Hello, last time I remember we had a post about the market structure, I hope it was clear, you are all free to ask anything in the comments section, to see what we discussed in the market structure 1 click here, Okay I hope I will make good traders
OBLIGATORY DISCLAIMER
I am not a qualified licensed investment advisor, so all information found here is for entertainment or educational purpose purposes only and should not be construed as personal investment advice.
THE MARKET STRUCTURE 2
The market structure 2 the trader will have to know the qualities of each mentioned trends as explained in the previous article, well lets start ;
UPTREND
Uptrend i the movement which has the nature of making HH(Higher high) and LH(Lower high). I is very simple to identify this type trend. What i normally do... I always look for breaking of the last higher high, this helps me a lot in identifying the uptrend, things to note
An uptrend is created by a higher low followed by a higher high,
so if the price makes a higher low in an uptrend, the next thing we expect is the higher high, imagine that price breaks the previous higher high, thus continuing the trend, the initial break of structure was our clue to let us know that the price want to continue up.
when looking at the range inside of a bullish market we want to use the most recent higher low and the newer higher high, because the price will most likely to retrace in this range.
When price breaks above a structure (the most impulsive move) price will most likely retrace into the new range (the correction). This is where we want to look to enter.
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