Market Structure (Part 2)
Applying structure to real price: identify swing points correctly, and spot when a higher low breaks.
Now we apply structure to real price. The skill that matters most is correctly identifying the swing highs and swing lows first. Only then can you judge whether structure is continuing or about to break. We do this on a naked chart, no indicators needed.
On real price, mark the swings. The first clear higher high (HH) tells us the market is bullish.
Spot it: Find the first peak above the previous peak: a Higher High.
A bearish market on real price reads the same way, just flipped: you will see lower lows and lower highs instead. Mark the swings, and the trend names itself.
Ranging markets are traps
In consolidation you only get swing highs and lows with no clean HH/HL. A short there can get its high taken out even though you expected continuation. Avoid these low-probability conditions.
You don't need to catch every move. Fewer, cleaner trades often mean fewer losses and more profit. Less is more. We keep a 1:2 target as beginners to protect win-rate and psychology, even when a bigger target (sometimes 1:3 or more) looks possible. And the targets we aim at are real liquidity, like failure swings, not random levels.
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