all markets, but it’s not massive - enough to build a strategy from.
I usually use 4hr highs and lows to determine my trading direction. For example in an uptrend i will use 4hr demand wait for 1hr choch then retracement to 1 hr breaker block that’s basically how i trade
@MartialChartsFX @tommor @ayodimej1 @Fa_rees
Wow that sounds complicated. I’ll walk through my top down analysis, but keep in mind, this is what I do for day trading on the 5 Min.
To build my narrative, I start with the daily chart by marking the high, low and 50% level of the prior daily candle.
If a 4 Hour or 1 Hour candle closes above the previous day’s high, I interpret that as bullish, if below I interpret it as bearish.
If price is trading within the high and low, I’m more or less neutral. Things that can tip me from neutral are whether price is trading above or below 50% and if the previous day candle closed above or below the daily candle from 2 days ago.
On this chart I’m looking at
On the 4 Hour, I’m looking for more indication to supports or disqualifies the daily narrative. I would usually look at market structure but the market has been overextended to the downside due to tariffs so structure isn’t that apparent. So in this case I look for the last candle that managed to close above or below the previous candle. This gives me another bullish indication.
On the 1 Hour, I can start to see some structure with Higher Lows and Higher Highs.
In this timeframe I want to anchor to a market structure trading range as defined by the most recent impulsive wave that broke structure.
I’ll have a clearer view of this when I get down to the 5 Min.
Price has retraced to an area of value and is now creating new highs which is another supporting bullish indication.
A breakout from the 1 Hour structure range isn’t a guarantee so that gives me the boundaries of where I trade until a new market range is established.
So for a setup it is more of the same. I find a 5 Min market structure range that aligns with the 1 Hour (both bullish breaks of structure) and identify an area of value within that range to take a trade from, which in this case would be buying somewhere below 50%.
Nothing is guaranteed in the market and I’m not married to this narrative. If the narrative changes, I change with it. I read price and follow what price is telling me or as some would say, “trade what you see”.
There are a lot of ways to get to your directional bias. This is just what works for me and keeps me from losing my bearings or having my bias change as I change timeframes.
I’ll leave you with this:
As far as market structure, if you’re only looking at HL, HH, LH, and LL, you’re viewing structure on somewhat of a superficial level. Market structure goes much deeper, but the full scope is rarely taught. I actually don’t recall seeing an in-depth lesson on market structure in the Babypips School of Pipsology. We should fix that omission.
I hope this helps and good luck!
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