Notes
- Market structure isn’t just about recognizing trends; there’s an underlying narrative the market follows, which involves liquidity and imbalances.
- Market structure alone isn’t enough to understand price movement.
- Classic vs. Institutional Market Structure:
- Classic Market Structure: Focuses on support and resistance lines, but these can often lead traders to miss significant price movements.
- Institutional Market Structure: Looks at price action through the lens of liquidity and imbalances rather than traditional support/resistance.
- The classic retail way of assessing market structure involves monitoring these swings:
- Higher Highs
- Higher Lows
- Lower Highs
- Lower Lows
- When Michael starts analyzing charts, he first looks at them through the perspective of candles without wicks. He does this because he believes that most of the volume traded is in the candles’ bodies.
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