[00:02] we'll thoroughly analyze the market structure and deeply integrate it into the SmartTMone Money concept. The material is structured in such a way that the more knowledge and experience you have in trading, the more benefit you will get from it. At the same time, it will give beginners [00:14] exactly what they need: a manual foundation for the structure that will allow them to confidently apply it in real trading. No matter what level you're at now, as you you'll be able to look at it from a different perspective and discover much more [00:28] depth. Once you begin to apply the knowledge in this video, three key effects will inevitably follow that will directly impact your trading results. Firstly, your rate will increase because you will start [00:41] to be on the right side of the market much more often. Secondly, your average you will learn how to set correct stop-losses, determine targets for further revaluation of the asset and, of course, make more accurate entries. And [00:54] third, you'll begin to understand the key mechanisms of price delivery, allowing you to confidently trade in any market at any time. On the chart we see a clear uptrend, and swings are used to determine its structural elements [01:07] . They can be formed from three or five candles. In our example, only five-switch formations are used . Here's how the structure changes if you take into account three-switch swings. The situation is radically different, and this [01:19] directly affects our perception of the market and future expectations. This is why we examine swings as a foundation from which to always begin studying market structure. A three-candle swing high is a short-term [01:32] high that is determined by the top of the central candle. In at the end of the correction, after which the downward trend continues. This is used by smart capital to fill its own RDRO, but more on that [01:47] later. When identifying pigs, there are two important nuances to consider. First of all, the color of the candles does not matter. Secondly, all candles must be closed. Otherwise, the third candle may update [02:00] the second before closing, and this will no longer be a swing. The three-candle pigclaw is formed in a mirror image. The center candle should be the lowest, and the candles to the left and right should be higher than it. A classic situation that occurs after an upward [02:13] impulse. The price enters a consolidation phase, and when the lower boundary of the range is formed, the local pigclow is updated . Then there is a shift to approximately the middle of the range and the range is considered formed. Next come the five-candle [02:26] swings. They form the basis of our analysis and are used to determine all structural elements, both external and internal. In this model, Xinghai is a peak that is obvious to all market participants , from which the market begins to [02:38] move in the opposite direction. The determination is made based on five candles, where the third is the highest and forms the growth extreme, and the highs of the candles on the left and right should be lower. In this case, the first candle may be higher than the second, and the fifth higher than [02:52] the fourth. It doesn't change anything. The main thing is that they are not higher than the high of the third candle. The five-switch swing is the complete opposite, representing a pronounced trough that is noticeable to most traders. The third candle is [03:06] the lowest, and two candles on each side are above it. The chart clearly shows how five-candle swings form the key elements of an uptrend, show its change and the emergence of a downtrend. Pay attention to [03:19] this candle. It forms both the svinha and the svinkla at the same time. This is a normal situation and both swings are considered valid and contribute to the structure. First, a high is formed, then the price corrects and forms a [03:32] high low, after which the growth continues. On a lower timeframe this looks . Why do we separate pigs and what is the difference between three-plug and five-plug? Three-legged pigs have two main [03:47] functions. Firstly, they reflect the initial stages of a change in price direction and over time can develop into five-candle formations. Secondly, they which often becomes a key target during a correction. In addition, you [04:02] reflect the structure of a lower time frame. For example, a three-candle piglow on a weekly chart corresponds to a five-candle piglow on a daily chart. A similar principle works on other timeframes. This can [04:16] used as a cheat sheet when working with the structure. In general, three-switch pigs And then we'll look at how they're used when searching for entry points. In [04:28] basis by which the entire market structure is determined, both external and importance is higher because they require more time and liquidity to form. Such swings are visible to all market participants, and smart capital either [04:44] protects them or deliberately breaks them, pursuing its own goals. By tracking such actions, we can understand their true intention and, accordingly, follow them when opening our positions. And if you want to see how [04:57] works in real time, subscribe to my Telegram channel, link in