Disliked{quote} Thanks bro. So quick question. how do you identify BOS if the candles have not formed. What I mean is in the pic you have identified BOS but if I don't know how the future candles are going to look like how do I know BOS. Do you need to wait for a few candles to form and then decide there is a BOS? So after the rejection of OB wait for a few candles and then identify BOS? You also have a red arrow that shows liquidity but again question is this is after the fact. How do i identify this before future candles are formed. I hope I am making...Ignored
1. Major Structure
we usually wait for price to breach major stucture. While doing so, A FVG must form.
2. Minor Structure
Minor stucture breaks are risky even if price form a FVG while breaking minor structure. But imagine price has been in uptred all day long and it's the mid NY now and the news impacts are almost over, this means price has completed all the bullish delivery and now the brearish delivery may come anytime because bullish strength seems to have diminished. This is when we can give importance to Minor Sturcture Break.
3. Major Structure. Look at the chart. Price broken the minor structure and then retraced creating a new low/new support. We can count this as a new Major Structure. Breaking this new Major structure with Valid OB (must have a FVG) can be a potential candidate to downside move.
What is BOS?
Break of Structure is braking the support even by 1 points/pips. It doesnt mean price has to close below the support to be a valid BOS. But closing below is an added confirmation.
When to Place Order?
This is by far the most important question and requires an understanding over price action. There's no one way to figure this out but once you have mastered price action you will understand candle rejection in a way so you can make precise entry. There are few ways you can do this:
1. Price retrace to either 50% of FVG/ Order Block and then fails to breach them.
2. The Failure to Rejection is often understood by looking at how candle highs are behaving - they will try to go up but each time they reach to thier upper extreme an unseeable forche pushesh them down. the more the number of candles and their extremes get those push the more certain you become. Then comes a rejection candle confirming thiat the buy side deleivery is over is why price couldnt go beyond their extremes. You place your order.
3. During Bank open hours you will see a single candle/2 candle rejection from FVG/Valid OB. Because volume is very high and price will take decisions very fast giving you less time to think.
4. But as for this picture the failure to breach OB was during mid NY open. We had 2 high impact news during NY open, The day had a fair bullish run. With this data you can argue that all the major volume that was pushing price high is over. Price now may slowly but surely correct the day long bullish move to offer fairness. But since the it's now mid NY and not the Bank opens, price may not reject as fast as it would during bank opens. It might take considerable time before price could shift from Buy Side Delivery to Sell Side Delivery.
Note: You need to have idea on overall price movement for the day starting from previous day. Why? Because without this you will fail to time the market. When Bank opens (Euro/London/NY) it may either continue the run by retracing back to recent 15m FVG or can completely shift the market by breaking structure and changing the Side of Delivery. Once you know price is going up and up since yesterday because of the news came in NY bank open yesterday, you will understand the asian session may carry that buy side momentum or can correct to offer fairness. Now when London bank open and the price is corrected, it can carry the momentum developed yesterday or can offer some more correction as the FVG size in 4H chart is huge.
Timing is about understanding the price delivery Side and then using the Bank Open hours to ride them. Bank opens bring in lot of volume is why you will succeed at riding a big move if you are right. In case you are wrong, you know you have a considerably small stop loss. This is where this model comes in, How?
- price id going up up and up with dominant buy side delivery
- bank opens and price shows intent to go down by breaking recent structure with FVG and Valid OB then test those Point of interest(POI) and rejects