Monica
💫 Summary
In this video, the speaker explains the concept of break of structure in trading, which is a shift in the trend when the market breaks its previous high or low. They emphasize the importance of candle closures in determining break of structure and caution against relying solely on wicks. The speaker also highlights the need to identify the trend and pay attention to the most recent highs or lows for accurate analysis.
✨ Highlights📊 Transcript
In this section, the instructor introduces the concept of break of structure in trading.
00:00
The instructor mentions that they will first cover break of structure before moving on to liquidity.
Break of structure is described as a shift in the trend, where trends move in higher highs and higher lows in an uptrend, and lower lows and lower highs in a downtrend.
The instructor explains that a high is a move up followed by a move down, while a low is a move down followed by a move up.
This section explains how to identify highs and lows in candlestick charts.
03:48
A high is formed by a blue candle followed by a black candle.
The highest wick between the two candles is considered the high.
A low is formed by a move down followed by a move up.
The lowest wick between the two candles is considered the low.
A break of structure to the upside is when there is a candle closure above a previous high, indicating a potential uptrend.
07:37
Break of structure to the upside means a candle closure above a high.
It signifies a potential uptrend.
The candle body needs to be above the wick of the high for it to be considered a break of structure.
A break of structure can lead to a change in trend direction.
Breaking structure to the upside and downside is explained, emphasizing the importance of candle closes in determining a break of structure.
11:24
Breaking structure to the upside involves higher highs and higher lows.
Breaking structure to the downside occurs when a low gets taken out in an uptrend.
Emphasizes that Wicks going above highs or below lows do not indicate a break of structure; it requires a candle close.
The concept of a break of structure is not considered valid unless the candle closes above a high or below a low.
In order for it to be a break of structure to the downside, it has to close below the most recent low.
15:15
The trend needs to turn from an uptrend into a downtrend.
Consistently watching the most recent lows and highs is important.
Previous lows are not relevant in this analysis.
The instructor explains the concept of "break of structure" in trading.
19:03
Identifying the trend by looking at lower lows and lower highs.
Waiting for the daily timeframe to close above the most recent high to turn the trend into an uptrend.
Not considering certain highs and wicks as valid highs.
Emphasizing the need to wait and be patient in trading.
Understanding break of structure and avoiding bad setups
22:51
Break of structure to the downside on the daily, but weekly still bullish is just a retracement.
A wick below a previous low is not necessarily a break of structure, it could be a liquidity sweep.
Taking trades off of low probability setups reduces our chances of being a higher probability trader.
We need to wait for the low to get closed below to avoid bad setups.
Understanding market structure in an uptrend: focus on the most recent lows and disregard previous ones.
26:41
Identify the trend: is it going up or down?
Watch every new low that gets made.
Only care about the most recent lows that need closure above.
Market structure is only considered broken if the most recent low gets closed below.
00:00well it's good baby
00:09I know you love seeing my beautiful face
00:11every damn morning
00:17what's good baby welcome to boot camp
00:21day [ __ ]
00:24day six
00:26I believe
00:28welcome to boot camp day six okay today
00:31we're back on it with trading okay we
00:34are going to be talking about Break of
00:36structure okay
00:38um I figured you know we're gonna get
00:40the the baby the beginners right out
00:42hold on there's a fly
00:45we're gonna get the baby we're gonna get
00:47the beginner [ __ ] out of here
00:48um first so we can start getting into
00:50this because right after this one right
00:52after this trading video the next
00:54trading video is going to be talking
00:55about liquidity so we can actually get
00:57into some [ __ ] all right so
01:00first we need to understand break of
01:01structure because we've talked about
01:02candlesticks so we know the little
01:05drawings on the chart and now we know
01:07Trends right now we need to understand
01:10why and when the Market's trending and
01:13you know when it actually switches
01:15Direction when it breaks structure when
01:17it's when it gets a market structure
01:19shift okay so the simplest way
01:24that I can describe a break of structure
01:27is a shift in the trend okay so we know
01:31right Trends move and higher highs and
