Thread by @ScarfaceTrades_

I made $200k+ trading in the last 2 months.

I’ve only had 1 red day in the last 2 months.

The ONLY reason I was able to do this is through market structure.

I’m this thread I’ll teach you:
The SIMPLEST Way To Read Market Structure & Win More Trades👇

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1) Basic Market Trends

You’ve most likely seen this before.

There’s only 3 main trends that he market can move in.

Upwards, Downwards, Sideways.

(This is Easy)

Problems occur:

When you CAN’T identify the trend.

OR

When you trade OPPOSITE to the trend.

2) Expectations vs Reality

The expectation for new traders is because they learned higher highs and higher lows the stock will simply move like they were taught.

This isn’t the reality.

The reality is stocks move more like picture 2.

Now, how can we identify the trend?

3) How To Identify Trends

The most simple way:

To look for an upwards trend you need to look for the market to keep breaking highs and for the pullbacks to be higher than the previous pivot points.

For a downwards trend it’s the exact opposite of an uptrend.

4) Easier Said Then Done…

Now, though the last step is simple, it doesn’t make sense.

Because in the example shown earlier it’s making lower highs but the trend is still an uptrend?

How do we not get faked out?

5) Adding Change of Character vs Break of Structure

This is important.

These 2 concepts will help you identify if:

The stock will continue the trend it’s in

OR

Break the trend and reverse to the other side.

5) What’s BOS?

An internal break of structure DOES NOT signify the stock will break its trend.

Rather it means the stock is pulling back and near these BOS is where you want to enter for the LOWEST risk entry.

5) CHOCH

Now, the change of character DOES indicate the stock might reverse its trend due to the break of pattern.

In this diagram we can see the stock was creating BOS until it broke that previous lower high.

This indicated buyers stepping in and signalled a reversal.

6) Putting It All Together

Now when we look back at the “reality” example.

We can see this was a very clear uptrend.

Even though 5 minutes ago it didn’t make sense all of a sudden you’re looking at the trade in a new light.

Full FREE Market Structure Course

Now, through a single thread I can only teach so much.

If you would like full explanation on market structure while adding higher timeframes in the mix to get the highest winrate:

Watch The Course Here For FREE: 👇

In Conclusion,

If you understand market structure (it will take you time) you will increase your winrate tremendously!

I hope this thread helped simplify this concept for you!

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