How To Master Basic Market Structure | FOREX | SMC (Part 1)

How To Master Basic Market Structure | FOREX | SMC (Part 1) - Legendas Bilíngues

Hey everyone,

this is cold water from Phantom trading and welcome to the market structure basics video training in today's video We're gonna cover a ton of things ranging from theory to diagrams all the way to live

chart examples Where we're bar replaying through a different a couple of different instruments

So you guys get an idea of how to mark up structure as it is playing?

through in the market speaking of diagrams.

I've also put together this free market structure basics PDF guide for all of you.

What you can do is download this in the link in the video description below.

Again, we're going to cover all the stuff that is in this PDF later in the video.

And if you guys want to see more content from us regularly,

be sure to hit that like button,

hit subscribe so you can subscribe to the Phantom Trading YouTube channel,

and hit the little bell notification icon so that you're notified next time we post something.

We usually try to post once a week.

Also, be sure to set aside about an hour and 20 minutes, turn off your phone, eliminate all the distractions, pull out a pen.

to take notes or pull out a notepad on your computer and take notes that way.

Anyways, with that said, let's dive into the video.

There's a lot to cover.

Let's get started.

So what can you expect to gain from this structure training?

Well as you guys can see on the screen I have a couple of stock photos that I found online that I thought you guys would find pretty funny

Of traders you have this guy on the left who looks like he's literally about to punch a hole through his monitor

Probably because he doesn't know anything about market structure and then you have this guy on the right who?

is just way too happy.

It's a little weird, to be honest.

Nobody's this happy when they trade.

I can assure you that.

So I want to make sure that you guys are actually neither of these two, and you're more like this guy who's calm, cool, collected.

He has proper structure skills.

He's confident in his analysis and his ability to predict where the market is going to move from an intraday bias, right?

That's what most of us trade.

It still applies to you, right?

You wanna have the ability to call the market direction and catch the move, right?

All right, so on, what are you actually gonna gain from this training though?

Number one is gonna be higher risk to reward ratio trades.

And the reason for that is because you're gonna be able to get on the right side of the market more often than not, right?

If you're no longer trading counter trend and you're trading more with trend or pro trend,

you can expect that you're gonna catch larger moves, right?

And therefore, you know, one to two-hour trades, you're gonna catch larger trades, right?

But the way that we trade at Phantom,

our average trade, at least my average trade ranges anywhere from, you know, seven to 10 to sometimes 20R, right?

And our minimum R that we're taking on a trade is always fun.

will take break evens but you know what overall our average restore world ratio is pretty good.

The second thing that you're going to gain from this is more confidence in your trading and the

reason for that is because you're going to build up the skill to be able to identify structure properly.

You're going to build confidence in your analysis skills plus you're going to have more confidence to be able to actually execute on trade setups that present themselves.

Last but not least I can almost guarantee that you're going to have a higher strike rate and win the loss ratio.

If you find yourself on the wrong side of the market more often than not it's likely due to a deficiency in your structural analysis skills and again that's the whole point of

this I'm going to teach you guys how to identify market structure in

a mechanical way so that you can wrap your head around it and be on the right side of the market more often.

So why is structure so important to master anyways?

Well I've come up with a little analogy for this,

I hope you guys like this picture,

it took me like an hour to put together, but basically I want you guys to think of trading almost like a house, right?

What's the most important part of a house?

It's its foundation, right?

Everything built on top of the foundation and it's much like our trading.

So that's why we really want to view structure as the foundation of both our trading and of our house, right?

Again, every skill is going to be built on top of that.

Our supply and demand skills, our liquidity concepts are like the pillars of the house.

You have your entries, which would be like the second floor, your management or the windows, right?

Because you have to see where you're going to And then you have trade psychology, which is much like the roof of the house, right?

You have a leaky roof.

You can expect that you're going to get structural damage in your house probably.

And it's the same thing with trade psychology.

Right?

You don't have proper trade psychology.

You have leaks in it.

You can expect that your trading is going to fall apart.

Right?

But aside from that,

if your structure is lacking and you have a deficiency in that skill,

you can expect that all the other skills that you're building on top of it are kind of useless.

So if you find that your trading is like this house, it's wonky, it's shaky.

Now, I don't want to alarm you guys.

but addressing the skill of being able to identify market structure in a consistent manner is extremely important.

So if you find yourself getting lost in structure a lot or you find it confusing, it's probably because you're not marking out structure correctly.

And this is something that you're going to want to address right away.

Because structure is such a fundamental skill.

Again, like I said before, we build all of our other skills on top of it, right?

So if we don't have proper structure skills, you can't expect that your supply and demand zones are really going to be correct.

You may be trading counter trend and not even realizing it, right?

Same with your liquidity skills.

And you're going to be entering, you know, your entries, you're going to entering at levels that don't even make sense, potentially, right?

You be trading counter trend, I said.

So it's super important that I highly recommend watching both this basic structure training video plus the advanced structure training video on the Phantom YouTube channel a few times.

Take notes if you need to.

download the PDFs, print them out if you want, doesn't really matter.

The honest truth is, we're giving away about 80% of what we teach in the phantom trading structure curriculum.

And, you know, obviously the other 20% of it is some nuanced rules that we kind of have for

structure as well as some more in-depth diagrams that we're not going to cover in this free training,

but this is most of it, honestly.

And if you can wrap your head around this,

then you'll probably have a more systematic way of approaching structure, and you can expect more consistency in your trading.

Alright guys, let's dive right into it.

This is the market structure basics PDF.

I'm going to cover pretty much every diagram on here explaining basically how to approach structure in that mechanical fashion.

We also have some live structure mapping examples on both the daily and four hour.

We'll go over a similar thing in the advanced structure basics PDF as well,

in the next video, but let's get started with just basic structure.

So when we're identifying structure, it's pretty simple.

Let me pull out my pen tool here and let's cover bullish string structure versus bear string structure.

So I have a couple of examples.

I have a simple example here where we basically just have a a high we pull back we create a higher low when we confirm that higher low when we break structure

above when we break above the previous high right so essentially we have this pattern of impulse pull

back impulse pull back right where we have low a high higher low higher high higher low and high higher high.

And same thing happens,

we pull back,

we start to form a higher load that is not confirmed again,

until we break the previous structure high,

at which point we've confirmed that higher low, and we've now started to create that higher high as we pull back.

And same thing happens,

we pull back we push up, we break structure, and we confirm this higher low as we break the next higher high.

And for this, our expectation of structures to continue pushing bullish, somewhat like this.

As for the bearish example, we start with a high here, we push lower, we start to pull back, right?

We do a significant pull back before.

We start the formula high again.

It's not confirmed until we break the previous low swing structure point, and then we've now confirmed this lower high, right?

And same thing happens,

we pull back,

we start to create a lower high,

we've obviously made a lower low,

right that lower low pulls back to create that lower lower high, which is not confirmed again, until we break the previous lower low.

So in this case, we're going from lower highs to lower lows, lower highs to lower lows, right?

And then we continue.

And so we're now expecting that price is going to do this,

and this would be our previous lower high, again, breaking this lower low confirmed as we break this swing structure point.

Moving on let's look at the complex examples next because they go into a little bit more challenging price action

Let me just clear the drawings here in the complex bullish example.

We start with a low.

We then push up create a high we start to pull back, right, and we start to form this higher low, right?

Now in this case,

this pull back has an internal structure break,

which we're going to cover a little bit later, but we're not going to count these as structure points, right?

What we're focusing on is just this range of bullet structure.

So I'm going to start drawing out ranges for each of them so that it makes sense.

I didn't do it for the first one, but essentially look something like this, right?

These are our ranges.

And we're basically waiting until either the high or the low is going to get taken out on any of these, right?

And so we're gonna do the same thing with this.

So we have our pullback.

We have our higher low that's starting to form.

We confirm it as we break the previous high and we've now formed a new range of bullish price action.

We then have a large with complex pullback where we have multiple internal structure breaks

happening and then eventually We start to push up and we break our previous higher high, right?

And then we're going to look all the way to the left, right, within our structure range.

So this high, this higher high and this higher low, and we're going to for the lowest point in bullish structure.

That's going to be this point right here, which we're going to view as our higher low.

The reason that we're not calling it this is because price could presumably pull back all the way to this using this as liquidity.

