Break of Structure in Trading

all righty what is going on guys I just realized that that light has not been on this entire time devastating not going to change it what's going on jits so long time no see how's it going you guys miss me this is really only for people that like watch the trading transformation consistently as they come out the people who are like watching this 5 years from now are like bro what are you doing what do you mean long time it is long time no see for the real ones okay focus so today we are just going to be talking about break structure okay and we are going to be applying everything that we learned from highs lows and Trends wait highs lows Trends high lows trends that was all that we covered in that video right okay add bugging out tonight anyways we haven't made a video in a while so we're going to cover break of structure today and I'm not going going to tell you guys how to use it as a Confluence I'm not going to tell you guys I'm not going to tell you guys [ __ ] I'm just going to explain it to you guys and you guys are just going to have to live with that and understand that we're not here to learn strategy yet almost eventually just not yet okay so without further Ado let's jump right into the B dp5 00 we're not looking at that [ __ ] today we're going to be using our favorite tool the brush okay so let's get started and quickly recap what we need to know in order to in order to identify a break of structure what's a high up down candle move up and a candle move down what's a low down up move down then a move up we take the lowest point of the move down and the move up that's the low we take the highest point of the move up and then the move down that's the high cool quickly identify it within the chart move down then a move up lowest point of those two candles boom move up then a move down highest point of those two candles boom low high do we give a [ __ ] about two consecutive Blue candles or green candles in your guys case no do we give a [ __ ] about two consecutive black candles or red candles in your guys case no we do not okay so if this candle's Wick was lower than this one we do not give a [ __ ] because this is move down then to move up this would be the low cool cool now that we did a little recap of highs and lows let's get into regular structure so we know that Trends move in higher highs and higher lows and lower highs wow that was horrible this was good this was a good uptrend let's start with the down damn come on man you would think that I've done this so many times there we go that's good enough kind of a steep ass downtrend if you guys ask me and I can't hit the highs but I hit the lows perfectly wow aim is off but anyways we noted that an uptrend moves in higher highs and higher lows and a downtrend moves in lower highs and lower lows okay so if we're in an uptrend Bo what happens when price does this boom boom and we end up making boom a lower low boom and then a lower high after an uptrend break of structure and we're typically able to spot this even before the lower low and the lower high gets put in because within an uptrend if we see a low get closed underneath that's a break of structure and the same thing in a downtrend when we see a high closed above break of structure okay and you're probably thinking closed what does that mean it means the candle literally closes underneath that lowest point so when we're in an uptrend we're ident we're looking for lows for breaks breaks of structure when we're in a downtrend we're looking at highs for breakes of structure okay so if we're in an uptrend boom and we're like wow higher high higher low higher high higher low whoa low gets closed underneath okay that's a break of structure because then this low that gets made is going to be lower than this one and in an in a downtrend the reason why it's a break of structure is because this high is going to be higher than this one what okay so all we want to do is be able to identify these and the way that we identify it is in an uptrend we're looking for lows and when the lowest point of those two candlesticks of the down then up move if we see a candle close underneath that not a wick remember think back to our Candlestick Anatomy if this is a down candle be red if the close so right here if it closes underneath the lowest point then it's a break of structure vice versa if this is a green candle and we get a breakup structure to the upside the clu the candle has to close meaning this line right here on the Candlestick has to be above this High Okay so again this shouldn't be too difficult to understand I just drew it out for you guys let's go ahead and spot this spot him got him okay so if we look at this it's a great first example okay what were we in if we just move this to like whoa my thing's glitching we just move this here okay if we just look at this like let's make this as simple as possible we have a high then we have a low then we have another high then we have another low whatever consolidation then we have another high and then boom look at the most recent low right so before this we were in an uptrend we probably thinking what we we weren't in an uptrend yes we were why look at price it's literally going up we have a high then we have a low yes this is technically a lower high and you're probably confused but again sometimes the the market moves sideways but again this is a higher low okay so as long as long as the lows within an uptrend are not closed underneath and we're not going to break structure but then what happens okay we get a higher high cool but then this candle closes right this is the where this candle closed underneath the most recent low so what did that do that broke structure to the downside and then what do we see price do we come up we make a little high right here and then we continue lower okay let's find it in the opposite direction okay break structure to the upside this is perfect right here okay so we see boom price is dumping down we're in in downtrend right high low high low high low high and then what happens this is the high move up then it move down boom this candle is equal Okay