Institutional Market Structure Lecture

trading institutional Market structure I&#39;ll show you how it actually works so in order for us to understand that we need to be able to understand institutional and Market structure so we can put those in two sections where on the left side we have institutional and on the right side we have Market structure for Market structure we need to go over a few things but those things are blurred because before we go over that we need to go over institutional what makes that market structure actually institutional well in order for us to understand that we need to understand how we believe institutions work in the market the market moves because institutions make the market move and institutions you can also see it as central banks huge financial institutions those institutions make the market move through two things they are always doing either one of these two things they are either offering fair value or they are seeking liquidity so when the market is not seeking liquidity it is offering fair value and when the market is not offering fair value it is seeking liquidity so for the institutional we need to go over offering fair value and seeking liquidity before we move on to Market structure and before we can actually understand the market structure side and we start off with offering fair value what actually is offering fair value well when the market moves and it is offering fair value that means that if we have a move higher like this that means that we have buyers in that move higher meaning we have buy side right there getting involved into the market getting a fair chance to get involved after we retrace right there we are offering fair value why well here this move higher only buyers got a chance to actually get involved so is that very fair no so that is not fair value just yet so when we then make the retracement and we give a fair chance for sellers to get involved for sell site to be a part of the current market then we are offering fair value and when we then move higher right there this is when we have completely offered fair value when the offering of fair value is actually done right there but this is only where it starts because here we have now created what we know as an fair value area this area right there where we have the retracement in a bullish lag higher right there also known as a three swing movement one buy side two sell side three buy side again that creates this fair value area right there so when we then move Above This high that we take right there that is exactly when we have offered fair value that also means that again this green box right here is the fair value area but like we&#39;re seeing right here with this move higher that move higher is again where we have a new move where fair value has not been offered just yet where we only have buy side being a part of the move only buy side only buyers got a fair chance to get involved right there that indicates to us that we have this red area right there where we can still make a retracement to the fair value area where fair value already has been offered so if we are offering fair value and the only area where we can offer fair value right now is this red area because the green area right there is where we already have offered fair value so if we are retracing then the red area right there is the retracement area is the furthest we can retrace toward for the green area to then continue higher off of De and that again creates the same scenario where this new retracement that we are seeing right there from that high towards that low is again that new fair value area where here above that high we have the same situation again that becomes again the area where we have not offered fair value yet so where we can expect a retracement to happen right there towards the fair value area right there that&#39;s the maximum amount we can retrace towards the fair value area lower than that we ideally do not want to retrace now this is one of the examples but we also have another very important example right here because when we have a similar situation we move higher we offer buy side and then we offer sell side right there taking out the first low that we actually had where we are not respecting that low but we are taking out that low after that we offer buy side again moving again above that high right there then we also have the area of fair value because this area right here is again where we have buy side sell side and buy side again so this is where we have offered everything at fair value both buyers and sellers got a fair chance to get involved the only area where there&#39;s not fair value this area right there Above This high is where sellers did not get a fair chance to get involved just yet so this right here the red area is again the retracement area it&#39;s how far we can retrace because that is the only area where we have not offered fair value just yet and once we have offered that right there that is when we can continue higher off of that and this will turn into a green box because that is where we have now offered fair value as well off of the previous fair value area that we saw there as well now this second example on the right side right there you may know as a breaker block and on the left side this is also known as a mitigation block or an order block so a mitigation block an order block and a breaker block are fair value areas now of course this is only the beginning because now we need to understand what does this actually look like in a chart right here we are looking at EU on The Daily time frame right now and when we continue lower in this overall lag lower we can again see the same thing we have this move lower right there this move lower is where we have a fair value area why because we have a move lower right here and then when I move the Box this is also a move higher so we have offered sell side and buy side right there the lines we just had just inversed right now where we offer sell side then buy side we offer sell side again this right here becomes the fair value area right there and everything below that below that low is red because that is the retracement area that is how far we can actually retrace towards the green area right there and that is where we can then continue lower from right there creating overall a new fair value area and that is exactly what we are looking at right here because this right now is the fair value area and when we then drag this fair value area to the right the only place where we have not offered fair value just yet is again below this low sitting right there so when we understand the retracement area and when we understand the fair value area right there that is exactly where we then retrace towards right there to then continue lower off of that again that three swing movement right there the one two three right there which creates again the fair value area that we see right here and that is where we can continue lower off of because what are we doing right there we are again offering that fair value now the reason why I am marking the body instead of the wick right there is because the wick the exact low point of that Wick is not overlapping with a fair value Gap so in that case I want to use the bodies right there because that is then the fair value area so price here is offering fair value and then once we continue lower we create this new fair value area sitting right here and this fair value area once we drag it out to the right we can see again we tap into that because again the only place where we did not offer fair value yet at that moment in time was this right here that red area right there once we then create the retracement towards the fair value area that is where we can continue lower off of and the same thing happens right here the exact same thing that area is now turning green because that is now the fair value area and that that happens over and over and over so instead of the green boxes if we now Mark out those lows that one right there then we Mark out the next low which is this one right there wide the wick it&#39;s overlapping with a fair value Gap right there then we Mark out the body sitting right there exact same thing over and over and over again now to be able to fully understand this we need to go over crude oil right here because we are seeing the exact same thing we have these loads right there that we trade back into because that is the fair value area this is where we now have sell side buy side and sell side so it&#39;s a little bit different but again that is the same fair value area because that is where we have now offered both buy side and sell side so the low right here is where we can now continue lower off of and after that we create this new low sitting right here as well that we can again go continue lower off of perfectly being respected creating a new fair value area which is sitting right there and great job if you did spot it by the way this one should be marked by the wick right there because it&#39;s