Toronto’s Guide To Forex Trading And Mining: Tips For Maximizing Profits

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Toronto’s Guide To Forex Trading And Mining: Tips For Maximizing Profits – Advanced market structure consists of analyzing and identifying market structure and orders on multiple time frames from top to bottom (meaning we start from the higher time frames and move down to the lower time frames where we execute our trades).

If you’re not aware, this is part of a two-part series, so if you haven’t already read our article or watched the video training on basic market structure, be sure to check that out first!

Toronto’s Guide To Forex Trading And Mining: Tips For Maximizing Profits

Toronto's Guide To Forex Trading And Mining: Tips For Maximizing Profits

As a professional trader, it is your responsibility to understand how the market structurally moves and how each move is a phase in a particular part of that market structure. By combining market structure from multiple time frames, this will give you the ability to accurately predict where the market is likely to go both from a momentum and perspective perspective throughout the day.

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Fortunately for you, we’re going to dive deep into how a multi-timeframe structure works so you can use this important skill to gain clarity on how the market is moving.

So why bother learning an advanced multi-timeframe structure you ask? Well, the answer is simple. While the basic structure is great for understanding trends in one time frame, if you want to really build your skills as a professional trader, you’ll need to develop the ability to read multiple time frames to understand where price is and where it’s going, from how much higher the time frame is. frames, all the way down to the time frame you are running on whether it is the 15 minute chart or the 1 minute chart.

The other good news is that the market structure works on ANY trading pair or instrument. It doesn’t matter if you are trading EURUSD, GBPUSD, a minor Forex pair, stocks, bonds, indices or cryptocurrencies. Market structure is an essential part of any trading asset.

A consistent and mechanical approach to market structure across multiple timeframes is important to your success as a trader as it is one of the most critical parts of technical analysis that will not only give you confidence in your trading but also understand the ebbs and flows of the market so you can profit from pro-trend and counter-trend market moves on any time frame you choose to analyze and trade.

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The first benefit of building your multi-timeframe analysis skill is that you will begin to gain more clarity in your trading as you begin to understand how different time frames move structurally and how they interact with things like supply and demand zones , and liquidity.

Second, you will stop getting lost in the structure of the market with multiple time frames! If you don’t have a consistent way of approaching market structure and technical analysis, chances are you’re actually marking invalid points on the structure, causing you to misinterpret what the market is doing.

Last but not least, you will find that you will be more accurate in your ability to call the direction of the market, and because of this you will be able to take trades that move with the market, instead of taking losses because you are trading against the market.

Toronto's Guide To Forex Trading And Mining: Tips For Maximizing Profits

Multi-Timeframe Market Structure takes all the skills you’ve built learning basic market structure (trends, strong highs and lows, weak highs and lows, and internal structure/order flow) and applies them to multiple timeframes so you can accurately interpret what the market is likely to do next.

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Determining the structure of a multi-timeframe market consists of analyzing different time frames, starting from the highest time frame, all the way to the middle time frames and finally to the lower time frames where you will actually look for trade ideas and execute them based on of your analysis.

Without top-down market structure and analysis, you simply won’t see the whole picture, meaning if you’re only analyzing the 15-minute time frame, you won’t know if you’re trading against the 4-hour or daily time frames. While there is nothing wrong with trading a countertrend on higher time frames, it becomes a problem if you are not aware of the context and perspective of the higher time frame.

While we’re not saying it’s not impossible to be consistently profitable trading just one time frame, the smaller the time frame you’re in, the more manipulation will happen, so at least you should be looking at two to three time frames to get an idea of what is the long-term outlook of the instrument(s) you are trading

Once you understand that the market tends to move in impulsive and corrective phases, you will notice that both types of moves are actually trends on lower time frames.

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For example, if the 4-hour is bullish and bullish (making higher highs and higher lows), an impulsive bullish move on the 4-hour would be a bullish (bullish) market structure on the 15-minute.

On the other hand, when the 4-hour period begins to make a downward correction (pullback), there will be a bearish (bearish) market structure on the 15-minute.

This also applies to the higher time frame, where – in a 4-hour bullish trend it may simply be a corrective pullback in a downtrend (downward market structure) on the daily time frame.

Toronto's Guide To Forex Trading And Mining: Tips For Maximizing Profits

Just as we see impulses and corrections on one time frame as trends on the lower time frame, we can also see the internal structure or character changes on a higher time frame such as the 4-hour as trends on lower relative time frames such as the 15 – minutes.

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In this way we have two ways of looking at the structure of a time frame, with the understanding that any movement on one time frame is only a significant move or trend on the lower time frames.

Remember, any change in trend, no matter what time frame it is, has to start somewhere. All trend changes and changes in market structure actually technically start from the first initial change during the 1 minute order.

Knowing this, we also understand that any time frame change in order flow then eventually translates into a structure break, which is a change in order flow to a higher time frame, and a structure break to a higher time frame is a change in the flow of the order of an even higher time frame, and so on.

This illustrates the fact that all time frames are interconnected, and what is a break in the structure of one time frame is only a change in the flow of order in another time frame, and vice versa.

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In the chart below, we’ve outlined how each timeframe relates to the others surrounding it so you can get a sense of how to read the order structure and flow for multiple timeframes within a single timeframe. Understanding the relationship between how each time frame moves is very helpful in identifying where the market is likely to go next based on its structure and order flow.

Now that you understand how markets move relative to each time frame, you can begin to predict market direction using a multi-time frame market structure. Again, remember that we always want to start with the higher time frames and mark the structure, plus consider the order flow (internal structure) that develops the time frame you are on.

In the example below you can see how we are in a bullish market with a higher time frame (pretend the black line is the 4 hour chart), and we get a change in order flow from bullish to bearish (breaking the internal structure) to 4- hourly time frame which is a break of the 15-minute bearish swing structure (MTF structure/blue line).

Toronto's Guide To Forex Trading And Mining: Tips For Maximizing Profits

We then see the 15 min/MTF order flow change from bearish to bullish (which is a break of the swing structure on the 1 minute chart) which tells us that we could potentially see this 4hr/HTF corrective pullback into bullish start of the HTF market to expire and move towards taking the target weak high at 4-hour.

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At this 1 minute point, you can wait for a change in the LTF order flow (pretend the green line is the 1 minute chart after the change in the 15 minute order flow to start looking for entries. This is just one of many scenarios that can play out.

Finally, expect the unexpected to happen. Similar to the chart above in the last example, we have a scenario where the higher time frame is bullish (in this case the daily time frame in red), and based on that we expect the daily high is weak and will be taken once the pullback phase ends on its own .

The difference, however, is that the market is actually compressing because the 4-hour black is bearish, the 15-minute in blue creates a bullish corrective structure in that 4-hour bearish leg, and finally we have the 1-minute chart in green. moving within the last bullish range of the structure defined by the 15 minutes.

The point of this diagram is to illustrate that when we have multiple conflicting biases, while we want to set precedent on the highest time frames, anything really can happen. Your job as a professional trader is to adjust, readjust and react to what happens in the market next if things don’t go as you expect. There is no telling how long this daily pullback may last in the example below, or if the daily structure will switch from bullish to bearish (perhaps due to the daily supply level we are reacting to on the left).

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This is why it’s so important to do your due diligence when analyzing the structure of each time frame, plus be aware of major supply and demand levels, as well as liquidity pools to the left.

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