01:34higher lows okay we also know
01:38um or actually I haven't even talked
01:39about this okay so so Trends move in in
01:42higher highs and higher lows okay right
01:45and then lower lows and lower highs on
01:47the contrary right in a downtrend okay
01:49what makes up a high in the first place
01:51this is something that I didn't talk
01:52about in the trends because I was going
01:54to save it for the break of structure
01:56video okay so what makes a high a move
01:58up then I move down right
02:00hi what makes low a move down then a
02:04move up low Okay so
02:08when we apply this to the charts okay it
02:12is literally as simple as that a high
02:15okay is a move up then they move down a
02:18low is a move down then a move up
02:20okay so what does that mean it only
02:22takes two candles essentially it's a
02:25Candlestick pattern so if there is one
02:28green candle up and then a red candle
02:31down
02:32that's a high if there is one red candle
02:36down and then one green candle up that's
02:40a low it's not it doesn't have to make a
02:43perfect little [ __ ] shape okay it
02:46doesn't have to look perfect it doesn't
02:47have to look pretty because I feel like
02:49a lot of people a lot of beginner
02:51Traders especially think highs and lows
02:54have to be like you know like look
02:56exactly the same right so let's let's
03:00jump into the charts
03:02and start outlining
03:04what a high and low even looks like
03:06before we even get into breakup
03:08structure because we have to understand
03:09what highs and lows look like in order
03:12to understand what a breaking structure
03:14is right because if that means the trend
03:15is changing if we're if we're saying a
03:18trend is higher highs and higher lows
03:19and the trend changes we have to know
03:22what those highs and lows even look like
03:24right so
03:26this is a perfect example of an odd
03:29looking high that people probably
03:32wouldn't even call a high people would
03:34probably call call this the high no okay
03:38it's not you can't just Lump Lump them
03:41together that's not how this [ __ ] works
03:43okay
03:45so first of all right we do have a move
03:48up then a move down what does it consist
03:51of literally a blue candle than a Black
03:52Candle my my chart is blue and black it
03:55just looks cool that way okay that's why
03:57I have it okay so this is a high
04:01right this right here is the high off
04:04the Wicks of the blue candle right there
04:07perfect that's a high
04:09okay and on the contrary right we have a
04:12move down then they move up so what is
04:14this a low
04:16cool cool right this again is still a
04:21high it just doesn't look as pretty as
04:23this right why because we have a blue
04:25candle meaning a move up and then a move
04:28down okay it's two candles and you're
04:30probably going to say well tjr where's
04:32the high is it off the wick of this
04:34candle or is it off the wick of this
04:36candle well since a high takes two
04:40candles to form you're going to take the
04:42highest Wick of whichever of those two
04:44candles it is
04:45okay so boom we got a high right here
04:49okay and same thing same thing down here
04:51right if this blue candle's Wick was
04:54lower
04:55then the Black Candle
04:58that would be the low makes sense cool
05:02good we got it hopefully I don't have to
05:04cover that
05:06um hopefully I don't have to cover that
05:07again okay we can go over another
05:09example what is this this is a high why
05:11because there's a blue candle then a
05:13Black Candle literally It Only Takes Two
05:15candles to make it hot perfect boom we
05:17find the the top Wick between between
05:20the two candles done deal okay
05:25this is a low why because there's a move
05:28down then a move up
05:30this is a low why because there's a move
05:33down then there's a move up
05:35cool
05:36cool same thing right here
05:39this is a low why because there was a
05:41move down then they move up
05:43right if we scale into the four hour
05:46and look at this
05:48this is the low right it makes sense
05:51that this would be the low and not
05:58and not the start of the Black Candle or
06:01not the wick of the Black Candle because
06:03if we zoom in
06:04and look at it
06:06what the [ __ ] is that right this ain't
06:08no low the low's all the way down here
06:10okay
06:12so boom we know what lows and Highs are
06:15now perfect
06:16clap it up we got we got like the super
06:19beginner [ __ ] done okay
06:22perfect
06:23all right we know what lows are high
06:25what lows and Highs are and if we know
06:28what trends are and if we know what lows
06:29and Highs are then we can know when a
06:32trend breaks and when Market structure
06:35shifts okay why because if a uptrend
06:39moves in higher highs and higher lows
06:41but then uh oh
06:44it doesn't anymore it ends up breaking
06:48what is likely going to happen
