0:00 well it's good baby
0:09 I know you love seeing my beautiful face
0:11 every damn morning
0:17 what's good baby welcome to boot camp
0:21 day [ __ ]
0:24 day six
0:26 I believe
0:28 welcome to boot camp day six okay today
0:31 we're back on it with trading okay we
0:34 are going to be talking about Break of
0:36 structure okay
0:38 um I figured you know we're gonna get
0:40 the the baby the beginners right out
0:42 hold on there's a fly
0:45 we're gonna get the baby we're gonna get
0:47 the beginner [ __ ] out of here
0:48 um first so we can start getting into
0:50 this because right after this one right
0:52 after this trading video the next
0:54 trading video is going to be talking
0:55 about liquidity so we can actually get
0:57 into some [ __ ] all right so
1:00 first we need to understand break of
1:01 structure because we've talked about
1:02 candlesticks so we know the little
1:05 drawings on the chart and now we know
1:07 Trends right now we need to understand
1:10 why and when the Market's trending and
1:13 you know when it actually switches
1:15 Direction when it breaks structure when
1:17 it's when it gets a market structure
1:19 shift okay so the simplest way
1:24 that I can describe a break of structure
1:27 is a shift in the trend okay so we know
1:31 right Trends move and higher highs and
1:34 higher lows okay we also know
1:38 um or actually I haven't even talked
1:39 about this okay so so Trends move in in
1:42 higher highs and higher lows okay right
1:45 and then lower lows and lower highs on
1:47 the contrary right in a downtrend okay
1:49 what makes up a high in the first place
1:51 this is something that I didn't talk
1:52 about in the trends because I was going
1:54 to save it for the break of structure
1:56 video okay so what makes a high a move
1:58 up then I move down right
2:00 hi what makes low a move down then a
2:04 move up low Okay so
2:08 when we apply this to the charts okay it
2:12 is literally as simple as that a high
2:15 okay is a move up then they move down a
2:18 low is a move down then a move up
2:20 okay so what does that mean it only
2:22 takes two candles essentially it's a
2:25 Candlestick pattern so if there is one
2:28 green candle up and then a red candle
2:31 down
2:32 that's a high if there is one red candle
2:36 down and then one green candle up that's
2:40 a low it's not it doesn't have to make a
2:43 perfect little [ __ ] shape okay it
2:46 doesn't have to look perfect it doesn't
2:47 have to look pretty because I feel like
2:49 a lot of people a lot of beginner
2:51 Traders especially think highs and lows
2:54 have to be like you know like look
2:56 exactly the same right so let's let's
3:00 jump into the charts
3:02 and start outlining
3:04 what a high and low even looks like
3:06 before we even get into breakup
3:08 structure because we have to understand
3:09 what highs and lows look like in order
3:12 to understand what a breaking structure
3:14 is right because if that means the trend
3:15 is changing if we're if we're saying a
3:18 trend is higher highs and higher lows
3:19 and the trend changes we have to know
3:22 what those highs and lows even look like
3:24 right so
3:26 this is a perfect example of an odd
3:29 looking high that people probably
3:32 wouldn't even call a high people would
3:34 probably call call this the high no okay
3:38 it's not you can't just Lump Lump them
3:41 together that's not how this [ __ ] works
3:43 okay
3:45 so first of all right we do have a move
3:48 up then a move down what does it consist
3:51 of literally a blue candle than a Black
3:52 Candle my my chart is blue and black it
3:55 just looks cool that way okay that's why
3:57 I have it okay so this is a high
4:01 right this right here is the high off
4:04 the Wicks of the blue candle right there
4:07 perfect that's a high
4:09 okay and on the contrary right we have a
4:12 move down then they move up so what is
4:14 this a low
4:16 cool cool right this again is still a
4:21 high it just doesn't look as pretty as
4:23 this right why because we have a blue
4:25 candle meaning a move up and then a move
4:28 down okay it's two candles and you're
4:30 probably going to say well tjr where's
4:32 the high is it off the wick of this
4:34 candle or is it off the wick of this
4:36 candle well since a high takes two
4:40 candles to form you're going to take the
4:42 highest Wick of whichever of those two
4:44 candles it is
4:45 okay so boom we got a high right here
4:49 okay and same thing same thing down here
4:51 right if this blue candle's Wick was
4:54 lower
