Showing posts with label Market Structure Shift. Show all posts
Showing posts with label Market Structure Shift. Show all posts

Tuesday, August 18, 2026

Buy After Three Higher Lows | Toby Crabel

One of the simplest—and most reliable—ways to recognize momentum is by counting higher lows.

 
On a five-minute chart, this pattern often marks the strongest intraday momentum moves.
 
When the market makes three or more higher lows in a row, it's showing sustained buying pressure. Each pullback is shallower, each rebound faster. The first pullback that actually takes out a bar low after a run like this often gives the best entry—because you're joining a trend that's already proven its strength.

The same logic applies in reverse for downtrends: a series of lower highs points to heavy selling pressure and strong downside continuation.

Saturday, August 1, 2026

ICT Daily Bias Derived from the Dealing Range | Michael J. Huddleston

Daily Bias is the anticipated direction of the market for the next day. A Bullish Bias is established when the market retraces into equilibrium or a short-term discount level, suggesting a high likelihood that the price will move higher. A Bearish Bias is established when the market retraces into equilibrium or a short-term premium level, suggesting a high likelihood that the price will move lower.

Dealing Range & Premium/Discount Identification: The primary range is measured from the Swing High to the Swing Low. Anything above the 50% line (0.5 equilibrium) is classified as a Premium Zone, everything below as Discount Zone.
Three-Candle Swing High/Low: A valid swing high / low consists of a central candle (Candle 2) whose high/low is higher/lower than both the candle to its left (Candle 1) and the candle to its right (Candle 3), which constitutes a Market Structure Shift (MSS or Change of Character (ChoCh)).
Equilibrium & Mean Threshold: The 50% retracement level of either the dealing range or an order block body defines the exact boundary where price seeks institutional re-pricing before continuing down into lower discount arrays.
Deriving the Daily Bias from the Dealing Range also relates to the concepts of

This is the core framework for determining bias: once price touches equilibrium or short-term discount, anticipate a market structure shift and higher/lower prices over the next one to two days. Even if the immediate next day closes down/up or consolidates, the overall bullish/bearish target remains valid. 
 
  
See also: