In 2020, after burning through $40k, I finally became profitable from trading. What led the breakthrough? Understanding Market Structure🧵👇

Market structure (MS) is vital 💜 • It'll help you avoid costly mistakes • It'll help plan your trades • It'll guide your S/L and T/P levels If you're a seasoned trader, you can skip forward to this other thread to test yourself 👨‍🎓

MS helps avoid mistakes🪓 • It is vital to recognize if the market is trending or ranging • Sure way to lose money to trade a trend following strategy in a ranging market Don't get chopped up trading the trend in a ranging market

MS helps plan your trade 🧠 Your trading plan has to change based on market profile • Trending = buy at pull backs • Ranging = buy at extreme of ranges, don’t get chopped up in the middle Recognizing breaks in MS = recognizing key levels to trade at

Price by itself is neutral. It is neither good or bad. It only starts painting a story when we attach terms and lines to it. Now how do we paint out the Signs of Market Structure? 📈📉

Trending Market Signs • Bullish trend: Higher highs and higher lows • Bearish trend: Lower highs and lower lows • Each wave creates a pivot point, connecting them forms a trendline • Pull backs are short lived, statistically pull backs are ~40% of the pump

Ranging Market Signs • Connecting the swing highs and lows would form a horizontal line • Prices consolidates within a swing high and a swing low Wicks/Deviation outside of the range are evidence of.. failure to trend and that price wants to be pushed back into range🙃

If you feel confused about the PA, its very likely a ranging market Don't trade against trend and don't fool yourself into thinking its trending when its actually ranging 🐵🙈🙊

Alpha Tips 👑 Do not front-run yourself! • A valid higher high is only confirmed AFTER a higher low or equal low forms • A valid lower high is only confirmed AFTER a lower low or equal low forms • Wicks or deviation outside of the S/R is evidence of a ranging structure

Alright that's all folks. I hope what I've shared is useful. If you've enjoyed this thread, • Follow me at @Tims9101 for more trading related content • Retweet to share the good stuff. Sharing is caring. Cheers 😇

Think you're better with market structure now? Check out this thread to test your skills on MS