06:51okay it's going to start making lower
06:53lows and lower highs
06:56and that is what we call a break of
06:58structure
06:59okay meaning we break the trend that the
07:02current market that market is currently
07:04in
07:05okay
07:06we break that Trend and then flip flip
07:10Market Direction flip Market structure
07:13in the other direction
07:15okay
07:16and break of structure is very very
07:19simple but for some reason I get lots of
07:22questions on it and in this video I will
07:24try and
07:26simplify this [ __ ] so literally a child
07:30can understand it okay I'm going to try
07:32and make this super simple
07:34okay a break in structure
07:37to the upside
07:39okay and we'll and we'll show examples
07:41of this on the on the chart and
07:44um and through drawing okay a breakup
07:47structure to the upside so that means
07:48there is a downtrend currently
07:51right a break of structure to the upside
07:54is when we have a closure
07:57a candle closure not a wick a candle
08:01closure
08:02above a high
08:04remember what's a high a move up then a
08:07move down so that means in order for it
08:09to break structure to the upside we have
08:12to see a single candle close fully
08:17meaning closing Above This High meaning
08:20the candle body has to be above the wick
08:23of the high
08:25makes sense let's find an example on the
08:27chart because I'm not sure this makes
08:29sense yet because this is how I
08:31described the last video and we still
08:32had questions but that's okay questions
08:34are good gonna try and help you guys
08:36understand this
08:38okay
08:39so right here we're going to move up
08:42then a move down then a move up okay
08:43perfect we made a low right here and as
08:45you can see right here we had like a
08:47miniature uptrend okay we come down get
08:50a move down then a move up we get
08:51another low cool
08:54I no longer care about this previous low
08:56I'm only caring about the most recent
08:58one okay and we'll get into that a
09:00little bit later into this video okay I
09:02only care about the most recent high or
09:04low that has been made
09:06as you can see here we previously
09:09had broke structure to the upside right
09:11uptrend okay
09:13then we have this low and what happens
09:15right we have a
09:17move down then I move up but then right
09:20we weren't we weren't in a downtrend
09:22previously but what happens with this
09:24candle
09:26the body of the candle
09:29closed
09:31below the low
09:34so what happened what what did it cause
09:36it to do
09:38started a downtrend
09:40right boom lower high lower low probably
09:44going up to form a lower high or
09:46retracement on the weekly time frame to
09:49come up in within here
09:51okay
09:52so
09:54do are we starting to understand what a
09:56break of structure is now let's try and
09:57find a break of structure to the upside
10:03this is just lovely
10:05right what happens we were previously
10:07training up this gives us two perfect
10:09examples of this previously trending to
10:11the upside right we see
10:14a low what happened to the low the body
10:18of the candle closed below it what
10:20happened to the trend it shifted right
10:23we have a high right here we have a low
10:25right here where's the next high right
10:27here where's the next low right here
10:30lower low
10:32lower low lower high
10:39what's this right here I move down then
10:41I move up that's a low
10:43what's this right here move up then I
10:45move down that's a high what's this a
10:47lower high a lower low wow would you
10:49look at that it's a trend it's a
10:51downtrend because Market structure broke
10:53okay so now that we're in a downtrend
10:57what happens over here
10:59we have
11:01a high right here and you're gonna say
11:03oh yeah it broke whoa whoa whoa slow
11:05down we also had a high right here why
11:08why why is this a high guys why is it a
11:11high because we have a move up and then
11:13they move down
11:15we get a closure above it
11:17okay close the candle closed above the
11:21wick
11:22and then what happens
11:24Bing Bong moves to the upside
11:27yeah we did get a retracement down but
11:29hey look high or low
11:33higher high higher low higher hot higher
11:36low higher high higher low
11:38continues okay
11:41that is breaking structure to the upside
11:43now
11:45let's break your structure to the
11:46downside
11:47well it's when we have an uptrend
11:50and then schminck a low gets taken out
11:53right same exact thing just in the
11:56opposite direction
11:57right
11:58low gets taken out
12:01okay
12:02boom we start the downtrend okay
12:06pretty pretty simple stuff right
12:10let me show you guys what a break of
12:12structure is not and I think this is
12:14where a lot of people slip up
12:17right here is a perfect prime time
12:21example of this
12:24right here we get a move up then I move
12:26down so what does this make a high
