Market structure helps you understand where price is coming from and where it may be heading.
Before taking a trade, identify the trend, key highs and lows, and important areas of support and resistance. Good entries start with good context.
Trading with the market's direction won't guarantee a winning trade, but understanding the trend can help you avoid fighting momentum unnecessarily.
#MONDAYMORNINGLESSONWITHSWIZZ
PART 2 ON TREND DIRECTION
3. Don't confuse a pullback with a reversal
Price doesn't move in a straight line.
An uptrend can temporarily move lower without becoming a downtrend. The same applies to a downtrend moving higher.
Welcome to Monday Morning Lesson with Swizz.
A fresh week, a fresh perspective. Every Monday, we break down key market concepts, sharpen our understanding, and learn something new about the markets.
Today we would be looking at TREND DIRECTIONS.
A pullback is not automatically a trend reversal.
Look for a meaningful break in market structure and confirmation before assuming the trend has changed.
THE KEY TAKEAWAY:
You don't have to predict every move.
Trend first. Setup second. Entry third.
Welcome to Monday Morning Lesson with Swizz.
A fresh week, a fresh perspective. Every Monday, we break down key market concepts, sharpen our understanding, and learn something new about the markets.
Today we would be looking at TREND DIRECTIONS.
2. Downtrend
A downtrend is formed when price creates Lower Highs (LH) and Lower Lows (LL).
Here, sellers have more control, so sell setups generally have the stronger directional bias.
PART 1 ✅️. PART 2 ⏳️
1. Uptrend
An uptrend is formed when price consistently creates Higher Highs (HH) and Higher Lows (HL).
This tells us buyers are generally in control, so looking for buy setups is usually more aligned with the market structure.
One of the first things you should understand before entering a trade is the direction of the market.
Before asking “Where should I enter?”, ask:
“What direction is the price currently moving?”
The market doesn't reward certainty. It rewards traders who understand probabilities, manage risk, and execute with discipline.
You don't need to predict every move. You need an edge you can repeat. 📊
Can you trade without needing to be certain?
Price action is the market's language. The real skill is understanding what the candles are saying before making a decision. 📊
Can you read the story behind the candles?
Every candle tells a story of fear, greed, conviction, and hesitation.
Learn to read the behavior behind the price, not just the pattern on the chart. 📊
What is price action telling you right now?
The market will test your emotions. Your process should keep them from making the decisions.
Discipline turns uncertainty into something you can manage. 🎯
Concentration can amplify returns, but it can also amplify losses.
Sustainable wealth is built by managing exposure, protecting capital, and allowing disciplined decisions to compound over time.
Control the risk. Protect the capital.
Exactly. The headline gets attention, but expectations drive positioning. The key is understanding what the data changes for rates, the dollar, and risk appetite.
CPI can change the market narrative in minutes. The real opportunity comes from understanding how the data shifts expectations around rates, liquidity, and the dollar.
Capital protection comes before capital growth.
Concentrating too much risk in one position can turn a single mistake into a major setback.
Smart wealth is built through disciplined risk allocation, consistency, and patience.
Protect the downside. Let the upside compound.