Market Structure

Pips2Profit
Cameron Benson
Step 1: Types of trend
Downtrend Example
Step 2: Understand 2 types of swing
Major And Minor Trend

Minor Swings on the “inside”

of the larger trend
 The Basics - Market Structure Guide
Objective Rules of the swing

Downtrend:

1. Market is making lower lows/lower highs.

2. Market breaks a previous swing low.
3. Market pulls back in 2 candles (do NOT have to
be consecutive).
4. At close of 2nd upclose candle, draw the low.
5. When the low is broke with a SOLID candle
below that line, find the highest place the
market pulled back and draw the high.

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 The Basics - Market Structure Guide
Objective Rules of the swing

Uptrend:

1. Market is higher highs/higher lows

2. Market breaks a previous swing high.
3. Market pulls back in 2 candles (do NOT
have to be consecutive).
4. At close of 2nd downclose candle, draw
the high.
5. When the high is broke with a SOLID
candle below that line, find the lowest
place the market pulled back and draw the
low.
 Fractal Nature Of Markets
Trend can be tricky. Why? *Note:
1H chart is in an
Example: uptrend, but at times
the 15M will pull
1H chart is in an uptrend
back appearing to go
15M begins to go into a downtrend, into a downtrend.
but the 1H is still in an uptrend.
This can catch people
Meanwhile, the 1M goes back into an off guard who only
uptrend look at lower time
frames, leaving you
How do we solve this problem??
wondering why the
1. Market Maker Templates trend continued
2. Trading Setups higher.
3. Do NOT focus on direction
4. Use structure as a tool to
identify setups and simplify
lower timeframe entries.
Step 3: Break in structure (BIS) VS Break of structure
(BOS)
Break in structure: 1st time the market makes a counter
directional move.

Downtrend Example: Market is making lower lows and

lower highs, then makes a higher high.

This puts the market “out of wack”, signaling that the market
could reverse in the near future.

Uptrend Example: Market is making higher highs and higher

lows, then makes a lower low.
Break In Structure Example
 Break Of Structure (BOS)
Leading Indicator for trend continuation

Example:

In an up move, break of structure is simply the

higher highs being formed.

In a down move, break of structure is the lower

lows being formed.
 Importance of BIS and BOS

1. After a new extreme has been formed, you can expect some kind of 3 push pullback.
2. Spot setups forming
3. Time entries appropriately
4. Keeps you patient (knowing exactly what to look for)
 How Does This Help Me On The 1 Min?!
● 1 Min Chart Is FAST. You Need to be aware of market structure at all times.
● You can take scalps on the 1min as your trade, but you need to understand that if it is a reversal on the 1 min, has
there been a reversal on the 15 min? (BIS)
● Understanding the 15 min market structure will help you on the 1 min. As 15 min price action approaches your Area Of
Interest (AOI), your understanding of price action will then help you align the 1min with the 15 min.
○ For Example: 15 Min Chart had a break in structure to the upside. You are waiting for the 15min pull back. As price is pulling back,
you are watching the 1min structure for the (BIS) followed by pullback (Higher Low to form) to find your entry.
 My Trading Process Simplified
-3 Sessions of rise
-Lower Low 15M
Step 1: Overall Setup I am looking at: Identify the setup
15M Chart -3 Pushes back into the
a. Trend (Day 2, 3) HOD
b. Reversal (Day 3) -Time of day - NY Session
c. FRD/FGD
Short NOTE: There are times when I look for the trade on the
d. Inside Day
e. 3 Levels of rise HOD/LOD 1M without a 15M/1H BIS, however there are very
f. 3 Days Breakouts specific scenarios I am looking for this setup.
Step 2: Market Presentation: Has the market formed a…

a. Short/Long Squeeze Pattern

b. Parabolic/Capitulation Trend Pattern

Step 3: Market Structure On 15 Min Time Frame

a. Are we still going up/down based of market structure. Has there been a BIS?

Step 4: 3 Pushes

a. If there has been a BIS, the 1st mouse is in the market. I need market to go back up on the 15 min in 3 pushes.

Step 5: Get down to the 1 min chart

a. Look for step 2-4 on the 1 min chart. Initiate entry criteria.
USDJPY - 1M
 3 Pushes
Consolidation Defined - Everything inside of a high and
low is CONSOLIDATION.

3 Pushes is everywhere, but is NOT A STRATEGY. 3 Pushes

is a TOOL.

When to look for 3 pushes

1. Out of consolidation to find over extended

markets.
a. 3 Sessions out of the previous days range.
b. 3 days outside of the opening range for the week.
c. 3 Pushes out of consolidation after a BIS or BOS.

Think of it like this:

1st push will get traders attention

2nd Push will make them start buying or selling

3rd Push will trap traders at the worst possible place in

the chart, forcing them to buy high or sell low.
3 Pushes out of the opening range
 My Trading Process Simplified
Step 1: Overall Setup I am looking at: Identify the setup

a. Trend (Day 2, 3)
b. Reversal (Day 3)
c. FRD/FGD NOTE: There are times when I look for the trade on the
d. Inside Day
e. 3 Levels of rise HOD/LOD 1M without a 15M/1H BIS, however there are very
f. 3 Days Breakouts specific scenarios I am looking for this setup.
Step 2: Market Presentation: Has the market formed a…
Entry Criteria:
a. Short/Long Squeeze Pattern 1. 1m chart BIS
b. Parabolic/Capitulation Trend Pattern
2. 3 pushes
Step 3: Market Structure On 15 Min Time Frame 3. M or W
a. Are we still going up/down based of market structure. Has there been a BIS?
4. Engulfment of the M or W
Enter
Step 4: 3 Pushes

a. If there has been a BIS, the 1st mouse is in the market. I need market to go back up on the 15 min in 3 pushes.

Step 5: Get down to the 1 min chart

a. Look for step 2-4 on the 1 min chart. Initiate entry criteria.