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BASIC MARKET STRUCTURE

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UP TREND DOWN TREND

Bullish Market Structure Bearish Market Structure

HH LH BEA
RISH
BOS ORD
ERFL
OW
HH LH
BOS
HH LH
BOS
Theory:

HL LL

HL LL
W
HL R D E RFLO LL
O
BU LLISH
HH
BOS LH
LH
HH
BOS

HL LL
HH LH
BOS
Reality:
SWING HIGH= highest point that caused the swing low
SWING LOW= lowest point that caused the swing low
LL
HL INTERNAL STRUCTURE= everything between swing high and low
HL
LL
AFTER A BOS= expect a pullback on that timeframe

BASIC MARKET STRUCTURE

UP AND DOWN TREND
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UP TREND DOWN TREND

Bullish Market Structure Bearish Market Structure

BOS

BOS

BOS
Theory:

BOS
BOS
BOS

BOS

BOS

BOS

BOS
Reality: STRONG
WAEK BOS

STRONG LOW= highest point that caused the swing low

STRONG HIGH= lowest point that caused the swing low
Usually form with a sharp move away + larger candles BOS

GOAL= catch HL's and LH's (continuations)

BASIC MARKET STRUCTURE

STRONG & WEAK HIGHS/LOWS
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High took out strong low

Becomes protected

HH

HH LH
Bearish expectation of a LH has failed
HH confirms bullish trend change

BOS

HH HH
BOS BOS
LH
BOS

BOS

HL BOS

LL
HL
Bullish expectation of a HL has failed.
LL confirms bearish trend change. BOS HL
LL
LL

Low took out strong high

Becomes protected

BASIC MARKET STRUCTURE

TREND CHANGE
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CHoCH

CHoCH

Bullish structure changing to bearish structure (vice versa)

Generally used for internal structure

BASIC MARKET STRUCTURE

CHANGE OF CHARACTER (CHoCH)
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Signals when run may be finished & a pullback is starting

and when a pullback has finished & a run is starting.

Not a guarantee - can give false signals

BOS BOS

CHoCH CHoCH
Bearish CHoCH. CHoCH
Signals bullish swing
run may be over &
pullback is starting. CHoCH
CHoCH

False signal than

HL has formed.
BOS BOS
Bullish CHoCH.
Internal structure now CHoCH
aligned with swing
structure. Signals
pullback may be over
& swing run is starting.

Increase confluence with:

- MTF Analysis
- Supply & Demand
- Liquidity
- Premium/Discount

BASIC MARKET STRUCTURE

CHANGE OF CHARACTER (CHoCH)
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Not a guarantee - can give false signals

BOS

CHoCH anticipates
trend reversal Reversal or just a
pullback?

CHoCH

CHoCH
BOS

BOS
CHoCH

BOS

BOS BOS
Bullish CHoCH
HL formed, trend continues
BOS

Strong HL is not breached

Increase confluence with:

- MTF Analysis
- Supply & Demand
- Liquidity
- Premium/Discount

BASIC MARKET STRUCTURE

CHANGE OF CHARACTER (CHoCH)
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BOS
BOS
BOS
BOS

TYPE2

TYPE1 TYPE2

BOS

TYPE 1 TYPE 2

Mapping - Wicks Mapping - Wicks

BOS - Bodies BOS - Wicks

Conservative Aggressive

BASIC MARKET STRUCTURE

STRUCTURE MAPPING
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Bearish CHoCH
signals pullback
finished

Bullish CHoCH
signals pullback
started
CHoCH
pullback over
Target weal low
Target weak low

BASIC MARKET STRUCTURE

STRUCTURE MAPPING
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