📘 Daily Trading Lesson – Episode 5
📊 Understanding Market Structure
One of the most important skills for successful traders is properly identifying market structure. Understanding this shows you the prevailing trend and how to trade along with it.
🔹 Uptrend:
When the market forms higher highs and higher lows, it indicates strong buying pressure and a continuing upward trend. Entering on pullbacks in this scenario usually has a higher probability of success.
🔹 Downtrend:
When the market forms lower highs and lower lows, the downtrend is dominant. In this case, the best approach is to wait for corrections and look for short opportunities.
🔹 Why it matters:
Trading against the trend or ignoring market structure is the main cause of losses. Market structure acts like a map, showing you the likely path of price movement.
🔹 Key Points:
• Always look for trend confirmation before entering a trade.
• Guessing or entering without analyzing structure increases the risk of loss.
• Trade with the trend and be patient — the market always offers new opportunities.
Remember:
The market always gives clues; your job is to read them correctly and make smart decisions.