overlapping with fair value Gap then we see every fair value area being respected again and again and again and afterwards we have the same example right here we have a move higher buy side sell side that&#39;s one two then we create three right here with this move higher buy side sell side and buy side so now we have offered fair value in this area right here this whole move down right there is now the fair value area so the only place where we can now retrace is again this right here this area above that high that is the retracement area so the first we can retrace is the highs of that fair value area right there and you can probably see right here I&#39;m now using this breaker block as example where previously right there we are using an order block this right here is the low of an order block this right here is the low of a mitigation block and this right here is the low of a breaker block and the one we have right here is the high of a breaker block as well right there but understanding this is not enough because you can probably tell that I have ignored a few examples right there where we also were offering fair value for example right here we had sell side buy side and sell side right there so this overall becomes the fair value area the green area where we can continue lower off of and we do not respect that not at all exactly and that is the point because right here what are we seeing can you notice the difference between coming below this low right there and above this high right here it&#39;s the same thing both are fair value areas initially but if we look at this fair value area First Once We Come below the low right there and we use the replay tool and initially we would argue all right we can continue lower off of this but the only area it can retrace towards is again these lows why because that is where we have not offered fair value just yet so if we want to offer fair value to then continue lower then we will retrace towards this low sitting right here the green area right there the low of the green area to then continue lower off of that and when we then create fair value gaps going higher right there we are moving aggressively higher there&#39;s intention there&#39;s bullish intention well we can argue right there well then why are we having this aggressive move higher right there if we were offering fair value we have already offered fair value right here so there&#39;s no reason to retrace deep into this green area right there and if we have already offered fair value and the market is again doing one of two things when it&#39;s moving the market is always either offering fair value or it is seeking liquidity so if we have already offered fair value in this green area and we are now retracing back into it then why are we retracing back into it well not to offer fair value again because you can&#39;t offer fair value twice in the same area that is already fair value so then we are not offering fair value and if we are not offering fair value then we are seeking liquidity so the green area we actually do not expect that to hold when we have fair value gaps right there immediately going back into that green area into the fair value area because the fair value area is already fair value so there&#39;s price has nothing to seek there there&#39;s nothing interesting there anymore there is definitely no offering of fair value anymore because there&#39;s already fair value so when we then don&#39;t offer fair value anymore then we are seeking liquidity in the form of the fair value area high right there that fair value area high then becomes the liquidity where we are not endlessly waiting right there for that fair value area to hold no we target that liquidity right there because we understand the market was not offering fair value anymore no it was seeking liquidity where here this high right there is now what that is a fair value area again so notice the difference between the low right here this gray area that we have right there and then this gray area that we are creating right here the retracement back into this fair value area right there was very comfortable as in we were comfortable Above This High there was no indication of immediately lower price just yet and we never created a bearish fair value Gap coming into the fair value area right there where here we were not there comfortable below that low right there because we did not stay below that low for very long but more importantly we created bullish fair value gaps going back into the fair value area which is extremely suspicious which here we never do that we respect the fair value area the green area absolutely perfect and that is exactly when we can look to continue higher off of that right there again to show you exactly what that looks like right here back on EU on The Daily time frame we now created that fair value area right there that&#39;s where we left off because this was the previous fair value area right there we respect that we then have this new fair value area a little bit lower after that we create this new fair value area right here this is the new fair value area which we continue lower from a little bit but then afterwards this fair value area does not hold why well if we Mark out the low of that fair value area which is this low right there and that low let me make it a little bit thicker this low right here is where we can continue lower off of we expect that to be respected to then continue lower because that is a fair value area but what can we also see we are not comfortable below these overall lows that we took right there and more importantly we are creating a daily fair value Gap higher right there going into the fair value area we are now comfortable inside the fair value area so we can argue this area is already fair value right there since it is already fair value then why are we retracing into it very deeply because if we are offering fair value then the only place to offer fair value was again this area right there because that was the only place where we had not offered fair value just yet so after this deep retracement into that fair value area we can confidently say well we are not offering fair value anymore so what are we doing we are seeking liquidity in the form of the fair value area high which is that high right there and that then becomes the exact target where if we take a look at this example right here we have a bigger fair value area because here what are we seeing move High buy side sell side buy side everything Above This high right there is not fair value just yet but below that high right here this is already fair value right there and what can we see when we come into that fair value area well we first initially could expect higher price off of that but then once we create a huge expansion phase right there of a fair value Gap a huge down candle coming into the fair value area which we should respect because if we are offering fair value we should continue higher off of that almost instantly and that is not the case we are again having a deep retracement into this area right there which to us indicates that is a bit suspicious because we are not offering fair value clearly because otherwise we would have respected the green area to continue higher off that so what are we doing we are seeking liquidity in the form of of the fair value area low right there that is then where the liquidity is and towards that liquidity which then becomes the target what do we actually see we see fair value areas right there being respected targeting this liquidity right there and after we reach that liquidity becomes extremely interesting because here on the 4 Hour what do we see we see this fair value area area again right there which we eventually continue lower from reaching these lows right here and after we reach those lows this right here is now the fair value area right there and we arrive at live price action so this is getting a lot more exciting right now because what are we seeing right here we have this fair value area where the only place where we can actually make retracement again is these lows right there below those lows this is where we did not offer fair value yet so at this moment in time right here once we see this we can still expect lower prices it becomes suspicious when we then create a 4our for Val Gap going into the fair value area which I&#39;m now going to Mark with the low to get rid of those boxes right there this fair value area and afterwards it becomes even more suspicious when we start to respect that fair value G Gap and actually continuing higher off of that because then we can clearly make the statement well we are not offering fair value here so what are we doing seeking liquidity where&#39;s the liquidity the fair value area high right there and that high is exactly what we can currently in live conditions right there look to Target but this is only the beginning because before you decide to full margin and throw your 100 % risk on this trade right here let&#39;s first