Price movement and structure of the Forex market

Imagine having the ability to read any market like an open book to discover trends once you get started and predict price movements with Precision, Simple Market Structure could be the game you’ve been looking for, knowing the basics when prices are flat rising, or falling creates a trend. 

Price movement and structure of the Forex market

An uptrend is shown by each new high being higher than the previous one in terms of ICT, it is a break of the BOS structure also every low remains above the last low the uptrend continues until the price drops below the past low point also called a character change, trends start to deteriorate when the price fails to make a new high after the recent high. 

What is the average downtrend of daily price movement in Forex?

A downtrend is shown by the price making a new low that is lower than the last low and also not being able to reach a higher high like the previous high each time the downward pressure from sellers continues the downward movement and the trend will remain down as long as those lower highs and lows continue to occur. 

But once you see a high that tops the last high, this is a sign that the trend can reverse to an uptrend. Sometimes the market moves sideways between trends when the highs and lows are almost equal. In this consolidation period, the price bounces between supply and demand in a narrow range that can stay stuck like that for a while while buyers and sellers fight for control.

When is sideways price action broken?

Sideways price action is broken once the price breaks through and remains above the usual high points or below the normal lows of the previous trading channel. A breakout may mean the beginning of an uptrend or a downtrend that develops from there. For the trend to be considered strong, the price needs to make new highs and lows. 

It must print new major breaks of the structure, so in an uptrend, each higher high must rise above the previous swing high for the upside to move in. Keep looking at this chart, it is clear that we are seeing higher highs and higher lows consistently over time. , which tells me that buyers are taking control of the market and driving it to new or higher ground with each push if prices trade sideways or dip below old highs. 

What is the best-moving average for Forex trading?

The new lows must break below the previous lows for the downtrend to continue as long as the lows continue to form sellers are still in control of the move down for the uptrend to be considered truly strong. 

It takes more than once to break the candle above the accompanying price high and close above the P resistance several times in a row reinforces the condition that buyers control only one candle, and retesting the highs does not guarantee the movement will continue, but if we get several candles that close strongly above this level, then this is a good thing. A sign that the market is accepting the new upper trading range. 

As it is the natural zone now sometimes the candle will break above it but then the sellers will quickly move it back below the high if there is no follow-up with a strong close after that it tells me that the move was not as good as it is legitimate and the trend may not continue smoothly from There, which may lead to increased liquidity. 

The best time frame for Forex trading for beginners

Certain swing points stand out as being more important than others, these strong highs and lows are important because they are the levels that cause structure if we break out one way or the other in an uptrend, the higher lows are key because they have pushed prices above previous higher highs and in a downtrend, they are Lower highs are crucial because they pull the market under the previous lower lows. 

Strong points that led to structure breaks are considered protected in their direction, so if the current trend continues to take effect, the market should remain above the higher lows or below the lower highs, seeing swing points breaking through the previous limits tells me a lot about where it is likely to go. There is strong demand or supply and helps identify areas where Trent is expected to decline to a minimum. 

If it reverses temporarily before resuming its course When analyzing the structure, certain swing points appear weaker than others, these weak highs and lows were formed during the opposite trend price action such as the high made during the pullback of the bar in an overall bull market in a weaker uptrend will be levels created By a short dip potentially indicating an area that buyers could push above soon. 

Forex trading in the weakest downtrend

In a weaker downtrend lows are formed on small bounces that sellers may look to break in the future, this is known as the inside structure, all the structure is between the main swing high and low points without breaking the main swing, so here’s how to find the inside structure first the price breaks the structure To the upside. 

Where the lowest point defines the highest and lowest point that caused the swing high, then when the price starts to decline you define the higher high, all the structure between these two points is an internal structure If the price collapses, you define B in the uptrend and again defines the higher low, the lowest point that caused At swing highs and to remain consistent in mapping market structure you need to use the same methodology in choosing your major pivots. 

The effect of high price volatility on Forex trading

A swing high is the highest point that caused a swing low and a swing low is the lowest point that caused a swing high Now trends and structural shifts start on lower time frames before progressing Even megatrends have to start small somewhere, and these small shifts in immediate demand and supply will accumulate in Eventually, over time, which leads to a break in the structure and a change in characters as the length of the period increases. 

So the structure change on the hourly time frame may just be an order flow developing in the Daily. Time Frame This shows that markets are fractal. What seems important on one scale only looks like background noise over wider periods but together they form one connected picture with the lower charts consistently forming the higher charts and looking across time frames provides context about where the movement might be. A progression or consolidation process is not good enough just looking at a one-time frame. 

Summary

When analyzing market structure, I need to make sure that any signals I see will match what the larger charts are showing, so if I want to trade something I noticed on the hourly chart I also need to check the daily time frame and the four time frames to see if Those higher views support the same market structure.