12:29correct
12:30right here we get a move up
12:34and then I move down this Wick goes
12:37higher than this Wick right so
12:39technically this high is higher than
12:41this high
12:42however we do not give no [ __ ] we do
12:45not give a crap we do not care about Wix
12:50going above highs or going below lows
12:53that does not mean anything to us
12:57we need a candle closed because as you
12:59can see right here
13:00oh oh no it's a higher high what's gonna
13:03happen oh no it falls what this isn't
13:06what tjr taught us well here we are
13:08teaching you this [ __ ] okay so we get
13:12this Wick going higher than this Wick
13:13but we don't care because it doesn't
13:15close above it it is not a break of
13:17structure unless the candle closes above
13:20it write that down it is not a break of
13:22structure unless the candle closes above
13:25a high
13:26or be low a low
13:30right for a for example if let's say
13:33this black Wick let's say this this Wick
13:36went lower than this low
13:41that would not have been a break of
13:43structure it that would not have been a
13:45breakup structure
13:47and this whole thing wasn't a break of
13:49structure until
13:52this most recent low
13:54got closed below
13:59that's all breakup structure is
14:02whatever the most recent
14:04okay ready so we'll simplify this even
14:07more right it's literally a step-by-step
14:09execution of understanding where a break
14:11of structure is number one identify that
14:14the trend identify the trend
14:17we'll we'll even write this down this
14:19will be good
14:24damn
14:26can be profitable but can't type
14:29that's how it goes
14:30is that even the way how to spell
14:32structure I don't even know and I don't
14:33care how to spot breaking structure
14:35number one
14:37identify the trend
14:40okay where is it going number two okay
14:46up
14:48Trend or down
14:51trend
14:53okay number two if in up Trend okay
14:59we are watching
15:02the lows right because if we're moving
15:07up higher and higher when are we going
15:09to get a break of structure
15:11when the low gets taken out when the low
15:13gets closed below we don't care about
15:15the highs right we care about the lows
15:17okay number three if in downtrend we are
15:22watching highs right for opposite reason
15:26right we're moving down so the only way
15:29for this thing to turn into an uptrend
15:31right is it for it to go higher right if
15:34it keeps going lower we're staying in
15:36the trend got it got it okay number four
15:40okay once you identify the trend right
15:43we figure it out
15:45we can't okay
15:48in order for it to be a break
15:55again I misspelled it in order for it to
15:58be a break of structure to the upside
16:03it has to close above or actually we'll
16:08make this be a brake structure of the
16:10downside because we talked about we're
16:12watching loads for the first one I don't
16:13want to confuse you guys
16:19wow I can't even type
16:38so in order for it to be a break of
16:40structure to the downsize to the
16:44downside which means it is turning from
16:46an uptrend into a downtrend damn I
16:49wonder if I can make this smaller
16:52there we go
16:53it has to close below the most recent
16:56low
16:58does that make sense
17:00give me a a nod yes yes okay number five
17:06oops number five so this is that exact
17:09same
17:11just opposite
17:15let's see if I can spell it right
17:16structure did it for me a lot I love
17:20technology oops I was just copying
17:22upside
17:24into an uptrend oops bad grammar on a
17:28instead of an
17:37in order for it to be a break of
17:39structure to the upside which means from
17:41a downtrend into an uptrend I'll even
17:44add that into there because that can get
17:46confusing I know
17:56okay
18:00cool so in order for it to be a break of
18:03structure to the downside which means an
18:06uptrend into a downtrend it has to close
18:10below the most recent low
18:12understand that we are consistently
18:14watching the most recent lows in the
18:16most recent highs getting formed okay we
18:19are not we are not listening or carrying
18:23caring about pass lows okay so in this
18:28example this gives us a a perfect
18:29example okay
18:32right we make this low right here this
18:34low yes it's lower than this one
18:37but why do I not care about it anymore
18:40because this one is the most recent low
18:42that was made
18:44yes price ended up closing below both of
18:46them so we wouldn't have had an issue
18:48but I know damn well that some of you
18:50guys if it only closed below this one
18:52and not below this one you guys would
18:53have been having a heart attack
18:55shivering your [ __ ] Timbers deciding
18:58whether or not to take a short
19:00okay so we take the most recent lower
19:03high made
19:07okay same thing with this
19:09same thing with this over there right we
19:11have a high right here
19:13oh we make another high right here
