Market Structure, Swing Flow & Displacement
Trade without lagging indicators by reading the true footprint of institutions: Higher Highs, Higher Lows, Trend Transition points, and High-Conviction Displacement candles.
Market structure is the bedrock of price action. An uptrend is an unbroken succession of Higher Highs (HH) and Higher Lows (HL). A downtrend is Lower Lows (LL) and Lower Highs (LH).
• An uptrend remains 100% valid until the most recent Higher Low is broken by a full body candle close.
When price aggressively sweeps a swing high and then plunges with high displacement velocity to close below the prior Higher Low, trend control flips from buyers to sellers.
• Real MSS occurs with long full-bodied candles (displacement), leaving price imbalances behind.
Institutions require massive counter-liquidity to fill hundred-million-dollar orders. They engineer runs above obvious double-tops or below triple-bottoms to trigger retail stop-loss orders.
• Price wicks past a key high or low, fails to hold for even 1 candle close, and violently rejects back inside.
A 3-candlestick formation where Candle 1's wick and Candle 3's wick do not overlap, leaving Candle 2 as an unfilled one-sided liquidity gap.
• Markets are algorithmic and seek efficiency. Price will retrace back into the FVG (mitigation) before accelerating in the true trend direction.