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Up Trend

Normally we discuss a little about the market structures that we see. If the market is in an uptrend, let's take a look at its movement. The market will first make a high with an up move. The price then pulls back and makes a higher low that will stay above the lower low. After the pullback, the market pushes up again breaking the above and the previous high and making a new high which we call the higher high. This is how an uptrend market continues.

Trending Market

Downtrend

Now let's take the concept of downtrend. In the case of a downtrend, the market will initially push downwards and form a low. It will then pull back and make a lower high below the previous high. After that, the price will push down again and break the previous low and make a new lower low. Thus, the downtrend market continues.

Down trend market

Supply and Demand Zone

Three conditions have to be fulfilled to create a supply and demand zone. We will first know the issues that are seen in the market, then we will understand that the supply and demand zone is being created in the market.

1. Inefficiency Movement
2. The structure must be broken.
3. Liquidity must be collected.

Inefficiency Movement

The market is seen to move slowly and suddenly the market goes up or makes a huge move down. If such a move is seen in the market, it is called an inefficiency move.

Market Movement

Structure Broken

To break the structure means to break a point. That is, in the case of an uptrend, it will break the previous high and create a new higher high, and in the case of a downtrend, it will break the lower low and create a new lower low.

Market Structure

Liquidity

Liquidity refers to how active a market is. It is determined by how many traders are actively trading and the total volume they're trading. One reason the foreign exchange market is so liquid is because it is tradable 24 hours a day during weekdays.

Market Liquidity
Forex Market Demand Zone
Forex Market Supply Zone

Order blocks

Through order block we can know where we will take entry. We see two hold order blocks in the market. One is a bearish order block and the other is a bullish order block. Let's know the things that need to be fulfilled to create the order block. 1. In order to create an order block, the market must touch a supply or demand label.
2. There will be inefficient movement.
3. The order block candlestick will be a spinning top type candle.

Bearish Order Block
Bullish Order Block

What is Liquidity

Normally we retail traders use stop loss. Suppose you opened a buy trade by holding a label and then it was seen that your stop loss was hit and the market went up again, this is called liquidity hunting. Big companies hunt these stop losses. Note the image adjacent. We retail traders usually open a trade based on a label such as a double top, triple top or other confirmation and use a stop loss below it. These stop loss labels have a lot of liquidity.

Forex Market Liquidity

Imbalance Candlesticks

Basically, the imbalance candlesticks in the market are made up of three candles. First, we will look at how balance and imbalance candlesticks are made. Note the image adjacent. It is a bearish movement. First, a bearish candle is formed followed by a second candlestick, and when the wick point of the first candlestick is touched by the wick of the third candle, it is called the balance price. Imbalance candlestick pattern is the wick point of the first candle cannot be touched by the wick of the third candle with a gap in between. Order blocks have a correlation with imbalance price action. If an imbalance candle is formed somewhere, if there is an order block above it, the market will slowly go there and then the price will fall again from there.

Forex Imbalancing Market

Entry Type

Normally there are two types of entry in the market. One is the risky entry and the other is the confirmation entry. If we draw an order block somewhere and place a pending order there it will be a risk entry. Because after our order is executed, the market can go against us or in our favor. Confirmation entry is the opening of a trade with confirmation in a lower time frame after the price moves to the order block area. We will always try to take confirmation entries.

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Forex currencies, such as EUR/USD and USD/JPY, play a vital role in driving global trade and are traded on a 24/5 market. These major pairs greatly influence transactions, and participants seek to capitalize on market fluctuations for profit. Both central banks and individual traders actively participate in this dynamic market, making it a hub of economic activity and opportunity for financial gains.

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Commodity markets trade raw goods like metals, energy, and agricultural products. Traders profit from price changes using futures, options, and ETFs. These markets manage price risk for producers and consumers, ensuring stability. They also reflect economic health, inflation, and geopolitical tensions. Commodity trading diversifies portfolios, hedges against inflation, and offers potential returns from price fluctuations.

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