4:55 then the Black Candle
4:58 that would be the low makes sense cool
5:02 good we got it hopefully I don't have to
5:04 cover that
5:06 um hopefully I don't have to cover that
5:07 again okay we can go over another
5:09 example what is this this is a high why
5:11 because there's a blue candle then a
5:13 Black Candle literally It Only Takes Two
5:15 candles to make it hot perfect boom we
5:17 find the the top Wick between between
5:20 the two candles done deal okay
5:25 this is a low why because there's a move
5:28 down then a move up
5:30 this is a low why because there's a move
5:33 down then there's a move up
5:35 cool
5:36 cool same thing right here
5:39 this is a low why because there was a
5:41 move down then they move up
5:43 right if we scale into the four hour
5:46 and look at this
5:48 this is the low right it makes sense
5:51 that this would be the low and not
5:58 and not the start of the Black Candle or
6:01 not the wick of the Black Candle because
6:03 if we zoom in
6:04 and look at it
6:06 what the [ __ ] is that right this ain't
6:08 no low the low's all the way down here
6:10 okay
6:12 so boom we know what lows and Highs are
6:15 now perfect
6:16 clap it up we got we got like the super
6:19 beginner [ __ ] done okay
6:22 perfect
6:23 all right we know what lows are high
6:25 what lows and Highs are and if we know
6:28 what trends are and if we know what lows
6:29 and Highs are then we can know when a
6:32 trend breaks and when Market structure
6:35 shifts okay why because if a uptrend
6:39 moves in higher highs and higher lows
6:41 but then uh oh
6:44 it doesn't anymore it ends up breaking
6:48 what is likely going to happen
6:51 okay it's going to start making lower
6:53 lows and lower highs
6:56 and that is what we call a break of
6:58 structure
6:59 okay meaning we break the trend that the
7:02 current market that market is currently
7:04 in
7:05 okay
7:06 we break that Trend and then flip flip
7:10 Market Direction flip Market structure
7:13 in the other direction
7:15 okay
7:16 and break of structure is very very
7:19 simple but for some reason I get lots of
7:22 questions on it and in this video I will
7:24 try and
7:26 simplify this [ __ ] so literally a child
7:30 can understand it okay I'm going to try
7:32 and make this super simple
7:34 okay a break in structure
7:37 to the upside
7:39 okay and we'll and we'll show examples
7:41 of this on the on the chart and
7:44 um and through drawing okay a breakup
7:47 structure to the upside so that means
7:48 there is a downtrend currently
7:51 right a break of structure to the upside
7:54 is when we have a closure
7:57 a candle closure not a wick a candle
8:01 closure
8:02 above a high
8:04 remember what's a high a move up then a
8:07 move down so that means in order for it
8:09 to break structure to the upside we have
8:12 to see a single candle close fully
8:17 meaning closing Above This High meaning
8:20 the candle body has to be above the wick
8:23 of the high
8:25 makes sense let's find an example on the
8:27 chart because I'm not sure this makes
8:29 sense yet because this is how I
8:31 described the last video and we still
8:32 had questions but that's okay questions
8:34 are good gonna try and help you guys
8:36 understand this
8:38 okay
8:39 so right here we're going to move up
8:42 then a move down then a move up okay
8:43 perfect we made a low right here and as
8:45 you can see right here we had like a
8:47 miniature uptrend okay we come down get
8:50 a move down then a move up we get
8:51 another low cool
8:54 I no longer care about this previous low
8:56 I'm only caring about the most recent
8:58 one okay and we'll get into that a
9:00 little bit later into this video okay I
9:02 only care about the most recent high or
9:04 low that has been made
9:06 as you can see here we previously
9:09 had broke structure to the upside right
9:11 uptrend okay
9:13 then we have this low and what happens
9:15 right we have a
9:17 move down then I move up but then right
9:20 we weren't we weren't in a downtrend
9:22 previously but what happens with this
9:24 candle
9:26 the body of the candle
9:29 closed
9:31 below the low
9:34 so what happened what what did it cause
9:36 it to do
9:38 started a downtrend
9:40 right boom lower high lower low probably
9:44 going up to form a lower high or
9:46 retracement on the weekly time frame to
9:49 come up in within here
9:51 okay
9:52 so
9:54 do are we starting to understand what a
9:56 break of structure is now let's try and
9:57 find a break of structure to the upside
10:03 this is just lovely
