Read futures market structure - swing highs/lows, trend vs range, break of structure (BOS), change of character (CHoCH), premium/discount, and where a trade idea is invalidated. Use for any directional bias, entry location, or stop placement decision.
Instal·la
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Market Structure
When to Use
- Forming a directional bias on any timeframe.
- Choosing where a stop belongs (behind structure, not at an arbitrary distance).
- Deciding whether a breakout is continuation or a reversal attempt.
How It Works
In an autonomous cycle the bar briefing (bar_briefing, the harness-tools
skill) already holds this bar's values: m3 (EMAs, ADX, SuperTrend, Keltner,
ATR, VWAP, participation, the skip-rule counters in context, swings and
liquidity, lastBreak, sweeps, htfLevels, the nearest levels in points
and R), m15 and h1 (the higher frames). Use it, and compute only what it
doesn't hold.
The latest BOS or CHoCH (lastBreak) is computed there from confirmed swings:
never call it by eye.
- Find swings. Use confirmed fractal swings from market-snapshot
(structure.lastSwingHigh/Low, k=2: a pivot with 2 strictly lower highs or
higher lows on each side, confirmed 2 bars later). Mark the last 3–4 of each. - Classify the leg.
- Uptrend: higher highs (HH) and higher lows (HL).
- Downtrend: lower highs (LH) and lower lows (LL).
- Range: swings overlap; price rotates between a defined high and low.
- Events.
- BOS (break of structure): a close beyond the last swing in the trend's
direction, a continuation signal. - CHoCH (change of character): the first close beyond the last swing
against the trend (e.g. below the last HL in an uptrend). It's an early
reversal warning, not a reversal by itself; wait for a lower high to form. - A wick through a swing that closes back inside is a sweep
(liquidity-concepts), not a break.
- BOS (break of structure): a close beyond the last swing in the trend's
- Location. Split the current dealing range (last major swing low to
high) at 50%. Above = premium (favour shorts / don't chase longs), below =
discount (favour longs). Within a trend, buy pullbacks into discount and
sell rallies into premium. - Invalidation. A long idea is wrong below the swing low that created it;
a short idea above the swing high. The stop goes beyond that swing plus a
buffer (≥ 2 ticks or 0.1 × ATR). - Higher timeframe wins. A 3-minute BOS against a 1-hour downtrend is a
counter-trend trade: smaller target, stricter skip rules.
Examples
15m: HH 21620 → HL 21540 → HH 21655 → HL 21590 (uptrend)
3m: close 21588 below the 21590 HL → CHoCH on 3m, 15m still up.
Read: pullback within an uptrend, not a reversal. Look for a 3m HL and BOS up
for a long; invalidation below 21540 (15m HL).Report structure as facts with prices and times, then the bias, then what
would flip it.