the description. Let's start with dreams. The price can be in three states: an uptrend, consolidation, and a downtrend. These states [05:11] regularly replace each other. An uptrend is a sequence of higher highs and higher lows, which are denoted by the abbreviations Higher High and Higher Low. They are created during two market phases: impulse movement [05:25] and correction. Determination of market structure is possible only on the basis of confirmed elements that correspond to their nature. forms above the previous structural low. A high is a higher [05:38] high that is above the previous structural high. Confirmation of high low occurs at the moment of updating the previous high low. A new hairhigh is considered confirmed immediately after the formation of a five-candle [05:51] swinghigh. Identifying valid structural elements is critical because it allows us to identify the onset and depth of a correction, determine trend targets, and promptly detect trend changes. Errors in working [06:04] with the structure will deprive you of these advantages and increase the risk of ending up on the wrong side of the market, which will reduce the effectiveness of your trading. A mirror image of an uptrend and [06:16] is formed as a sequence of lower lows and highs, which are denoted by the abbreviations Low and High. On the impulse move down, an Lver appears, a lower minimum in relation to the previous structural low. Its [06:29] confirmation occurs at the moment of formation of a five-switch swing. Further corrective movement develops within the trading range, which is limited by the last structural points. During the correction, a [06:41] Lower High is formed, a lower maximum relative to the previous high. outgoing traffic is resumed at the moment of updating the last Lverall. As you may have noticed, both upward and downward trends are built on the same principles. [06:56] Their key feature is that each new structural certain conditions are met and is confirmed through the updating of previous structural points. At this stage, you should already have a clear [07:08] understanding of the fundamental basis, how higher, higher low, lower low and lowxhigh are formed and confirmed. These elements form the framework of the market structure. It is on this that all further material will be built. Why [07:22] does a correction happen and what do smart and dumb money do at that moment? From a bull market perspective, let's assume that smart capital has accumulated a long position in the indicated range. After this, the price entered a phase of aggressive, [07:35] largely provided by stop-losses of short sellers and orders of late buyers. As a result, demand significantly exceeds supply. The price rises, and smart capital profits from its positions. But the price cannot rise [07:50] indefinitely. The higher one rises, the more people want to sell the asset and the fewer people want to buy it. Growth gradually peters out, smart capital locks in some of its profits, and the market naturally enters a [08:03] correction phase. Here, smart money pursues two key goals: to reaccumulate long positions using the released volume, and to attract new liquidity to the market in the form of poorly informed traders. In this [08:15] way, the current price is established as fair, and a new market reality is formed. For example, just a few years ago, $100,000 values for Bitcoin were viewed with skepticism, but today it has become the norm. [08:28] Traders are actively buying it at $100, $ 110, and $120,000. This is how the smart money mechanism works. Their task is to create a perception in which any price appears attractive. When the correction goals [08:41] are achieved, RUST is resumed. It is again feeding off the stop-losses of shorts and late buyers. The cycle repeats itself over and over again until, at a certain point, the market direction changes, and the same processes begin to [08:54] operate in a bearish trend. Now let's move on to the concept of strong and weak swings. Understanding it allows us to identify institutional order flow, which reflects the true structure of the market. A [09:07] strong swing is a structural point that cannot be removed within the current trend. Smart capital protects it. In an up market, a strong swing is a confirmed Higher Low. It will not be removed during the correction. The price [09:19] will form a new, higher low, after which the rise will continue. That is, with its help one can determine the trading range within which the correction occurs. place a conservative stop-loss behind it and, when it is [09:32] updated, record the change in trend. In turn, a weak swing is a structural point that must be removed within the current trend. Smart capital strives to eliminate it. In an uptrend, [09:45] the last high that triggered the corrective movement is a weak swing. It acts as the first significant target at which it is advisable to fix profits. For this approach to work effectively in real-world conditions, additional criteria must be taken into account [09:57] . A strong piggy bank on an uptrend is formed in three stages. First of all, a rebalancing of bullish inefficiencies occurs, which acts as both a magnet for the price and a support zone. The correction phase