MARKET STRUCTURE

MASTERCLASS
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FREE PDF GUIDE

Part 1 of 2

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 THE BASICS
BULLISH MARKET STRUCTURE BEARISH MARKET STRUCTURE
The formation of Higher Highs and Higher Lows in succession (uptrend). The formation of Lower Lows and Lower Highs in succession (downtrend).

A Higher Low is only confirmed once the previous High is broken (BOS) A Lower High is only confirmed once the previous Low is broken (BOS)
which then leads to the creation of a new Higher High. w h i c h t h e n l e a d s t o t h e c r e a t i o n o f a n e w L o w e r L o w.

Expectation

Reality

After a BOS - we expect a pullback on that timeframe 💡

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 SWING HIGHS & LOWS

BULLISH MARKET STRUCTURE BEARISH MARKET STRUCTURE

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 SWING HIGHS & LOWS

BULLISH MARKET STRUCTURE BEARISH MARKET STRUCTURE

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 STRONG/WEAK HIGHS & LOWS
IN A BULLISH TREND: IN A BEARISH TREND:

Tr a d e a w a y f r o m S t r o n g L o w s Tr a d e a w a y f r o m S t r o n g H i g h s

Ta r g e t We a k H i g h s Ta r g e t We a k L o w s

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 TREND CHANGE
IN A BULLISH TREND: IN A BEARISH TREND:

the expectation is that price will continue to the expectation is that price will continue to
make higher highs and higher lows. 📈 make lower highs and lower lows. 📉

A B u l l i s h Tr e n d C h a n g e i s c o n f i r m e d o n c e A B e a r i s h Tr e n d C h a n g e i s c o n f i r m e d o n c e
price breaks a Swing Lower High to create a price breaks a Swing Higher Low to create a
Swing Higher High (Bullish BOS). Swing Lower Low (Bearish BOS).

Confirm a Trend Change when the Expectational Order Flow fails ✔

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 MECHANICAL MARKET STRUCTURE ⚙

Confirmed Swing High

BULLISH MARKET STRUCTURE (a significant pullback KEY POINTS 👇
that meets your pip size rule)

IN A BULLISH TREND:

SWING LOW: Lowest point that caused the Swing High

SWING HIGH: A significant pullback that meets your pip size rule

IN A BEARISH TREND:

SWING HIGH: Highest point that caused the Swing Low

SWING LOW: A significant pullback that meets your pip size rule

EXAMPLE:

A minimum Swing pullback on EURUSD must be at least:

H4 —> 80 pips
M15 —> 30 pips

C R E AT E Y O U R O W N R U L E S 👇

1. D e c i d e o n w h a t p a i r / i n s t r u m e n t a n d t h e s p e c i f i c
timeframes you want to create rules for

2. T h e n j u m p o n t h e c h a r t s a n d s i m p l y d r a w o n S w i n g S t r u c t u r e
purely using your own judgment of what ‘looks’ like a
significant swing pullback

3. T h e n m e a s u r e t h e p i p s i z e o f a l l o f t h o s e p u l l b a c k s

4. T h e n u s e t h e m i n i m u m a v e r a g e p i p s i z e a s y o u r n e w
Confirmed Swing Low
(lowest point that caused
mechanical rule ✔
the Swing High

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STRUCTURE MAPPING

Type 1

Conservative

STRUCTURE MAPPING : CANDLE WICKS

BREAK OF STRUCTURE : CANDLE BODIES

Swing Structure (BOS)

Internal Structure (iBOS)

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STRUCTURE MAPPING

Type 2

Aggressive

STRUCTURE MAPPING : CANDLE WICKS

BREAK OF STRUCTURE : CANDLE WICKS

Fr a c t a l S t r u c t u r e ( C H o C H )

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 MARKET STRUCTURE MASTERCLASS

3 TYPES OF MARKET STRUCTURE👇

1. SWING

Swing is King and should always be our main focus taking precedence over all types of Structure (BOS)

Mapping - Candle Body Close

2. INTERNAL

Internal Structure is larger movements/swings in price contained within our Swing Range (iBOS)

