Nice summary of some basics 🙏

I used to lose thousands of dollars day trading — until I focused on just three key concepts: market structure, price action, and liquidity. Here’s exactly how to spot and use them to enter and exit trades like a pro:

---

1. Market Structures

First, recognize the three core market conditions:

Uptrend: Higher highs (HH) and higher lows (HL)

Downtrend: Lower highs (LH) and lower lows (LL)

Sideways/Range: Price bouncing between equal highs and lows, forming a range or box

---

2. Identifying Trends

Uptrend: HH + HL

Downtrend: LH + LL

Sideways: Equal highs and lows, consolidation

---

3. Timeframes to Focus On

Macro Trends: Daily, Weekly, Monthly — these help you stay aligned with the bigger picture

Micro Trends: 4H, 1H, 30Min, 15Min, 5Min — great for pinpointing intraday entries/exits

Pro Tip: Don’t get stuck watching only 5-minute charts. Zoom out to larger timeframes to avoid panic selling and better spot liquidity zones.

---

4. BOS vs CHOCH — The Key to Trend Reversals

BOS (Break of Structure):

In a bearish trend: price breaks below the lower low

In a bullish trend: price breaks above the higher high

CHOCH (Change of Character):

The price reverses after a BOS and breaks the previous HL or LH, signaling a trend change

---

5. Real-Life Example

Let’s say the price was in a bearish trend (LL, LH), then it breaks the lower low with a new higher high — that’s your BOS and CHOCH, indicating a potential bullish reversal.

---

6. How to Find Liquidity and Trade It

After spotting a CHOCH, mark the nearest supply/demand zone

Wait for price retracement to that zone

Enter the trade in the direction of the new trend

Stop-loss: A few points below the demand zone (invalidates trade if broken)

Take-profit: When a counter-trend CHOCH appears

---

7. Key Takeaways

How to identify market structure and trends

Reading price action with confidence

Spotting liquidity zones to plan smart entries/exits

Using the right timeframes

Understanding BOS and CHOCH for trend reversals

---

If I had focused on these from the start, I would’ve saved thousands. Hope this helps you trade smarter!