DAILY MARKET STRUCTURE & PRICE ACTION STUDY – : Trading Process and Strategy | June 29, 2018 at 12:57 pm , by Lance Beggs

See here if you missed the earlier articles –
No. 1, No. 2, No. 3, No. 4
The concept:
I've been writing online for over a decade now. And for that whole time I've been promoting the idea of daily study in both Market Structure and Price Action.
It's a simple task that takes no more than five minutes, but which offers incredible value to your own learning and development.
Sometimes this study fits within certain themes, if there is a particular feature of market structure which I want to focus on for a period of time.
Often though, it's completely unstructured. Simply searching for whatever captures my attention.
Either way, every trading day after the session is over, I look to the charts to find something interesting. Having done this for so long the findings are usually just reinforcing prior lessons. But occasionally, they'll uncover something new which can lead to further exploration, further learning and further growth and development.
The following are examples of entries in my Market Structure & Price Action Journal; although tidied up and expanded upon slightly to make them more "educational".
I hope you find it useful. If you do, consider starting your own Market Structure & Price Action Journal.

Monday 25th June 2018:
I'm a big fan of the concept of "volatility contraction leads to volatility expansion".
Usually when I show examples of this it's in the form of a triangle pattern.
But there are other ways to see it, such as identifying very narrow range bars on a much higher timeframe.
I trade the 1-minute chart. The following is the 15-minute chart, so it's quite a bit higher in timeframe. Note the narrow range bar, in this case also an inside bar which makes it even better.
<image: Daily Market Structure and Price Action Study>
<image: Daily Market Structure and Price Action Study>
<image: Daily Market Structure and Price Action Study>
Obviously what is important here is the concept.
But let's see the outcome for this one particular example.
<image: Daily Market Structure and Price Action Study>
Lessons:
  • Volatility contraction leads to expansion.
  • While contraction is most-often seen through a triangle pattern, it can also be identified through an unusually narrow-range bar on any higher timeframe.
  • Context is important though – my personal preference is for a smooth-flowing directional market.
  • Look for entry either preempting the breakout or on the first pullback after the breakout.

Tuesday 26th June 2018:
One of my favourite topics of study is any blindingly obvious traps at the edges of the structure.
<image: Daily Market Structure and Price Action Study>
The reason for this structure – see Chapter 3, page 99, "Sideways Trend – Definition".
<image: Daily Market Structure and Price Action Study>
<image: Daily Market Structure and Price Action Study>
<image: Daily Market Structure and Price Action Study>
<image: Daily Market Structure and Price Action Study>
Lessons:
  • In a sideways market environment, primary trade opportunity is sought on price interaction with the range high and low boundaries.
  • Two potential features of a quality breakout failure are (a) price having to stretch to reach the breakout level, and (b) almost immediate lack of continuation following the breakout.

Happy trading,
Lance Beggs
http://yourtradingcoach.com/blog/

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