Transcription
Most traders, they can read market structure. You can read the trend, but you can't build a complete roadmap from it. You can read structure, then everything you need for a high probability trade is sitting there right on the chart. And I'm going to show you exactly how to find this. You want to see a higher high, higher low and buy. You can't see a lower high, lower low and sell. And then you wonder why you know where price is going to go, but you can't make money.
In this video, I'm going to show you a four-step process that tells you everything. So, stick with me. Step one is simply the bias. Let me show you how to get this. You have to know what the market is trying to do in this current phase of price. So, I don't zoom out too much, okay? I like to use a 5-minute time frame as my higher time frame, and I just see a mark out highs and lows, which ones are we respecting, which ones are we disrespecting. Here I can see we have a high and a low. We disrespected this low, we respect this high. We have a high, a low. We disrespected this low, respected this high, low broke, high respected. So, this tells me that price is bearish in this current leg of price, okay? There is no reason for me to look for buys, and I should only look for shorts. So, what is my bias? Shorts.
You also need to see, however, how strong this trend is. For example, now I can see we have a nice strong trend. Whereas here I can see we're clearly bearish. We have high, low, high, low, high. But what are we doing here? Pure consolidation. So, even though I know that the trend and my bias is bearish, have to know are we expanding, are we continuing this trend, or are we chopping? I don't want to get involved in this area here. Whereas this area here, when we are back to expanding in this clear trend, this is the perfect idea of what I want to see.
Step two is the range. Now I have my short bias, I need to know exactly what range to focus on. So, genuinely, a lot of the time price simply does this. We form a range, we come back into that range, we push lower. We come back into this range, we push lower. This is what a healthy trend look like. If I draw this, right? We have a range, we come back into there, we push lower. We have a new range here. We come into there, we push lower. So, now if this is my new range to work with, I know perfect, I can look for price to push back into here, and then move lower. This is what happens a large majority of the time, but actually seeing it is two different things.
So, let's go into price action, and let's see what we have here. Well, here I can see we have a break of structure. So, if I'm in a downtrend, I'm looking for breaks of structure to the downside. And I need, most importantly, a significant, or at least a bit of a significant break of structure. So, a lot of traders get tripped up, they're using this as their break of structure. This is poor. You cannot use small movements. I would not use this break of structure here. I would not use this break of structure, this break of structure. This is noise, designed to trick you out. We'll get into that. But remember, that is noise. I want a decent-sized break of structure. This is a decent-sized break of structure. Now, where's the highest point between this low and where we broke it? Boom. Up here. Where's the current low of the range? Boom. So, my now range is located between this high and this low, okay? I'm looking for a lower high, lower low. Nothing changes unless we put in a new good-sized break of structure. Again, these little ones are fine. I don't move anything. I simply move my range low lower. However, if we get a new big-sized break of structure, new break of structure, new high, I rinse and repeat. For now, we're simply focusing between these two areas here.
Now, what I like to do is draw my zone around my last break of structure. Here to here. This specific area here is where I want to get involved in. Now, this is the easy part, okay? Knowing where is the next target. Now, if price starts to push up as we are doing so here, okay? Where is the next target? Remember, the targets are either two things. They're going to be your range high or your range low. We are in a downtrend. We are looking for sells. So, where is our next target? It's simply this low here, which leads us onto our final step.
Where the hell do I enter? Where do you enter? It's always after a sweep of liquidity. You need liquidity to be swept before you even think about entering. So, we know that we're targeting this low, and we know that from our zone we're looking for a buy between Sorry, a sell between here and here. So, this area we're looking for a sell in, and we're looking to target this low. So, if I'm looking for a sweep of liquidity, I need a sweep of liquidity below this high and above this low. So, this is where the range comes back into play. We know that this is our range. In a downtrend, okay, highs are liquidity. This here is a high. So, I want to find a high between our high and low that I can use. And then good way of saying this, if it's not obvious, you don't have liquidity. Again, this is all on my higher time frame. Where can I see a nice obvious high? Well, again, it's where those Remember what I said, ignore those small breaks of structure because they become liquidity. Can you see here we have a small break of structure. I'll put in a white line. Small break of structure. So, this gives us a high here. A lot of people have their protected high here. But we said we are ignoring small breaks of structure. So, this is actually just liquidity and not a real protected high. As you can see here, a lot of people going to have their stop loss here, maybe start looking for longs after this breaks, thinking this is a shift of structure. But this simply provides liquidity for our zone. So, I cannot enter. I repeat, I cannot enter until we have swept these highs here. And boom, that's everything.
So, to keep it simple, going off pure structure, downtrend, okay? Trend and bias, done. Zone, done. Range, done. Liquidity, done. Now, this doesn't become so random. This looks like this. Sweep liquidity, come into here, dump. So, this is what I call a high probability structure and high probability to trade in. So, for example, if I was to sell a limit at this 50%, stop loss above, sell a limit above, targeting a lower low. This is a high probability area for me to make my money and for price to follow market structure. That is process. You see an uptrend, you see demand zone, you buy. You see a downtrend, you see a supply zone, you sell, and you keep getting caught. With this process, the exact same setup becomes a completely different trade. Waiting for the sweep. You're waiting for the PY. You know where to trade your trade from. Same chart, same candles, but different result. Yeah?
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