ADVANCED · ENGLISH · FREE

1. Advanced market structure

Defining an extreme

HH is a high above the previous selected high; HL is a low above the previous low. LH and LL are respectively a lower high and lower low. "Selected" is the key word: without a consistent marking method, two interpretations of the chart can differ.

For a practice test, define a swing high as a high above the highs of two neighbouring candles on the left and two on the right. That extreme is confirmed only after the two right-hand candles close. Using it as confirmed before then introduces look-ahead bias.

Choose how to handle equal highs in advance: strict "greater than", equality allowed, or grouping into a zone. Specify the minimum price increment and timeframe. Applying different rules to winning and losing examples makes the statistics unreliable.

Impulse, Correction, BOS, CHoCH

Impulse and correction describe the relative direction of movement in a selected context. Reproducibility benefits from measurable conditions: change relative to recent volatility, candle count, or a close beyond a reference level. "A strong candle" without a threshold remains subjective.

In this course, BOS is a candle closing beyond a previously confirmed structural level in the direction of the observed trend. CHoCH is the first such break against the current sequence. These are working research definitions, not a universal exchange standard.

A close beyond a level and a wick crossing it produce different samples. You cannot test closes, enter during a wick in real practice and then refer to the same statistics. After CHoCH, the market can resume its old trend; the term describes an observation, not a promise of reversal.

Multiple timeframes

Separate context from action. For example, 1h defines direction and area, while 15m defines the entry condition. A higher-timeframe candle still open at the time of the lower-timeframe signal must not be replaced with its final state. Save the snapshot available then or reconstruct it from smaller candles.

Example. Confirmed 1h lows: 90 and 94; highs: 100 and 106. Price closes on 1h below 94. That breaks the selected rising structure. A short still needs separate entry, stop and target rules; a change in description alone is insufficient.

Exercise. Mark 20 consecutive confirmed swing points. For each, record the point's own time and the time it became known. If you use two right-hand bars, those times must differ. Then identify the condition that invalidates your context.