logically [10:10] transitions into the impulse growth phase. Then a new habit of inefficiency is formed . This tells us that smart money is actively buying here and will have an interest in protecting the newly formed low. The last step [10:22] is to remove the previous hairhay. So our structure is confirmed and it will be a really strong swing. For further work, we determine the trading range from the last structural points and expect a [10:35] the discount market. The simplest long position is opened from the beginning of the zone of interest. The stop-loss is placed below the stylish swing, and the first target becomes the high from which the correction began. This is a weak [10:48] swing. The trade can be closed a little higher when a bearish imbalance is reached . This is the first problem area from which correction can begin. This cycle repeats itself over and over again, and given the criteria listed, it [11:01] can be traded successfully. The classical structure is often subject to manipulations that can be foreseen in advance. In the highlighted example, the Higher Low traders expect the price to hold above it and continue to rise. Therefore, they [11:16] buy higher, and if it is broken, they start selling, considering this a change in trend. This logic is flawed because it ignores the context in which structural elements are formed. This High Low is not a strong swing. It is [11:29] not formed from the support zone, and below it there remains unbalanced bullish inefficiency, which acts as a magnet for the price. Essentially, this is a pool of liquidity for sale, prepared in advance by smart capital to re-accumulate its [11:42] positions. Understanding this, we can correctly construct a trading range from the previous strong Higher Low to the new High High. During local manipulation, the price removes the Higher Low, partially fills the imbalance and then [11:55] enters a phase of active growth. A new bullish imbalance appears on it, and the subsequent update of the previous high confirms the formation of a strong swing. In general, if a weak one has formed and been confirmed, [12:08] it will most likely be removed during the next correction. You need to be prepared for this in order to take advantage of the opportunity and, most importantly, not end up on the wrong side of the market. In an uptrend, a weak pig is by default considered the last high, [12:22] since there is significant semi-liquidity concentrated behind it. Activation of pending hardeners for purchase can be used by smart capital for different purposes, depending on the market context. To further mark up the asset due to these [12:34] carders, to lock in profits on previously closed longs, and also to accumulate opposite positions. For us, a weak piggy bank is a key target for taking profits on long positions opened in line with the trend. To increase the likelihood of its [12:47] removal, it is important to consider additional criteria. Firstly, the correction from which the growth began must have the characteristics of a strong swing. Secondly, there should be price magnets in the form of [13:00] other liquidity pools and untested areas of interest above the weak high. Overall, being able to differentiate between strong and weak swings is a key skill for successfully working with structure. After all, it is on their basis that the trading plan is built. To secure the [13:14] swings, strong ones cannot be removed, while weak ones, on the contrary, must be removed. In a downtrend, the logic is completely inverted. The strong swing steering wheel is performed by Lerxy, and the weak swing steering wheel is performed by Llow. A strong swing is formed in the [13:27] correction phase when bearish inefficiency is rebalanced . With the onset of the fall, a new imbalance arises. The structural update of Leru finally confirms the strength. The combination of these signs indicates that [13:40] smart capital is interested in further depreciation of the asset, so such a lubhai will be protected. At the next correction, a short position is opened from the beginning of the imbalance. Stop-loss is placed behind a strong lube. The first target for [13:52] taking profit is the weak one, and the second is the support zone below it. At this basic structure is formed and how to distinguish between knowledge, we can determine the moments of trend changes with maximum accuracy [14:07] . In an uptrend market, the key point is the last confirmed High Low that meets the criteria for a strong swing. Its update is designated by the abbreviation BOS Break of Structure, SLКT, and leads [14:19] to the formation of a new Lverlow, which already refers to a downward trend. is confirmed after the formation of two more elements: a corrective low and a new low on an impulse movement. In a bearish market, the key point [14:34] is the last confirmed LH high, which has the characteristics of a strong swing. Its renewal means breaking the structure from top-down to top -down. Confirmation of the trend change is recorded with the formation of the second [14:46] peak. Let's get the abbreviations out of the way right away. In addition to the buds, you may come across the designation CHch, MSS or MSB. These are different options describing the same