10:05 right what happens we were previously
10:07 training up this gives us two perfect
10:09 examples of this previously trending to
10:11 the upside right we see
10:14 a low what happened to the low the body
10:18 of the candle closed below it what
10:20 happened to the trend it shifted right
10:23 we have a high right here we have a low
10:25 right here where's the next high right
10:27 here where's the next low right here
10:30 lower low
10:32 lower low lower high
10:39 what's this right here I move down then
10:41 I move up that's a low
10:43 what's this right here move up then I
10:45 move down that's a high what's this a
10:47 lower high a lower low wow would you
10:49 look at that it's a trend it's a
10:51 downtrend because Market structure broke
10:53 okay so now that we're in a downtrend
10:57 what happens over here
10:59 we have
11:01 a high right here and you're gonna say
11:03 oh yeah it broke whoa whoa whoa slow
11:05 down we also had a high right here why
11:08 why why is this a high guys why is it a
11:11 high because we have a move up and then
11:13 they move down
11:15 we get a closure above it
11:17 okay close the candle closed above the
11:21 wick
11:22 and then what happens
11:24 Bing Bong moves to the upside
11:27 yeah we did get a retracement down but
11:29 hey look high or low
11:33 higher high higher low higher hot higher
11:36 low higher high higher low
11:38 continues okay
11:41 that is breaking structure to the upside
11:43 now
11:45 let's break your structure to the
11:46 downside
11:47 well it's when we have an uptrend
11:50 and then schminck a low gets taken out
11:53 right same exact thing just in the
11:56 opposite direction
11:57 right
11:58 low gets taken out
12:01 okay
12:02 boom we start the downtrend okay
12:06 pretty pretty simple stuff right
12:10 let me show you guys what a break of
12:12 structure is not and I think this is
12:14 where a lot of people slip up
12:17 right here is a perfect prime time
12:21 example of this
12:24 right here we get a move up then I move
12:26 down so what does this make a high
12:29 correct
12:30 right here we get a move up
12:34 and then I move down this Wick goes
12:37 higher than this Wick right so
12:39 technically this high is higher than
12:41 this high
12:42 however we do not give no [ __ ] we do
12:45 not give a crap we do not care about Wix
12:50 going above highs or going below lows
12:53 that does not mean anything to us
12:57 we need a candle closed because as you
12:59 can see right here
13:00 oh oh no it's a higher high what's gonna
13:03 happen oh no it falls what this isn't
13:06 what tjr taught us well here we are
13:08 teaching you this [ __ ] okay so we get
13:12 this Wick going higher than this Wick
13:13 but we don't care because it doesn't
13:15 close above it it is not a break of
13:17 structure unless the candle closes above
13:20 it write that down it is not a break of
13:22 structure unless the candle closes above
13:25 a high
13:26 or be low a low
13:30 right for a for example if let's say
13:33 this black Wick let's say this this Wick
13:36 went lower than this low
13:41 that would not have been a break of
13:43 structure it that would not have been a
13:45 breakup structure
13:47 and this whole thing wasn't a break of
13:49 structure until
13:52 this most recent low
13:54 got closed below
13:59 that's all breakup structure is
14:02 whatever the most recent
14:04 okay ready so we'll simplify this even
14:07 more right it's literally a step-by-step
14:09 execution of understanding where a break
14:11 of structure is number one identify that
14:14 the trend identify the trend
14:17 we'll we'll even write this down this
14:19 will be good
14:24 damn
14:26 can be profitable but can't type
14:29 that's how it goes
14:30 is that even the way how to spell
14:32 structure I don't even know and I don't
14:33 care how to spot breaking structure
14:35 number one
14:37 identify the trend
14:40 okay where is it going number two okay
14:46 up
14:48 Trend or down
14:51 trend
14:53 okay number two if in up Trend okay
14:59 we are watching
15:02 the lows right because if we're moving
15:07 up higher and higher when are we going
15:09 to get a break of structure
15:11 when the low gets taken out when the low
15:13 gets closed below we don't care about
15:15 the highs right we care about the lows
15:17 okay number three if in downtrend we are
15:22 watching highs right for opposite reason
15:26 right we're moving down so the only way
15:29 for this thing to turn into an uptrend
15:31 right is it for it to go higher right if
15:34 it keeps going lower we're staying in
