Structure

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Types of Structure
TYPES OF STRUCTURE
To understand further complexities of price action and market movements, we need to first understand the three fundamental
types of market conditions/environments that we’ll see in all areas and timeframes of every single financial market.
Bearish Structure
This is when price is trending downwards.
▫High points are consistently taking out low points.
Bullish Structure
This is when price is trending upwards.

▫Low points are consistently taking out high points.
Sideways Structure
This is when price is trending horizontally (consolidating) heavily.
▫Price is trading within a range (two swing points) and having an extremely difficult time breaking any high or low swing points
(we’ll speak more about swing structure shortly).
Types of Structure 1
SOURCES
• https://www.phantomtradingfx.com/products/phantom-trading-strategy/categories/2149413649/posts/2154376215
Types of Structure 2
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Phases of Structure
PHASES OF STRUCTURE
Alongside/during price simply being “bullish” or “bearish” or “rangebound,” there are four main phases of price movement
(structure) in the market that it will undergo at any given time, which is unique to each independent timeframe as well.
Do keep note that even on a single timeframe, both swing and internal structure can undergo different phases at the same exact
time. This is pretty obvious with thorough understanding of market structure as a whole. However, combining ideal phases of the
market over multiple timeframes will give you the most high-probability environments to execute within.
Break Phase
The break phase begins when we successfully trade (close) past a swing high or swing low point (causing a break of
structure), and price begins to trade outside of the previously established range.
▫Because our HTF and LTF orderflows are aligned, continuation/pro-trend trades are the most high probability trades in this
phase, however we can anticipate that there will be a large overall pullback at some point typically at significant ERL (CPB) or an
Phases of Structure 1
even higher-timeframe zone which will generally be our targets in this phase.
Pullback Phase
The pullback phase begins once we have a confirmed shift in lower-timeframe orderflow (after the break phase), where
orderflow between timeframes becomes un-aligned. We also establish a new leg of swing structure that we will now be trading
within.
▫Because orderflow between our timeframes is now unaligned, we are now in a less certain and overall less probable phase of
market behavior. However, we can use this phase for counter-trend plays until we see another shift in LTF orderflow that re-aligns
both timeframes and beginning the next phase.
▫You will definitely want to be more conservative with CT targets, mainly aiming for either significant PT POIs in the swing leg, or
significant price points (internal HHs/LLs) within the pullback phase itself.
Continuation Phase
The continuation phase begins once we have a confirmed shift in lower-timeframe orderflow (after the pullback phase), where
orderflow between timeframes becomes re-aligned. This is where we start seeing the move towards weak swing structure which is
now confirmed (reference 📕Protected Structure vs Targeted Structure).
▫Because orderflow between our timeframes are now re-aligned (ideally in premium pricing and in a supply zone having taken
liquidity), we are now in the most probable phase of market behavior.
▫At this point we can be very aggressive with pro-trend entries. Providing the criteria is met, we
have the opportunity for the highest quality and biggest ROI trades. We can realistically target
the weak HTF structure if our trades are well positioned and confluent with intraday price delivery.
Rangebound Phase
The rangebound phase begins once we understand that price is caught within a range (swing leg) and is having extreme difficulty
breaking swing highs/lows, where LTF orderflow is constantly un-aligning and re-aligning with HTF orderflow.
▫In this phase, our highest probability trades should be focused around premium and discount pricing, and incorporating sweeps
of IRL to stay on the right side of the market, ideally when we see a re-alignment of timeframe orderflows. Targets here should be
relatively conservative (not targeting weak swing structure) until we break out of the range and enter a higher quality phase and
market condition.
SOURCES
• https://discord.com/channels/728715235531161611/825706592707805195/928655354416492565
Phases of Structure 2
📕
Break of Structure (BOS)
BREAKS OF STRUCTURE
Breaks of structure occur simply when price trades past either a high or a low. Some BOSs go by a different name (CHOCH)
depending on the situation at play, but that is the most basic definition. We typically label any continuation in trend (break of a HH in
any given uptrend, break of a LL in any given downtrend) a BOS.
Body Close or Wick Breaks?
For me, it depends on what type of structure we are speaking of.

