MARKET STRUCTURE

When it comes to understanding the way price moves the first thing we need to have is
a good understanding of is market structure. Now here I‘m not talking about the logic
behind the way price moves, this will come later on. Here I am talking about how price
moves from one point to another point.

Price will move in one of three ways:

1: Bullish Trend
2: Bearish Trend
3: Sideways

When price is in a bullish trend price will make a higher high followed by a lower high,
to then break the high it has just put in, to put in a new higher high. In a bearish trend
price will be making lower highs and lower lows, so price will break the previous low
and then put in a lower high.

THE GOLDEN RULE HERE IS THAT WHATEVER WAY IT BREAKS IS THE

DIRECTION THAT IT WANT’S TO GO IN.
If we are ever confused we need to take a step back and take a look at what the major swing
highs and swing lows are doing. If HH & HL price is in an uptrend. If LH & LL price is in a
downtrend. If it’s not creating these price is ranging.

Always follow what price is doing as opposed to trying to guess what is going to happen next. If
the market is putting in HH & HL we are going to treat it as an uptrend until the market breaks
the higher low and puts in a lower high.

In an uptrend the main objective is to catch each higher low. In a downtrend the main objective
is to catch each lower high. Catching low points in line with the overall trend, enter at the low
point and let the market do the work for you through the flow and momentum of what is
happening. Your main objective is to catch higher lows or lower highs for a downtrend because
the trend is your friend. If done correctly on catching higher lows or lower highs, you shouldn’t
have to close your whole position if you want to ride the whole trend.

With structure breaks what usually happens for beginner traders is that FOMO kicks in and
people start to think that price is going to fly, so naturally they enter the trade but what most
likely will happen is that price will retrace before we get any sort of a proper movement.
Unknowingly they short the market into a possible higher low area or visa versa they will long
the market in a higher high area. When price breaks the structure highs and lows we have a new
range, whatever way price breaks is the way that it wants to go.
 MOMENTUM
Momentum refers to the effort of price. Using momentum it helps us understand the
order flow, is the momentum to the upside? is the momentum to the downside?

When it comes to momentum it is important that we are trading in line with the overall
momentum, now im not talking about the decreased momentum coming into our
zone, I am talking about the overall momentum related to the direction that price
moves in.

In this exaample above we can see that the overall order flow and momentum to the
upside. We can also clearly see that thr momentum supports this because the move
up is quicker than the move back down.
MOMENTUM SHIFTS
Momentum shifts are important for understanding where the momentum has switched. Now these
will usually come from our HTF ranges so M15 and above. When we get a momentum shift at the
start of the session this is very good for us because then we can play every reaction following this
session momentum. If you are following the momentum you don't need to look for any extra
confirmations because following the momentum makes the trade high probability. A momentum
shift is just when price comes into our unmitigated area and gives us that strong rejection
showing that the momentum has switched.
INEFFICIENCY
Inefficiency relates to when there has been manipulation and this essentially means that there are
only one type of order going into the market so these will either be just buys or just sells. What this
causes is a skip of liquidity and we will see price come down and either fill it to the 50 % or fully.
Now when we see inefficiency above/below one of our ranges it is good for us because it
essentially gives price another reason to come back down there and mitigate our range.
STRONG HIGHS AND LOWS

Strong highs and lows will be created when we see an aggressive move away from a point of
interest. This fast and aggressive reaction will be our first sign of price creating a strong high or
low. When looking at strong highs and lows we want to see two things: Have we seen a fast
and aggressive move away? Did the move away break swing structure? When looking at these
strong highs and lows you really want to focus on the aggression and momentum at these
highs or lows. Rather than looking for a certain pattern focus on the aggression and the
momentum as this is what matters. When we do have strong highs and lows this essentially
means that price shouldn't break above these until we have seen a momentum shift against
these. Once price has put in a strong high or low we want to be trading in line with these.
WEAK HIGHS AND LOWS

Weak highs and lows are the opposite ofstrong highs and lows. These will have weak
rejections and will be very slowwith little momentum behind the move. Usually these
will be corrective moves before we see another impulsive move. Keep in mind if we
have a weak high or low price will always break these.