19:15why why is this why why aren't tjr why
19:19are we using the wick of this this
19:20because
19:22up candle and a down candle how do we
19:24Mark our highs the highest point of
19:27those two candles
19:28all right the wick right there we got it
19:32we closed above that yes we closed above
19:34both of these yet again
19:36however
19:39we don't care about this High anymore
19:41okay there will be times when price will
19:43consolidate right not within a trend
19:46right it'll just be consolidating and
19:49you'll see a lot of that right you'll
19:50see oh
19:52move up right
19:54right here move up then to move down now
19:56this is a high move down then a move up
19:59this is a low move up then I move down
20:01this is a high move down then to move up
20:04this is a low right this is just pure
20:05consolidation there is no Trend within
20:08however many days this was this would
20:10have been a terrible trading week for
20:11Gold right there was no Trend within
20:13this there was no break of structure
20:16Market had no clue where it wanted to go
20:19oops
20:21okay
20:23does that make sense
20:26I feel like that that is the easiest way
20:28that I could have put brake of structure
20:31at all okay we we have it laid out it is
20:35a step-by-step formula number one
20:37identify the trend
20:39what's the trend
20:41look at it
20:44lower lows and lower highs perfect we're
20:46in a downtrend
20:49okay so we are in a downtrend what are
20:51we watching
20:52we are watching highs where's our most
20:55recent High
20:57right here
20:58so in order for this to turn into an
21:00uptrend again
21:02we have to wait for the daily time frame
21:05to close above here
21:08we just gotta sit back relax and wait
21:14this week is not a high this Wick is not
21:16a hive this candle forming is not a high
21:19if the next if the next candle that
21:21forms is down though
21:23then yeah we'll move the high to there
21:26but that hasn't happened so where's the
21:28most recent High
21:30there cool and when does it turn into an
21:34uptrend when we get a candle closure
21:37above there
21:38okay we'll show we'll show one more
21:40example
21:41of a break of structure
21:46let me throw this on the weekly
21:51yeah oh this is money
21:54okay
21:56right here
21:58right we're trending up
22:01all right or actually no well we'll go
22:04into like 15 minute time frame
22:07this will be good
22:09and again remember guys remember
22:12remember I don't want you to watch this
22:14breakup structure video and instantly be
22:16like when there's a break of structure
22:19it means it's gonna go up forever or
22:21when there's a breaking structure to the
22:22downside it's going to go down forever
22:23because that is not true at all
22:25not not true
22:27okay not true whatsoever
22:31because remember in our Trends video if
22:34you have to re-watch that today I highly
22:37suggest you do so remember in our Trends
22:39video
22:41the weekly holds more power than the
22:43daily the monthly holds more power than
22:45the weekly if we see a break of
22:47structure to the downside on The Daily
22:48like we saw right here on gold or sorry
22:51on on gu
22:54right
22:57and why is this the breaker structure
22:59the downside
23:01move down move up this is the low
23:04we close below that market starts
23:07running down if we see a breaking
23:09structure to the downside on The Daily
23:11but the weekly we're still bullish
23:16it's just a retracement
23:18was this a break of structure
23:22little little homework little tip and
23:25trick for you guys
23:27this was the most recent low that we had
23:30is this a break of structure
23:33no
23:36why is it not a break of structure
23:39you're probably saying
23:42shut up we haven't closed below the low
23:45we didn't close below this is a perfect
23:48example
23:50of what a lot of you guys will be
23:52entering on
23:53that just is not a breakup structure
23:58this looks like a liquidity sweep
24:01and oftentimes Mike Market will do this
24:03a lot to fake people out who think that
24:06a wick below
24:08a previous low is actually a break of
24:11structure
24:13because what's Market probably going to
24:14do it's probably going to come up a
24:16little bit
24:19okay yeah maybe the next weekly candle
24:22will close below here maybe if it wants
24:25to but we have to wait for that we can't
24:28just say
24:30good enough sell right because we don't
24:33want it to be good enough we want to
24:35know
24:36and because even when we know for
24:38certain we don't actually know so why
24:41would we why would we take a trade off
24:42of something that's already low
24:44probability of being a break of
24:45structure
24:47and already being in a market that's
24:49already very difficult to have a high
24:51probability to trade in right we're
24:53literally just reducing our chances of
24:56being a higher probability Trader by
24:58taking
