Mr Perfect929
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I Wish I Knew These 3 Things Before I Started Trading
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:
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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
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2. Identifying Trends
Uptrend: HH + HL
Downtrend: LH + LL
Sideways: Equal highs and lows, consolidation
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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.
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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
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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.
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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
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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
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If I had focused on these from the start, I would’ve saved thousands. Hope this helps you trade smarter!
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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!
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.