How to Buy low and Sell Highs - Advanced Market Structure

Hello traders, we al ever heard about buy low sell high is the most profitable approach.
Sounds easy and looks easy in hindsight, but it's a bit complicated to do it if you dont know this what Im going show you today about an advanced market structure. To understand why it is advanced we will first look to the basic market structure.

🟣Basic Market Structure:
• Highs and Lows
• Used as a confluence, Not as the main basis for generating trading ideas.
• Enhancing perspective and view of the markets.
• Not significant but good to be aware of.

📍Uptrend
Price is in bullish move and making higher highs and higher lows

📍Downtrend
Price is in bearish move and making Lower lows and lower highs


When using basic market structure to analyze the markets. Traders missing the fact that market makers need liquidity for the next move. Liquidit is mostly below the lows and highs. And when the price dips there it can look like a break out, but it's not unless the price is coming from a higher timeframe key level.

🟣Advanced Market Structure:
• More refined and accurate perspective.
• Advanced market structure takes into account the breaking and rejection of highs
and lows. (Liquidity)
• It also incorporates other methods to measure and gauge market order flow and
structure, which are based on practical concepts rather than just unrealistic theory.

📍Uptrend
Price is in a bullish move and is consistently breaking abovehighs and rejecting below lows. (Sweeping liquidity) - heading to HTF liqudity


📍Downtrend
Price is in a bearish move and is consistently breaking below lows and rejecting above highs.(Sweeping liquidity) - heading to HTF range liqudity


For higher probability of the setups these lows and highs should be occurring
in the Premium part of the structure for shorts and in the discount for the longs.
For this we are using dealing ranges which I have explained in this thread below.

🟣Advanced Market Structure:
if we are looking to the markets structure with different lenses we are mapping short term H/L runs above / below them are intermediate H/L. This is where we want to be entering.

📍Short term swings .
- STL (Short Term Low)
- STH (Short Term High)
These are swings where liquidity was not swept...

📍Intermediate term swings.
- ITL (Intermediate Term Low)
- ITH (Intermediate Term High)
These are swing with Liquidity Sweep / Stop hunt its time for entries here.

🧪Downtrend
short term highs are swept and intermediate highs are created. This is strong highs..


🧪Uptrend
short therm lows are swept and intermediate lows are created. This is strong lows.


But how do we know that it's not a structure shift? How do we know that, it's just a false break and opportunity to buy low or sell high? Answer is simple - HTF BIAS

Hence we must always use at least two timeframes but with 3 Timeframes you will master precision.

🟣Timeframes Sequence

• Month - Bias, HTF Key Levels
  
• Weekly / Daily - Bias alignments , Ranges
  
• H4 - Intraday ranges
  
• H1 / M15 / M5 - entries
  

Stop hunts mostly appears with a huge candle which can be done only by a market makers. This candle created the range on Weekly, Daily , H4... Once this range is manipulated in other words liquidity is taken by market makers. You drop lower timeframe and there you execute your entries in the HTF direction.

To learn more about liquidity check other this thread below

🧪In the uptrend you want be buying after stop hunts of short term lows

🧪In downtrend you want sell after stop hunt of short term highs


🎯Once the price make a stop hunt on the short term low or short term high, you need to see a confirmation in the change in order flow. In other words - Order Block or Supply / Demand to be created.

I have explained order block in this thread below

💊Here are recent trade examples of the stop hunt and range trades.
✅EURUSD - Stop hunt of the range

✅USDCHF - Stop hunt of the range

✅GBPUSD - stop hunt of the range

“Adapt what is useful, reject what is useless, and add what is specifically your own.”

David Perk aka Dave FX Hunter ⚔