If we are talking about swing structure, I require the highest high/lowest low (wicks included) of my swing leg to be closed past to
consider it a break of structure (BOS) or change of character (CHOCH).
If we are talking about internal structure, I do not require internal highs/lows to be closed past, and a simple wick past can be
consider a break of structure (BOS) or change of character (CHOCH).
BREAK OF STRUCTURE (BOS) LIBRARY
Name Created Tags
제목 없음 @2023년 5월 17일 오후 11:43

제목 없음 @2023년 5월 17일 오후 11:43
제목 없음 @2023년 5월 17일 오후 11:43
제목 없음 @2023년 5월 17일 오후 11:43
SOURCES
• Trust me bro
Break of Structure (BOS) 1

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Change of Character (CHOCH)
Change of Character (CHOCH)
A change of character (CHOCH) is, in its most basic definition the first break of structure (BOS) signifying a trend change (shift
in order flow) from bullish-to-bearish or bearish-to-bullish structure.
▫This break of structure (BOS) can occur either with wicks or bodies regardless of swing/internal structure, and occurs almost
constantly in price.
▫From a supply and demand perspective, this indicates the transfer of control from either supply to demand, or demand to supply
(and in this process expectational orderflow shifts).
Sweep
The first part of a CHOCH is the sweep, where we see price running some form of liquidity to the left (pivot, rangebound, trendline,
etc) before we see the trend change (failure of supply/demand, shift in orderflow).
Utilizing CHOCHs
Because CHOCHs occur constantly in price and can often signify a false shift in direction, they are best utilized inside of, and
paired with, significant higher timeframe points of interest (POI)/entry zone. An example would be a bearish 15M CHOCH
inside of a significant 4HR supply zone, or a bullish 15M CHOCH inside of a significant 4HR demand zone.
▫A 15M CHOCH from an 4HR zone is great, a 1M CHOCH from an 15M zone is great. A 5s CHOCH from a refined 15M zone can
be great too when utilized correctly.
Candlestick Structure
Change of Character (CHOCH) 1

When zooming in to individual candles and determining where your CHOCH is, it can actually look visually different a few different
ways although the concept stays the same.
▫We’re looking for the first BOS against current trend (orderflow), which on lower-timeframes is typically a single candle that traded
either above or below the previous high or low.
▫The exception to this is if both sides are equally as high, then it can be considered CHOCH if traded past.
Types of CHOCH Incorporating Flips

We’ll talk much more about what flips are later in📕 Flip Zones, so for now don't worry about this section of CHOCHs and come
back to it once you’ve understood what a flip zone is.
Before and after a CHOCH is created, price can do a number of different things which can present other areas of entry for us,
shown with the visual below. Shoutout Tatiana for the visual and thorough explanations, if you have any questions about it - shoot
her a message on Discord.

SOURCES

📕
Swing & Internal Structure
Swing Structure
Swing structure is the overall legs of price that we are either trading within (pullback, continuation, and rangebound phases), or
expanding upon (break phase).
▫Our high and low swing points are created at the start of the both the break phase and pullback phase. The pullback phase
marks the end of the swing leg we’ve been expanding upon, and the break phase marks the beginning of a new swing.
Internal Structure Sub-Structure & Minor-Structure
Internal structure is comprised of both sub- and minor-structure, and is found in price after our overall swing leg has been
established (once the pullback phase begins) and before the next swing leg begins to be created (once the break phase begins).
Our highest-probability entries are when internal structure switches from sub- to minor-structure, as internal now switches from
counter-trend (against swing structure direction) to pro-trend (following swing structure direction) and orderflow aligns. This is when
we find the most probable setups.
Lower probability starts coming into play when we are trading against swing structure (counter-trend, sub-structure is holding)
though it is still entirely possible to execute this type of trading profitably with experience.
Swing & Internal Structure 1

Swing & Internal Structure 2
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Protected Structure vs Targeted Structure
Protected (Strong) vs Targeted (Weak) Structure Swing & Internal
Every high and low in the market has a job. A high’s job is to take out lows, and a low’s job it to take out highs (in other words,
break structure). If they fail to do so, they then become targeted. If they succeed in doing so, they become protected.
Once a swing leg has been established, we know that the high/low of this leg has failed to do its job once internal structure
switches from sub-structure to minor-structure and then is now identified as our targeted (weak) structure.
Every higher-low (HL) in an uptrend is protected as long as it completed it’s job to create a higher-high (HH) and break past the
most recent HH. However, a newly formed HH in an uptrend only becomes targeted once we see internal structure switch from
sub-structure to minor-structure. Until that point comes, there is no reason to assume that that HH will yet become targeted until
we have confirmation that our overall trend (expectational orderflow) will continue.
Another way to determine if a protected high is actually protected is how and where it was formed. If it was an aggressive
high/low (reaction) and was caused at an area of significance (mitigated a significant zone), it’s safe to say that low/high is quite
protected, and will only be closed past if price truly intends to switch direction (order flow).
Protected Structure vs Targeted Structure 1

