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Protected Structure vs Targeted Structure


Protected (Strong) vs Targeted (Weak) Structure Swing & Internal

Every high and low in the market has a job. A high’s job is to take out lows, and a low’s job it to take out highs (in other words,
break structure). If they fail to do so, they then become targeted. If they succeed in doing so, they become protected.

Once a swing leg has been established, we know that the high/low of this leg has failed to do its job once internal structure
switches from sub-structure to minor-structure and then is now identified as our targeted (weak) structure.

Every higher-low (HL) in an uptrend is protected as long as it completed it’s job to create a higher-high (HH) and break past the
most recent HH. However, a newly formed HH in an uptrend only becomes targeted once we see internal structure switch from
sub-structure to minor-structure. Until that point comes, there is no reason to assume that that HH will yet become targeted until
we have confirmation that our overall trend (expectational orderflow) will continue.

Another way to determine if a protected high is actually protected is how and where it was formed. If it was an aggressive
high/low (reaction) and was caused at an area of significance (mitigated a significant zone), it’s safe to say that low/high is quite
protected, and will only be closed past if price truly intends to switch direction (order flow).

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PROTECTED STRUCTURE VS UNPROTECTED STRUCTURE | LIQUIDITY

Another way of looking at protected/unprotected structure on top of our general structural perspective is from a liquidity
standpoint. We are able to determine additional probability of a low or high holding/failing dependent on whether it is fueled by
liquidity or not. If a high or low is not in some way fueled by liquidity, more often then not it, itself, is used as the liquidity fuel.

Liquidity is something we’ll cover much more in-depth later - so save this section for then and it will make much more sense.

Sweeps
When a high or low sweeps liquidity, I look at that area as being pre-fueled and ready to go (like a car before a long trip) for a
strong reaction away once price approaches this area.

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▫If a high/low was not formed due to a sweep of liquidity of some sort, than it has not been fueled and the odds are high that that it
will be used as liquidity itself to fuel an upcoming continuation play (and is therefor not protected).
▫If a high/low was formed due to a sweep of liquidity of some sort, then it has been fueled and the odds are much lower that it will
be used as liquidity is much lower (and therefor protected).

That said, if we have a low (for example) that not only broke structure but is also fueled by liquidity via a sweep, we have a
relatively strong area of price.

Inducement

Orders | A lot of times when sub-structure switches to minor-structure, it is from a demand zone that is significant due to the
amount of BFI orders that it has resting under/above it.

TYPES OF CHOCH FLIPS

We’ll talk much more about what flips are later in 📕 Flip Zones, so for now don't worry about this section of CHOCHs and come
back to it once you’ve understood what a flip zone is.

Before and after a CHOCH is created, price can do a number of different things which can present other area of entry for us,
shown with the visual below. Shoutout @Tatiana for the visual and thorough explanations, if you have any questions about
it - shoot her a message on Discord.

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SOURCES
• https://discord.com/channels/728715235531161611/745104913050107995/870260739095543838

• https://discord.com/channels/728715235531161611/825706592707805195/870370025217880136

• https://www.phantomtradingfx.com/products/phantom-trading-strategy/categories/2149413649/posts/2154376223 @ 00:08:05

Archived Shit

One way that I personally look at and strengthen structurally protected highs and lows is from a liquidity standpoint. From my time
on the charts, I’ve noticed that almost every single high and low in the market needs to be fueled by liquidity in order to justify the
following move or continuation away from them. If it is not in some way fueled by liquidity, more often then not it, itself, is used as
the liquidity fuel.

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