24:59bad setups like this
25:02right we need to wait for the low to get
25:04closed below
25:06same [ __ ] with this
25:08same [ __ ] with this this is a an exact
25:11example of this right here
25:13same thing with this
25:17right what's this move down then move up
25:20this is a low at one point in time at
25:23one point in time this Black Candle
25:25right here
25:26this was full a full Black Candle to the
25:31downside it looked like this
25:33I know I know damn well
25:36that ninety percent of retailers were
25:39just short it's going down forever
25:44and then what happens Market never
25:46[ __ ] breaks structure and we push
25:48higher
25:51same thing here
25:54right
25:57we gonna move down then move up
26:00no break move down then move up
26:03no break
26:06and Mark it continues to push Higher and
26:08Higher and Higher and Higher and Higher
26:10because the trend never was broken
26:15Trend never broke
26:20and what were these these were just
26:22liquidity sweeps and we will learn about
26:24that next time
26:25okay
26:27hopefully that covered break of
26:29structure for you guys
26:32it has to be a close let's go back to
26:35that
26:36that little thing that we had shrink uh
26:39let's do this on The Daily
26:41and let's drag this all the way up here
26:45identify the trend is it going up is it
26:48going down is it going in higher highs
26:50and higher lows is it going in lower
26:51highs or lower lows
26:53boom I literally made a checklist for
26:55y'all figure it out okay perfect it's in
26:58an uptrend if it's in an uptrend we are
27:00watching the lows perfect Hawkeye those
27:03things
27:04watch every single new low that gets
27:07made okay that's actually something that
27:08I want
27:16because we only care about the recent
27:18ones that get made
27:26those are the only ones we care about
27:29okay those are the only ones we care
27:31about those are the only ones that need
27:33closure above because who gives a [ __ ]
27:35right
27:36if Market's moving like this or
27:39right I mean we showed it in that GJ
27:41chart but if markets moving higher highs
27:43higher lows
27:46and then and then one of the logs gets
27:48Wicked below but it keeps going higher
27:50we don't care about that right because
27:52Market structure never was broken we
27:55only care if it gets closed below
27:58right also right sorry for the most
28:01recent low Point okay we're going like
28:03this
28:04right who cares about this low if this
28:06new low was already made
28:08if it's supposed to move in higher highs
28:10and higher lows than the most recent low
28:12gets broken gets closed below then that
28:15means the the structure is shift who
28:17cares about this one it means we we made
28:20a new low we made a lower low compared
28:22to this one
28:23who gives the [ __ ] about this this was
28:26the trend this was the most recent low
28:28no one cares about this low no one cares
28:31about this High we care about the most
28:33recent ones that were made
28:34same thing for the downtrend okay please
28:37please drill that into your head
28:40and I suggest you guys write this down
28:44okay so we know that
28:47we're in an uptrend and if we're in an
28:49uptrend we're watching the lows
28:51we're watching the most recent ones that
28:53get made and we forget about the old
28:55ones okay after the most recent one gets
28:57the most recent ones get made
29:00and then once it's a break of structure
29:03to the downside in an uptrend it has to
29:07close the candle has to close below that
29:10most recent low
29:12and that's it that's breaking structure
29:15we got it okay so what I want you guys
29:18to do for homework
29:20is
29:22find 10 examples of breaks of structure
29:25this should be very very easy because
29:27it's pretty easy to spot especially with
29:29this checklist
29:30find 10 examples of an actual break of
29:32structure within the market and then
29:35find 10 examples of what someone a noob
29:39who hasn't watched this course who
29:40hasn't watched this video yet who hasn't
29:42watched my how to spot a break of
29:43structure uh in the market video
29:46find 10 examples of what someone might
29:49consider a break of structure but
29:51actually is it a wick below a low or
29:54like a wick above a high right something
29:56that might fake somebody out
29:59that someone might believe is a break of
30:01structure but isn't so you guys can get
30:03good at spotting actual breaks of
30:04structures
30:06and then fakes
30:08okay
30:10do those two things you need you need to
30:11have 20 examples
30:14by the end of this okay until you're
30:16done with your homework you need 10
30:17examples of breaks of structure and 10
30:19examples of fake outs or fake breaks of
30:21structure okay not real
30:24all right that's your homework
30:26make sure you get it done before
30:28tomorrow's video I'll see you boys
30:29tomorrow
Copy
Chat with video