1: Slow move away and lacks any real momentum

2: Failure to break swing structure
IMPULSIVE AND CORRECTIVE STRUCTURE

When looking at price we need to understand what way price is moving. What I mean by this is
that is it moving impulsively or correctively. It is very easy to understand the difference to
whether price is moving impulsively or correctively.

When price is moving in an impulsive manor price will be moving very aggressively and fast.
Now when price is movimg in a corrective manor this is the opposite, so price will be very slow
and not aggressive.

If price is moving correctively back to our range where we are looking at entering from this is
helpful for us because it suggests to us that we are trading in line with momentum and that
price is likely to give us that momentum shift at our point of interest.

Have a look at the examples below and understand the difference between impulsive and
corrective structure:
LIQUIDITY

The concept of liquidity is very simple. Liquidity is just simply money chilling in the market from
traders stop losses, buy and sell stop orders. When looking at liquidity these are in the form of
highs and lows, equal highs, equal lows and even inefficiency. Now we know that price
gravitates to these liquidity levels and takes the liquidity needed in order to make its next move,
this is simply because if price doesn't have the liquidity and orders needed to move it simply
won't. When looking at liquidity it is important to note that you cannot trade liquidity by itself, it
always has to be combined with market structure because market structure is more important
than liquidity. We can use liquidity as our targets specifically engineered liquidity levels such as
equal highs, equal lows, fractal highs and fractal lows. When looking at liquidity we want to be
aware of the liquidity is in the market.

EQUAL HIGHS AND EQUAL LOWS

Equal highs and equal los are engineered liquidiy levels. These have been engineered for the
sole purpose ofleaving cause for a future effect. Price will gravitate towards these levels and
price will do one oftwo things when itreaches these levels, Itwill either raid these and move in
the opposite direction or itwill break these levels and continue in the same direction. Equal
highs are when we will have wicks thatare all around the same level as long as the firstone is
higher than the rest then these are valid. Equal lows are the same as equal highs butjust atthe
opposite direction.
FRACTAL HIGHS AND LOWS

Fractal highs and lows are very simple butthey hold significance because these can be a sign
tha tprice is likely to reverse. A fractal high will be the middle candle that has the highest high,
so in a three candlestick formation this will be the second candle. It will always be the middle
candle. Fractal lows are the same but just in the opposite direction.

The only way I incoporate these into my trading is if I am looking at liquidity raids. For me a
valid liquidity raid is when price raids a fractal point.
CAUSE & EFFECT

Cause and effect originates from Wyckoff's second law; ''Cause and Effect. This principle relates to
the first law, Supply and Demand. A Cause must form before there will be an Effect and the Effect
will be in proportion to the size of the preceding Cause. A large Cause will produce a large Effect, a
small Cause results in a small Effect''. I want you guys to really focus on this concept as it
massively changed my trading and allowed me to see the markets in more of a logical view.

We view cause as the liquidity which has been built essentially giving price a reason to move in this
direction, now just because we have cause it doesn't mean price will take it straight away. What is
guaranteed is that we will see a future effect. Viewing the markets in a cause and effect manor we
can build a logical picture of where price is likely going. Ask yourself; Where is the liquidity? When
we are looking at a possible setup we ideally want to be trading with cause. Let's visualise we are
in a short, it is running nicely in profit about 3R up and we see price pullingback don't view this as a
bad thing because if we haven't seen a momentum shift against us this is price just putting in more
cause to support our move to the downside. Think logically and understand the context.

The effect is what comes because of the cause built. If we have equal highs the effect of this is that
price is going to take this liquidity and either reverse or continue in the same direction. If we have a
fractal high the effect will be price raiding this and reversing or price completely taking this liquidity
and continuing in the same direction. If we have trendline liquidity the effect of this will be price
taking this trendline liquidity. So the effect is very simple it is just the likely outcome due to the
cause that has been put in the market.
MY POINT OF INTERESTS FOR REFINEMENTS

I have three point of interests I use to refine my ranges.

