Transcription
Let me guess. You keep getting faked out, right? You keep drawing your structure. That's high, low, high, low, high. Okay? You then put your low here. You're looking for buys. You're getting excited. Boom. What happens? Price stops you out. And then even worse, after stopping you out, you then think, okay, this is a shift. I could start maybe looking for a a short end here. We got a market structures here. Change the character. Boom. Boom. Let me target lower prices. This goes against you. If you're lost, you don't know what to do. Watch this video cuz this one simple trick I'm going to show you is going to show you how to time this perfectly. Stay on the right side. And by the end, you're going to be learning to catch trades like this instead. So, let's get straight into it.
So, there's two things, okay? There's two things. I'll even write it down that you need to focus on. Small zones, premium, and discount. This is the easiest way I can simplify it for you without over complicating it, without going into like crazy explanation as to why price does what it does and how to stay on the right side of the structure. And what do I mean by that? So first when we have zones like this and we have a smaller zone. So you can see that this high to high this high to low is a decent size zone. This high to low is a small zone. Do not include this as part of your market structure. So do not draw structures high low high low high. Instead simply draw structure oops as high low higher high. this small zone. I promise you more often than not, it is just liquidity. Liquidity for price to come into here and then push higher.
Now, let's do a downtrend example. We have a big break structure here. Boom. So, boom. A lot of people then want their structure as low, high, low, high, low. Um, we have a small zone resting on top, resting below a bigger zone. Do not take into account this. This is not a real breaker structure. It's just going to provide liquidity. Okay? You're going to look for a short below this high. You're going to get stopped out. You're then going to think it's a market structure shift, but we're just coming into this zone and then we're going to get the room below. So, you're going to get stopped out twice because you took too much. If you put too much weight in the small zone and you should have ignored it.
Now let's talk about premium and discount because that's the other the other little trick we can use. So again we'll start with an uptrend. So what you want to do is find your leg of price. This here okay is my price leg. I can then draw a fib from this low to this high. So boom. Okay. And to make it easier for you guys to see, I turned on the N and one lines as well. And this blue line is just the 50%. You can see price did not return to premium or at least very close to premium before bouncing. So this zone here, okay, don't include it in your new structure. waiting for price to come mitigate it. This leg was still left m unmititigated. We still haven't come down to this price leg. We still haven't come down to this zone here. Okay, this is where price will tap into and then get the real the real move. So, make sure you take and keep an eye on your mitigated and unmitigated legs. For example, again, let's start with a big broker structure. Here we can draw a fib from here to here. Did price come back into this range? No. Price does want to come back into the range. So what are we going to do? Boom. Okay. Now we can draw the thing from here to here. And we can see that this is in premium and we are sweeping that. So when you combine sweeping the small zones and combined with returning to premium and discount areas, you see exactly how the market moves and you see that this was just a sweep fake out those who think this is real structure. Get the real move and the real structure is based on this leg here. My real structure is low high low high lower low. We ignore this because it was a small zone and we knew there was an unmitigated price leg above.
Still sounds complicated. Let's go into the charts and let's sharp it down. But let's start with this. This works the same on any chart, any time frame. Ignore what the chart name is. Ignore what the time frame is. When you're drawing structure, it's fractal. It's going to work the same. Before we get into examples, if you want to go deeper into market structure and how to pair that with the correct liquidity and supply and demand zones, I break it all down in my premium Discord step by step. Watch me live stream my trading every day with daily market reviews and breakdowns showing you exactly how structure works in your day-to-day trading. Link is in the description below. Come join us for the next live stream. Anyways, back to this now.