Now, liquidity is a little bit of a concept that is outside of the scope of this video, but it's something that right?

So be sure that you mark out the last lowest structure point or lowest pivot point before the structure break, right?

It's not going to be this low down here because it's before the higher low,

and it's not going to be the higher low itself, right?

It's going to be something within this range.

So that's really important to understand.

Next, we obviously pull up.

We do another one.

another complex pullback where we have internal structure breaks.

Again, it's not relevant to the swing structure that we're trying to identify here.

What is important is that we're looking at the structure points that are kind of within this range, right?

And until we take out the low or take out the high, right, we're not classifying as a swing structure break.

So we then break this higher high.

with this higher low, right?

And where's the lowest point within our range?

In this bullish structure example, it's this higher low right here, this pivot point.

So we've now confirmed this higher low as we break above this structure point.

Now let's go over the bearish scenario.

Same thing, we start with a high, and we have a low, right?

This is our push down.

We're within this bear structure range price starts to pull back.

We don't view this as a swing structure break.

These just internal breaks, right?

And then we form this lower high as we start to push lower, right?

Now, one thing I'm going to quickly mention, and this is for both examples, price could just as easily do this, right?

And which point we're not going to look at this as our lower high, we're gonna look at this as our lower high.

And this is by the way,

part of the reason why we're not confirming that lower high until we actually break the previous low in a bearish example, right?

So it'd be flipped in the bullish example.

But I just wanted to mention that, let me clear the drawings, let's continue on.

We obviously break the previous low here, right?

then confirms this lower high, right?

And we have a new structure range to work with.

Same as the previous example,

the bullish example, in our bearish example, we have quite a long complex pullback where we have multiple internal structure breaks up and down, right?

Eventually, we create a lower high.

Again, it's not confirmed until we break this previous lower low, right?

We confirm this structure point as we break this low, right?

And again, why are we picking this lower high versus this one?

Because within the structure range, right, what is the highest point of pivot, in this case supply, right, before the actual break?

of structure.

It's not this one.

It's this one.

Even though this is technically responsible for it,

again, the way that we got to view this is price because it could have just as easily,

right now that we've created this new structure range,

or sorry, this new structure range, price could just as easily take this out, right, and come to the extreme level here.

So that's the reason that we're picking the high point within this larger overall structure range, the previous structure range, right?

And then we'll do the same thing here, right?

Price pulls back.

Again, this is unconfirmed until we break structure, taking out the previous lower low, right?

We've now confirmed it, and our new structure leg is as such, right?

Okay, moving on.

This slide just covers basically weak and strong highs and weak and strong lows, right?

You can also call them protected and targeted highs or lows.

In this case, we'll just go over the complex example.

We've already covered the basic example.

I included both of them in here so that you guys can wrap your head around it.

But let me pull out the pen tool again and let's break this.

down.

So again, we're going to start with a low and a high in our complex bullish example.

We have a push up, we start to pull back, we have a complex pullback, right?

And now this higher lows starting to form.

And eventually,

we break the previous high, confirming that we are building a level of or a higher low essentially, and we are confirming bullish structure, right?

We have now created a protected or strong level of demand, right, which is this higher low.

And we now have, as price starts to pull back, a potential targeted higher high that we're expecting to go, right?

We're expecting that it's a week because structure is bullish,

the trend is bullish, and within our current structure range, our expectation is that high is going to go next, right?

And what happens?

Price oscillates a little bit, it ranges.

Eventually, we break above that week high, right?

And we have a break of structure.

So we're continuing that bullish trend.

And again,

we look within our previous structure range,

and we have our lowest point here, our lowest pivot level of demand, because we're in a bullish trend, right?

And we're going to view this as our new strong higher low,

it's a new low that's been formed because of the fact that we broke this previous week higher high, right?

So essentially, we have strong high lows and weak highs.

Strong lows, weak highs, strong lows, weak highs.

Let's look at the bearish example now.

So we start with a high, we push down.

I don't know why my pen got thicker, is a little weird.

Let's undo that.

I think it's because I hit my scroll wheel.

Anyways, we have our high, we have our low, right, and we start with

low, to pull back start to pull back, we're not counting these internal structure breaks.

It's not relevant to this wing structure, because again, what's our current structure range?

It's this right our bear structure range.

So until we take out the higher take out the low,

we're expecting that this low is going to go, you know, presumably we had previously bearish price action, we're in a bearish trend.

So then have this lower high, that starts to form, it's not confirmed until we break this low.

But eventually we break it that confirms it and we've now created a level of supply or a lower high,

right, a high that is now protected or strong.

And as price starts to pull back from this low, right, anytime we take out a lower or a high, we typically expect them.

pullback, a little nugget for you guys there.

But essentially, we have this lower low that is now targeted or weak, right?

So essentially, we have strong highs and weak lows, strong highs, right?

And as we break this structural point, right, this strong highs confirm this lower high.

And As we pull back, we formed another weak low, right?

So strong highs and weak lows.

That's what a bearish trend is.

A bullish trend is strong lows and weak highs.

So let's move on to the next one.

Okay, this is where people get a little bit more confused.

So I've tried to create some illustrations here that really clear things up.

I'm going to try to explain it in the easiest and most simple way possible so you guys really understand it.

Let's get the pen tool out.

I like blue.

So we're going to use the blue pen again.

Let's start with the simple example here.

So we're going to cover trend changes and shifts in swing structure, right?

So in this case,

we're just looking at the overall,

larger picture,

right, we want to be loose with the structure, we start with a low in this case, we have a high,

right, we push up, we pull back, we create a higher low that is then confirmed as we break the previous high.

And again, what do we create here?

We're obviously in bullish structure, right, we've confirmed bullish structure, we have a strong low, right, a strong high.

taken out a weak high, right?

And as we pull back, we start to create another weak, high or high, right?

So we have strong lows and weak highs.

Price pulls back.

Again, the higher low is not confirmed until the moment that we break structure up, right?

Our structure ranges would look something like this, right?

So we're taking out the highs, out the highs, right?

And our expectation based on the trend is that this higher high, as we pull back is actually weak, right?

So we're expecting that's going to go.

But what happens instead, our higher high, then pushes down, it pulls back so far that it actually breaks the previous higher low.

So we now have a supposedly what we expected to be a strong level of higher low,

a strong high that got taken out by a higher high, right?

So this is our first initial shift in structure, right?

Now it's not a confirmation of trend or a trend change.

And we don't get that until we get two breaks or more, right, in a certain direction.

So in this case, again, it's just a shift in structure.

So what's happening next?

Price has now created a new lower low as we start to pull down, right?

And or sorry,

as we start to pull back,

and our new structure range is obviously something like this,

we pull back, we start to create a lower high that is unconfirmed until we break our previous lower low.

right?

And we've confirmed an actual trend change.

So we're now you went from bullish to a shift.

in structure from bullish to bearish and now we've actually changed into a bearish trend because we've now had two breaks, right, of lows.

So in this case, this was obviously a targeted low, right, or a weak low, and we've formed another strong lower high.

So we've gone now from strong lows,

weak highs,

strong lows,

weak highs that we expected to be a weak high,

this weak high, then broke this previous strong higher low, turning it into a strong high.

And then we've weak, lower, low, and another strong high, right, lower high.

So now we have strong highs, weak lows, strong highs, weak lows, strong highs, weak lows.

And then same thing happens,

we break below, and then we shift up, right, and this is our first shift in structure from bearish to bullish.

And again, that trend is not confirmed until we break another structure point in that same direction.

So this is officially where the trend changes because we've now broken a strong level,

a supposedly strong level of supply, or I and it was broken by a lower low, right?

So this is our shift right here, and this is officially our trend change from bearish to bullish.

So I'm now gonna cover the more complex example.

Again, in this case, I've labeled some of it as greens, some of it as red.

For this, we are just paying attention, again, to the swing structure, not to the internal structure.

We're gonna cover that in a second, so don't worry.

But in the complex example, same thing.

We start with a low, right?

This, we don't count as a break.

This is just internal structure, right?

It's not enough of a pullback.

If it were something like this, sure, but I'm not gonna count a small pullback like this, right?

Now, the way that we do it in Phantom, because the way markets work, markets, volatility.

I get it differs, right?

Depending on what instrument you're trading, it depends on the volatility of the market, the market conditions.

