The trading logic of most retail investors is:
Look at a candlestick → guess the rise and fall
Look at an indicator → directly open a position
But real experts do not just look at a 'single candlestick', but—
Market structure.
People who cannot read structure:
• Always chasing the last bullish candlestick
• Always scared out at the lowest point
• Even if they see the right direction, they can't hold the position
People who can read structure:
• At a glance, you can tell where the 'trap points' are
• Understand which positions can only be observed
• Know whether a breakout is real or not
1. What is structure?
Structure fundamentally has only three types:
1. Bullish structure: higher highs, higher lows
2. Downtrend structure: lower lows, lower highs
3. Consolidation structure: highs and lows overlap
You only need to ask three questions:
• Has the current high point broken through?
• Has the low point been broken?
• Is the price in a trend or in a box?
These three questions are more useful than 100 indicators.
Two, 90% of people are 'doing the opposite of the structure'
The most common money-giving behavior:
❌ Bottom fishing in a downtrend structure
❌ Shorting in an uptrend structure
❌ Heavily betting on a breakout in consolidation
For example:
• Prices continuously create lower lows
• Rebounds can't even surpass the previous high
• Volume is getting weaker
This is the standard downtrend structure.
But retail traders love to say this at this time:
"After falling so much, there must be a rebound!"
Then once you buy, it continues to make new lows.
Three, an ultra-simple structure trading method
I only use three steps:
1️⃣ First determine the structure
• Trend?
• Consolidation?
• Is it still just a turning point?
2️⃣ Then find the key levels
• Recent high point
• Recent low point
• Box boundary
3️⃣ Finally discuss entry
• Breakout and pullback
• False breakout confirmation
• Structure damage
Never reverse the order:
❗First look at the structure → then find the position → finally place the order
Not: rushing in after seeing a big bullish candle.
Four, a sentence of mindset
• The structure hasn't changed, don't act recklessly
• Once the structure has changed, then discuss long or short
• Market without structure is only suitable for observation
Trading is not about guessing price movements,
But rather—
Betting in places with 'structural advantage.'