so we didn't necessarily get a break with this candle but then boom this Candlestick closed Above This high within a downtrend where did price go after that higher and I don't want you guys to get any ideas you guys cannot definitely will never ever ever be able to turn profitable just by identifying break of structure so before you think that this is the golden ticket to being profitable just like put your hands back back in your ass and keep watching these videos okay cuz you're not even a second of the way there but this is a really awesome tool that we will use way later down the line and throughout all of our trading and that we have to understand and because we know the concepts of highs lows and Trends we can now identify this and now we have this nice little tool in our toolbx okay so does that make sense when we're in a downtrend we're identifying highs okay and we're waiting for highs to get broken above and we're not necessarily waiting we're just understanding that if a high gets closed above if the most recent High gets closed above in a downtrend then it's a break of structure okay and now what has started an uptrend okay so if we look from there right price ends up moving higher okay let's try and show other examples of this okay on NASDAQ we have a move down then a move up price closes this Candlestick all the way underneath this low where does price go after that down okay it broke structure out of this uptrend that it was in okay we were in an uptrend here we get a break of structure to the downside and then because we got that break of structure we're now in a downtrend and then here we have a move up then a move down we take the highest point of those two boom we get a break up now we're in an uptrend okay that's really all I need you guys to understand for now okay is understand that when we're in when we're in an uptrend if a low gets closed underneath if we get a candle closure underneath the most recent low then we're now in a downtrend and if we're in a downtrend and the most recent High gets closed above now we're in an up Trend I don't want you guys to hold on I have to sneeze I don't want you guys to try and put no pieces together I don't want you guys to do any of that I don't it's not that deep you guys know highs you guys know lows you guys know Trends and now you know when we're in an uptrend and we see a candle close underneath the most recent low it's a break of structure and now we're in a Down Trend and the same thing to the downside if we're in a downtrend and we close above the most recent high if we get a candle closure above the most recent high now we're in an uptrend okay plain and simple super super simple that's all I want to teach you guys today did you guys miss me all right anyways quick little video 12 minutes let's try and make this 13 [Music] minutes 15 M 15 seconds left ready let's um nip slip goodbye

all righty what is going on guys I just realized that that light has not been on this entire time devastating not going to change it what&#39;s going on jits so long time no see how&#39;s it going you guys miss me this is really only for people that like watch the trading transformation consistently as they come out the people who are like watching this 5 years from now are like bro what are you doing what do you mean long time it is long time no see for the real ones okay focus so today we are just going to be talking about break structure okay and we are going to be applying everything that we learned from highs lows and Trends wait highs lows Trends high lows trends that was all that we covered in that video right okay add bugging out tonight anyways we haven&#39;t made a video in a while so we&#39;re going to cover break of structure today and I&#39;m not going going to tell you guys how to use it as a Confluence I&#39;m not going to tell you guys I&#39;m not going to tell you guys [ __ ] I&#39;m just going to explain it to you guys and you guys are just going to have to live with that and understand that we&#39;re not here to learn strategy yet almost eventually just not yet okay so without further Ado let&#39;s jump right into the B dp5 00 we&#39;re not looking at that [ __ ] today we&#39;re going to be using our favorite tool the brush okay so let&#39;s get started and quickly recap what we need to know in order to in order to identify a break of structure what&#39;s a high up down candle move up and a candle move down what&#39;s a low down up move down then a move up we take the lowest point of the move down and the move up that&#39;s the low we take the highest point of the move up and then the move down that&#39;s the high cool quickly identify it within the chart move down then a move up lowest point of those two candles boom move up then a move down highest point of those two candles boom low high do we give a [ __ ] about two consecutive Blue candles or green candles in your guys case no do we give a [ __ ] about two consecutive black candles or red candles in your guys case no we do not okay so if this candle&#39;s Wick was lower than this one we do not give a [ __ ] because this is move down then to move up this would be the low cool cool now that we did a little recap of highs and lows let&#39;s get into regular structure so we know that Trends move in higher highs and higher lows and lower highs wow that was horrible this was good this was a good uptrend let&#39;s start with the down damn come on man you would think that I&#39;ve done this so many times there we go that&#39;s good enough kind of a steep ass downtrend if you guys ask me and I can&#39;t hit the highs but I hit the lows perfectly wow aim is off but anyways we noted that an uptrend moves in higher highs and higher lows and a downtrend moves in lower highs and lower lows okay so if we&#39;re in an uptrend Bo what happens when price does this boom boom and we end up making boom a lower low boom and then a lower high after an uptrend break of structure and we&#39;re typically able to spot this even before the lower low and the lower high gets put in because within an uptrend if we see a low get closed underneath that&#39;s a break of structure and