Price Action and Internal Structure

Price Action Difficulties with Large Moves

Price action can be difficult to interpret during large market movements.
It's easy to get disoriented when significant price swings occur.
Example: On a 50-minute timeframe, a 15-minute swing might present misleading signals due to substantial pumps or dumps (e.g., $1000 pump, $2000-$3000 dump in Bitcoin).
Larger moves can create internal base structures even within the same timeframe, requiring careful analysis.

Internal structure exists within larger swings.
Crucial to understanding when a 15-minute trend will form a lower low/high or higher high/low, especially near significant points (e.g., previous demand mitigation or support areas).

Internal structure can be analyzed even without confluence, but it's important to understand how it works.
Bearish flipping structure indicates a shift in momentum.
Primary swing internal structure exists within the 15-minute swing structure.

Secondary internal structure is tighter and less swing-like compared to the primary structure.
This creates a squished structure.
Primary internal structure (swing-like) is broader and more pronounced.
A break of structure (BOS) indicates a potential shift into a supply zone and a continuation of a downward trend.
Lower lows are drawn to represent the secondary level of structure.
When trading tighter structure, which is internal at level two or three, it's important to be more careful.
A structure drawing does not always mean it will equal what you expect.

After a bearish move, another structure drawing begins from the low, this time in a bullish direction.
Price action occurs between market structure points.
An internal uptrend develops with higher highs and higher lows.
When you observe a flipping structure using the more internal drawing and you have that dissection of up, down, up, down and then a break, one cannot guarantee that structure must come all the way down to a certain point based on this.

When considering a short position, look for an entry promptly.
Take substantial profit within a demand range.
If signs indicate a shift in structure, exit the trade.
Continuously monitor and adjust based on structure shifts.
Be aware of trading the correct internal level of structure to avoid stop-outs and frustration.
The more internal structure drawing can maintain its bullish internal leg.

Review these concepts frequently because understanding various levels of structure requires time and practice.

Price maintains a bearish pull and then shows a transition of structure, signaling a likely continuation of the overall green trend.
Consider looking for long positions after a break of structure.
You can trade internal structure with a stop loss below the low.

Emphasizes trading the internal structure of larger price movements.
It's necessary to understand how to trade the move because sometimes, three or four levels of structure can develop on the 15-minute timeframe alone.
Apply these principles to any market, regardless of timeframe.
For example, envision hourly structure with 10-minute and 1-minute substructures.

Price moves upward and breaks the high.
If a structure transition occurs upon breaking the high, consider the objective of the low being completed.
In such cases, consider shorting immediately but also be cautious.
The current bullish trend may still be valid.
Short the position immediately, and de-risk by the time it nears the low point of the green structure drawing.

Price bounces off a flat low, and then look for a mitigation, then a transition of structure on a lower timeframe, signaling the end of the bullish trend and the initiation of an overall trend change.
It is wise to analyze different levels of internal structure so you don't assume a continuation of bearish order flow.
Key takeaway: Always analyze different levels of internal structure.