ICT FOR DUMMIES | Market Structure EP. 3

what is going on guys welcome to episode three of ICT for dummies. We just did candlesticks and now we're on to market structure, and now we're going to help you interpret these candles so you can actually understand the trend of the market.

market so as you can see you have two different types of Market structure on the left side you have the bullish Market structure on the right side you have the bearish market structure what does bullish Market structure look like

So as you can see, you have two different types of market structure. On the left side you have the bullish market structure, and on the right side you have the bearish market structure.

opposite you're going to have a high you're going to have a low you're going to have a lower high and then a lower low a lower high and then a lower low okay so now this is what it looks like

What does bullish market structure look like? Well, it starts with a low and then a high, and then a higher low, and then a higher high, and then a higher low, and then higher highs. Continue, continue, continue.

I know you do not want to be learning this right now but I promise you it is going to help you in the long run okay I know we're going to get into models later we're going to get into a fair

As for the bearish market structure, you're going to have the opposite. You're going to have a high, you're going to have a low, you're going to have a lower high, and then a lower low. A lower high, and then a lower low.

so we have a high put in place then we have a low then we have a lower high then we have a lower low lower high lower low lower high lower low and this shows bearish Market structure and this

Okay, so now this is what it looks like on an actual candlestick chart. We have a low, then we have a high, then that higher low, then we have the higher high. Higher low, higher high.

high that gets put in place your higher low you have your higher high your higher low low your higher low your higher high then you have a low and then we have our little liquidity sweep we'll get into that later then your low gets

Guys, this is going to be really simple, and I know you do not want to be learning this right now, but I promise you it is going to help you in the long run. Okay, I know we're going to get into models later, we're going to get into fair value gaps, liquidity sweeps, all that stuff, but you need to know the basics to incorporate everything that we're going to learn in the future.

price action and guys it's a little bit cringe but the trend is your friend at the end of the day higher time frame is always going to hold higher power so I often times see a lot of people just

And then for the bearish structure, it's the same thing on the candlestick chart. Guys, we have a high put in place, then we have a low, then we have a lower high, then we have a lower low. Lower high, lower low, lower high, lower low. And this shows bearish market structure, and this shows a bearish trend in the market.

to get the best entries and obviously we're going to get those entries using our models that we're going to teach later on but this is again the foundation that is necessary here all right guys little quiz time let's see if

Now we're going to show you some real-time examples so you can have a better understanding of this. Okay, so we're going to play this out in real time. You have your low, right? Then your high that gets put in place, your higher low, your higher high, your higher low, your higher low, your higher high. Then you have a low, and then we have our little liquidity sweep. We'll get into that later. Then your low gets put in place, your higher low, and then high. Okay, you got it?

low if you didn't mark this out correctly you might want to reconsider trading and you might want to just I'm just kidding and then your lower high exactly like this is not going to be perfect too guys I want you to know also

And although we are not trend line trading, and that's not what we will be teaching you, it is still incredibly important for you to understand the foundational movement of price action. And guys, it's a little bit cringe, but the trend is your friend. At the end of the day, higher time frame is always going to hold higher power. So I often see a lot of people just fading the overall trend. We're at all-time highs right now. Stop trying to catch the top and short this, right? We're clearly in bullish market structure, so catch those longs and you will get the best possible risk-reward. You're going to get the best entries. And obviously we're going to get those entries using our models that we're going to teach later on, but this is again the foundation that is necessary here.

actually going to be moving so spend some time on the charts identifying Trends marking out your lows your highs your lower lows your higher highs guys also if you want to looking at this on a line chart makes it also a lot easier if

