ma FX ACADEMY Peet Venn ers MARKET STRUCTUR RON eee ee eaePK FX ACADEMY MARKET STRUCTURE BASICS Se tule ei Loar ile oiled Coliseo ce ally knowing what that pair is doing, what phase we are in, and to know when eee ee ec ieee «So is a currency pair trending up, trending down? So are we putting in Lls, LHs, HHs, HLs. + Are we ranging? So a range by market where we are staying within two price points, not Peet eee eee Cece rics Pn ee Ce grea iae eetelag Rr ie Ch at er ean cn got HHs and His. So as we 290 we have a higher here, and price pullback. Now as soon as we get price break above this high, it confirms this to be the HL. So all the time price is trading Sree eee nee Coen ac Merde Loca eT cd this is the most recent HL and thats HH, we pullback HL We then De Ee eC anlag Cen oe O eC ee tet ge ee eee cy ROR ca ea onic a ce ee cs edn a eae ce ae Te TN ae a et eT Pema}lag Now here we have EU, and lets look at this on the charts, So starting from here, price is pulled back and we have broken, so Peace Pectin iact Se a en eee ec eee eo once en can eet ed Cee etn ee aa Ree ee areal} broken is clearly here which we can see price pulled down to here, this is one, continuation leg to tha downside, then priée eee eee eee eet eee eerie below this LL, and instead we come up to test the LH. We then pullback, but then we eventually we break it with this rave, this impulsive move that bos this LH. So as the LH was broken and we didnt get a LL our bias hos tipped from a bearish Dee ae ase ne Led Coen om eters Pe eee ts Pe eee hanes eee Mea eee Ree eee ane SNC cet eet ts eteas Rt aS eu na a Lae Se MO cette een Ce RC aR ee oR ag Miche Tan enticed Little b or grab li from HL ‘We just sort of pushed up trom here, but the lowest point is here, Seen er rarer meee aes CO ee ene ee ene cc ‘always. So we have here again a HL and HH, OF course there are Pe ata ee a oeas SOON oe oa ga aa Cero ce ee een ean ee oe Ror ars Dee eee cn ee ee eee closing below the candle body low, and not factoring the wicks. 2. The second type, which is what | personally use, and one that is the most popular, eee Se raed Re ee cee ee ay experience this typeis the least realiable out of the three, as it does nt really show Peedlag 0 looking at some examples of bos, what we can on EU Th, we hod a bos here, we had this higher, we had alittle bit of a range, and then this candle broke structure, and we gat a wick, but we did close above anc eee eee en erty ee ee ee eee eee Cee ee ene ee eee is of this examples here, we can see we had this bit of @ consolidation range, we pushed down ranged, we had a low, price come down looking Ike it was gonna break this Iow, we wicked it and closed above, an Seta eed jicked! forme this wick to downside is just grabbing some sell + jus high See eMart a) ito grab liquidity Cee oa inzolidation, eee ed Seer ee enon een a rans eee rh ery ee eee ere) Eee cena aes eerielag eet en ey 08, perfectly mitigating before continuing, So this is why this is Seen eee eee] liquidity, rebalancing this impulsive move here, tapping into an a Cee ee te creer ed ene Now otner exampie on EU 1h, we was clearty puttingin Ls and [Hs Cee erylag We can see at this point here we had price put in this LL and LH, eee eect eet eet Reet ee ne eet Upside. Now for me this would be a volid bes, because we can see Roc ute nei) Cea OR aad eM ei teers cet imbalance We can then toke the last down candle as our OB which we can Pee ie Cmte eee Det ee eas tdlag Pee Re Ca et ee oe eee Se et Cmte ete we have did bos here, price did come down quite impulsively into that level, we did range, this ie building some liquidity which Is more seen on LTF. We have EQl, price come in tapped into our OB Ree ic Cuan ee Len Lea ee unr) price reacted from this 08, rebalance bit of price and then we can see the impulsive move to the Reese Ranging | aud tapped inas CO LR eC ene a Pn ee eg eee te ae ur ue switching from a bullish to bearish market or vice verso, bearish to bullish, or | will be breaking a structural low, Dee es cae ae Caner tie Tie Cen aCe eae h Cee ee een et eee eee teeta eet) eee eee eo ee ceo ao ay So this first example Ihave drawn some diagrams here, So this is Pea a eee ene ac ee the way up. Now this move down broke the HL. So we have got De er a ote cuuo u example is this down move hers is a calm and corrective bos.as Fe RO ea a na eee