Focus on market structures and avoid trapsHello traders
- Here you can see how risky it is to trade without sufficient knowledge, because you can encounter a trap at every step, which will end up costing you a lot.
- There are a lot of traps for traders left by big boys in the markets to take your money. That's why it's important to be careful, and don't swim with fish but swim with sharks if you don't want to be eaten.
Example:
- Specifically in this example, we clearly see that the price is in an uptrend, we see an excellent bullish structure, but the other traders in this situation were manipulated and chose the wrong side of the market.
- Other traders focused on the retail head and shoulders pattern, and thats the retail flag, but we actually waited for the price to fill Imbalance and liquidity and then continued with the bullish trend.
- We see an excellent reaction from the demand zone, the price reached it in the des PA, and after the reaction, we have an excellent reversal setup.
- The price has filled the Imbalance, collected all the liquidity and since our entry continues with the bullish structure. Eventually the other traders fell into the trap, and the price hit their SL.
I hope you learned an important lesson from this post, if you liked it leave a like and write a comment if you have any questions.
Hybridfx
Trade With The StructureMarket structure, by definition, is the simplest form of price movement in the market and is meant to be read.
It is basic swing highs and swing lows. Market structure is a trend following tool that traders read and follow based on how an asset moves. From bullish moves to bearish and in-between ranges, market Structure is often referred to as price action. We refer to this study as the study of market structure.
Because to understand the way the market moves, you need to understand the trend and the anticipated moves. Only then you can add other criteria to your trade qualifiers.
There are three types of market structure:
• Bullish market structure
• Ranges (side ways market)
• Bearish market structure
In order to get the most out of the market, you need to learn to recognize the right structure and trend. Most of all we like to see bullish and bearish structure.
Trade With The Trend And Watch Out For Liquidity SweepsHello traders
In this example, we will explain how to trade with the trend and use liquidity as an additional confluence.
1) Price makes a new higher high, momentum is present.
2) After momentum, the price begins to create liquidity, as we talked about in one of the previous posts. Liquidity is a trap for retail and other traders.
3) We see that this is precisely why the manipulation took place, liquidity was picked up, and then the price moved impulsively towards the uptrend.
4) Price creates a new demand zone and impulsively continues bullish again. We see strong momentum.
5) In this situation, we see an excellent trend, we know that the price wants to continue bullish.
6) The price creates liquidity again and at one point, manipulation occurs again, we see a liquidity sweep, and the price from our zone impulsively continues to the uptrend.
- In the next post, we will show you this example on a chart so that you can better understand this concept.
- This is all about today's example, if you liked it, leave a like and write below in the comments if you have any questions.
Imbalance- Today we will talk about imbalance. What exactly is an imbalance, and how to recognize it?
- Imbalance can often occur in forex due to many reasons. Imbalance can move upwards or downwards.
- Most of the imbalances get filled up within minutes, hours or in one daily session. But it is not always like that, some can take days to fill up.
- Imbalance is like a gap, it drives the price to go in the direction where it made the imbalance in order to fill it up.
- We can use all that information in our favour to maximize our edge in the markets in different ways.
- Here we have 2 examples, on the left example, the price left an imbalance, but on the right, it did not.
How?
- At first glance, these 2 examples look totally the same, but they are not. In the example on the left, the price left an imbalance, and the wicks are not touching, while on the left side the wicks are touching and therefore we do not have an imbalance as in the first example.
- If this post helped you better understand imbalance and its role, leave a like and follow us for more content like this.
How To Choose High Probability OBHello traders
- In this example, we will explain how to choose a high probability OB for your entry. And what you need to pay attention to.
- If you want to choose a good OB, you must read every detail on the chart and take into account everything you see so that you can determine whether your OB is the high probability or not.
- One of the most important things we need to have with a high probability OB is the present momentum. When we see momentum, we know that the price has the potential to continue in the same direction.
- Here you can see 2 examples. In one example, we have high probability OB, and in the other, low probability OB.
- High probability example:
On the left, we see a high probability example. Momentum is present, and the price is making strong BOS. When the price impulsively breaks through the high, as in this case, we know that the price has a great potential to continue in that direction. In the end, we see a good closing of the candle, the price did not leave a big wick and filled the entire bullish candle. In this situation, we have a high probability OB.
- Low probability example:
On the right side, we see a low probability example. Momentum is not present, and the price makes BOS weak. When the price weakly breaks through the high with wick, we know that the price no longer has momentum and will most likely change direction. We see a low candle close and a large wick which tells us that the price has no momentum. In this situation, we have low probability OB.