All right guys, little quiz time. Let's see if you can identify the trend here. Be... [Applause]. Why is it bearish? Now let's do a little markup while Patty dances for me. So as you can see here, we made the high, the low, the lower high, the lower low. If you didn't mark this out correctly, you might want to reconsider trading, and you might want to just... I'm just kidding. And then your lower high, exactly like this, is not going to be perfect, too, guys. I want you to know also, in a market, it's not going to look perfectly just like this how we draw it out, right? It's most likely going to look something more like this, you know, where we'll do something like this. This is the reality of how the market is actually going to be moving.

bullish bearish beish bullish I'll identify the trends for breakfast you guys just to reiterate this like the trend is your friend for example when you're swimming right you want to be swimming with the current if you're in a little river right you're

So spend some time on the charts identifying trends, marking out your lows, your highs, your lower lows, your higher highs. Guys, also, if you want to look at this on a line chart, it makes it a lot easier. If you look at the low, you have your high, your higher low, right, and you can identify trends simply using the line chart. If you can't understand it with candlesticks yet, look how easy it is to spot trends. Guys, bullish, bearish, bearish, bullish. I'll identify the trends for breakfast.

and it's you know you're going to hit stop oh my hit stop loss bro that wasn't on purpose you're probably going to drown okay of course if you're hyper fixating on the lower time frame right now it doesn't take a

You guys, just to reiterate this, the trend is your friend. For example, when you're swimming, right, you want to be swimming with the current. If you're in a little river, you're swimming with the current, it's really easy. You're just swimming, you don't even have to put much effort into it. Versus if you're swimming against the current, what is going to happen? It's going to be a lot harder to push through that, right? And you're going to hit stop... oh my, hit stop loss, bro. That wasn't on purpose. You're probably going to drown.

Trend then that's where you'll most likely find yourself getting manipulated out of Trades and stopped out so in a scenario like this where we analyze that there is clearly bearish structure on the lower time frame but there is

Okay, of course, if you're hyper-fixating on the lower time frame right now, it doesn't take a big brain to realize that the lower time frame is currently in a bearish trend. But if you focus too much on the lower time frame and distract yourself from what's actually happening on the higher time frame, which is clearly a bullish trend, then that's where you'll most likely find yourself getting manipulated out of trades and stopped out.

sweep and then started seeing some bullish structure form and we can catch some Longs from there so the whole point of ICT Concepts really is it allows you to understand the higher time frame narrative and then use the lower time

So in a scenario like this, where we analyze that there is clearly bearish structure on the lower time frame but there is bullish structure on the higher time frame, we want to wait for bullish structure to form on the lower time frame. Maybe something like... and we're going to get a little bit complex here, but if we came down, little liquidity sweep, and then started seeing some bullish structure form, we can catch some longs from there. So the whole point of ICT concepts really is it allows you to understand the higher time frame narrative and then use the lower time frame to find the most optimal entry points.

either bullish structure to bearish structure or bearish structure to bullish structure bullish structure to bearish stru okay and here on the left we have bullish Market structure right we have our low we have our high we have our higher low right we just learned

Okay, so now we're going to get into the market structure... drum roll... shift. Wow. Shift in the market. So a market structure shift indicates a change in trend. It is shifting from either bullish structure to bearish structure, or bearish structure to bullish structure. Bullish structure to bearish structure.

change in Trend and then we start seeing bearish structure form here right we then have our lower high our lower low lower high lower low domain expansion Market structure shift and this Market structure shift can then happen back

Okay, and here on the left we have bullish market structure, right? We have our low, we have our high, we have our higher low. We just learned this. When we get a shift in structure is when we break through the last higher low. Okay, so once we break through this higher low that we have, and we get a closure below this, this can indicate a change in trend, and then we start seeing bearish structure form here, right? We then have our lower high, our lower low, lower high, lower low. Domain expansion. Market structure shift.

structure shift we're closing below the recent higher low all right so now we're going to show you what a market structure shift looks like on the actual charts okay you can see here we're in bearish structure right I don't have to

This market structure shift can then happen back again to the upside, how? By closing above the previous lower high, right? So a bullish market structure shift looks something like this, where we close above the previous lower high and then we keep trending upwards. Versus a bearish market structure shift, we're closing below the recent higher low.