So, let's just focus on this price leg here. Let's just say we're in a downtrend to keep it simple between this high and currently we have this low. Let's say before you were using this low. So let's even rewind it to to here. Interesting. Now let's draw our fin from the top to the bottom. What do we notice? We have not come to mitigate this area. All of this is still fresh. So we're looking for a sell really above this blue line. Okay, we did not get that. So now we got a small zone resting below. Right, remember we didn't mitigate this leg. So this is still unmitigated and we've created a small zone. Now what have a lot of people going to make the mistake? They're going to start looking to use this as their protected high. That's wrong. They're going to get faked out. We then again, so now we extend our leg from this high to this low. And look at that. This liquidity matches with our premium. Boom. Now I can start looking for supply zones above. This is my real protected high. We have this area of supply which is nice and fresh. And we have this area of supply. So to keep it simple, I just mark that whole area. And I'd look for price to sweep this and then continue the next leg lower. Let's see what we do. We sweep liquidity. We return to our area of supply and we make that low. What do we do here? We fake out. We know that's not real structure. So now our next structural point is this high. So this low to this high. And then what do we do? We candle close there. And we make a high up here. And I'll make this a bit darker so it's easier to see. Okay, now we do the same thing. First thing we're going to do is draw our fib. Look for areas of prim. So only look for cells above this blue line. We got this nice area of supply here. We got this nice origin here. I've got multiple videos on how I find my areas of supply, demand, etc. So this is a structure. This one has a nice liquidity. This one doesn't really have liquidity. So I'd focus on this one here with this being my liquidity within my first zone. So we have the real structure, we have the premium, we have the liquidity sweep, we have an area of supply. I'm expecting something like that. This is just one after the other after the other. Sweep that. We come to mitigate that supply. Let's see if we're going to make a new low. Of course we are. Boom.
Now let's redraw it. Low. High. Low. Guess what? We're going to rinse and repeat. We have a new leg there, a new low, a new hand. Let's draw that fib out again. Let's look for areas of interest. So, we have this origin and we're looking at and we have this is all mated at focus on this leg which is unmitigated. So, I want us to sweep this. Well, not sweep this. Come to this discount. Right, we have some liquidity in terms of these highs because this is my real structure. This is what I'm expecting price to respect in this respect. Okay, now what did we do? We formed a little small zone here generating more liquidity. People are going to see this as a market structure shift. But this didn't mitigate any of this zone way too far below, right? It's a small zone. Look how small this zone is. this down to up compared to this down to up here resting within a bigger zone. We know what this is just going to be our liquidity now to sweep stop out everyone who starts looking for buys and they're going to start looking for sales. They're all over the gap. We're just waiting for this to sweep. Come into here and then dump that and then make a lower low. And guess what? Even though it wicked and made a lower low and that is again you enter you take profit you're done that make sense.
And now let's go into some uptrend examples. So let's start here again. Anytime frame chart works the same. We have a high. We have broken this high. We have a low. We have an uptrend. We have our external range. Let's draw our fib. Boom. Boom. We're looking for sells below this uh blue line. And you can see we have this beautiful area of demand aligning with that. We don't really have much liquidity, but let's see what price does. Comes into there. I'm expecting now to make the higher high. Boom. Right. Simple stuff. Let's play this out now. Now we know at least we've mitigated this leg 50%. So when we look at this structural here, right, in this scenario, I would still look between this low and this high. Why, you might ask? Purely because this area of demand is still very unmitigated, right? It's still fresh. So, we can still now just use this as liquidity to sweep before pushing higher. So, but because we mitigated this leg, right, 50%, I draw my zone 50%. It's I can still focus on this price leg here between this high and this low, right? But if this gets swept, I'd still look for a buy. I'll be honest, based on this. And I just draw my fib from here to here. 50%. Nice. We got some area of demand in here. Let's see if we can tap into there. push higher. Now, as we tap into there again, this small little zones. All right, we don't pay any attention, right? Liquidity to generate to come into here and then we should come push higher. Let's see come to get further. Be interested to see if we do come down here actually. Okay, nice. So, we have come down into the zone which said I don't want to look for buyers yet. I want to not look for buys. I still look for this zone as well. Still bullish until this breaks to keep us on the right side of the market structure. That's taking a long time. See if we can come back and take this high just on a higher time frame. Look at that. Absolutely beautiful. Absolutely beautiful. And then we can now redo it. New break, new low. Right, we got a big price leg from here to here. This is a big zone. That's how the market. Do we have any zones resting around this 50%. We've got this lovely area of demand. Let's focus on this one for now and then we can look to ones lower. But this is within the price leg. We have these small small zones that we know just going to provide liquidity and come into here and then get the real moves. Let's play that out. Look at that. We came right into this leg. We pushed a bit higher. So pretty much came exactly to 50% I'm assuming. Yeah. Look. Boom. pretty much exactly swept the first tap in this demand zone. Right, there's our sweep. Then what? Next, it's just rinse and rinse and repeat. So yeah, stop letting the market play. You learn how it actually works and you're good to go. So if you do want to join the premium discord, like I said, links in the description below. Apart from that, appreciate your time. Highly appreciate any likes and subscribes. Drop a comments on any any questions you have or any video you want me to drop and I'll catch you in the next.