process. Also, the bead is often used in the context of updating [15:00] Such variations are most often dictated by a desire for pseudo-innovation and only complicate simple things. I use booss to indicate a break in the main structure and mairbos for the internal one. This is more than [15:14] enough. Should the body of the svershi be fixed under the level of the boss when slomi structure? No, this is one of the most common misconceptions. Now we will defining a structure and its breakdown using the same example to clearly [15:28] demonstrate their differences. In the first approach , both the structure and the break are determined solely by the bodies of the candles, and the shadows are completely ignored. The price crosses the boss level but closes above it. In this case, high low remains [15:42] was recorded. After the correction, the price continued to fall and still consolidated below, which led to the formation of a downward structure. The trend has changed direction. This approach is considered conservative [15:55] because it involves trading on the supposedly most pronounced movements. We discussed it 4 years ago, and then and now I don’t find its use advisable. It contradicts the very essence of the smartmoney concept, as it [16:09] ignores the basic mechanisms of price delivery. working with liquidity and eliminating price inefficiencies. I can tool for beginners who do not yet know how to take into account the market context. The [16:24] second approach is the most popular and involves determining the structure of the candle walls, but the break itself is recorded only when the body of the candle is fixed above the key level. The price updates the confirmed High Low, but does not [16:36] consolidate below it, which is interpreted as a sign of strength and a possible false break. After a short-term rise, the decline resumes, and when the candle body is fixed below the key piggy bank, a breakdown in [16:49] the structure is formally recorded, which becomes the starting point for searching for a short position. This method gained popularity thanks to candlestick theories, which are distinguished by their simplicity and a certain effectiveness. I recently released a [17:01] determine the daily market direction solely by looking at the close of candles. And this is indeed the case, especially for beginning traders. Even with a minimal base, they are able to achieve their first stable [17:14] results. What is the problem with this approach? If we switch to the hourly timeframe, we can see that already on the first swing the body of the candle was fixed below the high low, and formally this would already be considered a break. Moreover, there is no [17:26] rational justification for this approach. It has its roots in classical technical proven its effectiveness in real-world conditions or backtesting, so its negatively impact both trading results and the [17:41] third approach that we focus on involves identifying both the structure and its breakdown, taking into account the shadows of the candles. The moment of crossing the no need for the candle body to secure itself beneath it , since a true breakout [17:57] is accompanied by the formation of a bearish imbalance, the first sign of the beginning of the development of a downward order flow, within which we aim to trade. This indicates active sales of smart capital and its intention to [18:10] further value the asset. A little higher, a bearish urderbook often forms. Its presence increases the likelihood of the outgoing trend continuing. It is advisable to open a short position with a limit order from the beginning of the imbalance. The first correction is [18:23] usually deeper than subsequent ones. And this is exactly what is worth taking advantage of. The stop loss is placed behind the last growth extreme, and the take profit is at the beginning of the weekly imbalance, which is the first problem area for decline. This is a classic [18:36] mitftap that appears on every spread. It is important to be able to independently determine a reasonable target for decline, the first significant support zone, which acts as a magnet for the price. If there is no such target, there is no need to open a deal [18:49] impossible to assess the improbability of a continued decline, nor its potential depth. As you can imagine, if we had tried to trade using the first or second approach and focused not on the resulting imbalance, but on securing the [19:03] candle body behind the key price, then in one case we would have missed the entry opportunity, and in the other, we would have found ourselves trapped by a false breakout. To sum up, a true breakdown of the ascending structure is determined by two obligatory factors. [19:16] update of the confirmed one, which has signs of a strong swing, and the formation of a bearish imbalance during the formation of the first Lverlow. Additional criteria that increase the likelihood of a high-quality outcome are [19:30] testing a significant resistance zone by the last high from which the reversal began, and the presence of a clear support zone below the current market price, which acts as a magnet and the first target for the downtrend. Taking [19:43] these four factors into account in combination, you