So the reason we don't use PIPs to count pullbacks, I actually think it's not the right way to do it.

And the rest of the team agrees with me.

We all agree.

It's better to look at the relative size of the pullback to the actual move, right?

So in this case, because it's such a small pullback, right, we're not gonna count it.

There are some other rules that I'm gonna go over when you go over the live chart example that we can kind of use.

There's a couple like tips and tricks that you guys can use in order to class certain things as swing structure or not.

So again, we'll cover that.

Don't worry too much about it.

But in this case, I just wanted to mention it.

This is not considered structured.

us.

We're paying attention to the larger overwhelming, right?

We then get another pullback, same thing, right?

If our structure range is here, right?

Are we breaking the higher low yet?

No, these are just internal breaks.

They really don't matter to us for the sake of marking up swing structure, right?

So we pull back, we start creating our higher low, right?

That is again, confirm when you break the previous high.

So in this case,

right, we start with a low, we create a high, we pull back, we create a level of, of demand, or higher low, that is now confirmed as protected or strong as we break the previous

week high.

And that pattern continues, right, we have now strong.

lows, weak highs, right, strong lows, weak eyes.

And then now we're going to look at the actual point where we shift, right?

So that would be here,

we're again,

same as our previous example, we have a strong level, strong level of demand, or a higher low that we're expecting is protected or strong.

And we have a higher high as we pull back.

that we're expecting is actually targeted or a weak level of supply, right?

We're expecting it's going to go.

Our expectation is price is going to do this.

What happens instead?

As we pull back, we pull back, we pull back so deep that we actually break the previous higher low.

So we've now shifted trend, or not trend, we've shifted our swing structure from bullish to bearish.

Again, a trend we can view as when we break two levels of pivot, supply or demand, right?

And we establish that actual trend, right?

We two breaks of swing structure in order to establish that trend.

So what happens, this is our new structure range, price pulls back, right?

And now, Now we're shifting from strong lows and weak highs to strong highs.

And we close right so strong high weak low strong high again This gets confirmed as we break.

This is the point where we actually shift the trend from bullish to bearish right?

Or we actually change trends right?

This is our initial shift in swing structure right from bullish to bearish right?

And then again we close Strong highs right you break again.

So our structure range is like this.

So we're not counting these internal structure breaks remember our new Structure would be something like this and I've also included this in here because this is a little something

to use as an example that I think trips a lot of people up.

Let me clear the drawings a bit so it makes a little bit more sense.

Again, are we gonna view this as swing structure?

No, because look at the size of this relative to the overall leg, right?

If this were a big pullback like this, sure I would count it, right?

Because we want a deep pullback to define lower or lower that we're expecting to go in this bearish price action.

In this case, the way that I mark all my structure is obviously I have my structure high.

We've broken this structure point and really this low is kind of floating, right?

Until we get a significant enough pullback, right?

So as price kind of develops,

I'd be moving my low to here to here and Here's the thing, we don't really take anything out here.

If it had done this, I'd count it as well, right?

But because we don't do that and price kind of just fades, it's a small relative pullback compared to the larger overall move.

We do not view this as swing structure, right?

So really, we're consolidating this entire leg into one, right?

We now have this lower, that's creating a really big pullback, right?

And what happens?

You actually break the high, right?

Remember, our structure range would be like this, right?

Our previous structure range, like so.

And again, what are we waiting for, either the load to go or the high to go?

We were expecting the load to go.

the trend obviously shifted bullish, right?

And we've broken a previous strong level or protected level of high,

or sorry, this high of pivot supply with this weak level of this weak low or demand level, right?

So we've now pushed up, we've started to create a higher high as we pull back.

Once that pullback phase is essentially completed,

we start to push toward breaking this structure point that then confirms this higher low,

as a strong level or a strong high, strong level of demand.

We break that structural point, we confirm it, we then start to pull back, same thing.

So we've essentially gone from strong highs, weak lows, right, strong highs.

Supposedly a week low this week low turns into a strong low as we break the previous strong high that we had here

and then we continue to push up and create a

Week high as we pull back and another strong low that is confirmed as we break that week high

So everything kind of goes according to plan.

What's the next thing we expect?

Obviously a pullback and we're gonna target this higher high with this higher low that we then confirmed with this break of structure here

Right so again same thing strong lows week highs, right?

All right, so structure breaks, also known as shifts in order flow, also known as changes of character or chocks.

So the reason we call them internal breaks of structure or order flow shifts is because we're

actually looking at levels of demand or levels of supply that are failing.

That's kind of signaling us and telling us that potentially there's going to be a shift in swing structure as well, right?

Now, obviously, there are also such things as fake outs, we're going to cover that in the next slide.

But let's quickly go over this, I'll quickly explain it.

Same thing as our previous example,

we have strong lows weak highs strong lows weak highs right so we're pushing up like this

here's our structure range structure range right and then we push up we have

this internal structure that's kind of formed a level of demand here so I'll draw that out and we're going from our strong,

higher low, right, pushing up and we're expecting that this higher high is actually weak, right?

The thing is, price then shifts lower.

In this case, it reacts to this demand level.

It doesn't necessarily have to.

All that matters is we actually break this internal structure level, right?

And this is our first initial shift in order flow telling us that potentially this could get taken out too, right?

So it's not the most reliable thing.

There are a lot of other concentrating course, right?

Obviously, you'd be looking for levels of supply up here and maybe with the higher time frame structure and trend are telling you.

But in this case,

right, this internal breaker structure or order flow shift actually predicted in a way that we would shift from

swing structure and that happens here as we break this low and what's our previous higher high

it'd be this right and so this is our new structure range here and we then have a pullback we

create this lower high right and we continue our swing structure as strong highs and weak lows right strong highs we lows.

Here's our new structure range.

And we're expecting again, what's going to happen either the high or the low is going to get taken out next, right?

Price continues to push down, we have another strong lower high, right?

And we confirm our bearish trend, we continue our bearish trend by creating another lower low, right?

So this lower low is actually technically, we're expecting that it's going to be targeted, right, or weak, what happens?

Price shifts up.

It takes out this previous level of supply, right, and we get an internal structure break, or an order flow shift, or a chalk.

Again, whatever you want to call call it.

In phantom, we call them order flow shifts and internal breaks, right?

And again, that kind of predicts that we're going to take out this lower high potentially, right?

It's not always the case,

but in this case,

in this example,

that We then take this weak lower low that basically takes out this previously strong level of supply this lower high,

right, and we shift from bearish swing structure to bullish swing structure, and then what happens?

We just continue to create strong lows and weak highs, strong lows, weak highs, right?

And here are all of our structure ranges.

So again, we're expecting that the highs are gonna get taken out, and that's what happens.

Let's look at the next example.

For the next example here are both continuations as well as reversals.

And are typically where people get faked out, though you can get fake outs and continuations as well, right?

So it's not just limited to this.

These are very simple examples, but I do need to cover this so that you guys understand it properly.

So we're going to talk about pullbacks, which are continuations, right?

Kind of in.

impulsive, corrective, impulsive moves, right?

And versus trend changes, which would be reversals, right?

Where we're straight up reversing, from bearish to bullish in this case.

So let's cover all four examples.

Let me get the blue pen out again.

And let's start with the bullish continuation example.

So we have strong lows, weak highs, right?

Here's our structure range.

We break this previous week high, right?

And then we get a small internal structure kind of continuation here.

We form a level of demand, right?

Price starts to pull back.

That level fails.

And this is presumably where you could start the trade counter trend.

If you were in a bullish over.

overall structure, right?

So we break this internal structure point, right?

That's our internal boss or order flow shift, right?

Price continues its pullback.

You could be looking for shorts here.

And then then we start to push up and now we have a failure of supply based on this internal structure breaking here.

So this higher low breaks up and this is our first shift and possibly the first signal that our correction phase is over, right?

And what price shoots up and eventually breaks this weak targeted level of supply or this high right so

same thing as we were talking about before strong lows weak highs strong lows

sorry strong lows weak highs right and again we have this weak high and so we're assuming that

this is going to happen again right we're going to pull back and continue to break our higher highs

now other thing i want to mention remember again within all of this let me just clear this so it's easier to see this right?

And this all occurred within our structure low and high, right?

This is a bullish structure range.

We're expecting the high is gonna go.

