Market structure levels are where the most powerful reversal trades can form. If you’re going counter trend,
one of your quality control checks should be – ‘Is price bouncing off of a major structure level?’
See how I used two levels to ‘contain’ the price action and highlight the market structure?
If you can’t get a clear view, sometimes it’s better to switch to the weekly chart and get your structure points
from there. This is called the ‘top-down analysis’ approach, and I use it in all of my price action analysis.
Note the bullish rejection candles that formed right on the major market structure support. This communicates to us that the structure level is being respected and wants to hold via strong bullish evidence.
Once you get a strong reversal signal at one of these important levels – it makes a very good candidate for going counter trend, and taking a shot at catching a massive reversal.
Remember, trading is all about exploiting high probabilities. When big reversal signals form at big structure levels, you’ve got yourself a high probability trading opportunity.
To learn more i highly recommend you to get your copy of my ebook.click on the link in my bio or send me
a private message.
In your book you stated that Black bullish pin bars are more powerful than the white ones so as the black bearish pin bars . But What if I'm not using the black and white colors in my charts? I have come across many situations in the market whereby some pin bars really occur and the signal is strong but some again do appear but the trend isn't affected, it(the trend ) either continue or go in the opposite direction against the pin bar formation. What's really your take on that? @price.action.strategies