MARKET STRUCTURE

The movement of market is characterized into two trends, (bearish and bullish). It is highly recommended to
trade these types of market. In this presentation I will describe deeply bearish and bullish market sentiment
with the examples.

BULLISH MARKET:
A bullish market is defined by the presence of higher highs and higher lows example;

Any bullish or bearish movement consist of an (IMPULSE) and (RETRACEMENT), an impulse always
is a swing that makes a trend and should always be larger than a retracement, while a retracement is just a
correction of an impulse and usually it covers at least 50% of an impulse.

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An example from a live market:

BEARISH MARKET:
A bearish market is defined by the presence of higher lows and lower lows example;

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An example from a live market:

As we can see from the above example the market has been falling and keeps on creating lower
highs and lower lows to validate the downtrend movement for sellers. The last type of market
sentiment is (CONSOLIDATION MARKET), hence we do not trade a consolidation market
because there always no clear movement of the market.
When in a consolidation sentiment we stay out of the market to wait clear trend either bullish or
bearish.
Example of a consolidation market:

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BREAK OF THE MARKET STRUCTURE
(BMS)
I know you have been asking yourself what is the (BMS)???
Alright here is the answer;
The break of market structure (BMS), is the only signature that shows the willingness of the
market to change its state or continue with its nature which means from bullish to bearish or to
proceed with its bullish state.
There are two types of BMS:
1. VALIDATING BMS
2. INVALIDATING BMS

 VALIDATING BMS
Is the type of BMS that confirm the recently trend of the market and it shows the willingness of
the continuation.
In a bullish scenario the market will break the previous high and set new higher high followed
with a little retracement that creates a lower high.
Example:

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 INVALIDATING BMS
A type of BMS that indicate that the unwillingness of the market to proceed with its trend, so if
the currently market is bullish the market will shift it structure to bearish.
Invalidating BMS is characterized by the breaking of the previous high in a bearish trend and
breaking of a previous low in a bullish trend.
Example of invalidating BMS in a bearish market:

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  INVERSELY FVG
When the price move in either direction(Bearish or Bullish) we expect three candlesticks
patterns, as illustrated in the diagram below. For the bullish movement, if the price crosses the
previous fair value gap of the bearish trend we expect that it will act as a support to keep on
holding price high for the sniper entry. And vise versa for the bealish trend.
Example 1.0

Example 1.1
A live Cable (Gbpusd) chart.
An example for the bearish trend.

 EQUILIBRIUM OF THE FVG

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Similar to the first pattern but works in the currently chart and it doesn`t require the previously
data. When the price breaks a market structure in a required specific time of the day (Killzone),
After a displacement or quick price run to break the structure usually, they tend to form a fair
value gap (FVG). So that fvg will perform a quite rule of holding the price to the recently
direction whose a chart is heading to.
EXAMPLE 2.0

Example 2.1

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  INSTITUTIONAL ORDER FLOW ENTRY DRAW
Similar to the pattern mentioned above (Equilibrium of the FVG) but differ in entry point, The
institutional traders offer the entry point in the beginning of the fair value gap usually at the
exactly high or low of the candle that participate in the formation of the FVG. And the FVG is
likely to remain open.
EXAMPLE 3.0

 ORDER BLOCK
Another powerful price pattern that gives an opportunity to an optimal entry, Bearish or Bullish
order block can be visible in any given timeframe and usually holds the price from reversing.
NOTE: Note every reverse candle is an order block, there are features of a true order block.
A strong order block must consist of An FVG and a break in market structure.
An example below is a good order block that can hold the price from violating it.

EXAMPLE 4.0

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  BEARISH/ BULLISH BREAKER
A bearish or bullish breaker it consists of a candlestick that invalidate the trend, if the trend is
bearish, we expect to see high lows and lower lows neither in bullish trend higher highs and
lower highs. In a bearish trend a breaker it is usually consists of high, low and higher high but
follows the invalidation of a trend and a price forms a lower low see as illustrated in a below
diagram.
EXAMPLE 5.0

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