I used to lose thousands day trading, but once I focused on these 3 key concepts—Market Structure, Price Action, and Liquidity—everything changed!
Here’s a breakdown of how to find and read them properly 👇
1️⃣ Market Structures 📊
First, understand that markets move in three ways:
✅ Uptrend (Higher Highs & Higher Lows)
✅ Downtrend (Lower Highs & Lower Lows)
✅ Consolidation (Sideways Movement)
2️⃣ Identifying Trends 📈
🔹 Uptrend = Higher Highs + Higher Lows
🔹 Downtrend = Lower Highs + Lower Lows
🔹 Sideways = Price stays within a range (box formation)
💡 PRO TIP: Zoom out! Bigger trends = Bigger profits.
3️⃣ Best Timeframes to Use 🕰️
🔹 Macro Trends: Daily, Weekly, Monthly (for long-term direction)
🔹 Micro Trends: 4HR, 1HR, 30Min, 15Min, 5Min (for short-term entries/exits)
🚨 Don’t get stuck on small timeframes! Always check the higher timeframe trends before making a trade.
4️⃣ BOS vs. CHOCH 🔄 (Break of Structure vs. Change of Character)
🔹 BOS (Break of Structure): Confirms trend continuation.
🔹 CHOCH (Change of Character): Signals a trend reversal.
🔹 Example: In a bearish trend, BOS happens when a lower low is broken → price continues downward. But when price breaks a lower high, that’s a CHOCH → possible reversal to an uptrend!
5️⃣ How to Find Liquidity & Enter Trades 💰
✅ Step 1: Identify a CHOCH pattern (trend reversal signal).
✅ Step 2: Mark a supply/demand zone from recent price action.
✅ Step 3: Wait for price to retest the zone, then enter a trade.
✅ Step 4: Set Stop Loss just below the zone to manage risk.
✅ Step 5: Exit trade when another CHOCH pattern forms!
6️⃣ What I Learned from This 📚
🔹 Spot market trends quickly.
🔹 Understand price action & market structure.
🔹 Find liquidity zones for better trades.
🔹 Use the right timeframes to avoid getting tricked.
🔹 Master BOS vs. CHOCH to predict price moves!
💬 Which one of these strategies are you already using? Drop a comment! 🚀
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