understand Market structure because this was only again if we look at the two sections institutional we understand offering fair value we understand seeking liquidity both checked off institutional checked off perfect now we don&#39;t understand Market structure just yet so we need to understand Market structure first and how it correlates with institutional to actually be able to get to the highest probab ility trades now for Market structure we are going to go over the following things where the blur can go away and we are looking at it itl s STL ITR and St and then the last one is cycle this is exactly where it now gets extremely interesting because now we understand how institutions operate and now we can combine that and how it correlates with Market structure making it of course institutional Market structure now before I show you how you can capitalize right here on this live move of course no Financial advice or anything but before we do that we need to go over crude oil all right for our Market structure let&#39;s go over it itl s and STL first two things I want to go over is again the S stands for shortterm high STL stands for shortterm low s and STL L are basically swing highs and swing lows so the shortterm high in this case is a swing High where this for example right there is a shortterm high and that is also a swing High why is that a swing High well the reason that is a swing high is because the middle candle right there is sticking out it&#39;s sticking out at the top meaning that the left candle right there directly to the left of it is lower than the middle candle and directly to the right of it right there that candle is also lower than the middle candle creating a swing high right there also known as a shortterm high the same can be said about this high right there for example and the same can be said about this swing low right there which is sticking out at the bottom right there again creating That Swing Low that we see so that is short-term high and short-term low then we have it and we have itl it standing for intermediate term High itl standing for intermediate term low an intermediate term high is this for example why this swing high right there has a lower swing High to the left of it and a lower swing High to the right of it meaning it has a shortterm high to the right of it right there and a short-term High to the left of it lower of course creating the middle the one that is sticking out at the top is the intermediate term high and this right here becomes the intermediate term high now if we flip that around and we look at this low right here this is now the intermediate term low why because we have a short-term low in other words a swing low higher to the left vid and we have a swing low in other words shortterm low higher to the right of it right there creating this intermediate term low then the next part is ITR and Str Str which the ITR stands for an intermediate term range so when we take the intermediate term high that we have sitting right here and the intermediate term low that we have sitting right here the area from that intermediate term High towards that intermediate term low is an intermediate term range where for example this right here from this intermediate term low right there that is indeed an intermediate term low towards that intermediate term high that is also an intermediate term range and the way we can see those intermediate term lows and intermediate term highs they are what I like to call them Outsiders they are on the outside of our chart right there then the Str Str is what we call a shortterm range a short-term range is very important because now we need to pay attention to the details because the short-term range is either a shortterm high or a short-term low that leaves behind a fair value gap for example this short-term high right there leaves behind this fair value Gap that creates a shortterm range where the same can be said about this short-term high right there this shortterm high right there leaves behind a fair value Gap right there also creating a shortterm range a short-term range is only valid if we have a fair value Gap in it so this right here is not a short-term range right there and that is also not an intermediate term low when we have an intermediate term high for example this one we could be classified as an intermediate to high and we have one right above it currently in the form of this one then we take the highest one right there if it is almost in the same lag and especially important before we have taken out an intermediate term low then this highest one is the actual intermediate term high now afterwards we continue lower and also we continue higher so right here once we continue higher we have this short-term low for example which eventually creates a fair value Gap also creating a shortterm range so then this whole area right there becomes the short-term range after that we create this short-term low right there and also creating fair value gaps again where this whole range right there becomes the shortterm range now to be honest with you that is just the basic because now we are getting into the juicy details the the Golden Nugget area and we needed to go over everything here before we can arrive at that so if you made it this far in the video believe me you are getting rewarded and as well I want to have said that please take notes on this part because this can be quite overwhelming but this is the most important part so taking notes right here will help you understand it better as well because there&#39;s a lot of small details to pick up on this right here is as we know of course an intermediate term high right now an intermediate term high or an intermediate term low is confirmed when we have two shortterm ranges moving away from it meaning this right here the short-term High creates a short-term range because we again have a fair value Gap in the lack lower right there after that we create this short-term high right there which again has a fair value Gap lower right there that confirms the intermediate term high right here which also confirms that we want to Target an intermediate term low which currently is sitting right there that is the target is it a confirmed intermediate low doesn&#39;t matter in this case as long as we understand that right there is the Target and after we reach that Target and we delete everything here except for the intermediate term High we create right here a new intermediate low which is confirmed Again by having one short-term range and yes the intermediate term low itself which will be a future intermediate low can as well create the first fair value Gap higher right there creating the first shortterm range at that moment in time and after we do that and we have this new short-term low right there and we create this Fair V Gap as soon as that fair V Gap is actually confirm by the close of that down candle the third candle right there then we have two shortterm range ranges meaning this intermediate low is now confirmed and we can now look to Target the intermediate term high right there in previous videos that I made and potentially other videos that I made as well intermediate term highs and intermediate term lows are protected highs and protected lows they are the strongest one where in between moving from an intermediate term low like this for example we will create shortterm lows those short-term low lows right there will hold until we deliver into the intermediate term high this is the same for the intermediate term high right there that delivers into the intermediat term low the shortterm highs right there with fair value gaps so the short-term ranges will hold until we deliver into the intermedium low after we deliver into the intermedium low in this case right there the intermediat from high becomes strong so if we have intermediat from lows failing then we can say intermediate term Highs are strong if we have intermediate term highs failing then we can say intermediate term lows are strong and intermediate term lows will hold when we then have a retracement but that is an extremely general rule and I say extremely details because when an intermediat term high or an intermediat term low wants to actually hold there&#39;s a lot of details going into it which is exactly what we are going to go over right now and what we&#39;ve already been going over because that creates actual institutional Market structure and this is where we now arrive at the cycle also known as how you can know if an intermediat term high or an intermediate term low is actually strong and if it does want to hold or if it becomes the Target because right here what are we seeing from this intermedium low towards that intermedium high and once we then take out this intermediate term low the move from the intermediate term low towards the intermediate from high becomes what it becomes the fair value area once we take out the intermediate term low right there and this is exactly where it gets extremely interesting the move