The first point of interest is called an FU wick. Three factor's goes into FU wicks. The first thing
it has to do is take liquidity so we will see that raid of a fractal high/low, equal highs/lows. We
then need to see a very aggresive move in the opposite direction once the candle has closed.
The last thing that we need to see for it to be valid is that the wick has to be favoured in terms
of our wick:body ratio. With FU wicks price will usually react to the 50%.

My second point of interest are full bodied OBs. These are very simple and they are just
OBs which essentially have no wick. Usually price reacts to the 50% of these.

The last point of interest I use are inside bars. These inside bars are just contained price action
on the smaller timeframes. So if we have an inside bar in our range a lot of the times price will
react to the inside bar as this just highlights that there is a smaller range. Price will usually react
to the 50% of these.
SELL TO BUY
The first price delivery model we can take advantage of is the sell to buy. Now what
happens in this sell to buy is that market makers will drive the price lower to mitigate
something to the left, then once we have seen that mitigation what happens is that the
market makers will drive the prices up breaking the high from the push down thus giving us
an initiation for higher prices. Ideally we will see a very aggressive and strong initiation to
the upside leaving behind inefficiency however this isn’t necessary. What happens next is
that we will see price purposely pushed down so that the big players can mitigate out of
their losing sell positions before continuing up. When it comes to looking at entering we
want to either use the 50% or one of our point of interests if applicable. If we do have one of
our point of interests inside of our sell to buy don’t get greedy with your stop loss, it’s always
better to have more of a conservative stop loss placement rather than trying to have a super
tight stop. I like to place my stop just under the low of the whole model.

So the first thing price needs to do in a sell to buy is obviously put that initial move down.
The second thing that price needs to do is simply initiate higher by breaking the high of the
initial move down. Then we have to decide where we are planning on entering the trade, for
me this will be the 50% or if there is a specific POI inside of the sell to buy I will use that.
Just because we see these setups doesn't mean you should play every one because not
every single one will playout, heres where momentum, order flow and premium & discount
comes into play.
BUY TO SELL
The buy to sell is the same as the sell to buy but in the opposite direction. With a buy to sell
what we will see is that initial push up then we will see price break the low of this push up and
initiate for lower prices. The initiation will ideally be very aggressive and fast leaving behind
inefficiency. The next thing we will see is price pushed back up to mitigate our zone. This
mitigation can come from anywhere in this zone however a true mitigation will be at the 50%.
So ideally we will enter at the 50%. We can even refine our buy to sell zone by assessing
whether we have one of our point of interests inside of our zone, remeber if we do have a point
of interest inside of our zone always have a conservative stop loss above our buy to sell zone
rather than making it tighter putting it above our POI, so just focus on refining your entry where
applicable.

For a valid buy to sell the first thing we need to see is price make that initial push higher. The
second thing that we need is then price to push lower and break the low of the initial push up.
After we have the initiation to the downside the next thing we will see is the mitigation. Just
because we see these setups doesn't mean you should play every one because not every
single one will playout, heres where momentum, order flow and premium & discount comes
into play.
RANGES

The final price delivery model I trade are ranges, more specifically range, initiation, mitigation.
The first thing here we will have is market makers pairing buy orders with sell orders and they
will be making price range between a high and a low. The next thing is price will initiate higher
or lower. Once we have this initiation we then understand where the big guys want to send
price. The final thing will be the mitigation and this comes from price being pushed back into
the range so that the market makers can mitigate out of their losing positions. We want to
take advantage of this mitigation because it allows us to get into the market with accuracy.
When we look to enter we will be looking around the 50%, however if we do have a point of
interest inside of our range we can then use this as an entry. Keeping in mind that we don't
want to be too greedy with our stoplosses and place these above/below the range high/low.
ENTRY TYPES
There are two ways we can enter a trade the first way is by using limits and the second way is by
entering based on the reaction.

The first way is very self explanatory and that is by simply setting a limit at our entry point. We will
simply be placing a limit order at our entry point which will either be the 50% of the range or the
high/low.

