Lecture on Market Structure Trading Strategy

Introduction

• Focus: Market Structure Trading Strategy
• Importance: Essential for accurate trading and avoiding losses
• Topics Covered: Identifying swing highs/lows, trading levels, profitable opportunities

Identifying Swing Highs and Lows

• Key Concepts
  • Major swing highs/lows in uptrend and downtrend
  • Sequence: Swing highs followed by swing lows in trends
  • Practical application differs from theory (charts vary)
• Pitfalls
  • Incorrectly identifying swing points can be detrimental
  • Reality: Pullbacks include small trends, consolidation, minor swing points
• Rules
  • Rule 1: During pullback, any price action until a significant low is broken is still part of the uptrend
  • Rule 2: Need at least a three-candle pullback to identify major structure high/low
    • Avoid marking off false highs/lows in minor pullbacks
    • Example: 3-candle pullback identifies real swing low/high, minor pullbacks ignored

Trading Strategies

Gold Strategy: Trend Reversal Structure Strategy (TRSS)

• Objective: Capture market reversals to start of new trends
• Setup:
  • Identify a downtrend
  • Look for break of previous major structure high
  • Trade on pullback to this level
• Example: Illustrated with GBP/CHF and AUD/USD
• Identification Steps: Marking high/low points, creating I zones
• Indicators: Price patterns (e.g., dojis, engulfing candles), validated by structure, and EMA
• Entry/Exit Rules:
  • Entry: Confirmation through candlestick patterns at identified levels
  • Exit: Stop loss and target setup (e.g., 1.4:1 reward-to-risk ratio)

Silver Strategy: Trend Continuation Strategy

• Objective: Capture established trends continuation
• Setup:
  • Identify recent swing highs/lows
  • Create zones from recently broken swing highs
  • Validate levels with at least 2 tests in last 400 candles
• Example: Illustrated with EUR/NZD, USD/JPY
• Identification Steps: Mapping major swing highs/lows, validate multiple tests
• Indicators: Confirming price patterns (hammers, engulfed candles, etc.), validated by structure
• Entry/Exit Rules:
  • Entry: Expect candlestick or chart patterns (e.g., double bottoms)
  • Exit: Stop loss adjusted and target setup as trends continue

Bronze Strategy: Last Chance Trend Continuation

• Objective: Capture trend continuation after primary opportunities missed
• Setup:
  • Identify the last swing high/low before trend breakout
  • Create zones from these points
• Example: Illustrated with NZD/USD
• Identification Steps: Mapping last major swing points, validate support resistance
• Indicators: Confirming price patterns, validated by structure for secondary trend opportunities
• Entry/Exit Rules:
  • Entry: Look for pressure signs around identified zones (candles/price patterns)
  • Exit: Similar target strategy as silver strategy

Practical Application for Next Week

• Major Pairs Analytical Preparation
  • EUR/USD: Bronze strategy setup
  • GBP/USD: Gold strategy pending confirmation
  • USD/JPY: Silver strategy pending patterns
  • USD/CHF: Silver strategy level validation
  • AUD/USD: Gold strategy setup

Conclusion

• Recap: Strategies provide structure, accuracy
• Encouragement: Continued learning, application, check for updates
• Resources: TTC Forex University for further learning, mentorship