If this example helped you better understand low probability and high probability OB, leave a like and follow us for more content like this.
SMC TrapHello traders
- In this part, we will talk about the smart money trap.
- There are a lot of traps for traders left by big boys in the markets to take your money. That's why it's important to be careful, and don't swim with fish but swim with sharks if you don't want to be eaten.
- The move is designed to first take out early sellers, then take SMC traders.
-We'll explain this example in a few steps:
1) We see that the price is in a downtrend, reacting from OB, and supply has full control in this situation.
2) We can all assume that the price will continue to be bearish.
3) Now you can see that the price is coming aggressively to the last OB, and before that, we had WBOS, and there was a trap made for SMC traders.
4) This is inducement, and we talked about it in one of the previous posts, you can go back to it for a more detailed explanation.
5) This OB is not valid for us, because we have seen a lot of liquidity that the price needs to pick up and an aggressive retest.
6) We waited for the price to pick up all the SMC entries, and then the price came to our safe entry, which is marked on the chart as a valid OB.
If you liked this example, leave a like for more content like this.
S2D FLIPHello traders
-In this example, we will explain how to trade the S2D pattern.
-S2D is a pattern in which the supply zone loses control, and the new demand zone takes control.
- In the next steps, we will break down the example we have here in detail.
1) The price is in a downtrend, and demand has full control.
2) Then we see a reaction from the demand zone to HTF, after the reaction, the price starts bullish.
3) The price breaks the supply zone and continues impulsively towards the uptrend. When the price breaks supply, we can expect a change in direction.
4) Momentum is present, and we clearly see that the price has broken the structure and wants to change direction.
5) We can see a new demand zone now taking complete control, and the price continues to be bullish.
Leave a like, and if you have additional questions, you can ask us in the comment below.
Inducement Hello traders
-In this example, we will explain what INDUCEMENT is.
-Inducement is a trap for traders left by big boys in the markets to take your money.
-The move is designed to first take out early sellers, then take retail pattern traders, then break out and break and retest traders together in one move.
-The beauty of it is that everybody thinks they win, but in reality, the big boys go home with your money.
-Look at this example carefully and next time you see it play out on the chart, look at how you can profit from it instead of getting your SL hit.
Example:
1) Here, we see that the price is in a downtrend
2) Then, at the last BOS, the price barely breaks through the low and makes a trap for retail traders, breakout and retest traders, etc.
3) As you can see, this was an obvious fakeout and trap for other traders
4) In the end, the price picked up all SL, and came to our entry, from where it starts to move in our direction.
-And remember, you want to swim with the whales and follow them, not go against them.
Don't forget to leave a like and follow us for more quality content.
HTF direction LTF execution Hello traders
-In this example, we have explained the high probability setup after a reaction from a strong supply zone.
- Here, we have an entry after the reaction from the supply zone, which we will break down in detail in the following steps;
1) We can see that the price is in a downtrend, and supply has full control.
2) The price moves towards the supply zone, and make liquidity
3) In one move, the price picks up liquidity, and we see a good reaction from the supply zone.
4) An impulsive reaction from the supply zone tells us that we have a strong supply zone and we can expect a downtrend
5) After the reaction from the supply zone, we see a nice momentum, and then the price starts to pullback to our entry.
6) The price creates liquidity, that's another positive confirmation we see here.
7) We currently have everything we want to see, and the price from our entry is expected to continue impulsively towards the downtrend
- It is very important to read the PA in detail in order to understand the psychology behind the PA and to more easily recognize your high probability setup.
-Other people do not look at the market the way we do. They do not look at everything in detail. They don't know that this is necessary because if they do not understand the language of the market, they will have a lot of problems.
-It is hard, it requires time and hard work, and you need to be eager and well disciplined.
-Once we learn the language of the market and the way it communicates with us, we will always be able to understand what the market is saying to us.
- Don't forget to leave a like, if you have any questions, write us below in the comments.
Game Of LiquidityHello traders
-Today we will talk about liquidity and its role.
What is liquidity?
-We will try to explain you as simple as possible what liquidity is and what you should be looking for when you want to spot it.
-There is a theory on the FX markets that the Big institutions (Smart money) are always trying to trap us and take our Stop losses.
-Retail education as we all know is based on patterns (double top,double bottom, trendlines, supp res zones etc...