But look what happens inside of it, right?

We have internal structure breaks.

So again, you can play the pullback and you can play pro trend as well, right?

After we get a shift, like this internally within our larger overall structure range.

Now same thing applies for the bearish continuation example,

we have a strong high, a weak low, right, we get a pullback strong high, weak low, and then what happens?

So we form this little internal continuation right of structure, we get a small pullback, it creates a level of supply that.

potentially could have held right and then we're basically going from this impulsive phase to

this new corrective phase like so right before the next impulse down right that's the

expectation of the higher time frame or of our string structure right because we're looking at our internal structure or order flow shift,

the minute that this level of supply fails, we have now started our correction phase, right?

We're now technically we could be playing counter trend because the trend is bearish.

And we're expecting that this low is weak, right?

We are in that pullback phase.

We can look for longs here, right?

So price continues to pull back up, right?

And then what happens?

We have these internal structure breaks, right?

We're continuing to push up.

And we have this level of demand that's formed, right?

What happens next?

This high right here takes out this minor low, right?

This internal structure level, and we get our order flow shift.

considered a change of character.

Now, this can happen anywhere within the structure range, right?

In this case, it's happening a little bit higher up.

It could happen lower down, right?

It happen all the way at the extreme.

In fact, it looks like it tapped into the extreme here, right?

In this example, but But this is officially where the pullback is potentially with the highest probability, right?

Probabilistically, the pullback phase, the correction phase is starting to end and we can look for pro trend shorts, right?

Because this is, structure, and we're expecting that again, our lows are weak and our highs are strong, right?

Alright, so for reversals, it's pretty much the same thing, except in this case, I've included a fake out example with an internal breaker structure.

And this is why you can't trust every internal break or order flow shift or chalk, right?

There are some rules around it.

Obviously, with this, we start with a strong high, a weak low, we pull back, we start to create a strong lower high that again is confirmed as we break.

structured low, our weak low.

And then we have our small internal structure breaks,

we form a level of supply,

we push down, price starts to pull back, right, we started creating our lower low because this is a significant pullback.

And what happens, price initially reacts to this level of supply, it could have just as easily done this, right, what happens instead.

price pushes up, right?

And this is our first internal order flow shift.

So now we are presumably starting this correction phase.

And again, we're still expecting this load is going to go based on this diagram anyways, right?

Again, if you were looking to play a reversal, there would sometimes be a scenario where you might want to, right?

Maybe tapped into a larger level of demand, or Maybe you stop something.

But again,

that's all stuff that is out of the scope of this training I wanted to mention it obviously because there are situations where we will play reverses reversals as well,

right?

But anyways,

this would be our bear structure range,

and this is all basically an internal Basically an internal complex pullback, where we have our internal structure within this range.

So what happens?

Price continues to push up.

And we're obviously making higher highs and higher lows internally with our internal structure inside the larger overall swing structure range.

And what happens?

We formed this level of demand,

this demand level,

gets violated it fails and we have our internal breaker structure potentially faking us out and

signaling to us that the correction phase is over and now we can expect that this lower low is going

to get taken out what happens instead price shoots down and then shoots back up right taking out

this level of supply now right so This is an internal break of structure.

It's a fake-out, this order flow shift.

you know, it was not correct, right?

And again,

the way that you can basically play this is if you had a higher timeframe level of demand

that signaled to you that potentially there was gonna be a pullback or maybe based on the higher timeframe structure,

you had a feeling that there was gonna be a pullback or a reversal,

then you would know not to play, you know, shorts from here, for example, right?

And really what's happening is we're getting a full on reversal.

Same thing applies from the bullish to bearish reversal scenario.

We start with a strong low, a weak high, price pulls back, we break that.

We get these internal structure breaks forming this level of demand, right?

Price then starts to pull back, right?

So this is our what we assume is going to be our correction phase and again We're going to expect that this high is weak,

right?

If there is no level of supply that we're really tapping into to the left again outside of the scope of this video

But it has to be mentioned.

So you guys have some confidence context to work with, right?

So what happens next?

Price then violates this level of demand and we get an internal break of structure or order flow shift, right?

Price continues to push down, right?

We continue in our corrective bearish order flow, right?

Our internal structure.

The other thing I want to mention here is

If these were all four hour obviously your internal structure on the four hour would be your basically your four hour order flow Right,

which is the same most of the time as your 15-minute swing structure So just something to note they're kind of interchangeable in that sense,

right?

So what happens now?

next, price starts to pull up and we actually violate one of these lower highs, right?

So this internal structure, right, fails, right, the supply fails, and we get an internal breaker structure up, or order flow shift up.

But what happens,

it's just a fake out and price continues to push lower and kind of follow the previous bearish order flow after taking this out.

So this will happen.

result of manipulation that happens in the market.

Again, we teach all of this.

This is more of a liquidity concept.

And we teach all of this within the phantom trading curriculum in a lot of depth.

It's a very nuanced subject and topic.

But I feel like we cover it really well.

So you could trade this if you really wanted to, right?

Let's move to the next example.

Okay, moving on, I wanted to quickly include this example of bullish and bearish order flow shifts.

Now, in this case, I'll quickly explain it.

We start with bearish price action, right strong highs, weak lows.

And I've marked out our demand levels as green and our supply levels as red in this case,

so we can actually visualize the shifts in order flow or our internal structure breaks essentially, right?

So we start with bare swing structure.

Obviously, this was a swing point that gets taken out.

So right now we have basically our strong highs and weak lows, right?

This is our current swing structure range, what I've marked out here in blue.

pushes down, we have these small internal structure breaks, this forms a of supply, right?

And this is our first initial shift in order flow from bearish to bullish, right?

So it's our internal structure, what happens, we now have demand start to take control, right?

And we're now starting to create higher highs and higher lows, internal inside of our larger overall structure range, right?

It's very important that we keep that in mind.

This is not swing structure what I'm marking out.

It's just order flow, right?

Price pops up, it taps into a 15 minute zone.

This is technically a 15 minute chart.

I'll mark that out here.

That's why I have this zone marked out as such, right?

And what's our expectation?

We have this week low and we're expecting that low to go next, right?

What happens?

Price pushes down, right?

We start to react to this level of demand,

telling us that potentially we could continue to respect demand the same way that we were previously, right?

This is technically our pullback phase, right?

Impulse correction, impulse, we're expecting the low to go.

What happens next?

Price violates that level of demand, right?

And this is our first initial shift right here in order flow before the actual true break in swing structure,

which would be the break of this previous lower low.

So let me clear the drawings here and make it a little bit cleaner, right?

Again, here's our shift.

shift from bullish, right?

Because we're respecting demand and violating supply to bearish where we start violating demand and respecting supply, right?

So you guys see how it shifts over.

And then what happens?

We're still bearish, right?

And our swing structure is still like this.

But what can happen?

We can also correct right?

So you could have bearish order flow and bearish swing structure like we do here,

or you could have bearish swing structure and a bullish order flow as your correction, right?

So corrections can go pretty much both ways.

It doesn't matter if it's bullish or bearish, bullish order flow, bearish order flow within your larger overall bullish structure or bear structure.

So what happens next?

We actually have demand kind of holding here.

So price is actually compressing, because price is now respecting both sides.

So we're respecting supply.

Overall, what do we expect to happen in this case?

Because supply is in control, we've obviously previously violated a of demand.

and our structure is actually bearish.

We're our larger swing structure range here.

We're expecting this lowest week.

What happens?

This demand then fails, right?

It held temporarily.

It then fails.

We get another pullback and we start to continue.

I mean, we continue to respect our supply here, right?

And so our expectation order flow pretty much plays out, right?

So that's bullish versus bearish bullish versus bearish order flow.

And this is an example of a shift in that in a bearish market.

Alright guys, moving on, let's cover the two types of structure mapping.

Let me pull my pen tool out here and let's cover type one first.

So with type one, start with a low, we build a high as we push up, we start to pull back.

And as you can see, price shoots up and actually violates this high, right, or this level of supply.

But because we're using type one mapping, we're basically waiting for a candle closure.

to define a structure break.

And this case, we don't actually break that high, we wick it out, right?

So we're technically taking this liquidity out, and we're pulling back deeper, essentially, within this structure, right?

So this is our structure range, you can see that we wick it out, price then pulls back deeper, right?