from the intermediate term low towards the intermedium high is the fair value area in other words it is the mitigation block that is being created so if we want to continue lower it now becomes a story of the fair value area that we have sitting right there where we we are currently not offering fair value anymore why we have that deep retracement into it we have fair value gaps going higher into the fair value area and we are not respecting that fair value area again the only area where we could offer fair value was below this lad that is the retracement area the red area right there so everything above that is quite suspicious so if we are not offering fair value here then what are we doing seeking liquidity in the form of that intermediate term High which is the fair value area high sitting right there and that is exactly what then becomes our Target then once we want to Target that intermediate ter High what do we need a confirmed intermediate term low which we have sitting right there because we create this first short-term range with that fair Val Gap going higher after that we do not need to come back into that F Val Gap but we do see that we have a new Swit swing low sitting right there new Fair Val Gap higher there as well order block even being created new short-term range so we have two short-term ranges higher first one second one right there confirming the intermediate term low confirming that we want to Target the intermediate term High based on the fair value story because we are not offering fair value so what are we doing we are seeking liquidity in the form of that intermediate mediate term high so the intermediate term High there is not protected it&#39;s the actual Target where a lot of people would wait for the intermediate term High to hold right there and pray and hope for lower prices we target that that is our liquidity where this in itself can already be a trade ID right there but afterwards what are we seeing we have now created a new fair value area from again the intermediate term high right there towards the intermediate term low creat is what this fair value area right there and this fair value area is where we can now see all right we are comfortably closing above it we are not creating a fair valuable lower going into the F value area right there so we can look to continue higher off of that and then we can comfortably say this intermediate low is indeed the protected low and the way we see that again is through sweep versus the run on liquidity where once we have this sweep of liquidity right here we have fair value gaps going immediately back above this low right there a run on liquidity is very comfortable above the high closing comfortably above it right there but more importantly not creating bearish for gaps coming below this low right there but more importantly not creating bearish F gaps coming below this high right there indicating that it wants to Res respect the fair value area because it is indeed offering fair value and the run on liquidity meaning when we run liquidity we expect it to actually run so it can run higher can keep on continuing higher and we do not expect what we expect here with a sweep of liquidity once we come below this intermedium low right there we are seeing a sweep of liquidity right there to then Target the opposing intermediate term high again if after this video sweep versus run on liquidity is not that clear just yet we have multiple videos on that as well on this YouTube channel so first finish this video then after that you can also watch this everything goes hand in hand now once we arrive at this intermedium high at the fair value area and we expect again the intermedium low is now protected then this right here is exactly where we can go into the lower time frame into the one minute to look for the exact same thing because what are we having here we have this intermediate term High then we have this intermediate term low intermediate term low right there is confirmed once we have this short-term range higher right there by of course confirm buy that fair value Gap after that we have this new fair value Gap higher as well confirming the new short-term range that we have right there as well which creates again a new fair value area in the form of this right there so it&#39;s all fractal and this right here is where we can then look to enter Target these highs and these highs right here eventually become what again a fair value area that we see eventually gets respected right there to continue higher off of that and it repeats and repeats and repeats and repeats by the way the example right here that I&#39;m showing you is the exact thing we went over and we saw live so we call called it live in the moneymaking team live session for the master class so I&#39;m not just cherry-picking my price action right there no through this thought process we are not type of Traders where we say after the fact wow this was really clean no we say during the fact right there okay this is actually very clean because this right here is textbook this is absolutely textbook price action right here so now looking back at EU and the 4-Hour live example right here what are we seeing we respect it again that fair value area we continue lower off of that and afterwards to know if we are going to respect this fair value area again right there we should run the liquidity and not sweep the liquidity like we are seeing right there because right here with this fair value area we are running the liquidity and not sweeping liquidity we comfortably close below it we do not have immediately F Val gaps going back into the f value area which right here we are seeing which with this intermediate High than a potential Target since we are not offering fair value so what are we doing we are likely seeking liquidity in the form of the intermediate term High then the intermediate term low right here that we have with one short-term range sitting right here with the fair value being created right here of course after that we have this new short-term range higher right there with a new Fair value Gap higher being created right there meaning we have two short-term ranges meaning the intermediate term lows confirmed meaning the intermediate term high right there is most likely the Target and if we want to continue higher then where can we continue higher from this 4our F Val Gap sitting right there so if we come into that do we immediately go full margin Longs right there no we want to see the exact same confirmation right there on the 5 minute the 50 minute time frame continuing higher where we have the intermediate term low being confirmed targeting the intermediate term high that we have right there and again we might not continue higher right there right so I need to give you a little disclaimer that nothing here is 100% probability it is high probability what we are teaching here but in trading nothing is 100% guaranteed so wait for the right confirmation right there that could be very interesting if we do not get that perfectly fine if we do not get any confirmation then we can can potentially look to continue lower instead right there and let&#39;s say we do continue higher and we do reach the intermedium high right there then what does that create from the intermediate ter High towards the intermediate term low that creates again the fair value area in other words that creates the breaker block which we can then look to continue higher from if and only if and this is again the cycle if we run the intermediate high right there and we close above it with a nice forap overlapping with the highs then we can look to continue higher off of that if we do something like this where we come above that high and we do not close comfortable above it very low close and immediately we get fair value gaps back into that fair value area and it&#39;s the same cycle then the intermedium low is not protected and that actually becomes the target instead the same that we are seeing after sweeping this intermediate term low right there and intermedium high is not protected automatically that actually becomes the target instead and that is the differentiator between the cycle can you understand are we offering fair value or are we seeking liquidity and that is seen through again the sweep versus the run on liquidity and this exactly this is actually institutional Market structure we have combined the institutional part with the market structure now quick update as well first of March the spring enrollment starts the spring enrollment you can basically see it as a four Monon boot camp where we are looking for Motivated traders that want to actually transform their life and actually finally get somewhere with trading if you&#39;re in a position then please feel free to check out ar. you can apply for the spring enrollment as well and all the details are also on that website all right perfect thank you

