Market Structure And Powerful Setups Pdf Free _verified_

When price continues the existing trend by breaking a previous high (in an uptrend) or low (in a downtrend). It confirms trend persistence.

| Concept | Description | What It Tells You | | :--- | :--- | :--- | | | A series of rising swing highs and rising swing lows. | An Uptrend (Bull Market) is in play. | | Lower Highs & Lower Lows | A series of falling swing highs and falling swing lows. | A Downtrend (Bear Market) is in control. | | Equal Highs / Lows | Swings that form a relatively flat price ceiling or floor. | The market is in a Range , building energy and liquidity. | | Break of Structure (BOS) | Price breaks a previous swing high or low. | A confirmation the trend is likely to continue. | | Change of Character (CHoCH) | The market stops making higher highs and begins making a lower low (or vice versa). | A potential trend reversal is underway. | market structure and powerful setups pdf free

The number one mistake traders make is "Revenge Trading." You lose $100 on a bad setup, so you double the size to get it back immediately. This is suicide. When price continues the existing trend by breaking

Identify the last down-close candle before the bullish expansion (or up-close candle before a bearish drop). | An Uptrend (Bull Market) is in play

Common mistakes and how to avoid them

Enter on a pullback to an Order Block (OB) or Fair Value Gap (FVG) created during the shift. B. Order Block Mitigation (Trend Continuation)

A Change of Character is the initial signal of a potential trend reversal. It occurs when price fails to sustain the dominant trend and breaks the opposing valid swing point.