Hey there! Today, I want to delve deeper into the fascinating world of market structures. By now, you’re probably familiar with how we map swing points in a structure, but let’s face it, the market can be quite complex.

In this lesson, we’ll explore how to spot these intricate structures that often arise. So, buckle up and get ready to uncover the secrets of the market!

Types of Structures Used in Our Strategy:

In our strategy, we primarily utilize three types of structures: swing, internal, and fractal. Swing movements are those significant price fluctuations that grab our attention on the charts. We identify these movements by confirming a break of structure with a candle body close. On the other hand, internal structures are the smaller moves that occur within the swing structure. We map these movements by observing a confirmed break of structure with a candle body close, which we call iBOS. This mapping helps us navigate the minor fluctuations that typically contribute to major chart movements. Lastly, fractal structures are the smallest moves we encounter on the charts. They are often brief pauses or pullbacks in price, resulting from a relatively weak resistance before resuming the order flow. To confirm a fractal break, all we need is a wick break; a candle body close is not required.

Identifying Fractal Breaks:

Now, let’s discuss how we identify fractal breaks on the charts. Price movement occurs as each candle breaks the next. When it comes to fractal structures, we use candle wicks as confirmation for a break. Anytime a candle fails to break the next candle by at least a micro pip, it indicates a fractal structure. While it’s easier to spot fractals during clear retracements, we need to pay close attention when a candle has equal highs. Equal highs are not considered breaks and form part of a fractal structure. It’s crucial to note that the color of the candle doesn’t dictate a fractal break; the only thing that matters is whether a candle breaks the next candle, regardless of its bullish or bearish nature.

Recommended TradingView Indicators for Visualizing Market Structure:

To enhance our visualization of market structures, I highly recommend two indicators: the inside bar and the Equal Highs and Lows indicator. The inside bar indicator is a must-have and should be kept active at all times. Additionally, the Equal Highs and Lows indicator can be beneficial, especially when used on the 1-minute timeframe for entry points. If you’re new to trading, this indicator can provide valuable assistance. Now, let me walk you through how to install these indicators on your chart.

Adding the Inside Bar Indicator to Your Chart:

Alright, folks, let’s quickly go over how to add the two mentioned indicators to your charts. When you open your TradingView chart, navigate to the indicators section and type “inside bar” in the search bar. You’ll find an indicator called “Inside Bar by CMA.” Simply click on it to automatically add it to your chart. By default, it comes with certain colors, but you can modify them to your preference.

Adding the Equal Highs and Lows Indicator to Your Chart:

Now, let’s add the Equal Highs and Lows indicator. Look for “equal highs and lows” in the indicators section; it should be the first option. Upon clicking it, the indicator will be added to your chart. You can customize the colors and shapes to make it more visible, and it’s advisable to keep it visible across all timeframes. Personally, I only use it on the 1-minute timeframe. This way, every time there’s an equal high, the indicator will show it to you.

Using OHLC Values to Analyze Candlestick Information:

Another powerful tool I frequently use is the OHLC (Open, High, Low, Close) values. When you hover your pointer over a candle, it displays the corresponding price values, such as the highest price, close price, open price, and more. This tool is particularly handy if you prefer not to use the Equal Highs and Lows indicator. Since fractal moves are not as significant as swing and internal structures, we don’t map them explicitly. However, we do leverage these fractal moves to gain insight into potential shifts in price direction.

Conclusion and Upcoming Lesson Preview:

To wrap things up, in our strategy, we refer to a shift in direction as a “Choch,” and you’ll notice this type of break happening frequently as we navigate the charts. In the next lesson, we’ll delve deeper into Chochs and explore their significance. So stay tuned for more exciting insights into market structures and trading strategies. Until then, happy trading!