How To Understand Market Structure | FOREX | SMC (Part 1)
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 Published On Nov 3, 2021

Boost your win rate, skyrocket your reward:risk ratio, and get extreme clarity by following this mechanical process for mapping market structure. 👇

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0:00 Intro
2:18 Importance of structure
4:22 Basic market structure
10:09 Strong vs weak highs & lows
13:03 Trend changes
16:30 Change of character (CHoCH)
22:35 Structure mapping types
26:24 Chart walkthrough
36:48 Outro

Market structure is the overall order flow of the forex market and provides us with a mechanical framework to read and understand price.

When you understand and map market structure correctly, it massively increases the probability of understanding where price is more likely to go to next, but also the behaviour of how price will likely move to get there.

You need to have a mechanical method for mapping market structure consistently the same way every single time. If you can be consistent in your approach to analysing the FX market, then you increase the probability of achieving consistent results within an uncertain market environment.

KEY POINTS

Bullish trend/OF - higher highs and higher lows
Bearish trend/OF - lower lows and lower highs

Swing high - highest point that caused the swing low
Swing low - lowest point thar caused the swing high

Strong low - lows that caused highs (HL’s)
Strong high - highs that caused lows (LH’s)

After a break of structure (BOS) - expect a pullback on that timeframe

CHoCH - bullish structure changing to bearish structure (vice versa)
- Can signal that a swing run has ended and a swing pullback has started
- Can signal that a swing pullback has ended and the next swing run has started

#marketstructure #smartmoneyconcepts #forex #breakofstructure #forextrading #forexbeginner #smc #forexbasics

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