So and by the way,

this is why we don't won't confirm this is our higher low,

right, because we don't know how deep we're going to pull back within the structure range, we could pull back all the way to the very

extreme, or we could pull back to, you know, a decision like this, right, in this case, it's a wick.

But essentially, we pull back, we start the form that higher low again, it's still not confirmed until we eventually break that week.

high that we're expecting to go right and what happens this price or this

candle closes above that previous week high confirming this higher low right

and the same applies to the bear scenario we start with a high a low,

we pull back,

we wick out this low,

right, essentially grabbing the liquidity from below this low, we pull back a deeper, right, and then we start forming a lower high,

which again is confirmed as price shoots down and actually closes below the previous low here, right.

So this is typically used,

you know,

type one is typically used by, I would say 99% in phantom, including the coaches and the community on the higher time frames, right?

We all use it for, you know, the daily, the four hour, the 15 minute, right?

Where we actually apply type two, where we're looking at a break of structure that is essentially, you know, the fine body.

by any violation of supplier demand,

right, where we'll also count wicks, right, is typically on the lower time frames or when we're looking at internal structure, right?

So when we're looking for that shift in order flow, the change of character, the chalk, the internal boss, whatever you want to call it.

This is where we'll typically use type two mapping.

So there is a use for both of them.

Some people only use type one, even on the one minute, right?

But this is very useful on pretty much any time frame where you're looking for an internal

structure break looking for that shift in order flow to potentially signal that price could shift in direction from an intraday bias,

right, or even on the higher time frames.

This also obviously applies to the one minute when we're looking for our entry models.

that violation of supplier demand.

So with type two, we start with a low, a high in this bullish scenario, right?

What happens, we pull back right, we start forming a higher low, right, we start to push up.

And look, we eventually technically break above it.

Why?

Because we have this level of supply that is getting violated, right?

So this is potentially signaling to us that price is going to continue to push up from here, right?

What happens next?

This higher low was pretty much weak based on this price action, right?

It gets swept out.

And as it's getting swept out, we actually break below, in this case, right?

So with type two, it could either wicket or it could close below or above.

that previous low or high, right?

So you can see in this case, right?

We actually closed above it in the bearish scenario.

Same with this, we're closing below here in this bearish scenario, we're closing above, right?

But the point is, with type two, it is a little bit more sensitive, right?

We're viewing any WIC violation.

a break of structure right so the other way that I want you guys to quickly visualize this because again

This is very useful for when we're mapping out,

you know changes of character or internal breaks or order flow shifts Right,

so you have your supply here that gets violated right or supply level there same with this right?

We have this demand level it gets violated, right?

And then we have this supply level that it that gets violated as well, right?

So that's basically how we're viewing type two mapping again

for the lower time frames and for

Basically mapping out

Violations of supply and then it is a very useful tool for that when we're looking more so at swing

structure we want to typically stick to type one.

I really don't think there's any way that uses type two for swing structure.

There may be maybe like, you know, 1% of people in Phantom that do that.

But for the most part, we all stick to this.

All right, moving on, let's take a look at this example of the daily chart where we're actually mapping out.

live structure.

So we start with a strong low, we push up, we get a pretty significant pullback, right?

The reason we're counting this as a pullback also is because look, it takes out this internal structure point.

So we can view this as a higher low, this price continues to push up.

Now, structure is a little bit tight on this, but obviously we have very corrective bullish prices.

price action here, it's a great example of what we would consider structure points, despite the fact that it's pretty subtle, right?

We take out our next swing high, right?

So our structure,

our structure ranges kind of look like this, and we push up, and this is our new structure range from here to here, right?

So within this, all of this is just internal structure, right?

We're not really counting it.

Not really counting it.

And because we're going to use type one mapping for this example, right?

It is the daily after all.

What happens next?

We have our high here and what happens, it gets wicked out, right?

Price fails to break and close above the previous week higher high.

We're expecting this high to go, right?

This is not considered a break of structure.

In fact, we're almost viewing this as a sweep, where we're almost expecting that price potentially may move in the opposite direction.

And happens?

Price starts to shoot down, right?

It kind of plays around for a little bit, and eventually we get a break, right?

So we've now created a new structure range,

so as such right where we have this high and this low and now we've obviously

breaking or sorry we've broken this previous high or low shifting our

bullish structure to now bear structure right so when a lower

high breaks a higher low So as I just mentioned from previously bullish swing structure slash trend,

we now have an initial shift from bullish to bear swing structure.

So that's true.

Right.

And again, here's our structure range.

What happens?

We're expecting either the high or the low to go, right?

We've obviously just switched or we just shifted swing structure.

We haven't actually established a trend yet in order to establish a trend we need at least two or more.

in the same direction to confirm that trend, right?

So what happens next?

We still have a weak low here based on the fact that we shifted structure, right?

Or our swing structure.

What happens, we get a very significant pullback here, right?

And then price.

pushes down, right?

So quick question for you guys, you're probably wondering, why is my lower high not like up here or something, right?

There's actually a for it.

Look at our previous structure range, right?

It's like so.

And then look at this new structure range, right, as we break, right?

We break and the reason we're picking this is because it's before the previous lower low.

This is, or sorry, it's after the previous lower low.

This lower high here is before this lower low.

So it doesn't really make sense to mark out something behind it.

You're to have structure that's just way too loose if you're marking it out that way.

So it's important that you mark out the right structure points as I've kind of mapped out here,

right, in this example, again, we'll cover it in the live examples in a little bit as well.

I'm going to try to find some really challenging price action to mark up so that you guys get like a good.

variety of different scenarios to basically play with and study and practice within, right?

But anyways,

we break this weak lower low,

and once we define a new lower high,

right, up here, by breaking the previous lower low, which is this right here, we have now officially established a bear chain, right?

Because we we've now had two structure breaks to the downside for swing structure, right?

What happens next?

Price pulls back.

Right plays around a bit eventually we take out this weak lower low as we expected confirming this lower high Right,

and what was our previous structure range our bear structure range was as such this lower high and this lower low within this range What is the highest?

Level supply or pivot point that we can kind of select as our lower high Well,

it's this one and the reason why we use this as our lower high instead of the one to the right This one here,

right is because it's the highest pivot point before breaking the previous lower low here, right?

pulls back,

and then our expectation of what string structure is going to play out as, right, continuing with strong highs and weak lows plays out.

All right,

guys, moving on to our last example, this is a really great example, where we're actually going to show you guys

some of the orderful shifts and basic our string structure breaks on a four hour chart.

This is kind of like tying all the concepts together.

So you have a good idea of how to identify structure from a basic level, right?

So we start with a low here, we push up, right?

We get a significant pull back here.

Why are we counting this?

Again, because look at it relative to the size of the overall move, right?

Let me switch to a blue marker again so we stay consistent with it.

We have our low, push up, pull back, push up, and so our string structure looks like this.

Our string ranges.

We have this high, this low, we create this new higher low that's supposedly protected and this new higher high, which is supposedly targeted.

targeted, what obviously happens is price then pushes lower, we get our initial shift in order

flow where we have a demand level,

an internal demand level or internal piece of structure fail,

right, signaling to us that potentially the pullback phase of this bullish price action or bullish swing structure is starting, what

happens we continue to push down and eventually we break the previous higher

low with our supposedly targeted or weak higher high so we've now shifted from

bullish swing structure to bear swing structure right what happens next let me

quickly clear the drawings here so we keep it clean right price pushes down and this is our new structure range, right?

Again, we're not counting any of these as structure because they're just so small relative to the size of the actual move, right?

Our move is like this, right?

And if we're gonna count these, we're gonna start counting these as swing structure.

We're gonna start thinking that this is bullish when in fact it's actually bearish overall, right?

So little thing to be weary of and be careful of,

try to play within your structure range, and only count it if it's a significant enough pullback, right?

In this case, because we actually shift from bearish, right, to bullish, right, we're taking out a level of demand.

The demand was previously in control.

Our internal structure and order flow have shifted from bearish to bullish, right?

And...

that basically indicates to us that our pullback phase has started, right?

So you could look to take longs here.

What happens next, obviously this is a large enough pullback that we can start to view this as a potential lower high.

Again, it's not confirmed until we take out this previous lower low that is now

targeted or weak, but then we have another shift in, internal structure or order flow where we have a demand level, right?