trading institutional Market structure I&amp;#39;ll show you how it actually works so in order for us to understand that we need to be able to understand institutional and Market structure so we can put those in two sections where on the left side we have institutional and on the right side we have Market structure for Market structure we need to go over a few things but those things are blurred because before we go over that we need to go over institutional what makes that market structure actually institutional well in order for us to understand that we need to understand how we believe institutions work in the market the market moves because institutions make the market move and institutions you can also see it as central banks huge financial institutions those institutions make the market move through two things they are always doing either one of these two things they are either offering fair value or they are seeking liquidity so when the market is not seeking liquidity it is offering fair value and when the market is not offering fair value it is seeking liquidity so for the institutional we need to go over offering fair value and seeking liquidity before we move on to Market structure and before we can actually understand the market structure side and we start off with offering fair value what actually is offering fair value well when the market moves and it is offering fair value that means that if we have a move higher like this that means that we have buyers in that move higher meaning we have buy side right there getting involved into the market getting a fair chance to get involved after we retrace right there we are offering fair value why well here this move higher only buyers got a chance to actually get involved so is that very fair no so that is not fair value just yet so when we then make the retracement and we give a fair chance for sellers to get involved for sell site to be a part of the current market then we are offering fair value and when we then move higher right there this is when we have completely offered fair value when the offering of fair value is actually done right there but this is only where it starts because here we have now created what we know as an fair value area this area right there where we have the retracement in a bullish lag higher right there also known as a three swing movement one buy side two sell side three buy side again that creates this fair value area right there so when we then move Above This high that we take right there that is exactly when we have offered fair value that also means that again this green box right here is the fair value area but like we&amp;#39;re seeing right here with this move higher that move higher is again where we have a new move where fair value has not been offered just yet where we only have buy side being a part of the move only buy side only buyers got a fair chance to get involved right there that indicates to us that we have this red area right there where we can still make a retracement to the fair value area where fair value already has been offered so if we are offering fair value and the only area where we can offer fair value right now is this red area because the green area right there is where we already have offered fair value so if we are retracing then the red area right there is the retracement area is the furthest we can retrace toward for the green area to then continue higher off of De and that again creates the same scenario where this new retracement that we are seeing right there from that high towards that low is again that new fair value area where here above that high we have the same situation again that becomes again the area where we have not offered fair value yet so where we can expect a retracement to happen right there towards the fair value area right there that&amp;#39;s the maximum amount we can retrace towards the fair value area lower than that we ideally do not want to retrace now this is one of the examples but we also have another very important example right here because when we have a similar situation we move higher we offer buy side and then we offer sell side right there taking out the first low that we actually had where we are not respecting that low but we are taking out that low after that we offer buy side again moving again above that high right there then we also have the area of fair value because this area right here is again where we have buy side sell side and buy side again so this is where we have offered everything at fair value both buyers and sellers got a fair chance to get involved the only area where there&amp;#39;s not fair value this area right there Above This high is where sellers did not get a fair chance to get involved just yet so this right here the red area is again the retracement area it&amp;#39;s how far we can retrace because that is the only area where we have not offered fair value just yet and once we have offered that right there that is when we can continue higher off of that and this will turn into a green box because that is where we have now offered fair value as well off of the previous fair value area that we saw there as well now this second example on the right side right there you may know as a breaker block and on the left side this is also known as a mitigation block or an order block so a mitigation block an order block and a breaker block are fair value areas now of course this is only the beginning because now we need to understand what does this actually look like in a chart right here we are looking at EU on The Daily time frame right now and when we continue lower in this overall lag lower we can again see the same thing we have this move lower right there this move lower is where we have a fair value area why because we have a move lower right here and then when I move the Box this is also a move higher so we have offered sell side and buy side right there the lines we just had just inversed right now where we offer sell side then buy side we offer sell side again this right here becomes the fair value area right there and everything below that below that low is red because that is the retracement area that is how far we can actually retrace towards the green area right there and that is where we can then continue lower from right there creating overall a new fair value area and that is exactly what we are looking at right here because this right now is the fair value area and when we then drag this fair value area to the right the only place where we have not offered fair value just yet is again below this low sitting right there so when we understand the retracement area and when we understand the fair value area right there that is exactly where we then retrace towards right there to then continue lower off of that again that three swing movement right there the one two three right there which creates again the fair value area that we see right here and that is where we can continue lower off of because what are we doing right there we are again offering that fair value now the reason why I am marking the body instead of the wick right there is because the wick the exact low point of that Wick is not overlapping with a fair value Gap so in that case I want to use the bodies right there because that is then the fair value area so price here is offering fair value and then once we continue lower we create this new fair value area sitting right here and this fair value area once we drag it out to the right we can see again we tap into that because again the only place where we did not offer fair value yet at that moment in time was this right here that red area right there once we then create the retracement towards the fair value area that is where we can continue lower off of and the same thing happens right here the exact same thing that area is now turning green because that is now the fair value area and that that happens over and over and over so instead of the green boxes if we now Mark out those lows that one right there then we Mark out the next low which is this one right there wide the wick it&amp;#39;s overlapping with a fair value Gap right there then we Mark out the body sitting right there exact same thing over and over and over again now to be able to fully understand this we need to go over crude oil right here because we are seeing the exact same thing we have these loads right there that we trade back into because that is the fair value area this is where we now have sell side buy side and sell side so it&amp;#39;s a little bit different but again that is the same fair value area because that is where we have now offered both buy side and sell side so the low right here is where we can now continue lower off of and after that we create this new low sitting right here as well that we can again go continue lower off of perfectly being respected creating a new fair value area which is sitting right there and great job if you did spot it by the way this one should be marked by the wick right there because it&amp;#39;s overlapping with fair value Gap then we see every fair value area being respected again and again and again and