FAQs about This YouTube Video

1. What is break of structure in trading?

Break of structure in trading refers to a shift in the trend when the market breaks its previous high or low. It is a key concept in technical analysis and is used to identify trend reversals and potential entry or exit points for traders.

2. How important are candle closures in determining break of structure?

Candle closures play a crucial role in determining break of structure. It is important to focus on the closing price of candles to confirm the break of previous highs or lows, as it provides a more reliable indication of market sentiment and trend direction.

3. Why should traders avoid relying solely on wicks for break of structure analysis?

Traders should avoid relying solely on wicks for break of structure analysis because wicks represent the price range, but they do not confirm the closing price at that level. This can lead to inaccurate analysis and false signals, making it important to prioritize candle closures for a more accurate assessment.

4. What is the significance of identifying the trend in break of structure analysis?

Identifying the trend is crucial in break of structure analysis as it helps traders understand the overall market direction. Whether it's an uptrend or downtrend, recognizing the trend provides context for break of structure signals and aids in making informed trading decisions.

5. How can traders accurately analyze break of structure in trading?

Traders can accurately analyze break of structure by paying attention to the most recent highs or lows, focusing on candle closures, and identifying the prevailing trend. Utilizing these key principles can enhance the accuracy of break of structure analysis and support effective trading strategies.

Save time on long videos, get key ideas instantly

⏰ Grasp the gist of any video in seconds
✨ Get the key insight of the video
🪄 No barriers to support 20+ languages of summaries
👀 Navigate through timestamped breakdowns
Get AI Summary Now

More Long YouTube Videos Summaries

The video discusses the top eight credit repair software tools for consumers, including both free and paid options. It provides information about the pros and cons of each tool and highlights key features such as user-friendliness, automation, and dispute letter generation. Experian Boost is ranked as the best tool, offering a free service with positive testimonials and excellent credit monitoring.

Sebastian and his friend play a challenging version of GTA Geoguessr with extreme time pressure, trying to identify locations in one minute without moving. They visit ten locations and compete to earn the most points. The video showcases their attempts to quickly analyze clues and make guesses within the limited time frame.

This video tutorial provides an introductory guide on how to use Quantumult X, a powerful network tool for proxy and circumvention functions, including downloading and importing subscription links for v2ray and trojan nodes, and enabling wall circumvention.

This video explains how to jailbreak a PlayStation 4 console, allowing users to install homebrew, run cheats and patches, and emulate various systems. The jailbreak is not permanent and requires accessing a specific URL through the console's internet browser. The video also demonstrates how to install custom themes using a USB drive.

This video demonstrates how to install mods in Worldbox on PC by downloading the mod files and placing them in the appropriate folder. The narrator explains the steps clearly and shows examples of downloading and installing a mod. The process is simple and allows players to add new features and traits to the game.

The video provides a tutorial on how to create a custom skin in Fortnite using various programs and editing tools. The process involves downloading programs such as YouModel, HxD, and Unreal Engine, customizing the skin's textures in Photoshop, and then implementing the changes in the game files through HxD.