Basic Concepts

Market Structure

BOS (Break of Structure)

• Definition: A violation of previous market structure
• Types: Bullish BOS, Bearish BOS
• Significance: Indicates potential trend change

CHoCH (Change of Character)

• Definition: Shift in market behavior
• Identification: Change in price action patterns
• Importance: Early signal of trend reversal

Order Flow Concepts

Order Block (OB)

• Definition: Strong candle preceding major move
• Types: Bullish OB, Bearish OB
• Characteristics: High volume, strong momentum

Fair Value Gap (FVG)

• Definition: Price inefficiency between candles
• Types: Bullish FVG, Bearish FVG
• Properties: Tendency to fill over time

Advanced Terminology

Premium & Discount

Premium Zones

• Definition: Areas above fair value
• Characteristics:
• • Strong rejection
  • Institutional selling
  • Price inefficiency

Discount Zones

• Definition: Areas below fair value
• Characteristics:
• • Strong buying
  • Institutional accumulation
  • Value opportunity

Market Manipulation

Liquidity Sweep

• Definition: Price movement targeting stop losses
• Purpose: Accumulation/Distribution
• Identification: Sharp moves with quick reversal

Stop Hunt

• Definition: Price move to trigger stop losses
• Characteristics: Violent price action
• Recovery: Swift return to original level

Technical Concepts

Breaker Blocks

• Definition: Order blocks that break structure
• Significance: Strong reversal zones
• Identification: Strong momentum candles

Mitigation

• Definition: Process of filling inefficiencies
• Types:
• • FVG mitigation
  • OB mitigation
  • Breaker mitigation

IPDA (Internal Price Delivery Algorithm)

• Definition: Price delivery mechanism
• Components:
• • Distribution phase
  • Accumulation phase
  • Delivery phase

Price Action Patterns

Inducement

• Definition: Price move to attract orders
• Purpose: Generate liquidity
• Recognition: False breakouts

Equilibrium

• Definition: Balance point in price
• Characteristics:
• • Reduced volatility
  • Balanced order flow
  • Consolidation pattern

Advanced Concepts

Institutional Concepts

Smart Money Distribution

• Definition: Institutional selling pattern
• Identification:
• • Volume analysis
  • Price action study
  • Time analysis

Accumulation Schematic

• Definition: Buying pattern of institutions
• Phases:
• 1. Initial accumulation
  2. Test of supply
  3. Final markup

Market Efficiency

Inefficient Moves

• Definition: Rapid price movements leaving gaps
• Characteristics:
• • Sharp moves
  • Low volume areas
  • Price imbalance

Market Balance

• Definition: Price equilibrium state
• Features:
• • Balanced volume
  • Reduced volatility
  • Clear support/resistance

Trading Applications

Entry Techniques

Entry Types

1. Break of Structure entries
2. Order Block entries
3. Breaker Block entries
4. Mitigation plays

Entry Confirmation

• Volume analysis
• Price action confirmation
• Market structure alignment

Risk Management

Stop Loss Placement

• Beyond manipulation points
• Protected from sweeps
• Based on market structure

Position Management

• Partial profit taking
• Runner management
• Scale-in techniques

Advanced Trading Concepts

Market Structure Analysis

Higher Time Frame (HTF)

• Definition: Broader market context
• Importance: Primary trend direction
• Application: Major support/resistance

Lower Time Frame (LTF)

• Definition: Detailed price action
• Usage: Entry timing
• Application: Fine-tuning entries

Order Flow Reading

Volume Analysis

• Real-time volume study
• Institutional footprint
• Order flow patterns

Price Action Study

• Candle analysis
• Pattern recognition
• Momentum evaluation