Bullish scene:
1. Confirmed high - any candle before which we get two consecutive red candles (the second
candle close below the wick of the first candle).
Or, we can say, look for the confirmed low. Highest wick of any of the previous candles can be
considered as the confirmed high.
2. Confirmed low - lowest point (wick) between the 2 highs.
3. Confirmed higher high - if the candle closes above the wick of the previous high or closes
above the last high
As soon as we get 2 candle valid retracement on point 3, we rename that as 1. Just because we
take into consideration the latest market structure. So similarly, the new level 1 becomes the
new high. We wait for the body of the candle to close above that level, so that becomes our new
point 3. And the lowest point becomes our point 2 (confirmed high / higher high)
When renaming, we directly rename 3 as 1 even if we get wicks crossing that highest point, we
do not change the confirmed high. If the wick of the first or second valid retracement candles
cross above the wick of the green candle, we take the red candle’s wick as the new high.
Also, most important point: go till level/point 3 until we get a CHOCH or a BOS
The wicks of point 1 - the confirmed high - are known as TJL 1
The wicks of point 2 - the confirmed low - are known as TJL 2
Bearish scene is the complete opposite.
1. Confirmed low - lowest point before 2 green candle valid retracement.
2. Confirmed high - highest point between the confirmed low and the confirmed lower low.
3. Confirmed lower low - if the body candle closes below the confirmed low and then gives a 2
green candle valid retracement
The wicks of point 1 - the confirmed low - are known as TJL 1
The wicks of point 2 - the confirmed high - are known as TJL 2
In bullish structure - we get the first point as confirmed high
In bearish structure - we get the first pont as confirmed low
Level of 2 is the A++ level
CHOCH:
In a bullish trend : if 2 candles (green or red - does not matter) close below the level of 2, it is
called a CHOCH. If this happens, it is called a valid bearish CHOCH. The level of 2, now
becomes the last support in the market.
1 2 3 are used to mark the levels of the market from which a big move is expected. We need to
mark the wicks and 1% body of the levels to get the selling/buying levels.
In a bullish trend, when we get a bearish CHOCH, selling moves are expected from:
Level of 2: support becomes resistance level.
Level of 1: QML
Level of 3: double top
In a bearish trend, when we get a bullish CHOCH, buying moves are expected from:
Level of 2: resistance becomes support level.
Level of 1: QML
Level of 3: double bottom
Internal and External Structure:
Practice in 1H TF and check for against the trend.
The major trend is known as External structure and internal structure is the structure between
level 2 to level 3. If major trend is bullish, we look for bearish internal structure, just to get into
early sells.
In a bullish market, if the internal structure makes, 5 waves towards bearish, we can enter for a
sell at the 3rd and 4th level.
These internal waves should also have the same 2-candle valid retracement and should be on
the same TF.
Supply and Demand: Session 10
Buying Zone / Demand Zone is always at level 2. And is always a red candle. (OB)
To mark this level - mark the red candle from the open of body to the lowest wick during bullish
impulsive move.
Conditions to buy:
1. Level1 - with FVG + OB confirmation on same tf
2. Level 2 - TJL
3. Additional confluence - Candlestick patterns - bullish engulfing / morning star
Mark 1 2 3 levels on 1 hr, move to smaller timeframe for confirmations - OB/FVG/candle stick
If, FVG candles are formed infort of level 1 (when we are going to make level 3 in the market
and market makes FVG candles), the level 1 will play very nicely.
Conditions to sell:
1. Level 1 - FVG + OB (open of the candle to highest point/wick) on the same tf
2. Level 2 - TJL
3. Additional confluence - Candlestick patterns - bearish engulfing / evening star
Majorly use OB / FVG only when the level 2 zone is very big
For Reversals:
1. Shift to daily TF
2. Find a single Daily TF candle that acts OB
3. Shift to 1 hour and wait for 1 hour CHOCH
The daily candle/OB should be untapped / unmitigated.