15:36 the trend got it got it okay number four
15:40 okay once you identify the trend right
15:43 we figure it out
15:45 we can't okay
15:48 in order for it to be a break
15:55 again I misspelled it in order for it to
15:58 be a break of structure to the upside
16:03 it has to close above or actually we'll
16:08 make this be a brake structure of the
16:10 downside because we talked about we're
16:12 watching loads for the first one I don't
16:13 want to confuse you guys
16:19 wow I can't even type
16:38 so in order for it to be a break of
16:40 structure to the downsize to the
16:44 downside which means it is turning from
16:46 an uptrend into a downtrend damn I
16:49 wonder if I can make this smaller
16:52 there we go
16:53 it has to close below the most recent
16:56 low
16:58 does that make sense
17:00 give me a a nod yes yes okay number five
17:06 oops number five so this is that exact
17:09 same
17:11 just opposite
17:15 let's see if I can spell it right
17:16 structure did it for me a lot I love
17:20 technology oops I was just copying
17:22 upside
17:24 into an uptrend oops bad grammar on a
17:28 instead of an
17:37 in order for it to be a break of
17:39 structure to the upside which means from
17:41 a downtrend into an uptrend I'll even
17:44 add that into there because that can get
17:46 confusing I know
17:56 okay
18:00 cool so in order for it to be a break of
18:03 structure to the downside which means an
18:06 uptrend into a downtrend it has to close
18:10 below the most recent low
18:12 understand that we are consistently
18:14 watching the most recent lows in the
18:16 most recent highs getting formed okay we
18:19 are not we are not listening or carrying
18:23 caring about pass lows okay so in this
18:28 example this gives us a a perfect
18:29 example okay
18:32 right we make this low right here this
18:34 low yes it's lower than this one
18:37 but why do I not care about it anymore
18:40 because this one is the most recent low
18:42 that was made
18:44 yes price ended up closing below both of
18:46 them so we wouldn't have had an issue
18:48 but I know damn well that some of you
18:50 guys if it only closed below this one
18:52 and not below this one you guys would
18:53 have been having a heart attack
18:55 shivering your [ __ ] Timbers deciding
18:58 whether or not to take a short
19:00 okay so we take the most recent lower
19:03 high made
19:07 okay same thing with this
19:09 same thing with this over there right we
19:11 have a high right here
19:13 oh we make another high right here
19:15 why why is this why why aren't tjr why
19:19 are we using the wick of this this
19:20 because
19:22 up candle and a down candle how do we
19:24 Mark our highs the highest point of
19:27 those two candles
19:28 all right the wick right there we got it
19:32 we closed above that yes we closed above
19:34 both of these yet again
19:36 however
19:39 we don't care about this High anymore
19:41 okay there will be times when price will
19:43 consolidate right not within a trend
19:46 right it'll just be consolidating and
19:49 you'll see a lot of that right you'll
19:50 see oh
19:52 move up right
19:54 right here move up then to move down now
19:56 this is a high move down then a move up
19:59 this is a low move up then I move down
20:01 this is a high move down then to move up
20:04 this is a low right this is just pure
20:05 consolidation there is no Trend within
20:08 however many days this was this would
20:10 have been a terrible trading week for
20:11 Gold right there was no Trend within
20:13 this there was no break of structure
20:16 Market had no clue where it wanted to go
20:19 oops
20:21 okay
20:23 does that make sense
20:26 I feel like that that is the easiest way
20:28 that I could have put brake of structure
20:31 at all okay we we have it laid out it is
20:35 a step-by-step formula number one
20:37 identify the trend
20:39 what's the trend
20:41 look at it
20:44 lower lows and lower highs perfect we're
20:46 in a downtrend
20:49 okay so we are in a downtrend what are
20:51 we watching
20:52 we are watching highs where's our most
20:55 recent High
20:57 right here
20:58 so in order for this to turn into an
21:00 uptrend again
21:02 we have to wait for the daily time frame
21:05 to close above here
21:08 we just gotta sit back relax and wait
21:14 this week is not a high this Wick is not
21:16 a hive this candle forming is not a high
21:19 if the next if the next candle that
21:21 forms is down though
21:23 then yeah we'll move the high to there
21:26 but that hasn't happened so where's the