will be able to open highly profitable short positions. Similar criteria are used to determine a true break in a downward trend. After the price reaches the institutional [19:56] confirmed lubhai is updated , showing signs of a strong swing. Entry into a trade is made from the beginning of a normal imbalance. The stop loss is placed below the extreme of the decline, and the key target is the beginning of a bearish [20:10] imbalance on a higher timeframe. This simple combination of factors forms the basic bullish setup that appears on all true reversals. situation in which the price formally updates the key swing, creating [20:24] the appearance of a trend change, but in fact maintains the original direction of movement. In an uptrend, this occurs when weak Air Low Swings are removed, which were not formed from a significant support zone [20:37] and represent local liquidity pools for sale. Below them, unbalanced imbalance, which simultaneously acts as a magnet for the price and a support zone from which the trend can continue. The [20:50] manipulative move that accompanies the removal of a weak HROW is a standard price delivery mechanism. Sell ​​orders are used by smart capital to re-accumulate long positions, and new buy orders are used to [21:03] further evaluate the asset. Uninformed traders trading that the price would not go beyond the confirmed limit, so when opening a long position, they placed stop-losses behind it. The moment of [21:16] the breakout forced them to change the direction of their transactions. New short positions opened additional liquidity for buying in the form of stop-loss orders, which became fuel for further growth. When the previous high is updated, it becomes [21:30] clear that the uptrend is continuing. At this point, most market participants are forced to enter the market too late, creating new liquidity for purchase. Smart capital uses it depending on its [21:42] goals, either to secure profits or to support further growth. In general, to identify a false break in an uptrend, two basic signs should be taken into account : the removal of a weak Higher Low and the subsequent rebalancing of a bullish [21:55] imbalance. Additionally, there should be a logical target for future growth above the structural high. unfilled imbalance, untested urderblock or other institutional resistance zone. A long position can [22:09] setting a stop-loss behind the first or second essence of the formation. The main targets will be the high and the FTA level. In a downtrend, everything works according to the same principles, but in a mirror image. A false sum of the structure will be awarded when a [22:24] weak underhaul is removed and the balance is subsequently filled above it. At this point, a strong swing in the form of a high is formed , from which the downward trend resumes. The key targets are the latter and the beginning of a significant [22:37] support zone located below it. We will return to this topic when we consider the multi-timeframe structure. The abbreviation SMS or Change in Market Structure reflects the weakening of the current trend and the emergence of a complex [22:50] correction. In an uptrend, this process occurs in two key stages. First, an unsuccessful swing is formed in the form of a structural loose head. The price is the movement reverses along the path of least resistance downwards. Then [23:06] structure when updating the unconfirmed Higher Low. At this point, a Lverlow is formed, which refers to an internal downtrend. It can be traded until the correction targets of the external trend are reached [23:20] , the range of which is determined from the last confirmed H low and High High. In a downward trend the logic is mirrored. The price cannot update the last LOW, so a HOW is formed, an unsuccessful pig, after which [23:35] growth begins. The Luhai Update signifies Mineross and indicates the beginning of an internal uptrend. Thus, SMS reflects the weakening of the main trend and the formation of a secondary movement within the [23:48] correction, which can also be used for trading. The internal price movement, within which a secondary trend is formed within the main structure. It distinguishes two types: substructure, which develops against the [24:02] main trend, and main structure, on the contrary, which moves in the same direction as the swing structure. Thus, in our work we use three types of structures: swing structure, substructure and miner structure. The swing structure reflects the [24:16] key elements of the current timeframe. On this basis, the trading range within which the correction will develop is determined. When an unsuccessful swing occurs and then a min boost occurs, this is a signal of the emergence of a [24:28] substructure of an internal downtrend, the main goal of which is the formation of a swing-structural high-low. Trading within the framework is built through understanding the goals of correction of the external structure, and this is the first significant [24:41] support zone. Until it is reached, we define a bearish trading range from the last high to the lover. We are looking for an opportunity to enter a short position. For this we use a standard setup based on breaking the structure. The limit order [24:54] is