-As new traders come fresh on the markets they can be easily manipulated and taken away from their money because they are 'easy pray for big boys.
-If you want to understand liquidity as simple as possible - when there is a trend line, double top pattern, there are retail stop losses and there is liquidity to be taken.
Example:
1) In this example, we see that the price is moving in a downtrend
2) Then the price slows down with momentum and starts to make a lot of liquidity.
3) We can see liquidity in the form of a trendline, double tops, etc.
4) A lot of retail traders lose their money here, while we patiently wait for our opportunity.
5) Our entry is at the strong supply zone, and the price reaches it when it picks up all SL of retail traders.
6) At the end, we see a liquidity sweep that mostly happens in one move, and here we open our position.
-Remember: This is the cat and mouse game. In order for one person to win someone else needs to take the loss. So our question is
Are you a cat or a mouse?
-If this post helped you better understand the concept of liquidity, leave a like. If you have any questions, write below in the comments.
Confirmation entry 101Hello traders
- In this example, we will talk about confirmation entry.
- What is confirmation entry?
- Confirmation entry is shown in the picture above, and in this situation, we chose a safer order block for our entry.
- Below, we will break down the entire PA in detail and explain this example better.
1) We see that the momentum is present, the price has left an imbalance, and we have a nice candle close.
2) The price creates liquidity and returns to the retest, but in the end the price does not reach our order block, and here we have a missed entry.
3) The price impulsively broke through the low again, leaving the imbalance behind, and we see a nice candle close.
4) This second impulse can easily be a fakeout, so it is safer to wait for entry on the first order block
5) The price makes more liquidity that needs to be picked up
6) In the end, the price has taken out all the other traders who had open positions here, and our confirmation entry comes from where the price impulsively continues bearish.
-When you trade, you have to learn to read the PA in small details in order to better understand the PA and the language of the market.
- If this example helped you to better understand PA and confirmation entry, leave a like, and if you have any questions, you can ask below in the comments.
Multi-Timeframe-Structure ExplainedHello traders
- In this example, we will explain why focusing on the multi timeframe structure is important.
- It is crucial to observe the chart on multiple timeframes. If we consider several time frames and they match, we will be able to have more confirmation for entry.
- How can multi timeframe structure help us in our analysis?
-Multi-time frame analysis is simply utilizing both higher and lower time frames together. Lower time frames become higher time frames; for example, one 1D candle has 24-1H candles or 6-4H candles. When we are using LTF and HTF, we should focus on the major trend direction as it is very easy to get lost in the lower time frame.
-The following example will help you better understand the importance of multi timeframe structure.
- For example, follow the chart on the 1H timeframe. At that moment, you see a bullish trend, but if you look at the chart on the 1D timeframe you can see that we are in a bearish trend, and that the bullish trend on the 1H timeframe is actually a pullback to the supply zone on the 1D timeframe.
- That is why it is important to follow the multi timeframe structure in order to have more confirmations.
-We hope this post helped you to better understand multi timeframe structure, if you have any questions, you can ask below in the comment.
HP Bos vs LP Bos - Supply & Demand Trading Hello traders
In this example, I will show you what HP BOS (break of structure) and HP POI (point of interest) look like, and on the right side you can see an example of low probability BOS (break of structure) and low probability POI (point of interest).
BOS (break of structure)
-Break of structure or BOS is the term used by
traders, and it simply indicates a break of the recent structure
We have 2 types of BOS
1. High probability BOS
2. Low probability BOS
High probability BOS
-You can see the high probability BOS on the left. The price impulsively breaks through the most recent structure, the momentum is present, and at the end, we see a good candle close, the price did not leave a big wick.
Low probability BOS
-You can see the low probability BOS on the right. The price barely breaks through the most recent structure, momentum is not present, and at the end the price leaves a large wick - the characteristic of a large wick is that the price no longer has momentum.
POI (point of interest)
- POI | Supply & Demand is the place where we want to sell or buy
We have 2 types of POI
1. High probability POI
2. Low probability POI
High probability POI
-When we want to select the HP POI , we want to see that the momentum is present, as in the example on the left. The price did not leave a wick, it impulsively broke the high, and we see a nice closing of the candle.
Low probability POI
-When we see a low probability POI, we don't want to see that OB as a potential trade opportunity. On the right, you can see the low probability POI. The price has no momentum, it leaves a big wick which tells us that the momentum is weakened.
I hope this example helped you to better understand the difference between high probability BOS & POI and low probability BOS & POI, if you have any questions, drop it down below.