This is the second of our three-part series on Mapping Any Market in Any Time Frame. In Part I, we learned how to structure markets using only swings. Simple enough, but markets are not static. They are dynamic systems. This means any effort at mapping market structure has to also be dynamic. This is price flow. So we follow and, in following, we develop a connection to a market’s rhythms and learn to change with change. This is fundamentally one of the most important lessons in a trader’s education.
In this video, I introduce the practice of following live markets and highlight the basic tools for developing this practice.
In this post, I combine gaps and swings to map and trade the 20-minute JPY. You will see how I use gaps and swings to isolate a Change in Behavior and to also see the direction of price. I use them again to show me the trade entry where I am willing to risk my stop.
The key thing to learn is this, how to use our tools and not be used by them.