PROTECTED STRUCTURE VS UNPROTECTED STRUCTURE | LIQUIDITY
Another way of looking at protected/unprotected structure on top of our general structural perspective is from a liquidity
standpoint. We are able to determine additional probability of a low or high holding/failing dependent on whether it is fueled by
liquidity or not. If a high or low is not in some way fueled by liquidity, more often then not it, itself, is used as the liquidity fuel.
Liquidity is something we’ll cover much more in-depth later - so save this section for then and it will make much more sense.
Sweeps
When a high or low sweeps liquidity, I look at that area as being pre-fueled and ready to go (like a car before a long trip) for a
strong reaction away once price approaches this area.

▫If a high/low was not formed due to a sweep of liquidity of some sort, than it has not been fueled and the odds are high that that it
will be used as liquidity itself to fuel an upcoming continuation play (and is therefor not protected).
▫If a high/low was formed due to a sweep of liquidity of some sort, then it has been fueled and the odds are much lower that it will
be used as liquidity is much lower (and therefor protected).
That said, if we have a low (for example) that not only broke structure but is also fueled by liquidity via a sweep, we have a
relatively strong area of price.
Inducement
Orders | A lot of times when sub-structure switches to minor-structure, it is from a demand zone that is significant due to the
amount of BFI orders that it has resting under/above it.
TYPES OF CHOCH FLIPS
We’ll talk much more about what flips are later in 📕 Flip Zones, so for now don't worry about this section of CHOCHs and come
back to it once you’ve understood what a flip zone is.
Before and after a CHOCH is created, price can do a number of different things which can present other area of entry for us,
shown with the visual below. Shoutout @Tatiana for the visual and thorough explanations, if you have any questions about
it - shoot her a message on Discord.

SOURCES
• https://www.phantomtradingfx.com/products/phantom-trading-strategy/categories/2149413649/posts/2154376223 @ 00:08:05
Archived Shit
One way that I personally look at and strengthen structurally protected highs and lows is from a liquidity standpoint. From my time
on the charts, I’ve noticed that almost every single high and low in the market needs to be fueled by liquidity in order to justify the
following move or continuation away from them. If it is not in some way fueled by liquidity, more often then not it, itself, is used as
the liquidity fuel.

📕
Multi-Timeframe (MTF) Analysis
Multi-Timeframe Analysis
When having a thorough understanding of multiple timeframes, you can utilize and align them together and determine the most
probable and profitable trading environments to trade within. Alternatively, with that deep understanding, you can even learn to
navigate less probable trading environments and still perform exceptionally.
TIMEFRAME SELECTION
You would typically be combining three main timeframes to get an overall idea of order flow and where price will most likely go
next using the concept of expectational orderflow over multiple timeframes.
Lower-timeframe (LTF): Timeframe where we look for our entry models and execute.
▫Our most common confirmation and execution timeframe is the 1M.
Middle-timeframe (MTF): Timeframe where we identify the intraday trend and phase we’re trading inside of, as well as high
probability entry zones that we’ll look for LTF confirmation entries.
▫Our most common intraday trend and entry zone (POI) timeframe is the 15M.
Higher-timeframe (HTF): Timeframe where we identify the daily trend and phase we’re trading inside of, as well as overall
significant zones we can expect daily interaction within.
▫Our most common daily/weekly trend timeframes are the 4HR and the daily.
Advantages
Multi-Timeframe (MTF) Analysis 1

The concept of multi-timeframe analysis is that you are following and leveraging the trend (orderflow¹) and phases of higher
timeframes and aligning them with your entry and execution timeframe.
▫Have patience in allowing the orderflow of your timeframes to align to ensure the most probable outcomes, or, master trading
conservatively in multiple, lesser probable orderflow environments.
How to Perform MTF Analysis