The second way is abit more complex and this is taking an entry based on the reaction to our
zone. When taking a reaction based entry we need to understand that a true mitigation comes
from the 50%. With this being said we need to wait for the 50% to be mitigated and then we
assess the reaction and aggression following the mitigation. After we have entered based on the
aggression we will then simply place our stop above/below the high/low and a lot of the times this
will give us a higher R:R ratio. This will also save us from our stops completely getting blown
because if we don't see the reaction that we want to see we simply won't enter.
TARGETS
Targets are as important as entries . You need to know where to get out of your trade effectively
and not leaving lots of money on the table . There are a few ways you can set targets , there are
pros and cons to each method but it is up to you to test what method works best for you.

The first way you can set your targets is based on R. Now this is a very systematic way to set
your targer as every trade will have the same target. If you are basing your targets on R keep it
between 3-5R, anything above 5R can be inconsistent and you will experience trades turning on
you. Using this method it's always a good idea to leave a small runner around 10%-20% volume
and let this run to your larger target.

The second way you can set your targets is based on liquidity and weak highs/lows. So in terms
of the liquidity approach you will be setting your targets at equal highs and equal lows. These
equal highs & lows will always be hit at some point, so we know that these will be hit however it
doesn't mean that these will be taken straight away. If we are using weak highs and lows
following our HTF momentum shifts we will be targetting the weak highs/weak lows on our HTF, if
these are weak highs/lows and if we do experience a true momentum shift then these will be
broken.

The last method you can use for setting your targets is simply placing them at unmitigated price
delivery models. Essentially if you are using this method you will be trading from our unmitigated
models to unmitigated models. This way you will be taking advantage of larger moves that will
give you higher R. However it is more difficult in terms of trade management as you will be in the
trade longer, you will also have to decide where the best place is to take partials.

Each of these methods have their pros and cons, one isn't better than the other. What you have
to do is backtest each method and see what works best for you and fits your personality.
BUILDING THE NARRATIVE
We can't just enter every single setup that we see, we need to have context to the trade and
understand the bigger picture. The easiest way to do this is understand the momentum. Have
we seen a HTF momentum shift? What direction is the momentum flowing? Understanding
these two points will allow you to have a much clearer view of price. Don't neglect the LTF
order flow and intentions especially when trading the M1.

Wait for your HTF momentum shifts and then take advantage of the session momentum. If we
have a 15M unmitigated price delivery model, what you will notice is that price will usually
reach these and give us our momentum shift where we will take advantage of the LTF
momentum shift following this momentum until we get the HTF momentum shift. Once we
know the session momentum it is very easy to take advantage of every setup and reaction we
see, because we know that the momentum is in this direction so price will be continuing until
we see a momentum shift against us. This is where your failure to break, momentum shifts,
weak highs and weak lows really come in handy.

Understand your HTF reactions and mitigations this will give you a clear understanding of
where price want's to go on the HTF. You also need to understand where your liquidity is. Price
will gravitate towards this liquidity so it gives you a really good understanding of where price is
going. Especially in a premium & discount range, if we have taken all of the liquidity in premium
then price will start to look at taking the liquidity in discount especially if we get a momentum
shift.

Don't overcomplicate looking for lot's of different things, keep it simple; Follow the momentum,
play the reactions and enter at logical places. If it doesn't make sense wait until it does.
FAILURE TO BREAK
When we have price failing to break market structure this is price telling us that it isn't ready to
higher/lower yet, we can then exit this trade and save ourselves from a loss or if you still trust the
setup what you can do is reduce your risk and hold. Now with these context is vital because a lot
of the times we will see price stall before it goes our way, this is why understanding the narrative
and overall context is essential. Understand the momentum, where do we have cause? Do we
have one of our models above/below our entry? By understanding these points it will allow us to
know when to cut our trades and when to hold.

We can see that in the first example we can see that e have a valid range, intiation, mitigation
setup however we can see that the move down was solely to mitigate the range at the left before
continuing up. Here you should be aware of where we could possibly see a reaction. Also here
we can see that price failed to break the low, following the rejection you should be assessing the
momentum and aggression, if price is clearly showing clear signs of rejection backed by
aggression then you should be looking at closing the position.