afterwards we have the same example right here we have a move higher buy side sell side that&amp;#39;s one two then we create three right here with this move higher buy side sell side and buy side so now we have offered fair value in this area right here this whole move down right there is now the fair value area so the only place where we can now retrace is again this right here this area above that high that is the retracement area so the first we can retrace is the highs of that fair value area right there and you can probably see right here I&amp;#39;m now using this breaker block as example where previously right there we are using an order block this right here is the low of an order block this right here is the low of a mitigation block and this right here is the low of a breaker block and the one we have right here is the high of a breaker block as well right there but understanding this is not enough because you can probably tell that I have ignored a few examples right there where we also were offering fair value for example right here we had sell side buy side and sell side right there so this overall becomes the fair value area the green area where we can continue lower off of and we do not respect that not at all exactly and that is the point because right here what are we seeing can you notice the difference between coming below this low right there and above this high right here it&amp;#39;s the same thing both are fair value areas initially but if we look at this fair value area First Once We Come below the low right there and we use the replay tool and initially we would argue all right we can continue lower off of this but the only area it can retrace towards is again these lows why because that is where we have not offered fair value just yet so if we want to offer fair value to then continue lower then we will retrace towards this low sitting right here the green area right there the low of the green area to then continue lower off of that and when we then create fair value gaps going higher right there we are moving aggressively higher there&amp;#39;s intention there&amp;#39;s bullish intention well we can argue right there well then why are we having this aggressive move higher right there if we were offering fair value we have already offered fair value right here so there&amp;#39;s no reason to retrace deep into this green area right there and if we have already offered fair value and the market is again doing one of two things when it&amp;#39;s moving the market is always either offering fair value or it is seeking liquidity so if we have already offered fair value in this green area and we are now retracing back into it then why are we retracing back into it well not to offer fair value again because you can&amp;#39;t offer fair value twice in the same area that is already fair value so then we are not offering fair value and if we are not offering fair value then we are seeking liquidity so the green area we actually do not expect that to hold when we have fair value gaps right there immediately going back into that green area into the fair value area because the fair value area is already fair value so there&amp;#39;s price has nothing to seek there there&amp;#39;s nothing interesting there anymore there is definitely no offering of fair value anymore because there&amp;#39;s already fair value so when we then don&amp;#39;t offer fair value anymore then we are seeking liquidity in the form of the fair value area high right there that fair value area high then becomes the liquidity where we are not endlessly waiting right there for that fair value area to hold no we target that liquidity right there because we understand the market was not offering fair value anymore no it was seeking liquidity where here this high right there is now what that is a fair value area again so notice the difference between the low right here this gray area that we have right there and then this gray area that we are creating right here the retracement back into this fair value area right there was very comfortable as in we were comfortable Above This High there was no indication of immediately lower price just yet and we never created a bearish fair value Gap coming into the fair value area right there where here we were not there comfortable below that low right there because we did not stay below that low for very long but more importantly we created bullish fair value gaps going back into the fair value area which is extremely suspicious which here we never do that we respect the fair value area the green area absolutely perfect and that is exactly when we can look to continue higher off of that right there again to show you exactly what that looks like right here back on EU on The Daily time frame we now created that fair value area right there that&amp;#39;s where we left off because this was the previous fair value area right there we respect that we then have this new fair value area a little bit lower after that we create this new fair value area right here this is the new fair value area which we continue lower from a little bit but then afterwards this fair value area does not hold why well if we Mark out the low of that fair value area which is this low right there and that low let me make it a little bit thicker this low right here is where we can continue lower off of we expect that to be respected to then continue lower because that is a fair value area but what can we also see we are not comfortable below these overall lows that we took right there and more importantly we are creating a daily fair value Gap higher right there going into the fair value area we are now comfortable inside the fair value area so we can argue this area is already fair value right there since it is already fair value then why are we retracing into it very deeply because if we are offering fair value then the only place to offer fair value was again this area right there because that was the only place where we had not offered fair value just yet so after this deep retracement into that fair value area we can confidently say well we are not offering fair value anymore so what are we doing we are seeking liquidity in the form of the fair value area high which is that high right there and that then becomes the exact target where if we take a look at this example right here we have a bigger fair value area because here what are we seeing move High buy side sell side buy side everything Above This high right there is not fair value just yet but below that high right here this is already fair value right there and what can we see when we come into that fair value area well we first initially could expect higher price off of that but then once we create a huge expansion phase right there of a fair value Gap a huge down candle coming into the fair value area which we should respect because if we are offering fair value we should continue higher off of that almost instantly and that is not the case we are again having a deep retracement into this area right there which to us indicates that is a bit suspicious because we are not offering fair value clearly because otherwise we would have respected the green area to continue higher off that so what are we doing we are seeking liquidity in the form of of the fair value area low right there that is then where the liquidity is and towards that liquidity which then becomes the target what do we actually see we see fair value areas right there being respected targeting this liquidity right there and after we reach that liquidity becomes extremely interesting because here on the 4 Hour what do we see we see this fair value area area again right there which we eventually continue lower from reaching these lows right here and after we reach those lows this right here is now the fair value area right there and we arrive at live price action so this is getting a lot more exciting right now because what are we seeing right here we have this fair value area where the only place where we can actually make retracement again is these lows right there below those lows this is where we did not offer fair value yet so at this moment in time right here once we see this we can still expect lower prices it becomes suspicious when we then create a 4our for Val Gap going into the fair value area which I&amp;#39;m now going to Mark with the low to get rid of those boxes right there this fair value area and afterwards it becomes even more suspicious when we start to respect that fair value G Gap and actually continuing higher off of that because then we can clearly make the statement well we are not offering fair value here so what are we doing seeking liquidity where&amp;#39;s the liquidity the fair value area high right there and that high is exactly what we can currently in live conditions right there look to Target but this is only the beginning because before you decide to full margin and throw your 100 % risk on this trade right here let&amp;#39;s first understand Market structure because this was only