bullish structure and it has to be a candle closure okay I see a lot of times people getting faked out thinking Market structure shifts can happen just when the candle you know goes over this wait for the candle to close it has to be the

All right, so now we're going to show you what a market structure shift looks like on the actual charts. Okay, you can see here we're in bearish structure, right? I don't have to explain this, we just learned this. And then once we get a closure above this recent swing high that we made, this is a market structure shift. Okay, this is going to indicate that price is reversing and we are going to put in bullish structure, and it has to be a candle closure. Okay, I see a lot of times people getting faked out thinking market structure shifts can happen just when the candle goes over this. Wait for the candle to close. It has to be the body closing above it. It cannot be a wick. Okay, if it's a wick, that is not a market structure shift. It's not a true market structure shift. And as we get deeper into concepts and a little more complex, you'll realize that the bodies and wicks make a huge difference. As you can see here, the body failed to close below this last low, ended up wicking this low. That's a liquidity sweep, but we'll get into that later. Now if you look at thi

make a huge difference as you can see here the body failed to close below this last low ended up wicking this low that's a liquidity sweep but we'll get into that later now if you look at this price action what does this look like

bullish Market structure right we have a sequence of higher highs followed by higher lows with every swing now what happens we break through this low we get a bearish market structure shift and once we get a body closure below this

low you can see that the trend has now flipped a bearish and we get bearish Market structure all right guys now we're going to show show you the importance of body closures in real time clearly here you can see that we have

bullish Market structure right price is trending upwards we get higher highs with every swing and higher lows and what happens now price starts coming down you think it's going to break through that low but no there's a zero

body closure below this low you end up wicking this low and what happens price continues higher right so this is a fake out this is not an actual Market structure shift and this is why it is so important to understand that in order

for a market structure shift to occur you need a body closure all right and as you can see here we are clearly in bearish Market structure so what would a bullish Market structure shift look like in this scenario well it will be a

closure above the recent lower high so if we play out price here we do not get a closure above the recent high this is not a market structure shift why because we did not have a body so this is a fake Market

structure shift right A True Market structure shift needs a body closure okay and then as you can see we continue with bearish structure okay so in this example we have bullish structure right and you wait for now a body closing

below this low is this a market structure shift [Music] guys no it is not right is this a market structure [Music] chip we get a body closing below this recent swing low this is a market structure shift I hope you guys are

seeing this start marking out on your charts that's going to be your homework work for today Mark out your Market structure ships Mark out Trends try to identify a bearish trend versus a bullish Trend and try to identify when

the trend is changing and then once we get this closure we also create this bearish F rally Gap we get a turtle STP at these highs and we get a CRT no I'm just kidding once you guys get a little

bit more advanced and know all these ICT Concepts you'll be able to find yourself like this nice little low resistance liquidity resting down here you're going to have a sweep of this buy side liquidity up here and then you're going

to come down tap into this fair value Gap after the market structure shift and get this beautiful2 model all right guys now quick little refresher before we let you go all the way to the left here you have the bearish structure right next to

it you have the bullish structure right next to this we got the bullish Market structure shift we start with a downtrend in price and then we break through this High which creates a market structure shift and then we get an

uptrend in price and then for the bearish side we have a bearish market structure shift why we were first in bullish price action and then we get a closure below the recent higher low creating a bearish market structure

shift please remember it has to be with a body not a wick okay as you can see here we were in Bear structure and then we got a shark structure Shi thank you guys so much for watching this sorry for

the lack of uploads it was Thanksgiving break I was spending time with the family so it was Blake but we are [ __ ] back and we'll be uploading two to three times a week so stay tuned we're going to be doing Fair Valley

gapes next and dropping tons of psychology in between there as well so stay locked in and this was ICT for dummies episode 3 we teach you how