This is a simple explanation of what market structure is, and it’s designed to show you what the market reversal alert indicator is potentially showing you is about to happen. There are tons of resources out there on this, so it’s just a quick lesson to explain the basics.
You can download the market structure reversal indicator here: https://www.mql5.com/en/market/product/46295
Download the dashboard to alert to all time frames and pairs here: https://www.mql5.com/en/market/product/62751/
NOTE: DOES NOT REQUIRE THE INDICATOR ABOVE TO POWER IT!
Video Transcript
Okay, so let’s have a quick look at market structure. This is just a brief overview, just to explain what it is as an overview as I say because there are resources all over the internet and lots of videos on YouTube explaining market structure in intricate detail. I’m not going to go into it again because there’s loads of it out there so just go and search for market structure on YouTube and you’ll find lots and lots of videos. But the basics of market structure are that price will move in waves up and down which is what we call trends. It will also move sideways which is what we call a consolidation. So this is a very rough drawing of market structure and as you can see on the left-hand side we have a low and that low then moved up to form a high and then pulled back to form a higher low. Now this is the start of the market structure pattern. As you can see then price pushed higher again and made a new higher high, it pulled back and made a higher low and then it consolidated for a little and then pushed up again to make a new higher high. So this is market structure starting in an uptrend and then from there price pulled back and made a new higher low and then pushed up again for a higher high, pulled back for a higher low and then went into a little consolidation period before it put in its final high. And as you can see there as price pulled back it made a new lower high and this is the start of the reversal in market structure. And then from there you can see price just collapsed and made a new low, pulled back up to make a lower high, continued to make a lower low and so on.
And that is basic market structure. So this is what the indicator is alerting you to. So the market reversal alerts indicator is showing you when these potential shifts in market structure are starting to happen. Now, the important thing to understand is that not every alert that you receive is going to hold so it’s not they’re not all going to work but what we need to look for when we get an alert from the indicator is confluence of either other indicators or levels that will give us clues as to whether this is the reversal point or just a pullback in the current market structure and when we go through the strategies I will explain in more detail how certain indicators and certain levels in the market can help you to identify these turning points so that you can get into your trades in the correct direction.
