Combining our understanding of how institutions move price and market structure to determine whether the context will hold or not.
How price moves (institutional price movement)
โข Offering Fair value
โข Seeking liquidity
what is Market Structure
โข ITH/ITL
โข STH/STL
How price moves (institutional price movement)
โข Offering Fair value
โข Seeking liquidity
what is Market Structure
โข ITH/ITL
โข STH/STL
Lets break down each part
Institutional price movement
Price either Offers fair value or seeking liquidity.
we are moving from one liquidity pool to another (pd array โ pd array)
Institutional price movement
Price either Offers fair value or seeking liquidity.
we are moving from one liquidity pool to another (pd array โ pd array)
in the process moving to liquidity pool it creates fair value gaps this process is known as offering fair value.
buy orders and sell orders in red area are efficiently paired so price has no reason to go below it.
If it goes below market makers position will be in loss.
While price reaches Fair value area , they can pair existing orders and get to buy orders in discount so they add on more positions then to target opposing liquidity hence the name seeking liquidity.
to understand it fully go through this thread how market makers move price -โx.comโ
buy orders and sell orders in red area are efficiently paired so price has no reason to go below it.
If it goes below market makers position will be in loss.
While price reaches Fair value area , they can pair existing orders and get to buy orders in discount so they add on more positions then to target opposing liquidity hence the name seeking liquidity.
to understand it fully go through this thread how market makers move price -โx.comโ
Market structure
โข STX (short term high / low)
โข ITX (intermediate term high / low)
STH/STL - STX
its same as order flow leg , a price swing which has fair value gap in it
โข STX (short term high / low)
โข ITX (intermediate term high / low)
STH/STL - STX
its same as order flow leg , a price swing which has fair value gap in it
ITH/ITL
its a swing point which has STX on left and right side of it.
also its a outsider swing point , there can be multiple sth/l but only one ith/l in a price leg.
ITX confirms the OF
we expect stx / orderflow to continue till next itx is reached
its a swing point which has STX on left and right side of it.
also its a outsider swing point , there can be multiple sth/l but only one ith/l in a price leg.
ITX confirms the OF
we expect stx / orderflow to continue till next itx is reached
How to use institutional market structure?
Wait for both Institutional price understanding and market structure to fail for reversals
sign 1 - ITH/ITL is confirmed in context time frame
sign 2 - Fair value not following through / disrespected
combining these two confirmations we can say that the price leg is not going to follow through
Wait for both Institutional price understanding and market structure to fail for reversals
sign 1 - ITH/ITL is confirmed in context time frame
sign 2 - Fair value not following through / disrespected
combining these two confirmations we can say that the price leg is not going to follow through
In this image given below our narrative is OLOD and 4h SSL is DOL
when price retraces back into 4h OLOD, ITL is confirmed we have a STX leg formed that confirms 4h SSL as ITL - sign 1
we need more confirmation here if we want to see price push lower
when price retraces back into 4h OLOD, ITL is confirmed we have a STX leg formed that confirms 4h SSL as ITL - sign 1
we need more confirmation here if we want to see price push lower
We can also see that we formed a FVG while coming inside OLOD and price pushing higher of it . - sign 2
this confirms that price is not going to hold and we target the opposing liquidity that would be the LLOD
this confirms that price is not going to hold and we target the opposing liquidity that would be the LLOD
Resource - โyoutube.comโ
For more daily trading analysis and content,
Follow me at - @Hopefx7
Team- @TradingMMT
Mentor- @arjoio
#MMT #MMC
For more daily trading analysis and content,
Follow me at - @Hopefx7
Team- @TradingMMT
Mentor- @arjoio
#MMT #MMC
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