V E R T E X

MARKET STRUCTURE
 Understanding
Market Structure
Understanding Market structure is the key for any
strategy that you use. Without a clear understanding of
what market structure is, you will inevitably struggle
with understanding market direction.
So we hope this document can be a quick go to whenever
you are slightly confused regarding what the market
is showing you.
This document is not specific to any strategy.
 Swing points
and
Intraday points

This is probably the most simple way of

understanding structure.
When markets are bullish or bearish on higher time
frames such as Daily +. This shows our overall bias for
trend. However, as always we should expect
pullbacks. The main thing to note is that A daily pull
back, may look like a a change in trend on the lower
time frames. This is major point!
As this daily or weekly pull back to our OB looks like a
structure shift in lower time frames, many get
confused and don't understand where their Bias
stands.

Main thing to note, this pullback is only a corrective

move before price continues to follow overall trend.
So don't get confused if you think price is suddenly
shifting bias, cause its most likely not, it could merely
be a correction of the higher time frames. This is why
multi timeframe analysis is crucial!
 Swing points
and
Intraday points

So what we can see here is, within a higher time frame

correction or pullback, there is a bearish trend on the
lower time frames. This does not mean the overall
trend is bearish, its only short lived as you can see.
So understanding swing points and intraday points
may help you better understand how to approach the
market.
 Swing points
and
Intraday points

So above we can AUDUSD, its clearly bullish. As shown

above we have Pullback / Corrections. These on daily
are fairly big moves regardless of how small they look.
This is where confusion can kick in. Although we have
our higher time frame bias, price can take a while to
get to our Higher time frame POI, these can be
considered as Swing points.
The first correction is a 237 pip correction, lets take a
deeper look into that move.
 Swing points
and
Intraday points

So within that correction, on the hourly, some would

argue that price is bearish. Just remember its part of a
corrective move. If it happens to violate your higher
time frame POI then its a different story, as you would
look to confirm if trend is changing here. But for this
example, price is only pulling back, within this pullback
there are possible Counter trend entries to capitalize
from. These can be called intraday points. For ease of
understanding the difference between the two points.
 Understanding
Market Structure
The next time you look at market structure,
main things to consider are:

Higher time frame Bias, identify swing points or

POIs (Same thing)
Identify if you are in a corrective phase on the
higher time frame, if so, feel free and comfortable
trading counter trend but have realistic targets
and dont be surprised for a reversal, as trend was
always against you in the higher time frames.
However, dont let this stop you from trading
intraday positions. Trading counter trends comes
with a higher element of risk. However, If your
higher time frame POI is 200 pips plus away, why
waste the opportunity to capitalize on the move
towards your POI.
Identify if you are pro trend and trade with the
trend if it lines up on all time frames.