Read the story behind the candles.

1) Define the current phase

Structure begins by labeling the market as trending or ranging. Trends show clean higher highs and higher lows (bullish) or lower highs and lower lows (bearish). Ranges show overlapping swings and repeated reactions at the same levels.

2) Start from a higher timeframe

Map structure on H4 or H1 before dropping to a lower timeframe. This keeps your bias aligned with the larger moves that drive liquidity.

• Mark the last two swing highs and lows.
• Identify any obvious break of structure.
• Note whether price is expanding or compressing.

3) Use zones, not single lines

Price rarely reacts at an exact level. Draw small zones where price has reacted multiple times, and watch how price behaves around those zones.

4) Understand liquidity

Liquidity pools often sit above swing highs and below swing lows. These areas attract stop orders. A clean sweep and reclaim can signal a shift in direction.

5) Break and retest beats impulse chasing

A true break shows a strong close beyond the level, followed by a retest that holds. If a break fails to hold, it often signals a trap and a reversal.

6) Use session context

London and New York sessions produce the most reliable structure changes. Moves during quiet sessions can be less trustworthy unless they are confirmed later.

7) Example checklist

• What is the higher-timeframe trend?
• Where are the nearest liquidity zones?
• Is price breaking or retesting structure?
• Is this happening during a liquid session?
• Where is the invalidation level?