again if we look at the two sections institutional we understand offering fair value we understand seeking liquidity both checked off institutional checked off perfect now we don&amp;#39;t understand Market structure just yet so we need to understand Market structure first and how it correlates with institutional to actually be able to get to the highest probab ility trades now for Market structure we are going to go over the following things where the blur can go away and we are looking at it itl s STL ITR and St and then the last one is cycle this is exactly where it now gets extremely interesting because now we understand how institutions operate and now we can combine that and how it correlates with Market structure making it of course institutional Market structure now before I show you how you can capitalize right here on this live move of course no Financial advice or anything but before we do that we need to go over crude oil all right for our Market structure let&amp;#39;s go over it itl s and STL first two things I want to go over is again the S stands for shortterm high STL stands for shortterm low s and STL L are basically swing highs and swing lows so the shortterm high in this case is a swing High where this for example right there is a shortterm high and that is also a swing High why is that a swing High well the reason that is a swing high is because the middle candle right there is sticking out it&amp;#39;s sticking out at the top meaning that the left candle right there directly to the left of it is lower than the middle candle and directly to the right of it right there that candle is also lower than the middle candle creating a swing high right there also known as a shortterm high the same can be said about this high right there for example and the same can be said about this swing low right there which is sticking out at the bottom right there again creating That Swing Low that we see so that is short-term high and short-term low then we have it and we have itl it standing for intermediate term High itl standing for intermediate term low an intermediate term high is this for example why this swing high right there has a lower swing High to the left of it and a lower swing High to the right of it meaning it has a shortterm high to the right of it right there and a short-term High to the left of it lower of course creating the middle the one that is sticking out at the top is the intermediate term high and this right here becomes the intermediate term high now if we flip that around and we look at this low right here this is now the intermediate term low why because we have a short-term low in other words a swing low higher to the left vid and we have a swing low in other words shortterm low higher to the right of it right there creating this intermediate term low then the next part is ITR and Str Str which the ITR stands for an intermediate term range so when we take the intermediate term high that we have sitting right here and the intermediate term low that we have sitting right here the area from that intermediate term High towards that intermediate term low is an intermediate term range where for example this right here from this intermediate term low right there that is indeed an intermediate term low towards that intermediate term high that is also an intermediate term range and the way we can see those intermediate term lows and intermediate term highs they are what I like to call them Outsiders they are on the outside of our chart right there then the Str Str is what we call a shortterm range a short-term range is very important because now we need to pay attention to the details because the short-term range is either a shortterm high or a short-term low that leaves behind a fair value gap for example this short-term high right there leaves behind this fair value Gap that creates a shortterm range where the same can be said about this short-term high right there this shortterm high right there leaves behind a fair value Gap right there also creating a shortterm range a short-term range is only valid if we have a fair value Gap in it so this right here is not a short-term range right there and that is also not an intermediate term low when we have an intermediate term high for example this one we could be classified as an intermediate to high and we have one right above it currently in the form of this one then we take the highest one right there if it is almost in the same lag and especially important before we have taken out an intermediate term low then this highest one is the actual intermediate term high now afterwards we continue lower and also we continue higher so right here once we continue higher we have this short-term low for example which eventually creates a fair value Gap also creating a shortterm range so then this whole area right there becomes the short-term range after that we create this short-term low right there and also creating fair value gaps again where this whole range right there becomes the shortterm range now to be honest with you that is just the basic because now we are getting into the juicy details the the Golden Nugget area and we needed to go over everything here before we can arrive at that so if you made it this far in the video believe me you are getting rewarded and as well I want to have said that please take notes on this part because this can be quite overwhelming but this is the most important part so taking notes right here will help you understand it better as well because there&amp;#39;s a lot of small details to pick up on this right here is as we know of course an intermediate term high right now an intermediate term high or an intermediate term low is confirmed when we have two shortterm ranges moving away from it meaning this right here the short-term High creates a short-term range because we again have a fair value Gap in the lack lower right there after that we create this short-term high right there which again has a fair value Gap lower right there that confirms the intermediate term high right here which also confirms that we want to Target an intermediate term low which currently is sitting right there that is the target is it a confirmed intermediate low doesn&amp;#39;t matter in this case as long as we understand that right there is the Target and after we reach that Target and we delete everything here except for the intermediate term High we create right here a new intermediate low which is confirmed Again by having one short-term range and yes the intermediate term low itself which will be a future intermediate low can as well create the first fair value Gap higher right there creating the first shortterm range at that moment in time and after we do that and we have this new short-term low right there and we create this Fair V Gap as soon as that fair V Gap is actually confirm by the close of that down candle the third candle right there then we have two shortterm range ranges meaning this intermediate low is now confirmed and we can now look to Target the intermediate term high right there in previous videos that I made and potentially other videos that I made as well intermediate term highs and intermediate term lows are protected highs and protected lows they are the strongest one where in between moving from an intermediate term low like this for example we will create shortterm lows those short-term low lows right there will hold until we deliver into the intermediate term high this is the same for the intermediate term high right there that delivers into the intermediat term low the shortterm highs right there with fair value gaps so the short-term ranges will hold until we deliver into the intermedium low after we deliver into the intermedium low in this case right there the intermediat from high becomes strong so if we have intermediat from lows failing then we can say intermediate term Highs are strong if we have intermediate term highs failing then we can say intermediate term lows are strong and intermediate term lows will hold when we then have a retracement but that is an extremely general rule and I say extremely details because when an intermediat term high or an intermediat term low wants to actually hold there&amp;#39;s a lot of details going into it which is exactly what we are going to go over right now and what we&amp;#39;ve already been going over because that creates actual institutional Market structure and this is where we now arrive at the cycle also known as how you can know if an intermediat term high or an intermediate term low is actually strong and if it does want to hold or if it becomes the Target because right here what are we seeing from this intermedium low towards that intermedium high and once we then take out this intermediate term low the move from the intermediate term low towards the intermediate from high becomes what it becomes the fair value area once we take out the intermediate term low right there and this is exactly where it gets extremely interesting the move from the intermediate term