In simplest terms, use two to three timeframes above your entry model and execution timeframe and know where you are within
HTF phases and orderflow. The more alignment between timeframes, the better chance you are executing on the right side of the
market.
▫Highest probability of setups playing out: HTF/MTF/LTF orderflow are all aligned.
▫Decent probability: HTF not aligned, MTF is aligned with LTF orderflow.
▫Lowest probability: No timeframes are aligned with LTF orderflow.
SOURCES
Multi-Timeframe (MTF) Analysis 2

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Expectational Orderflow (EOF)
Expectational Orderflow (EOF)
This is a fairly simple concept based off of current timeframe movement (or orderflow, found in 📕
Liquidity Concept) and the
expectation of price to continue the same movements that it has previously undergone and target the same swing lows/highs that it
has been previously several times over.
Bearish EOF
If price is in a downtrend it is making lower lows (LLs) and lower highs (LHs). After a lower low is formed (i.e. internal structure
begins to shift), we expect to see a lower high form if the trend is to remain.
▫If price instead breaks the previous lower high and forms a higher high, that would then be a change of character (CHOCH) and
the trend has then shifted from bearish to bullish. We would then expect higher highs and higher lows to begin forming.
Bullish EOF
If price is in a uptrend it is making higher highs (HHs) and higher lows (HLs). After a higher high is formed (i.e. internal structure
begins to shift), we expect to see a higher low to form if the trend is to remain.
▫If price instead breaks the previous higher low and forms a lower low, that would then be a change of character (CHOCH) and the
trend has then shifted from bullish to bearish. We would then expect lower lows and lower highs to begin forming.
SOURCES
Expectational Orderflow (EOF) 1

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Premium and Discount
PREMIUM AND DISCOUNT
Premium and discount is the concept of pricing within a range of price (between two swing points or overall leg of price). It’s a
principle based on economics and in many cases logic/common sense.
▫When determining where premium and discount pricing is within a leg of price, we typically measure the leg, where premium
pricing is the top 50% of the leg, discount pricing is the bottom 50% of the leg, and equilibrium is at the mid-point (50%) of the
leg.
Premium
The premium portion of the range is where prices are the highest and therefore at a premium - when price is within the top portion
of the range you ideally want to be a seller.
Discount
The discount portion of the range is where prices are the lowest and therefore at a discount - when price is within the bottom
portion of the range you ideally want to be a buyer.
Equilibrium
The equilibrium point is the halfway point of the range or a place of fair value. This is an equal opportunity price point within an
range (leg) of price where both sell and buy opportunities are technically valid.
Premium and Discount 1

▫Price, generally speaking, always returns to (or close to) the equilibrium of all ranges to provide fair pricing before continuing
overall direction.
SOURCES
https://discord.com/channels/728715235531161611/728715235531161615/818317732713988147
Premium and Discount 2

📕
Inside Bars
Inside Bars
An inside bar is a candle contained within the previous candle, where the high of the candle is below the previous candle’s high,
and the low of the candle is above the previous candle’s low.
The indicator that will highlight all of these automatically on TradingView is called Ibsv2.
▫These candles indicate where price is contained within a (lower-timeframe) range, typically where BFIs stack a sizeable amount of
orders and where price often comes back to mitigate before either overall trend continues or trend (orderflow) shifts entirely.
▫Should other criteria/confluence be met to validate and strengthen these areas, we can use inside bars to our advantage as a solid
areas for continuation and reversal points and plays.
Inside Bars 1
SOURCES
Inside Bars 2

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📕

This is when price is trending downwards.

▫High points are consistently taking out low points.

This is when price is trending upwards.

Body Close or Wick Breaks?

For me, it depends on what type of structure we are speaking of.

BREAK OF STRUCTURE (BOS) LIBRARY

Name Created Tags

제목 없음 @2023년 5월 17일 오후 11:43

Break of Structure (BOS) 1

Change of Character (CHOCH) 1

Types of CHOCH Incorporating Flips

Change of Character (CHOCH) 2

Change of Character (CHOCH) 3

Internal Structure Sub-Structure & Minor-Structure

Swing & Internal Structure 1

Protected Structure vs Targeted Structure 1

Protected Structure vs Targeted Structure 2

TYPES OF CHOCH FLIPS

Protected Structure vs Targeted Structure 3

Protected Structure vs Targeted Structure 4

▫Our most common confirmation and execution timeframe is the 1M.

Multi-Timeframe (MTF) Analysis 1

How to Perform MTF Analysis

Multi-Timeframe (MTF) Analysis 2

Expectational Orderflow (EOF) 1

Premium and Discount 1

Premium and Discount 2

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