Fading the Edges of the Market Structure

 

Fading the edges of the market structure requires that you see the markets in a different way to the usual retail trader.

Strength in price movement towards a range boundary or an S/R level is not necessarily going to continue with strength following a breakout.

In the right context, this apparent strength can produce a nice trap at the edge of the market structure, providing breakout failure opportunity for anyone willing to fade the move back into the prior range.

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Fading the Edges of the Market Structure

Happy trading,

Lance Beggs

 


 

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YourTradingCoach - Admin

5 Comments to “Fading the Edges of the Market Structure”

  1. Mohamed says:

    Hello Lance ,
    nice trade my friend , and as usual I have questions):
    1- in the 1 min chart what does the last engulfing candle mean to you and mean to your trading decision?
    2- if the HTF trend is down is it likely or high probability that the break of the HTF structure will fail so we are looking for break out failure? in other words high probability to looking for break out pull back setup in the direction of the HTF trend , and looking for break out failure setup when the break out against HTF trend.

    3- please can you use candle stick with bar chart next time for the 15 second TF because many of your posts had bar chart which is difficult to read

    thanks in advance
    merry charismas

    Mohamed

    • Lance Beggs says:

      Hi Mohamed,

      1 – Do you mean the bullish engulfing candle right at the end of the chart? It means that my exit target worked out really well this time. It also confirms that the trend structure in this session continues to be really difficult to define. The market at this point is within a range, so I’d be projecting this candle forward and anticipating potential for another run to the upper range boundary (third & fourth principles) with another potential short opportunity from the edges of the structure. (It didn’t quite get there though!)

      2 – With strength towards a range boundary or an S/R level, I am always anticipating potential for both of the breakout failure and breakout pullback scenarios. However, when the context suggests a much higher likelihood of one over the other, such as occurred here with the strong HTF trend, then I’ll perhaps hold greater weighting towards that option. In this particular case, I would not have ruled out taking a breakout pullback entry long, were price to break the high of the day and hold the new level. But I’d want to be extra sure.

      3 – Noted. Thanks. Personally I find candles on the LTF often obscure the info I’m trying to present (too much colour taking up too much of the screen). But I will reassess in future.

      Lance

  2. Mohamed says:

    Thanks lance , appreciate your helps and efforts

  3. kenneth torrey says:

    What is LTF, HTF. What does it stand for ?

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