Steemit Crypto Academy Season 03 - Week 02 | Market Structure Break (MSB) Strategy to Trade Reversals, by @endersontowers

After reading the incredible lecture by professor @cryptokraze, I will do the task for this week 2 on a very interesting topic “Market Structure”. Thanks for joining me, let's get started.

The market structure is understood to be different variations or different patterns that we can identify when the candles are generated in a diagram, remember that the market is uncertain and since the psychology of the market is at stake, markets often work in the form of specific patterns in which if we read them well we can benefit through methods or strategies that allow us to make a quick decision through a good technical analysis of the graph, before investing it is advisable to investigate theoretically about methods and especially about this incredible theory of the structure of the graph. market and learn to differentiate each of the candles and through this the pattern that is generated in order to make a good decision that puts our investment in good hands. It is a good commercial strategy as long as the necessary measures are taken such as Stop Loss, we can also see that in most of the times the commercial structure can be identified with some anticipation both the bull market and the bear market and therefore For this reason, we can benefit from it, it is advisable to use this strategy between time lapses from 1 hour to 15 minutes.

It is understood as “Lowest Highs” when the oscillations of the candles are in an upward trend reaching a peak and the next candle breaks below the peak of the previous candle, we mostly know this point as the possible beginning of a correction or a trend. bearish and very good selling point.

The following example was made on the BTC / USDT pair, with time reading on the 15 min candles, through the Binance exchanger.

It is understood as "Highest minimum" when the oscillations of the candles are in a downtrend until they reach a "support" peak where the next candle breaks above the previous candle in a bullish way, we can know this point many times by giving the beginning of an uptrend and good buying point.

The following example was made on the BTC / USDT pair, with time reading on the 15 min candles, through the Binance exchanger.

It is identified when we continuously have high maximum points, which identifies a clear upward trend, when a minimum higher point does not exceed the previous peak we can identify a clear trend reversal, in the following image shown on the BTC / USDT pair, we can appreciate the reversal of the uptrend as shown by the selected point.

It can be identified with minimum major points, which identifies a clear downtrend, when a maximum maximum point does not exceed the previous peak we can identify a clear trend reversal, in the following image shown on the BTC / USDT pair, we can appreciate the downtrend reversal as shown by the selected point.

To make an entry or an exit, the first thing we must do is have a plan with development methods and follow it to the letter, we must not panic and make a move out of fear of the form or at the discretion of a third party.

To carry out a "buy" movement, we must take into consideration the different criteria:

- We must be vigilant both in an accumulation or a linear oscillating system, or coming from a clear downtrend or a correction.

- We must pay close attention to the closing of the candles according to the previous peak, with this we will differentiate what we are facing and therefore we will have the differences between candles.

- For a trend to change course, the new candle generated must be created starting above the peak of the previous candle.

- Remembering that we must always place a stop, I work it at 10% on the added value.

To carry out a "Sell" movement, we must take into consideration the different criteria:

- We must be attentive to the highest peak of a high main candle, because if the next candle is created below the peak of the high main candle, it is the selling point.

- Personally, I placed my sell order right at the second point of the low maximum candle, I placed it like this to avoid a false positive.

- We must activate the Take profit.

- The Risk / Benefit or RR factor must be 1: 1.

- According to our objective we must know when we should leave generating a profit.

- We must always take into consideration the Stop loss.

One more example about commercial exit with RR 1: 1.

In the following images I will make a demonstration using the market breakout strategy, with real money, through the Binance exchanger, in a temporary reading of 15min.

In the following image we can see the completed purchase and sale orders.

Purchase price: 131.52 $

Amount: 0.07603 LTC

Invested: $ 10

Sale Price: 132 $

Profit: $ 10.03

Purchase price: $ 32,750.35

Amount: 0.000305 BTC

Invested: $ 10

Sale Price: $ 33,052.59

Profit: $ 10.09

The structure of the market is essential for the use of theories and methods executed by ourselves, since we can see ourselves greatly benefited by applying many market strategies such as the temporary breakdown strategy (MSB), and we must be cautious with reversals of trend since they play a very important role on the change in trend which allows us to enter or exit an exchange in the market, in addition the entry and exit criteria give us very good results and above all we must always be cautious with the stop loss to generate a good entry and exit, in particular I had applied this method before but did not apply it in this correct way, I congratulate the teacher for such a fabulous subject. Thanks for sharing your great knowledge with all of us, it's a great strategy that not just anyone would share. Best regards.