Let’s talk about Market Structure and Price Action study, commencing with a question I received on Thursday –
- Do you still do daily study of market structure?
And my response, sent out via social media:
A followup comment from the original questioner…
- “I’ve tried this in the past but not been able to stick with it. Too many times I just don’t know what to study and just give up.”
I get that.
If you don’t have a plan then there will definitely be days where you stare blankly at the chart, with no idea at all where to start.
So here’s a plan, with three options for Market Structure and Price Action study, in order of preference.
- If you have a current area you’re focusing on improving, and the current day’s charts offer an example of that subject, then study that. See here for some ideas.
- Review any highly memorable sequences – perhaps something which trapped you on the wrong side of the market, or something that triggered exceptional opportunity in the markets.
- And for those times when neither of the above is an option – have a standard “go to” study item that will always be available.
Your priority should be something from the first two options.
But there are days when there is no obvious chart sequence to study. And so rather than sitting with the trader’s equivalent of writer’s block, before just giving up, we look to the third option for a quick and immediate solution.
A price sequence that will ALWAYS (or almost always) be available. Like this…
Study the TRANSITIONS from one trend state to another.
It’s rare that there will be a day with no trend change at all from start to finish. So pick one and study it.
Let’s look at Monday through to Thursday this week, on the emini NASDAQ one-minute trading timeframe.
There’s not a lot of answers in today’s article. Just a lot of questions.
But as that last image suggests, it’s the questions that lead to understanding and awareness in the markets.
Every day, consider finding something within the market to study. It only takes a couple of minutes, but the benefits could be priceless.
Your priority should be any area that you’re currently focusing on for improvement. Or any sequence which raised significant concern or interest from that day.
But in the absence of any of these, be sure to find a standard GO TO subject for your daily study. Something that appears in the charts each and every day.
Today’s article suggests one. It’s not the only one. But it’s one I find quite valuable.
Study the transitions!