In the second example we see that price reacted to the range and that whole reaction gave us a
failure to break. This whole down move was the sole purpose of mitigating the sell to buy that
was left. Also here is where not having a bias really helps you as a trader, ideally you just want to
flow with price and momentum. If your bias was to the downside then you would have likely held
this trade and taken a loss on it. Whereas if you dont have a bias you could have logically
assessed the reaction and realised that those highs where you entered are all weak.
BREAKEVEN
Managing a trade effectively is a vital skill to have, not only to make the most out of your
trades but to also minimise your losses. The first thing we can do is utilise the concept of
failure to break, this will minimise your losses and you will also be able to take advantage of
the move in the opposite direction.

When going breakeven you need to first need decide whether the trade is aggressive or not. If
it is aggressive you want to go breakeven a lot faster because the trade can very quickly turn
on you. So if you are in an aggresive trade what you want to do is go to breakeven fairly
quickly, so once you have your first sub structure break is when you should go breakeven.

If you aren't trading an aggressive setup then you want to be more conservative and less
aggressive with managing the trade and when you go breakeven. Here you should go
breakeven when price has broken the high/low that was left before the mitigation.
DEVELOPING A SYSTEM
You have to develop a system that works for you with rules in place. So how do we develop

this system? The first thing that you need to have is a sound understanding of the markets

and how price moves, now you

should have this already through previous education and RefinedFX.

Once you have a sound understanding of price you need to start developing your system. The
easiest way to do this is by backtesting, backtest the system you want to trade and make
refinements based on the results. Your losing trades; what is the common factor? Your
winning trades; what is the common factor? Aswell as backtesting you also need to be forward
testing this because results from backtesting can be very different to live results?

When you are trading a system that is showing you potential then it is just about making small
refinements and improving it where applicable.

HOW TO IMPROVE AS A TRADER

You need to understand as traders we are always improving. Complacency kills, don't get
complacent and always strive to be better.

The best way to improve is by journaling, now by journaling I don't just mean your live trades.
Journal missed trades, end of day PA review. Doing this consistently will massively help you
improve your performance. When journaling trades you should analyse what went wrong and
find where you could have improved the trade. What this will do is that it will show you the
common factors between winning trades and the common factor behind losing trades. From
knowing the common factors it allows you to filter out what works and what doesn't work.

Backtesting and making case studies will massively help improve your ability. You should try
to spend a little bit of time backtesting/making your cas studies everyday. Even on the
weekends you need to set a few hours aside and go through the weekly PA over your pairs.

In order to improve as a trader you need to be willing to be consistent in your process, this
includes all of the behind the scenes that goes into your edge, so your backtesting,
journaling, psychology and personal development. Consistency doesn't just come from
sitting in front of the chart everyday; you need to be putting in the work out of trading. When
you have achieved consistency you cannot get complacent, you still need to be willing to put
the work in.

There are also other things that goes into becoming a consistent trader. Consistently
working out, waking up early and going to bed early. Now these things help with improving
your discipline that goes hand in hand with consistency.

Taking breaks away from the charts are absolutely neccesary once in a while. If you are
feeling drained, unmotivated, frustrated then it is essential that you take a small break from
the charts until you are feeling better.
BUILDING A PLAN
You need a systematic approach to the markets for every trade you take. Now every trade will be
different but you have to apply the same approach to every trade, day in day out.

What are your trading hours?

You need to determine what TFs are you going to use? Will you be a HTF swing trader? Or will
you be a LTF scalper?

What pairs will you be trading? If you are swing trading I would stick between 3-5 pairs; no more
than. If you are a LTF trader stick to only one pair.

What entry models will you be using? Buy to sell, sell to buy, ranges.

How will you be entering? Limits or reaction?

When will you be taking profits?

When will you go breakeven?

CAPITAL MANAGEMENT
What is your maximum amount of trades a day?

What is your risk per trade?

How many losses until you step away and call it a day?

How many wins until you call it a day?

CHARTS