the same thing in a downtrend when we see a high closed above break of structure okay and you&#39;re probably thinking closed what does that mean it means the candle literally closes underneath that lowest point so when we&#39;re in an uptrend we&#39;re ident we&#39;re looking for lows for breaks breaks of structure when we&#39;re in a downtrend we&#39;re looking at highs for breakes of structure okay so if we&#39;re in an uptrend boom and we&#39;re like wow higher high higher low higher high higher low whoa low gets closed underneath okay that&#39;s a break of structure because then this low that gets made is going to be lower than this one and in an in a downtrend the reason why it&#39;s a break of structure is because this high is going to be higher than this one what okay so all we want to do is be able to identify these and the way that we identify it is in an uptrend we&#39;re looking for lows and when the lowest point of those two candlesticks of the down then up move if we see a candle close underneath that not a wick remember think back to our Candlestick Anatomy if this is a down candle be red if the close so right here if it closes underneath the lowest point then it&#39;s a break of structure vice versa if this is a green candle and we get a breakup structure to the upside the clu the candle has to close meaning this line right here on the Candlestick has to be above this High Okay so again this shouldn&#39;t be too difficult to understand I just drew it out for you guys let&#39;s go ahead and spot this spot him got him okay so if we look at this it&#39;s a great first example okay what were we in if we just move this to like whoa my thing&#39;s glitching we just move this here okay if we just look at this like let&#39;s make this as simple as possible we have a high then we have a low then we have another high then we have another low whatever consolidation then we have another high and then boom look at the most recent low right so before this we were in an uptrend we probably thinking what we we weren&#39;t in an uptrend yes we were why look at price it&#39;s literally going up we have a high then we have a low yes this is technically a lower high and you&#39;re probably confused but again sometimes the the market moves sideways but again this is a higher low okay so as long as long as the lows within an uptrend are not closed underneath and we&#39;re not going to break structure but then what happens okay we get a higher high cool but then this candle closes right this is the where this candle closed underneath the most recent low so what did that do that broke structure to the downside and then what do we see price do we come up we make a little high right here and then we continue lower okay let&#39;s find it in the opposite direction okay break structure to the upside this is perfect right here okay so we see boom price is dumping down we&#39;re in in downtrend right high low high low high low high and then what happens this is the high move up then it move down boom this candle is equal Okay so we didn&#39;t necessarily get a break with this candle but then boom this Candlestick closed Above This high within a downtrend where did price go after that higher and I don&#39;t want you guys to get any ideas you guys cannot definitely will never ever ever be able to turn profitable just by identifying break of structure so before you think that this is the golden ticket to being profitable just like put your hands back back in your ass and keep watching these videos okay cuz you&#39;re not even a second of the way there but this is a really awesome tool that we will use way later down the line and throughout all of our trading and that we have to understand and because we know the concepts of highs lows and Trends we can now identify this and now we have this nice little tool in our toolbx okay so does that make sense when we&#39;re in a downtrend we&#39;re identifying highs okay and we&#39;re waiting for highs to get broken above and we&#39;re not necessarily waiting we&#39;re just understanding that if a high gets closed above if the most recent High gets closed above in a downtrend then it&#39;s a break of structure okay and now what has started an uptrend okay so if we look from there right price ends up moving higher okay let&#39;s try and show other examples of this okay on NASDAQ we have a move down then a move up price closes this Candlestick all the way underneath this low where does price go after that down okay it broke structure out of this uptrend that it was in okay we were in an uptrend here we get a break of structure to the downside and then because we got that break of structure we&#39;re now in a downtrend and then here we have a move up then a move down we take the highest point of those two boom we get a break up now we&#39;re in an uptrend okay that&#39;s really all I need you guys to understand for now okay is understand that when we&#39;re in when we&#39;re in an uptrend if a low gets closed underneath if we get a candle closure underneath the most recent low then we&#39;re now in a downtrend and if we&#39;re in a downtrend and the most recent High gets closed above now we&#39;re in an up Trend I don&#39;t want you guys to hold on I have to sneeze I don&#39;t want you guys to try and put no pieces together I don&#39;t want you guys to do any of that I don&#39;t it&#39;s not that deep you guys know highs you guys know lows you guys know Trends and now you know when we&#39;re in an uptrend and we see a candle close underneath the most recent low it&#39;s a break of structure and now we&#39;re in a Down Trend and the same thing to the downside if we&#39;re in a downtrend and we close above the most recent high if we get a candle closure above the most recent high now we&#39;re in an uptrend okay plain and simple super super simple that&#39;s all I want to teach you guys today did you guys miss me all right anyways quick little video 12 minutes let&#39;s try and make this 13 [Music] minutes 15 M 15 seconds left ready let&#39;s um nip slip goodbye

Transcript for:Break of Structure in Trading

Transcript for:
Break of Structure in Trading