Hello everyone. This week lecture is about market structure breakdown. I read the lecture thoroughly for twice and now i am going to do my homework task for professor @cryptokraze.

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What do you understand about Market Structure?

The crypto market is volatile. The price always keep changing. So the traders use the graphs to analyze where the market is actually moving. The market either can move upward which is known as market uptrend or move downward where the price fall. It is the market downtrend. No trend can stay there forever. If it is bullish period, after sometime the bearish period will start or if it is the bearish trend, then the bull trend will start soon.

The market structure helps the traders to analyze the market trend. The traders come to know either market is moving upward or falling downward. This help the traders to take the market decisions. The traders decide whether they should buy the coins or sell the coins to earn the profit by seeing the market structure.

A third way is also there for market to move. That is sideway direction. The price follow the market trend. The fluctuation in price cause the High swings or low swings in price forming the support and resistance areas in assets price.

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Market Structure for an Uptrend

When the demand increase, the price of asset rise and market move upward. This is known as market uptrend. In upward market structure, the price of assets rise.

The wave-form movement of market create the constant low and high. When the market raise, the uptrend does not occur at once. There is fluctuation in price and after many high and lows point. The price fall a little bit and then again start moving upward. Each new high point in moving upward is always higher than the previous high point.

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Market Structure for an Downtrend

When the supply increase and demand decrease, the price of assets fall. Then the market is said to be in downtrend. When the market is trending downward, there are a little rises in price of assets but after each little rise, the price again start decreasing.

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Sideway Movement

In sideway trend market, no major swing take place. There are continuous minor swings in the market structure.

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What do you understand about Lower High and Higher Low? Give Chart Examples from Crypto Assets.

While moving upward, a few swing take place. Sometime the minor fall occur in price but again market rise. The minors low points occur but again high points take place in market. Each new high is more higher than previous one.

And similarly when market is going downward, there are slight rise in price but again market starting falling. While going down ward, a few high points occur but again market start falling and low points take place. Each new lower point is more lower than previous one.
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Higher High

While raising to uptrend, the market face some swing movements. The price fluctuate and continuous to rise. While rising, sometime a minor low swing occur but again a high point take place. Each new high is higher than previous high.

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Higher low

While moving upward, price sometime fall at some points. These are the higher low points. But after each higher low, the price rise toward upward and a higher take place. Each low should be less than the previous low in uptrend.

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Lower high

In market downtrend, the price start falling. But the downtrend does not occur in staright line. There are swing movements. While downward, some time the price rise a little bit. A slight high occur but again market follow the trend and price start falling again. After every high, a low point occur and each new low is more lower than previous one.

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Lower Low

In down trend, when price swing movements take place, each time the price fell to lower. After a small and minor rise while downtrending, again a lower take place, Each latest lower is more than than the previous lower.

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How will you identify Trend Reversal early using Market Structure Break? (Screenshots Needed)

The market trend are not forever. After every uptrend, a downtrend take place and after every downtrend an uptrend occur. But there is a break which become a reason of end of a trend and after breaking that line, the existing trend end and market start going in opposite direction

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Identify Early Uptrend Reversal

We know that when market is going upward, some higher high points occur. Each time the new high is more higher than previous high. And market reach to the uptrend. But price fluctuation not stop. After the uptrend, higher high converted into high low. The trend reverse when the HH changes into HL.

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In the above graph, we can see that after the uptrend, the HL start placing.

There is a break point in HL swings.

When the swing break that line, the uptrend end there and downtrend start.

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Identify Early Downtrend Reversal

After every downtrend, the market start rising. The downtrend is not forever just like uptrend. The price continue to fluctuate. The high low moves are occur in market structure. These moves remain below to a break line. But when the moves break that line, it specifies that the uptrend start here and downtrend end.

In the above graph, you can see that the High Low points are occuring in market structure.

All these points are below than break line

When the High low points move up to the break line, the downtrend ends there and uptrend start.

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Explain Trade Entry and Exit Criteria on any Crypto Asset using any time frame of your choice (Screenshots Needed)

Trade entry criteria using Market Structure Break Strategy

There are some rules to follow to apply the MSB strategy successfully to earn the high profit.

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Buy entry Criteria.

We know that the best time for buying the coins is when the price is low and the best time to sell the coin is when the price is high. The people buy the coins in bearish period and sell them in bull period to get the high reward. The below are some rules to follow if you want to buy the coins at lowest price.

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In the above chart we can see that the market is at its downtrend. Each HL move is below the break line.

The little swings are there Sometime the price rise a little bit. And again then fall a little bit.

When the price will fluctuate and will fall after a rise below the break line, then purchase the coins.

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Sell entry Criteria.

We always sell the coin in market uptrend. At market uptrend the price is high and the traders earn the good profit by selling the coins. But we need to be very careful even in uptrend before exiting the market.

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Make sure that the market must be in uptrend.

In uptrend, there are sligh low and price again raise toward high.

Set a breakline.

The best time to sell the coin is when after the small low, the market goes high. When the bearish candle break and the price rise to the closing of higher low.

Once the line break, the trend will be finish there.

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Trade Exit Criteria when in profit

The traders perform trading just to earn the profit. The best time to buy the coin when the price is low and sell the coin when price is high. We always enter the market to get the reward. But we exit from the market either to earn the reward or to avoid the lose.

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The market must be in uptrend.

The swing should be HH

Set the level of your profit.

When the price reach to you set level, just sell the coin and earn the reward. It's time for you to exit the market because you have reach to your goal.

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Trade exit to Safe from lose

No one want at all. So the best way to safe from lose if following some basic rules.

Always set a stop loss .

You stop loss should be upper than LH swing in case of selling the coins. But if you want to buy the coins, than set the stop loss below than HL.

After reaching your stop loss price, exit the market. This will help you to the great extent to save from drowning your money. Stop loss help to safe from loss.

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Place 2 demo trades on crypto assets using Market Structure Break Strategy. You can use lower timeframe for these demo trades (Screenshots Needed)

Demo 1

The below chart is showing that the market is going up. It is the market uptrend. In market uptrend, some small swing take place when the price go a little down and rise again. Set a break line and when after lowering down the price again rise upward, then it is good point to place a sell order.

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Demo 2

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When the market is downtrend, some small swing are take place where the market take sligh move toward upward. The price rise a little bit and then come to the lower again. Each new lower is more lower than previous lower. So set a break line and when price go lower again after a small rise, then place an order to purchase the coin.

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^{Note: I cannot perform transaction as i don't have sufficient balance in my account right now}.

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Conclusion

The lecture was just amazing. I had fun while doing this task. In this lecture we learnt about the market structure break.

We learn about the trend reversal in detail and then market entry and exit spot are discussed. Always there are signals before trend end. So by understading those signal, one can get good profit.

I am very thankful to the professor @crptokraze for this amazing lecture.