We take this high out,

we then take the low out and violating that level of demand,

potentially signaling to us that the correction phase, right, in our impulse correction and impulse phase is starting to end, right?

Now, this one's a little weird, and this is part of the reason I picked it, we actually

get a very corrective,

like, I mean, really, we get a lot of shifts in order flow back and forth, but we get a very corrective pullback face here, right, where it's kind of faking

you out back and forth, right?

So we get basically the shift to bearish order flow.

price pulls back within it again remember this is our larger overall or

sorry this is our larger overall bearish structure range right so we want to play with that.

But potentially this is where you could look to play shorts, right?

You could look to play this and kind of hold it, right?

And then look, we get another shift in order flow again.

Again, we were basically stuck within this larger overall range, right?

Price continues to range.

We shift from bearish to bullish, right, because we violate this level of supply.

Supply was obviously in control here.

Until then, And then we've shifted bullish and you could presumably look for longs within this range, right?

Look for a long there,

hold it, right, TP it price, then, you know, obviously we have demand and control supply being violated, price shoots up.

Then we get this level of demand that, you know, technically should have held.

It fails, right?

This is all internal structure.

By the way,

I just want to keep on reminding you guys that these are our larger swing structure points and we're playing the order flow within it,

right?

What, what happens next?

We then have the supply level fail, right?

So maybe you could look for shorts, but it's honestly pretty short lived because price then violates supply as well, right?

So we violate the man violates supply and then what happens?

Price shoots up, looks like it taps into something here, right?

And then we get another shift in order flow from bullish, right?

Because we're violating this level of supply here, right?

And respecting technically this level of demand, right?

We go from bullish to bearish order flow as you get this internal structure break from bullish to bearish, right?

So now we have supply holding again, right?

Demand failing and we're technically we're pro trend here.

This is ranged for quite some time.

We've seen some liquidity sweeps and stuff again We'll nugget for you guys there right and what happens price shoots down you could look to potentially take shorts

here after the actual shift in order flow and What's targeted here?

What's our weak low this lower low here right and eventually we get ourselves?

of structure, right?

What happens next?

Now we can look within our previous structure range.

So let me quickly mark that out.

You have this low and this high.

and we are going to select this lower high because within the entire range and we could technically pick this one

But this one makes more sense to because it's it's very like prominent, right?

We're gonna pick this lower high because within our structure range.

It's pretty much the highest point, right?

There's obviously an order show order flow shift that happens after it.

It's sticking out there, right?

So we're gonna view this as our new lower high that is confirmed as we break below this now

You're probably wondering is this enough conviction to view it as a show?

For me, I would say so, right?

We get a full candle closure right below it.

Yes, relative to the overall move, it doesn't look like much, but to me, this is enough of a structure break.

We do want to be loose with it, but at the same time, we want to keep a pulse on swing structure, right?

And to do that, we're going to view this as a structure break, right?

If the candle closed like this,

I would not view it as a structure break using type one mapping, but as long as it closes somewhat below it, right?

And as long as it's not wicking it and coming back and closing above it.

I can view this as a structure break, right?

So our new structure range actually looks like this, right?

This high and this low, we're expecting this low to go.

What happens, we get some internal structure breaks and order flow shifts.

We get a quick correction phase where we're pretty much corrective.

We get a little bit of bullish order flow, we then shift back, bearish, and then what happens next?

Look, again, we close below the previous week lower low, right?

Same thing happens.

directive, order flow shift bullish, right, in our bearish swing structure.

And then what happens,

we confirm this lower high as we break lower,

right, and what happens next, right, then we actually have a shift in bullish to bearish bearish price action as price pulls back and takes out this previously protected or supposedly strong lower high, right?

So we then shift up and then we shift down.

Now again, this is on the four hour.

I want you guys to remember obviously that the daily, the daily is going to look a little bit different.

I am again going to show you guys an example on the live charts,

but presumably your daily would probably look You know something like this right it may align that happens sometimes daily and for our kind of line

But you'd probably have it something like this right or maybe a previous low right

Where it is bearish right and your daily structure would be basically within this range right and despite the fact that we get this bullish

structure shift or swing structure shift, right?

Overall, our daily is bearish, right?

And what happens, we're just tapping into a decisional level within this larger daily range, right?

before we continue to push lower, right?

So we're going to cover multi timeframe structure analysis in the next video, that's what the advanced structure training is about.

But I wanted to touch upon it quickly here.

And yeah, let's move on to the actual live charts, I'll show you guys some quick structure examples on an actual chart through bar replay.

Alright guys,

our first example here is going to be on pound dollar on the daily chart, I've pulled price back to What is this April 16th?

I don't know April 2016.

So six years ago roughly Let's pull out our daily tool here and let's just start marking out structure

So I'm gonna begin with this high here.

This to me is a very shallow pullbacks We're not gonna count it and this is my current structure range.

We are bearish, right?

So we're bearish.

We pull back quite significantly.

And do we close below the previous lower low or previous low, weak low that's targeted or weak?

Yes, we do.

So this would be our breaker structure here.

And this would be our lower high.

So I'm going to mark this as.

a boss as such and let's continue.

So our new structure range now on the daily?

It would be this high in this low.

And what happens next?

We in between the structure range, expecting that this low is weak and what eventually happens?

Well, look at that.

like we don't quite close above.

Now, if this were type two structure mapping, yes, we would count it as a structure break.

But again, most of us use type one, especially on the higher time frame.

So I'm going to view this as a sweep.

Right.

And what happens, price shoots down the other way, let me mark this as liquidity really quickly.

So that high gets taken out but not closed above with much conviction and then what do we have?

We have this next high which you could say closes above it but still not much conviction

and it doesn't look like we even really get close to this high either.

So you're still within this structure leg, I'm still expecting it.

this load is gonna go.

Now, I'm gonna play price forward a We're still caught between our structure range, as I mentioned previously, but what happens next?

Okay, now we've actually broken above.

And this is where we can look to actually see our shift in structure.

So our structure range was this.

We waited until we got a high conviction, close above.

Right.

So there's our structure range.

We now broke above it.

I can now mark this as a breaker structure here.

Right.

Whoops.

And we've obviously closed above it with a lot of conviction.

Now we can look back between our previous structure range, which again would be this high and this low.

And where was our lowest point?

Well, these are pretty much equal lows.

You could call this one.

I'm just gonna bring it to here because they're pretty much the same level This is my new higher low, right?

So we've now shifted to bullish structure.

What are we expecting now?

Right some sort of a pullback.

This is a really big pullback.

I believe this was some type of news.

I mean we could check it But obviously you know, we've shifted up and then now we've shifted back down to bear structure, right?

So we've actually made a trend change from bullish to bearish.

And now we're gonna wait for a another Um,

another change,

or sorry,

another pullback so that we can start identifying our lower high,

anticipating that this low, if we do get a pullback from it, is going to be our week low, right?

So we basically had this structure range, right, our low got taken out, and this is our new high.

Let's see if we get a proper pullback, or if this really just continues to shoot down.

So I wouldn't call that a pullback really, it's just a few candles.

This is starting to be a more see if it sweeps this to,

and then we can really count it as a pullback, anticipating that these lows will probably go as well.

So I'm just going to skip through price a bit, skip through price, very clear pullback here, right?

But this is our current low, right?

We're going to consolidate this whole thing as one leg, and this is our current structure range.

So we've made enough of a pullback that I can count this whole ranger that's being formed as a pullback,

and we don't quite know where our lower high is right remember we don't confirm that this is a lower high until we actually break the next lower low right in a bearish trend.

So let's see what happens next.

Okay, now we've actually broken it.

So what we're going to do is.

again is we're going to look between the previous structure range for the highest point in a bearish market, right?

So where would that be?

I'm going to say that it's actually right here, right?

You could even say it was here, but I think it makes most sense.

We'll put it here.

Why?

Because price in theory.

Could right based on this or could have come back and retested this and that is what happened

Right so and and even now right we have this current range

here So from this high to this low as we get a pullback price could come and sweep this and retest the remaining part of this

We like it's totally possible right so again in a bearish mark choose the highest point before the actual structure break.

So this would be our boss, right?

Our breaker structure, swing structure, continuing the bearish trend.

So now we're gonna wait to see if we get another pullback and continue our bearish trend.