This helps us navigate our way through price action when Swing Ranges become large & complex

Mapping - Candle Body Close

3 . F R A C TA L

Fr a c t a l S t r u c t u r e i s s m a l l e r m o v e m e n t s i n p r i c e c o n t a i n e d w i t h i n o u r I n t e r n a l R a n g e ( C H o C H ’s )

This helps us anticipate Internal Structure turning points

Mapping - Wick Breaks

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 T H E L AW O F S T R U C T U R E

SWING

n
Ru
ing
Sw
C
ou
nt

nd
er

Tr e
Tr
en

Pr o
d
Sw
in
g
Pu
ll
b
ac
k
Cou
nte
r Tr
n

end
Ru
ing

Swi
Sw

ng
nd

Pu l
Tr e

lba
Pr o

ck

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 T H E L AW O F S T R U C T U R E

INTERNAL

n
Ru
PT

al
Int

ern
k
ern

ac

Int
CT
llb
al

PT
Pu

In
Ru

te
al
I n t e r n a l Tr e n d s w i t c h e s B u l l i s h

rn
rn

al
confirming end of Swing pullback

al Ru
te
In

Pu
CT

llb
tern
ac

ac
b
ull

k
PT In
PT

l P

CT
Inte

na

Int
er
rna

Int

er
na
l Ru

CT

l P
I n t e r n a l Tr e n d

ull
switches Bearish

b
ac

un

ac
to facilitate Swing

PT I

llb

k
al R
pullback

Pu
nter

ern
al

PT
rn
nal

Int
te

Inte
In
Run

PT
CT

rna
l Ru
n
P T — > Pr o Tr e n d

C T — > C o u n t e r Tr e n d

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 T H E L AW O F S T R U C T U R E

F R A C TA L

Fr a c t a l Tr e n d s w i t c h e s B e a r i s h
confirming end of Internal pullback

Fr a c t a l Tr e n d
switches Bullish
to facilitate Internal
pullback

CH —> CHoCH

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T H E L AW O F S T R U C T U R E

Example 1

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T H E L AW O F S T R U C T U R E

Example 1

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T H E L AW O F S T R U C T U R E

Example 1

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 T H E L AW O F S T R U C T U R E

Swing High
Chart Example

Swing Low

EURUSD | Daily Timeframe

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T H E L AW O F S T R U C T U R E

Example 2

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 A P P L I C AT I O N E X E R C I S E

A p p ly t h i s t h e o r y t o t h e c h a r t s …

1 O p e n Tr a d i n g V i e w a n d d e c i d e o n t h e p a i r / i n s t r u m e n t y o u w a n t t o a n a l y s e ( e . g . E U R U S D / G B P U S D / B TC U S D ) u s i n g t h e s e a r c h w i n d o w ( t o p l e f t ) .

2 Open a new chart layout for the exercise (top right) and start with a completely blank chart with only Japanese Candlesticks showing.

3 Now decide on the timeframe you want to analyse (e.g. Daily or H4) and start the exercise from the beginning of 2022 (or before).

4 If you are analysing EURUSD you can use the pip rule guideline below for mapping your swing structure or create your own rules (see page 7).

5 O n c e y o u ’ v e i d e n t i f i e d y o u r S w i n g S t r u c t u r e ( B O S ) y o u c a n l o o k f o r t h e s m a l l e r I n t e r n a l S t r u c t u r a l b r e a k s t o c o n f i r m t h e s t a r t / e n d o f y o u r S w i n g Pu l l b a c k s ( i B O S ) .

6 O n c e y o u ’ v e i d e n t i f i e d y o u r I n t e r n a l S t r u c t u r e ( i B O S ) y o u c a n l o o k f o r t h e Fr a c t a l S t r u c t u r a l b r e a k s t o c o n f i r m t h e s t a r t / e n d o f y o u r I n t e r n a l Pu l l b a c k s ( C H o C H ’s ) .

PIP RULE GUIDELINE

A minimum Swing pullback on EURUSD must be at least:

H4 —> 80 pips

M15 —> 30 pips

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