{"id":107240,"date":"2017-06-19T10:23:28","date_gmt":"2017-06-19T14:23:28","guid":{"rendered":"http:\/\/countingpips.com\/?p=107240"},"modified":"2017-06-11T10:23:53","modified_gmt":"2017-06-11T14:23:53","slug":"%e2%80%8bhow-to-master-forex-market-structure-in-3-simple-steps","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/%e2%80%8bhow-to-master-forex-market-structure-in-3-simple-steps\/","title":{"rendered":"\u200bHow to Master Forex Market Structure in 3 Simple Steps"},"content":{"rendered":"
June 19, 2017<\/div>
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By Admiral Markets<\/b><\/p>\n

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\n\tDear traders,\n<\/p>\n

\n\tDo you sometimes feel lost and confused seeing price action abruptly turn around seemingly out of the blue, and head in the opposite direction?\n<\/p>\n

\n\tThis feeling can be highly frustrating, but every cloud has a silver lining: understanding the market structure has vastly improved my ability to read price charts and determine decent entry zones.\n<\/p>\n

\n\tThis article offers a simple 3-step guide on how to approach and dissect the market structure of any Forex, CFD, or commodity graph.\n<\/p>\n

\n\t\"Forex101<\/a>\n<\/p>\n

Support and Resistance: Spotting Key Decision Zones<\/h2>\n

\n\tThe first critical step to understanding the market structure like a pro is plotting key Support and Resistance (S&R) on the chart. The reason is straightforward: the price will often respect, stop, or reverse at these S&R zones. This tends to happen especially when:\n<\/p>

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  1. There is confluence of levels at or near a price zone.<\/li>\n
  2. The price is approaching a respected and recent S&R level for the first or even second time.<\/li>\n<\/ol>\n

    \n\tTraders need to be aware of the major price zones to avoid trading into keys levels and perhaps even be prepared to trade away from those levels (i.e., taking a long at support if higher time frames are in an uptrend).\n<\/p>\n

    \n\tKey S&R levels can be very diverse, and, ultimately, it’s up to each trader to show the preferred tools. Keep in mind that adding too many S&R levels, however, will clutter the chart. Here are a few important examples:\n<\/p>\n

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    1. Round psychological levels, such as 1.10 or 1.25;<\/li>\n
    2. Fibonacci retracements, or target levels;<\/li>\n
    3. Bands like Admiral Keltner or Bollinger Bands;<\/li>\n
    4. Pivot Points like Admiral Markets Pivot Points;<\/li>\n
    5. Other S&R levels like Fractals and moving averages.<\/li>\n<\/ol>\n