Got a pretty big wick there.

This is where I would start classing this as a pullback.

If we take a take that low out, right?

Again, I'm expecting this low is going to be weak, though we are low in the leg, right?

Again, there are certain nuances that you kind of have to be aware of when you're mapping out structure is very possible that the structure could shift, right?

We could also look at internal structure, ie this supply level and see if it gets taken.

And that means signal that we are going to shift into now bullish structure, right?

So remember, our structure range is like this.

So let's see if we take out the higher, take out the low next.

Okay, we're ranging in between it.

We're ranging in between it.

it, ranging, ranging, and until we take out that higher that low, so we've taken out the high now, right?

I'll actually mark it out so you guys can see it.

Now we can actually class this as bullish.

We had bullish order flow or internal structure right which is really just four-hour swing structure in between all of that

Right did we close above the previous high or strong protected high with a strong conviction candle close?

Yes, we did right now.

We can look at the previous structure range to see what was the lowest point So if it was from here to here,

I would say it was right here, right?

So is our new Higher low and we've created a higher high.

This is now another, you know big enough pullback.

Let's take out highs and continue bullish structure from here.

Okay, and we do, right?

So same thing.

This is be the last example on the daily

and then we're gonna switch to like US 100 or something to give you guys some variety.

But essentially, we have broken that previous high, right?

Like said before, we got a pullback, right?

And then we're happy.

happened.

After we made this pullback, we started forming a higher low, a protected higher low, because we're in bullish structure, protected or strong.

You could anticipate that this is a strong piece of structure or pivot point.

It is kind of a range, so we're going to pick this low, and what happens next?

We break this high confirming our higher low.

Right?

So pretty simple, pretty mechanical.

There's not really any discretion in this.

It's not a subjective thing.

We're sticking very strictly to the rules, right?

And structure is now bullish, right?

And what's our new, our new structure range?

So our previous one would have been this, right?

And what happens, right?

We pull back, we break up, right?

It's kind of like this.

And our new structure range is like this, right?

Now again, we have a floating higher.

So potentially this is going to continue to push it up until we get a significant enough pullback, right?

So I'm going to give you guys a really quick nugget on this as well.

I'll use my brush tool to illustrate it.

things that we look for in a pullback to classify it as a pullback is something

like this this pattern right here right as long as we take a high out or we get

an internal structure breakdown and then you break that high we can class this

as bullish swing structure obviously the bearish variant of that would look a

little something like this but this is you know a classic look at what swing

structure would look like and you can use that as a pullback right now it does

have to be significant enough if it's a really tiny pullback kind of like this

we're not going to class it as a pullback right so if we continue to push up

higher then I'm not going to count it but look now we've taken this out right so If we take this high out,

not only do we have a significant enough pullback, we're also taking out this internal structure low, right?

So let's see what happens next.

Okay, price actually sweeps this one as well.

So we're going to copy the line here.

And class that as a sweep not a break of structure, right?

Because again, do we have any conviction behind that candle closure?

And we don't even close above it.

We wicked, right?

So presumably what's going to happen next?

We're going to pull back, right?

And that's what happens price shoots in the opposite direction.

Now, are we still within our larger over overall bullish structure range or leg?

The answer to that is yes, right?

We have this high, we have this low, I'll delete this one now, because obviously we pulled back significantly.

And now we're just waiting for either the high or the low to go.

And what happens, we take the low out.

So now we've shifted to bearish structure, right?

And same thing, what are we going to do?

We're going to look between our previous range and in this case because it swept it.

We're going to use this as our high, and this as our floating low until we get enough of a pullback.

So there you go.

That's a quick look at daily swing structure on town dollar.

All right, guys, for our final example, we are going to look at US 100 on the four hour chart.

The reason I'm showing this,

the NASDAQ is just to give you guys some variety between some of the different instruments that you could play with.

Obviously, Forex pairs, they are currencies versus currencies, meaning that they tend

to oscillate a on the hour time frames,

whereas if you look at US 100,

the NASDAQ,

you're we obviously have very bullish price action,

they tend to trend up most of the time, unless the economy is weak or we're in a recession like we are right now.

So the reason for that,

obviously I'll quickly explain is just because these stocks and equities tend to trend up because people invest in them, they're investment vehicles.

Whereas Forex, they're not really used.

I mean, forest buyers are not really uses investment vehicles much.

I mean, you can swing trade them, but your average investor is not buying, you know, the pound against the dollar, right?

It's just not something that people typically do, right?

So it's in everybody's best interest for,

you know, indices to continue to trend up, because again, they're looking to make money on their investment, right?

So the other thing I'm going to show you guys too, we'll go back down to the four hour here.

I pulled price back to October of 2021.

The reason for that is I want to get some trend changes in here.

So you guys are going to get a few of them.

The other thing that I want to do is we're going to use lines to denote our actual will previous structure ranges.

And reason for that is just obviously to help you guys understand a bit better.

I didn't do it on the daily chart, but let's do it on this one.

We'll just make these lines make it nice and clear, right?

And so here is our current structure range, right?

So we have a high, a low, lower, high, lower low, right?

And what are we going to look for in between it?

So I'll just mark these out.

This is our current structure range, right?

And this is our new structure range as we start to pull back, right?

So within this, I'm basically looking for a significant enough pull back.

back to call it a pullback, right?

In this case,

okay, so we start with our high, then we have our low, remember, this is the four hour price pulls back significantly and then

pushes down takes out our week low as it closes, right?

You guys can see it closes quite significantly with some conviction below this previous lower low.

And then after that, we get some shallow pullbacks, shallow pullbacks, not enough to count it as swing structure.

told you guys before I want something like this right or some sort of significant pullback

like so and we don't get that until right around here let's see what happens hopefully

we take that high out but I think we can count this as structure just because look

we have one two three four five six candles so that's quite a lot of structure there.

I say we count it.

Let's mark that out.

So we have this high, this low and our new structure range is like this, right?

Our previous structure range would have been like this.

So this is where structure is starting to get a little bit tighter, right?

I'm just going to keep drawing these out and trailing or like leaving our previous structure ranges of

up so you get an idea of what's happening.

So we're now within this range and we're waiting for either the high or the low to go.

And what happens, we close above this previous lower high, shifting structure from bearish to bullish, right?

And within our range, where is our lowest point other than, you know, the low of the range itself?

It's gonna be right here, right?

So I'm gonna trail it like that.

We're gonna move this over a right?

This would be our structure break bullish.

And then let's take our pen tool and do like so.

So right now, we're obviously in bullish swing structure.

What we're waiting for now is a significant pullback.

So really this high is floating.

I'm just gonna leave it up here.

continue to push up.

Maybe it'll pull back in a shallow manner.

Now it's pulling back pretty significantly.

Now I can view this as a weak higher high that I'm expecting to go, right?

Because we've shifted now from bearish to bullish swing structure.

And if we take that high out, you will have established a bullish trend.

Okay, so we take it out and we close above it, right?

So now we view this as our weak higher high that now has been taken out.

And within this range, right, what is the lowest point other than this low here, be this one, right?

So now we can trail our lower hot or sorry, our high.

low above and we have now a floating higher high and we've established that bullish trend.

Alright, so again, I'm going to leave it up here because price could continue to push up.

I'm going to wait for a significant enough pullback.

This is not enough for me.

Sure, it's like 10 candles or whatever.

But are we making that pattern that I typically look for?

No.

So to me, this is all just one structure like still till we get a nice and significant pullback.

Okay, that that is a pretty significant pullback.

And look, we've taken this out, right?

So again, that's what I'm looking for is some sort of internal structure break with type 2 mapping to class this as a true pullback.

And Now that we've done that,

you can see that we've taken this high out,

I would view this as enough of a pullback,

it's just enough, honestly, and we can view this as our new confirmed higher low, we're continuing the bullish trend.

Excuse me,

so We're now within this,

our previous structure range is as such,

and again, whether we have a floating high, and we are continuing to make basically strong lows weak highs, right?

So we're going to keep pushing up.

This one I would not view as a break, it's just too shallow, there's not enough conviction.

And again, the pullback is way too shallow, so we're going to view this as one leg still.

still one leg.

I don't really see anything like we're really just fading up, right?

Price is making this sort of pattern.

So I'm not viewing any of these as structure breaks yet.

