Profile picture of CryptoSoulz

CryptoSoulz

@SoulzBTC

Published: April 25, 2024
60
351
1.3k

In this COMPLETE THREAD I will explain “Market Structure” 1. What is Market Structure? 2. Bullish Market Structure 3. Bearish Market Structure 4. Break of Structure (BOS) 5. Change of Trend 6. Change of Character 7. Possible SHORT setup 🧵(1/9)

Image in tweet by CryptoSoulz

1. What is Market Structure? Understanding market structure (MS) would help you as a trader to spot bullish or bearish trends. MS is a continuos series of HH (Higher High) and HL (Higher lows) on a Bullish MS. And LH (Lower high) and LL (Lower Low) on a Bearish MS.

Image in tweet by CryptoSoulz

2. Bullish structure Bullish MS is a succession of HH and HL as you can see on the 1 pic. We can identify a bullish trend by watching 2 or more HH's on chart and HL (watch 1 chart)

Image in tweet by CryptoSoulz
Image in tweet by CryptoSoulz

3. Bearish Market Structure: Is a succession of LH and LL. When we identify 2 or more LH and LL on chart, we usually on a downtrend. (The higher TF we use, the "safer" is that trend)

Image in tweet by CryptoSoulz
Image in tweet by CryptoSoulz

3.1 Bullish & Bearish MS: Bullish Ms formed by: HH and HL Bearish MS formed by: LH and LL Always relay in HTF Market structure before LTF. My preferred TF to identify Market structure: Daily and 4H

Image in tweet by CryptoSoulz
Image in tweet by CryptoSoulz

4. Break out of Structure BOS occurs when in an uptrend price forms HH and HL. BOS also occurs when in a downtrend price forms LH and LL My preferred TF to identify BOS is Daily and 4H. The failure to create a BOS results in a change of trend.

Image in tweet by CryptoSoulz
Image in tweet by CryptoSoulz

5. What is a "Change of trend" Price can't be forever Bullish or Bearish. The trend changes when there is a failure to respect BOS. If you are viewing a 4H MS, you must anticipate a trend change from a Daily PD Array.

Image in tweet by CryptoSoulz
Image in tweet by CryptoSoulz

6. Change of Character It's basically a trend change/MS Shift on LTF. CoC is basically used for execution. If you are seeing 4H MS, use 15/5 minutes TF. Two requirements for valid Change of character: - Displacement - Candle closure

Image in tweet by CryptoSoulz
Image in tweet by CryptoSoulz

7. Possible SHORT and LONG Scenarios There are 2 possible short scenarios in a Bearish MS Scenario 1: Buyside Liquidity at previous high not taken, SHORT when price arrives the OB Scenario 2: Buyside Liquidity at previous high taken. Short in Liquidity hunt/Deviation

Image in tweet by CryptoSoulz

Share this thread

Read on Twitter

View original thread

Navigate thread

1/9