low towards the intermedium high is the fair value area in other words it is the mitigation block that is being created so if we want to continue lower it now becomes a story of the fair value area that we have sitting right there where we we are currently not offering fair value anymore why we have that deep retracement into it we have fair value gaps going higher into the fair value area and we are not respecting that fair value area again the only area where we could offer fair value was below this lad that is the retracement area the red area right there so everything above that is quite suspicious so if we are not offering fair value here then what are we doing seeking liquidity in the form of that intermediate term High which is the fair value area high sitting right there and that is exactly what then becomes our Target then once we want to Target that intermediate ter High what do we need a confirmed intermediate term low which we have sitting right there because we create this first short-term range with that fair Val Gap going higher after that we do not need to come back into that F Val Gap but we do see that we have a new Swit swing low sitting right there new Fair Val Gap higher there as well order block even being created new short-term range so we have two short-term ranges higher first one second one right there confirming the intermediate term low confirming that we want to Target the intermediate term High based on the fair value story because we are not offering fair value so what are we doing we are seeking liquidity in the form of that intermediate mediate term high so the intermediate term High there is not protected it&amp;#39;s the actual Target where a lot of people would wait for the intermediate term High to hold right there and pray and hope for lower prices we target that that is our liquidity where this in itself can already be a trade ID right there but afterwards what are we seeing we have now created a new fair value area from again the intermediate term high right there towards the intermediate term low creat is what this fair value area right there and this fair value area is where we can now see all right we are comfortably closing above it we are not creating a fair valuable lower going into the F value area right there so we can look to continue higher off of that and then we can comfortably say this intermediate low is indeed the protected low and the way we see that again is through sweep versus the run on liquidity where once we have this sweep of liquidity right here we have fair value gaps going immediately back above this low right there a run on liquidity is very comfortable above the high closing comfortably above it right there but more importantly not creating bearish for gaps coming below this low right there but more importantly not creating bearish F gaps coming below this high right there indicating that it wants to Res respect the fair value area because it is indeed offering fair value and the run on liquidity meaning when we run liquidity we expect it to actually run so it can run higher can keep on continuing higher and we do not expect what we expect here with a sweep of liquidity once we come below this intermedium low right there we are seeing a sweep of liquidity right there to then Target the opposing intermediate term high again if after this video sweep versus run on liquidity is not that clear just yet we have multiple videos on that as well on this YouTube channel so first finish this video then after that you can also watch this everything goes hand in hand now once we arrive at this intermedium high at the fair value area and we expect again the intermedium low is now protected then this right here is exactly where we can go into the lower time frame into the one minute to look for the exact same thing because what are we having here we have this intermediate term High then we have this intermediate term low intermediate term low right there is confirmed once we have this short-term range higher right there by of course confirm buy that fair value Gap after that we have this new fair value Gap higher as well confirming the new short-term range that we have right there as well which creates again a new fair value area in the form of this right there so it&amp;#39;s all fractal and this right here is where we can then look to enter Target these highs and these highs right here eventually become what again a fair value area that we see eventually gets respected right there to continue higher off of that and it repeats and repeats and repeats and repeats by the way the example right here that I&amp;#39;m showing you is the exact thing we went over and we saw live so we call called it live in the moneymaking team live session for the master class so I&amp;#39;m not just cherry-picking my price action right there no through this thought process we are not type of Traders where we say after the fact wow this was really clean no we say during the fact right there okay this is actually very clean because this right here is textbook this is absolutely textbook price action right here so now looking back at EU and the 4-Hour live example right here what are we seeing we respect it again that fair value area we continue lower off of that and afterwards to know if we are going to respect this fair value area again right there we should run the liquidity and not sweep the liquidity like we are seeing right there because right here with this fair value area we are running the liquidity and not sweeping liquidity we comfortably close below it we do not have immediately F Val gaps going back into the f value area which right here we are seeing which with this intermediate High than a potential Target since we are not offering fair value so what are we doing we are likely seeking liquidity in the form of the intermediate term High then the intermediate term low right here that we have with one short-term range sitting right here with the fair value being created right here of course after that we have this new short-term range higher right there with a new Fair value Gap higher being created right there meaning we have two short-term ranges meaning the intermediate term lows confirmed meaning the intermediate term high right there is most likely the Target and if we want to continue higher then where can we continue higher from this 4our F Val Gap sitting right there so if we come into that do we immediately go full margin Longs right there no we want to see the exact same confirmation right there on the 5 minute the 50 minute time frame continuing higher where we have the intermediate term low being confirmed targeting the intermediate term high that we have right there and again we might not continue higher right there right so I need to give you a little disclaimer that nothing here is 100% probability it is high probability what we are teaching here but in trading nothing is 100% guaranteed so wait for the right confirmation right there that could be very interesting if we do not get that perfectly fine if we do not get any confirmation then we can can potentially look to continue lower instead right there and let&amp;#39;s say we do continue higher and we do reach the intermedium high right there then what does that create from the intermediate ter High towards the intermediate term low that creates again the fair value area in other words that creates the breaker block which we can then look to continue higher from if and only if and this is again the cycle if we run the intermediate high right there and we close above it with a nice forap overlapping with the highs then we can look to continue higher off of that if we do something like this where we come above that high and we do not close comfortable above it very low close and immediately we get fair value gaps back into that fair value area and it&amp;#39;s the same cycle then the intermedium low is not protected and that actually becomes the target instead the same that we are seeing after sweeping this intermediate term low right there and intermedium high is not protected automatically that actually becomes the target instead and that is the differentiator between the cycle can you understand are we offering fair value or are we seeking liquidity and that is seen through again the sweep versus the run on liquidity and this exactly this is actually institutional Market structure we have combined the institutional part with the market structure now quick update as well first of March the spring enrollment starts the spring enrollment you can basically see it as a four Monon boot camp where we are looking for Motivated traders that want to actually transform their life and actually finally get somewhere with trading if you&amp;#39;re in a position then please feel free to check out ar. you can apply for the spring enrollment as well and all the details are also on that website all right perfect thank you

Transcript for:Institutional Market Structure Lecture

Transcript for:
Institutional Market Structure Lecture