This is all just one floating high or high.

And until we get that deep enough pullback, I'm not going to count this as a structure break.

So we're continuing to push up push up.

I don't really see anything that I would class as structure.

Okay, now we have a significant pullback, right?

So now we can actually place this here.

And if this high gets taken out,

or this low gets taken out,

right, slow take gets taken out, we shift to bear structure, right, if the high gets taken out, we continue our bullish trend.

So let's see, we're going to range for a little bit.

Right, and then look what happens.

We take the high out as we expected within our larger overall range Right before our previous high.

What would the lowest point be in the range?

It's gonna be this one right here Right, it's pretty obvious.

It's sticking out like a sore thumb.

What is the obvious higher low here?

Right mark that out.

So then we have this right.

This is our bridge of structure up for swing structure and we can call this our next low.

So we're now waiting for that low to get taken up, right?

So this is an exercise that you guys can do if you want to practice this.

And honestly, if you're marking out charts and you're still struggling with structure, use these lines.

There's nothing wrong with doing it.

Just maybe delete them afterward once you've marked out your structure.

You know, the markers or leave them on.

Do whatever you need to do in order to make it make sense for you, right?

So obviously we've pushed higher.

I'm waiting again for a deep enough pullback.

There we go.

We've started to get one, right?

Any like large pullback like that, we're going to class as a pullback.

And potentially we can view this as our now targeted higher high that is weak.

Right, so we're pulling back.

We're within this range.

The other thing that can happen is this low can go right Obviously,

we get order show order flow shifts up and down within the range.

That's something we're gonna cover more in The advanced training video now.

Do we close below this previous low here?

I say we do it looks like relative to the larger overall move,

there's enough conviction behind that for me to class it as a structure break.

You can see that overflows off.

It shifted bearish.

We're getting like a chain of supply here after a sweep, right?

Again, some more nuanced stuff that you can look at.

So we get our close there and let's mark this out now.

Between the previous structure where again with the highest point in this bearish structure remember because we broke a

Supposedly strong low with a weak high right so within this structure like what are we gonna look at?

This one again,

maybe it's not so obvious for some of you But it's gonna be this highest point within the previous structure range right we've now broken lower and

now we have a floating low, right?

We're waiting for a decent pull back here.

So until we get that I would say now we're kind of forming a good enough pullback.

We can actually view this as a structured break.

Why?

Because look, price is doing this, right?

Like that.

So to me, because we took something out and then we pushed lower, right?

We got an internal structured break in the opposite direction, essentially, right?

Kind of sweeping up and down.

We can view this as swing structure.

And this helps us keep a pulse on the current structure, right?

If we're too loose about it, then we're not going to have enough structure changes and we may be marking out structure incorrectly, right?

So pretty important that we mark stuff out.

previous range would have been like this, right?

And again, why are we marking this as our new lower high?

Well, again, the reason is between this range, range, this is pretty much the highest point within it before the actual break, right?

It doesn't really necessarily matter whether or not the high breaks the lower or not, or the low breaks the high in a bullish scenario.

What matters is that it is, you know, the highest relative point within the previous structure range.

So just keep that in mind.

Okay, so we pushed lower, we've now got a trend established.

two levels of demand, or basically we've broken to the downside twice, right, two breaks of structure, some structure.

And look, now we're getting another significant pullback, right?

So again, I'm going to pull my my pen tool out here.

Now I can define this as a pullback that is starting and potentially we have a weak targeted lower low that we

are Expecting to go next right so we can kind of view it like so.

This is our current structure range Okay, and now we've shifted higher, right?

So now we've broken structure to the upside right potentially on the daily This is all just one structure like remember right again.

We'll cover this in the advanced training, but based on that we're now bullish and what's our new higher low, right?

That broke our supposed protected lower high.

right, would be this one right here, because within the range, this is the lowest point, right?

So we've broken, now we wait for a pullback again.

Okay, now we've started to develop a pullback.

Again, this would have been our last break of structure.

So I'm going to call this my high, we're pulling back look, we're taking out a an internal low like that.

So, you know, that is a significant pullback to me.

So if we take out this high now, then we're going to continue this bullish structure.

If within this range, I mean, we continue to break internally, those are structure breaks, right?

And if we take the low out, sorry, the low should be here, then we can view that as a bearish break, right?

Let's see what happens.

Okay, price is kind of respecting that high.

Oh, now it's popping back up.

Did we close above this?

No, look, we're sweeping it, right?

So again, this could be an indication that we're going to shoot in the opposite direction, right?

And if we take into account the daily, it's going to make a lot more sense.

I promise it'll make more sense in the next video.

To the downside, it looks like we swept it.

We're probably going to pull back again, right?

So we do not have a structured break yet here.

This is actually a really great example.

We're just waiting.

the highs and lows.

So until we close above the high with conviction or below the low with enough conviction, we're not classing that as a structure break.

And look what happens, we swept the high, swept below.

And now we finally have that structure break above our previous high, our weak high here, so this high.

right technically is a higher high it's targeted it's weak we broke it here and

Now we can readjust and mark out our previous low So because we were in a range and we swept outside the range,

but then close up You know above it in this case in this bullish scenario.

We're just gonna mark it as this lowest point here right?

The sweet.

That's totally fine.

Nothing wrong with that.

Now we'll wait for another pullback.

I would say that's a significant enough pullback.

Look, we're pulling back quite deeply.

So if this high gets taken out,

remember, we were kind of floating until we got that pullback, then we're technically stuck in this range of price action right now.

So price is actually in a larger overall range, as you guys can see.

And what happens, we take that low out, right?

So we'll do a couple more examples, right?

We took the low out, right?

Which would have been right here, right, the previous low.

And if we look back between our previous structure range,

what is going to be our lower high now that we've shifted structure back bearish, right?

We're kind of whipsawing back and forth, right?

We're in a daily range, obviously.

For me,

it's going to be this high here, because it is the highest significant point within our previous structure range before the actual break, right?

It's not going to be this high, just because it broke it.

It's not going to be this high.

Otherwise, your structure is going to be weighted.

too tight.

It's very possible price could come to one of these decision levels and respect it and continue with bearish price action.

So now we've got another pullback, which we can basically define our low as, the pullback is starting here.

And same thing, I'm going to mark this low out, and this would be my current structure range.

So we're caught between those two levels.

This low and this high, the low gets taken out as we you know kind of expected because we were in bearish price action, right?

And now we'll mark this out as the last one, right?

What is our previous higher low, the highest point within our bear structure range?

It would be this high, right?

And obviously we broke below it here.

Got a significant pullback.

That's essentially how I would mark out the four hour on us 100.

This is a fantastic example.

There's a through some curve balls at us.

Alright, everyone, I hope you all enjoyed this structure training video.

We obviously covered a ton of things on structure went super in depth.

covered a lot of the different nuances that you need to really approach this from a mechanical way.

And you know,

I'm hoping that What way you trade whether you're a retail trader or you trade SMC or supply and demand the way that we teach within phantom

I'm hoping that this improves your strike rate gives you more confidence in your positions and trades that you put on and of course,

I'm hoping that you're able to catch higher our trades because of it as well If you want to learn how to trade the way that we trade within phantom,

I urge you to check out the core Of course,

you can join for only $147 a month, which is honestly less than $5 a day.

I this is one of the best value courses and communities that you can get into to learn

how to trade supply and demand smart money concepts.

Obviously we cover things like structure, liquidity, supply and demand, our entry models and everything, right?

And on top of that, we actually also do two live Zoom sessions per week.

One of them is run by one of the team members and one of the founders.

The other one is run by a couple of the team members.

All of the team members are funded and we're all real traders.

We actually trade for a living.

And I also actually do a bi-weekly live back testing Zoom call myself within the community.

And of course, Phantom trading membership.

You'll also get access to our exclusive discord training.

We also update the course pretty regularly.

We have have weekly market commentaries that are done by one of our team members, BlackWatch, as well as trade recaps.

And the core course itself is updated somewhat periodically in order to keep everything fresh.

And you know,

we're really just trying to create a learning experience that is conducive to your success as a trader, try to make it simple and easy.

Learn how to trade supply and demand smart money on concepts.

So that being said I want to thank you guys again for watching this video and be sure to check out the advanced structure training video

Which we are gonna put out next on the phantom trading YouTube channel

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