So, let's talk about market structure, so market structure seeks to answer this question: what to do right? What should you do in different market conditions? Should you be looking for buying opportunities, selling opportunities or to stay out of the markets? So the way this works is that market structure it helps you to define the current market condition, so you know whether to be buying selling or staying out of the markets makes sense. So how do you identify right, market structure or if you want to phrase it right? How do you identify the current market condition? Well to do it right? There are two techniques i want to share with you and bear in mind. There are more than two ways to do this, but i just want to share with you two useful techniques, because if i share with you too many techniques you get overwhelmed, you get confused and you give up so i'll just share with you, two useful ones: number One candlestick chart and number two moving average. So let's have a look at this too right in more details.

So, first and foremost, let's talk about candlestick chart. What exactly is this so candlestick chart is a method of reading a price chart. So it's not the only way to read a price chart. You can use things like bar chart, renko chart, etc, but we will stick to candlestick chart for this.

This training and a candlestick chart it consists of individual candlestick patterns. So candlestick patterns is something that you are probably familiar with. It looks something like this: this is one candlestick pattern could have a little bit of upper shadow and lower shadow. Sometimes this could even be you know.

Let's say a darker color one could be like. Let's say in this case black color or even red to signal uh lower close right - something like this. So this is what we mean by candlestick pattern. So a candlestick chart consists of many individual candlestick patterns.

So it's just like a forest consists of many individual trees. So we will talk more about candlestick patterns later on, but for now this is kind of like the macro, the big picture i want to share with you. How do you actually use candlestick chart to identify the market structure so first thing: first right identifying market structure using candlestick chart. So there are three types of market structure you want to pay attention to number one is an uptrend.

This consists a series of higher highs and higher lows, so it looks something like this price hits higher makes a pullback breaks out, higher, makes a pullback and then breaks out higher. So when you take a step back and look at this, you can see a series of higher high higher high and higher low higher low make sense. So this is what we call an uptrend next one we have what we call a downtrend, so this is in essence the opposite. The price is heading lower over time, so down it makes a pullback heads down lower, makes a pullback heads down lower.

So if you look at this big picture wise, you see a series of lower high, lower high and lower low lower low, and finally, we have what we call a range market. This is where the price is contained between the highs and the lows kind of like getting stuck in a box. So, let's say, price goes up, comes back down, goes up, comes back down, goes up comes back down, so you can see that it's stuck between these highs and this lows - and this is what we call a range market. So let me share with you a few chart.

Examples right, so you know what we're talking about so first one here. This is the chart of s p. 500.. Let me ask you: what is this market structure? Well, i hope you can see that this is a uptrend.

Why is it an uptrend because you see a series of higher lows, higher low, higher low higher low and higher high higher high higher high higher high next one? What about this platinum? So i just want you to pay attention to this chart. Is this in an uptrend, a downtrend or range, so one tip that i have for you is that if you are not sure, take five feet away from your computer, just walk five feet back! Look at the chart right and ask yourself: is the chart moving higher or lower, or it's going nowhere. So if you look from left to right, i'm sure you can agree that this market, which is platinum on the daily timeframe, it's heading higher over time from left to right. And if you look at the more granular details, you see a series of higher low higher low, higher low higher low high low higher high higher high higher high high high.

Of course, i didn't draw every higher highs and lows on this chart. The main thing is just to pay attention to the major swing points right and see whether is it hitting up higher lower or you know, just start getting nowhere. What we call a range market, another example dollar against the norwegian chrono. So what we can do is go use this uh this platform using is called trading view.

You can click reset a chart and just zoom in i mean zoom out a little bit and then ask yourself: hmm: is this market hitting higher or lower over time? So we can see series of lower low sorry, lower high, lower high lower high lower low lower low lower low. We can see that this market is heading down lower it's in a downtrend and since the market, let's say it's in a downtrend. What do you want to be doing? I hope you are looking for selling opportunities. Why selling opportunities? Because this is the path of least resist resistance, because if you know a market has been heading down lower over the last few months, there's a good chance that it will continue heading down lower.

So you can look for selling opportunities. Likewise, if you see a market, that's, for example, this smb 500 heating up higher over the last few months or even the last few years. Then you want to look for buying opportunities, because this market is likely to continue higher and you can see. This is why we want to first and foremost, want to define the current market condition, so we know what to do to look for buying opportunities, selling opportunities or to stay out of the markets.

If it's something that we we don't want to trade, we're not comfortable with so have a look at another example. This one again uh uk 10-year guild, if you look at this chart, is this in an uptrend, downtrend or range. So look from left to right. You can see this market making a series of lower high, lower high, lower high and lower low lower low lower low okay.

Now, let's move on into something different: how about pound canadian now this is this in an uptrend, downtrend or range. It's a uptrend! I'm just kidding i'm just kidding right, so is it a range market right? Why is this a range market again range market is where the price is contained between the highs and the low. So it's contained between these highs over here and this lows over here. So one thing to point out is that this is not an exact level on the chart.

You should treat this as an area, so if it helps you can use tools like a rectangle tool to draw this as an area like this or maybe even another one over here. So this way you can treat this like an area on your chart, and this is another area on your chart between the highs and the lows, and this is where we call this market or we treat this market as a range market contained between the highs and The lows so one more example before we move on this one here: silver: is this in a range market or an uptrend? So if you look at the chart right as it is right now, i would say that this is in the range market. This market is contained between this highs and then this lows, but if you know zoom zuma out a little bit more, you might now say that this market could be in an uptrend right. Yes, it could be uh if you zoom out your chart like this, but i would argue more towards a range market, as you can see that it's still stuck between these highs and this lows over here.

So i will say that this is a range market and, of course, what i've just shared with you is using candlestick chart to define the market structure. But it's not the only way, because you can also use tools like moving average, which i'll cover next. You.