The aim of this thread is to document the fractal structure of various markets and how that structure fits in to higher and lower timeframes but first an explanation to make it easier for anyone who wants to follow along.

I would suggest first watching the two videos the first was made by Technical Fx and posted to their you tube channel and the second from another you tube channel called trading fanatic

Videos deleted

I have been trading using fractal market structure for many years, long before the video presentation made by Technical Fx you tube channel and i have no affiliation to either youtube channels or any other assocociation with them. ( the video is for educational purposes only)

I will not go into a long explanation of how to trade trends, i think the video does that very nicely.

There are no indicators publicly available to define market structure so do not ask.

I do not believe in predictions (if anyone does please send me the winning numbers for next weeks lotto) and neither does this method of trading predict where the market will go next but it does give an indication as the structure evolves as to what the most like direction will be.

Market structure is defined as swing highs and lows , these highs and lows go on to form the trend and corrective patterns. The same structure can be seen on any time-frame in any market.

Any market can have 4 conditions ( this is basic and every trader should know this so i will not go into it in depth)

Uptrend

Downtrend

Correction

Sideways (Ranging)

The main purpose of fractal structure trading is to ensure we are trading a swing that is moving with the larger swing trend as you will see later the smaller swing trends can give a false picture of the market and so helps to avoid a trend that may be corrective in nature.

Every market and time-frame is composed of larger swings and the larger swings are composed of smaller swings.

Eg.

The series of larger swings will have a relationship to the larger time-frame fractal structure and the series of smaller swings will have a relationship to the lower timeframe fractal structure.

Here is the current fractal structure of GBPUSD 4H

The 4h larger degree swings will fit in to the daily larger degree swings as smaller swings , the whole of the 4H larger trend fits in to the daily larger trend as the smaller trend.

Each 4H larger swing when viewed on the lower timeframe , in this example the hour, forms the hourly structure of larger and smaller swings

BitcoinUSD i have omitted most of the smaller swings as it is very time consuming to draw them all.

The base structure for this trade is at the larger degree swing level so there was no need to use multiple timeframes if we had then by taking a look at the larger swing on the 4H we could see the current correction was part of the larger degree upswing.

Here on the 60 min chart we saw the prior down trend broken with the uptrend back in December and the market started to make higher lows and higher highs, within each one of those higher highs and higher lows the smaller degree swings formed a triangle correction around the 4/01/2021 and it was simply a case of waiting for the triangle to break to the upside or waiting for the smaller trend to change to the upside as is explained in the video.

Note how the smaller waves could of been traded after the break of the triangle by switching to the 15 min timeframe and observing the same fractal market structure occuring.

Trends can be corrective, impulsive or formed within a range , in the next example we will see how to distinguish between the corrective and impusive trends using multiple timeframes.

If you watched the video you will have seen how the trader makes no distinction between what type of trend he is trading so lets see what kind of trend he was trading.

The blue swings are the 4H larger degree swings and the red the smaller degree swings, by dropping down to the 60 minute t/f he was then viewing the internal structure of the 4H small swings but by moving to a larger timeframe to view its fractal market structure we can see that the 4H trend was corrective.

By checking the higher timeframe we can distinguish between corrective/impulsive trends

eg. if the trend your trading is a smaller degree swing within the larger timeframes overall fractal market structure then there is a high possibility that it is corrective

Another example

Audjpy 4H

Audjpy D1

Corrective trends can be traded but it is always best to avoid them unless you are a more advanced trader , to get the best results it is always best to ensure the trend you are trading is part of the higher timeframes larger degree swing.

A very good example is the current daily price action on GbpUsd

The current daily larger swing is moving in the same direction as the weekly larger swing which makes it an impulse wave , if it was moving against the higher timeframe larger swing it would be corrective hence at the very basic level of trading we check the HTF.

I would suggest first watching the two videos the first was made by Technical Fx and posted to their you tube channel and the second from another you tube channel called trading fanatic

Videos deleted

I have been trading using fractal market structure for many years, long before the video presentation made by Technical Fx you tube channel and i have no affiliation to either youtube channels or any other assocociation with them. ( the video is for educational purposes only)

I will not go into a long explanation of how to trade trends, i think the video does that very nicely.

There are no indicators publicly available to define market structure so do not ask.

I do not believe in predictions (if anyone does please send me the winning numbers for next weeks lotto) and neither does this method of trading predict where the market will go next but it does give an indication as the structure evolves as to what the most like direction will be.

**What Is Market Structure**Market structure is defined as swing highs and lows , these highs and lows go on to form the trend and corrective patterns. The same structure can be seen on any time-frame in any market.

Any market can have 4 conditions ( this is basic and every trader should know this so i will not go into it in depth)

Uptrend

Downtrend

Correction

Sideways (Ranging)

**Why Use Fractal Structure To Trade.**The main purpose of fractal structure trading is to ensure we are trading a swing that is moving with the larger swing trend as you will see later the smaller swing trends can give a false picture of the market and so helps to avoid a trend that may be corrective in nature.

**What is Fractal Market Structure.**Every market and time-frame is composed of larger swings and the larger swings are composed of smaller swings.

Eg.

**Fractal Structure and Multiple Timeframes**The series of larger swings will have a relationship to the larger time-frame fractal structure and the series of smaller swings will have a relationship to the lower timeframe fractal structure.

Here is the current fractal structure of GBPUSD 4H

The 4h larger degree swings will fit in to the daily larger degree swings as smaller swings , the whole of the 4H larger trend fits in to the daily larger trend as the smaller trend.

Each 4H larger swing when viewed on the lower timeframe , in this example the hour, forms the hourly structure of larger and smaller swings

**Trade and Analysis Examples.****Example 1**BitcoinUSD i have omitted most of the smaller swings as it is very time consuming to draw them all.

The base structure for this trade is at the larger degree swing level so there was no need to use multiple timeframes if we had then by taking a look at the larger swing on the 4H we could see the current correction was part of the larger degree upswing.

Here on the 60 min chart we saw the prior down trend broken with the uptrend back in December and the market started to make higher lows and higher highs, within each one of those higher highs and higher lows the smaller degree swings formed a triangle correction around the 4/01/2021 and it was simply a case of waiting for the triangle to break to the upside or waiting for the smaller trend to change to the upside as is explained in the video.

Note how the smaller waves could of been traded after the break of the triangle by switching to the 15 min timeframe and observing the same fractal market structure occuring.

**Not All Trends Are Equal.**Trends can be corrective, impulsive or formed within a range , in the next example we will see how to distinguish between the corrective and impusive trends using multiple timeframes.

If you watched the video you will have seen how the trader makes no distinction between what type of trend he is trading so lets see what kind of trend he was trading.

The blue swings are the 4H larger degree swings and the red the smaller degree swings, by dropping down to the 60 minute t/f he was then viewing the internal structure of the 4H small swings but by moving to a larger timeframe to view its fractal market structure we can see that the 4H trend was corrective.

By checking the higher timeframe we can distinguish between corrective/impulsive trends

eg. if the trend your trading is a smaller degree swing within the larger timeframes overall fractal market structure then there is a high possibility that it is corrective

Another example

Audjpy 4H

Audjpy D1

Corrective trends can be traded but it is always best to avoid them unless you are a more advanced trader , to get the best results it is always best to ensure the trend you are trading is part of the higher timeframes larger degree swing.

A very good example is the current daily price action on GbpUsd

The current daily larger swing is moving in the same direction as the weekly larger swing which makes it an impulse wave , if it was moving against the higher timeframe larger swing it would be corrective hence at the very basic level of trading we check the HTF.

Follow The Markets Structure - Patience and Discipline