placed at the beginning of the bearish imbalance. Stop-loss is placed behind the overhigh, and take-profit is placed at the FTA level, where the decline may end. A lower-high formed during the local correction, and the decline continued until it reached the logical [25:07] reversal zone. The newly formed low may become a future swing-structure HROW. However, at this stage it cannot be said that the correction is complete. Previously, confirmation of a reversal occurs only after updating a confirmed [25:20] lubrhai. This event is designated as minerст and indicates the beginning of the development of a mine structure, which always moves in the direction of the swing structure. To enter a long position, we define the range from the last LLW to the high and, on the correction [25:35] to the bullish imbalance, we open a position from its beginning. We place a stoploss low, and the key take is on a structural high swing. When the price updates it, the development of the internal structure is completed, and the high low formed during the correction [25:49] is confirmed. The rules for working with the internal structure are no different from the external one. The most important thing remains the ability to take into account the context in which you deeper scenario where a [26:01] substructure begins to form within a substructure. It is especially noticeable on used in trading. First there is a bad swing, then Miners, and we see a clear correction target. Therefore, our bias is obvious and we [26:15] are considering opening a standard long position. When the target is reached, another maybos occurs when the confirmed high is updated. And we key target of updating the substructural lower. This approach [26:30] is applicable in cases where the substructure has not yet reached a significant support zone capable of initiating a reversal. And we have a clear target drop, from which, with a high probability, a pig-structural low will be formed. It is worth [26:42] emphasizing a point that often causes confusion. When updating the substructure of the lurakhaya, many people mistakenly believe that this is a breakdown of the substructure and the beginning of the miner structure. In practice, this is not the case. To correctly determine [26:55] a break, only confirmed low-hanging fruit should always be taken into account. In conclusion of this block, I would like to note that all types of structure should be analyzed strictly within one time frame. Each different timeframe will form its own [27:07] swing, sub- and sub-structural elements. Therefore, to correctly use the entire system, it is necessary to learn how to synchronize timeframes with each other. Let's move on to the last topic of this lesson, multi-timeframe structure. First of all, it is [27:20] important to understand that structure analysis is most effective on classic timeframes: month, week, day, 4 hours, hour, 15 minutes, 5 minutes and lower. All timeframes are conditionally divided into three categories: senior, middle and [27:35] junior. Regardless of your trading style, a simple rule always applies: the higher the time frame, the more significant it is. Therefore, the analysis must be carried out from top to bottom. Higher timeframes form the overall picture of the market. We use them to identify [27:48] key piggies, areas of interest, and liquidity pools around which to build a allow you to refine the areas of interest identified on higher timeframes and provide conditions for opening positions. Lower timeframes [28:00] are used to refine areas of interest from average ones and directly open trades. How does this work in practice? If an upward trend develops on the monthly chart and a high-high is formed, then on the weekly and [28:12] all lower timeframes the movement will also be upward. The structure is synchronized, but as soon as a correction begins, during the month it may look like one simple movement, whereas during the week the structure [28:24] is already changing, and a downward trend is forming . The same thing can be observed on all lower timeframes. This means that at a certain point, only the monthly corrects, while all the lower ones are [28:37] can be used for counter-trend trading and creating a clear target for the main correction. When the corrective month has formed and the market reverses, the structure gradually returns to the ascending one. The process goes from [28:51] the bottom up. First, the lower timeframes confirm this, then the middle ones, and the higher ones consolidate the reversal. This allows you to open long positions at bias is based on the higher time frame. As you can see, the principle of [29:05] timeframe synchronization is extremely simple and clearly reflected in one diagram. In this lesson, we covered both fundamental and advanced aspects of market structure. Now you have a complete system that will allow you to confidently [29:18] work in any market in this inframe. The material is quite profound, so if you return to it later and gain experience, you will be able to see more details and meanings that might have gone unnoticed the first time you [29:30] lesson is now available on my Telegram channel. Save and Telegram channel. Save and use, link in the description. Good luck.