a neo CUT Cece at) end tap into on unmitigated demand zone thet was previously created, because once we was making this Hs and His we. Ce Dene hin Cae ee aC R aie i Te a eens ae) Pete ee et ee et ree Reet eee em mea ty is in the bias and trading stop losses at the lows, Becouse we know that there is liquidity at every low and high in the market. Pee Ma a Lt ake a ee eek Mee Se ae en ca Re sea ee aU ee Pee Ce eae a nad a aCe ees ta) Ree ee ua oul as where is the Ll and the LH, Well we have a LL here and this is Centr aed rece ae create c bullish OB, which we can look to get long from, Now with ta gets we can look for previous 1h highs, because ene er eee ee ea) we are gonna view this as.a common corrective bos, meaning its very likely that prict Deere ae CC etaas Oe Sa Oe cee ae a) Cee nen ec ea ae tak ent Mery behind price imbalance. So on this down move, once price bos we can classify this as the market shifting Cnt a ee ee eect eT eee eos ete Bree Mn Ce eee ene raed Cee LC Ce een ye at ts ry CN eco Ome Uc ee ee ee a ae Ree ac Peo et et eee sete Da Eee a Le a oa ee ca eka] Into it, we wanna see a nice bos below the most recent HL, which will give Pee een an ee eee eat! Pre eee ee ee en eeu ACen ed the most recent low, we wanna see take out this low. So this is 0 good Pee ne ect aay era ReedPK FX ACADEMY BUY TO SELL APPROACH CORE ne tee RC ect aCe en Ru Cea een CS Rea eae k so eee ten Leen ae) CO ae ese Cie ae ee uae ance ay ‘dependent on how the LTF confirmation is showing us, as we come into this level, we can take long from here wher: Ree Ce ecu ec ee Co en Oe eS Rca) ‘target up there before a longer term cell, which we can then expect for price to make new lows ond then LLs, LH Pe eee ee ee cen ce Rae od Pe eee ae eet es es a a ae Dec Co ae ee a ne probability is because once price comes into this level, we are essentially mitigating this move, toking CU tC ao tae en aa Tee a ete eee eee eer ee Cee a eee ace coy Fetes CR Re a RO ea een ent gain} move. We have pushed off once price comes down. There is not much real reason why this d Cro teen Ce a aCe ctor)lag Once eta ee eee Roe caus eae eae a tod look for a longer term buyer from an untested area. So this is also a Cee ae ta eRe aay Cee eee eee ence net eee that took some buy side liquidity. So once we had this high, we had a PSL ee ect CC cee ae aot anc) Cones enter eri Tore Se ee cL Ce ket ec rt mac Re Ta ey rea ae a ee ed longer torm buyer from this areas down here.lag So once we bos, we have the last up move before the down move that bos, we can then also refine it from this last up move to this candle here, because we can see this candle has not engulfed the OB. So this is our Bree cen Mee oe erencelag So. ae we come down, we did get some wicks which for me is ust taking, ee eee eed een eee neo ty Pe ere ke eee) eet eee eta ed Ce eee eae ett Tn ee Tea st eget een eas cd Cee et et eee ey demand levels that have baen unmitigated, and left fora later date Sree cee Ce esa Cay Cee eae eee eee ed eee ea eee ee a eas bolance. $0 for this example Im gonna put on this demand level. We do eee ete tte et eae ee nd high end to the low, s0.as price come inwe can note that we have seen some heavy momentum coming into this level. So price nas taken out this. Pe ete ete ua Cee eet eat teen gee at me Us they actually want us to respect this arec and actually go long fram eee eee ts \ a Leftimbalan This Is the OFlag Butif we get ancther candle, something like this that just Ceo Cea oar eC ace so we can just classify t or we can just deny it and just move CO aa ie en eee aa See ene oon ne crea cera eae act eae cr i ast) back up. Now for me this is not invalidating the demand Poe oe ge eee ar Ta Ren ea eae ae eau ey Pe a es Pea Ua ean Re en Pee eet tad Ce aa ea ce end con see what happens next. We do respect the demand zone and we Cee eae Les ae Oe eee eo ey ‘come up to previous highs and back up to test this wick here, which we Cn earsas Pee eo ea ese en ace nad ‘and look at hew price respects it. Now we do wick above it, which its likely because we want us price wants Peer genie eC ne CU Le So this is where price currently is, but this ie just the concepts of buying to sell, selling to buy. Now as we hove already tapped into this demand zone, its likely we could now see lower prices and we can look for ceWED Peet Venn ers RON eee ee eae