Market Structure Is Not It

Introduction

The speaker introduces himself and explains the reason for the video.

• The speaker introduces himself as "good old ICT".

• He mentions exposing a YouTube fraud in a previous video.

• He received messages from viewers about another person he wants to discuss in this video.

Market Structure vs. Replay Button

The speaker discusses the difference between market structure and using replay buttons on charts.

• The speaker compares his approach to trading with that of the person he is discussing.

• He explains that the other person uses replay buttons and overlays on charts, but does not actually execute trades.

• While market structure provides a framework, it is not everything when it comes to trading.

• There is an underlying narrative that needs to be understood in order to effectively trade.

Classic vs. Institutional Market Structure

The speaker explains the difference between classic and institutional market structure.

• Classic market structure refers to support and resistance levels based on price action.

• Institutional market structure takes into account larger players such as banks and hedge funds.

• Understanding both types of market structure is important for effective trading.

Narrative vs. Market Structure

The speaker discusses the importance of understanding narrative in addition to market structure.

• Narrative refers to the underlying premise or reason behind price movements.

• Understanding narrative is crucial for determining what direction the market will move in next.

• Support and resistance levels can still be useful, but only if they are aligned with the present narrative.

Ideas of Support and Resistance

The speaker discusses how support and resistance levels are used in retail trading.

• Support and resistance levels can work if they are aligned with the present narrative.

• However, relying solely on support and resistance levels is not effective.

• The speaker does not subscribe to the idea of classic market structure based solely on support and resistance levels.

Short-term Trading and Market Structure

In this section, the speaker discusses how most traders prefer short-term trading or scalping because it is a fast money game. The speaker explains that they are guilty of promoting this type of trading because it matches their personality. They also introduce the concept of market structure and institutional perspective.

Institutional Market Structure

• When looking at price, the speaker focuses on how the market reaches back into areas of liquidity.

• The interbank traders look at the market through the lens of liquidity and imbalance.

• Above these candle bodies, there's going to be buy-side liquidity that means buy stops.

• Institutional market structure 201 is about imbalance.

Rebalancing and Daily Highs/Lows

• If we start to trade down into an area where there was previously a price run, then we're probably going to trade down into that candle's high to rebalance.

• The importance of daily highs and lows in studying institutional market structure is emphasized.

English Understanding Market Structure

In this section, the speaker explains how he disregards certain levels of support and resistance that are not significant to him. He also talks about the institutional mindset behind market structure and how it affects the market's movement.

Disregarding Insignificant Levels

• The speaker disregards levels of support and resistance that are not significant to him.

• He blocks them out of his mind because they are irrelevant.

• When a level is broken, it becomes insignificant and does not serve as a turning point for the market.

Institutional Mindset Behind Market Structure

• The market reaches for liquidity and rebalancing imbalances based on the present narrative.

• The market goes down either to rebalance or tag sell stops.

• Swing lows indicate areas where there may be cell stops resting below them.

• The speaker looks for areas of imbalance under the pretense that the market is likely to go down because it has left consolidation in a sharp price decline.

English Rebalancing Imbalances

In this section, the speaker explains what rebalancing means in terms of market structure. He also talks about how he uses swing lows and areas of imbalance to identify potential trading opportunities.

Rebalancing Imbalances

• When the market delivers price, it wants to be efficiently delivered and offered equally as it passes through that range of price.

• Rebalancing refers to when the market drops to be efficiently delivered and offered equally as it passed through a range of price.

• Swing lows indicate areas where there may be cell stops resting below them.

Identifying Trading Opportunities

• Areas of imbalance can indicate potential trading opportunities.

• The speaker looks for areas of imbalance under the pretense that the market is likely to go down because it has left consolidation in a sharp price decline.

Understanding Market Structure

In this section, the speaker emphasizes the importance of having an underlying narrative to understand market structure. He explains that there are two different forms of market structure - classic retail perspective and institutional market structure.

Classic vs Institutional Market Structure

• The speaker teaches institutional market structure which is different from classic retail perspective.

• The markets run for liquidity or to rebalance, regardless of patterns, theology, fundamentals or opinions.

• It's important to discern whether the market is going to consolidate or go higher before making any decisions.

Understanding Bearish Order Blocks

In this section, the speaker explains what a bearish order block is and how it works within the narrative of the market.

Identifying Bearish Order Blocks

• A bearish order block is created when a high is broken and then price comes back up into that level.

• This area will be overbought if a short-term oversold indicator is used.

• The speaker doesn't need an indicator because he can tell it's overbought by looking at how much has been covered from the high to low.

Understanding Liquidity and Buy Stops

In this section, the speaker discusses how buy stops work in relation to liquidity and rebalancing in the market.

Liquidity and Buy Stops

• When price retraces 80% or more from its low to high, it goes above short-term highs to take out buy stops.

• The market then drops hard to an area where one single candle stands by itself and that imbalance will be the draw on liquidity.

Understanding Market Structure Narratives

In this section, the speaker emphasizes the importance of understanding market structure narratives and how they affect decision making.

Importance of Market Structure Narratives

• It's important to understand what the narrative is right now - whether it's going lower to go down for stops or to rebalance.

• If you can't discern whether or not it's going to consolidate or go higher, then it's likely to keep going lower.

• The market either goes after sell side liquidity or sell stops, or it goes down to an area to overlap.