Preface
The definition of MSB is actually more complicated than you might think. This article will analyze it in the most original way. It is normal if it is different from the definition in some textbooks.
Here we will discuss the end and reversal of trends.
Trend Discussion
How the disk works normally
In my definition, if the market is analyzed into the simplest way, it can be divided into three categories: trend structure, reversal, and consolidation. If we add one more category, it is our retracement. Generally speaking, if we want to define it, we will define it like this:
Generally speaking, the most enjoyable part of trading is to find a reversal point and then use the left side trade to get the bottom in one go.
MSB is the most critical level to confirm the reversal structure
We can also define it this way, but generally speaking, this is more like the running method of a large cycle. When we discuss the most original market dynamics and price behavior, we still focus on reversal, consolidation, trending structure, and retracement.
Definition of trend structure
Taking the upward trend as an example, the higher the highs, the higher the lows until the red line (MSB) breaks the reversal of the defined structure to confirm it.
I think this is the best case to understand MSB, which is to break the existing trend structure and is also the beginning of a reversal.
MSB’s trading method
The first
That is, after falling below MSB, look for OB to build a reverse position. The same applies to the reversal structure of the downward trend.
This generally occurs when there is no top pattern and the price of the chain liquidation has not been touched. This is also a relatively easy structure to catch. A less standard version:
The second
When a top/bottom structure or a similar structure (e.g. 2B) is formed, we will look for short/long opportunities at the neckline:
A long-structured version:
So generally we look for these two opportunities
The third
Usually, this trading opportunity cannot be entered using MSB, so I will specifically talk about it:
For example, in a structure with a large amount of liquidation, it is generally difficult to catch the entry point, which may appear at the FVG position. However, we generally look for opportunities at high points, or other opportunities, and will not only think about the combination of MSB.
Example of MSB failure:
The market is not absolute, and there will occasionally be so-called failure examples, which are difficult to avoid, but what we pursue is long-term positive growth of assets, not a one-time quick fortune.
Conclusion
This article briefly introduces some uses of MSB and some structural methods of entering the market. I hope that everyone can become more and more successful on the road of trading, and not be too stubborn and make mistakes by looking to one side.
Let’s make progress together in this bear market.
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