03 / THE METHODOLOGY
WE DON’T TRADE BLINDLY. WE TRADE WITH A STRATEGY.
Learn to read the market before making a decision. These three foundations help turn price movements into a structured analysis.
01
MARKET STRUCTURE
Read the direction before the opportunity.
Higher highs and higher lows can suggest an uptrend; lower highs and lower lows can suggest a downtrend. A Break of Structure (BOS) can support continuation. A Change of Character (CHOCH) can signal a possible shift — not a certainty.
02
SUPPLY & DEMAND
Focus on the areas that matter.
Demand zones are areas where buying previously strengthened. Supply zones are areas where selling previously strengthened. Watch how price reacts when it returns, and seek confluence — more than one reason supporting the same idea.
03
LIQUIDITY & PRICE ACTION
Look beyond the obvious breakout.
Previous highs and lows can attract orders. Price may briefly move beyond them in a liquidity sweep, then reverse. False breakouts and the reaction that follows provide context, not a guaranteed prediction.
XAU/USD / GOLD · US DOLLAR
ILLUSTRATIVE DIAGRAM · NOT LIVE DATA OR A TRADE RECOMMENDATION
READ THE CONTEXT
FROM STRUCTURE TO PRICE ACTION.
Use these concepts together. A pattern on its own is not a trading decision.
Higher highs & higher lows
An upward sequence forms when price exceeds a previous high and the following pullback stays above the previous low. It can indicate an uptrend, but the timeframe matters.
Lower highs & lower lows
A downward sequence forms when rallies fail below a previous high and price then breaks a previous low. This can indicate a downtrend, not a certainty of the next move.
Break of Structure (BOS)
A meaningful break beyond a prior structural high or low, in the direction of the existing trend, may support continuation. Traders differ on whether they require a candle close or other confirmation.
Change of Character (CHOCH)
A break against the recent structural sequence may be an early warning that behaviour is changing. It can also fail; look for context rather than assuming a reversal.
Supply and demand zones
Mark areas where selling or buying previously accelerated. A return to a zone is an area for observation, not an automatic entry. Strong trends can move straight through a zone.
Liquidity and liquidity sweeps
Orders often cluster around obvious previous highs and lows. A brief move beyond a level followed by a return may be described as a sweep. Not every breakout is false, and liquidity cannot be observed perfectly from a chart.
Price action
Look at candle bodies, wicks, closes and the speed of a reaction. Rejection, consolidation and follow-through help describe what price is doing; none predicts the future reliably in isolation.
Confluence and invalidation
Combine structure, zones and price reaction into a plan. Define what would invalidate your idea before entry, and size the trade around the risk rather than the desired reward.