21:28 most recent High
21:30 there cool and when does it turn into an
21:34 uptrend when we get a candle closure
21:37 above there
21:38 okay we'll show we'll show one more
21:40 example
21:41 of a break of structure
21:46 let me throw this on the weekly
21:51 yeah oh this is money
21:54 okay
21:56 right here
21:58 right we're trending up
22:01 all right or actually no well we'll go
22:04 into like 15 minute time frame
22:07 this will be good
22:09 and again remember guys remember
22:12 remember I don't want you to watch this
22:14 breakup structure video and instantly be
22:16 like when there's a break of structure
22:19 it means it's gonna go up forever or
22:21 when there's a breaking structure to the
22:22 downside it's going to go down forever
22:23 because that is not true at all
22:25 not not true
22:27 okay not true whatsoever
22:31 because remember in our Trends video if
22:34 you have to re-watch that today I highly
22:37 suggest you do so remember in our Trends
22:39 video
22:41 the weekly holds more power than the
22:43 daily the monthly holds more power than
22:45 the weekly if we see a break of
22:47 structure to the downside on The Daily
22:48 like we saw right here on gold or sorry
22:51 on on gu
22:54 right
22:57 and why is this the breaker structure
22:59 the downside
23:01 move down move up this is the low
23:04 we close below that market starts
23:07 running down if we see a breaking
23:09 structure to the downside on The Daily
23:11 but the weekly we're still bullish
23:16 it's just a retracement
23:18 was this a break of structure
23:22 little little homework little tip and
23:25 trick for you guys
23:27 this was the most recent low that we had
23:30 is this a break of structure
23:33 no
23:36 why is it not a break of structure
23:39 you're probably saying
23:42 shut up we haven't closed below the low
23:45 we didn't close below this is a perfect
23:48 example
23:50 of what a lot of you guys will be
23:52 entering on
23:53 that just is not a breakup structure
23:58 this looks like a liquidity sweep
24:01 and oftentimes Mike Market will do this
24:03 a lot to fake people out who think that
24:06 a wick below
24:08 a previous low is actually a break of
24:11 structure
24:13 because what's Market probably going to
24:14 do it's probably going to come up a
24:16 little bit
24:19 okay yeah maybe the next weekly candle
24:22 will close below here maybe if it wants
24:25 to but we have to wait for that we can't
24:28 just say
24:30 good enough sell right because we don't
24:33 want it to be good enough we want to
24:35 know
24:36 and because even when we know for
24:38 certain we don't actually know so why
24:41 would we why would we take a trade off
24:42 of something that's already low
24:44 probability of being a break of
24:45 structure
24:47 and already being in a market that's
24:49 already very difficult to have a high
24:51 probability to trade in right we're
24:53 literally just reducing our chances of
24:56 being a higher probability Trader by
24:58 taking
24:59 bad setups like this
25:02 right we need to wait for the low to get
25:04 closed below
25:06 same [ __ ] with this
25:08 same [ __ ] with this this is a an exact
25:11 example of this right here
25:13 same thing with this
25:17 right what's this move down then move up
25:20 this is a low at one point in time at
25:23 one point in time this Black Candle
25:25 right here
25:26 this was full a full Black Candle to the
25:31 downside it looked like this
25:33 I know I know damn well
25:36 that ninety percent of retailers were
25:39 just short it's going down forever
25:44 and then what happens Market never
25:46 [ __ ] breaks structure and we push
25:48 higher
25:51 same thing here
25:54 right
25:57 we gonna move down then move up
26:00 no break move down then move up
26:03 no break
26:06 and Mark it continues to push Higher and
26:08 Higher and Higher and Higher and Higher
26:10 because the trend never was broken
26:15 Trend never broke
26:20 and what were these these were just
26:22 liquidity sweeps and we will learn about
26:24 that next time
26:25 okay
26:27 hopefully that covered break of
26:29 structure for you guys
26:32 it has to be a close let's go back to
26:35 that
26:36 that little thing that we had shrink uh
26:39 let's do this on The Daily
26:41 and let's drag this all the way up here
26:45 identify the trend is it going up is it
26:48 going down is it going in higher highs
26:50 and higher lows is it going in lower
26:51 highs or lower lows
26:53 boom I literally made a checklist for
26:55 y'all figure it out okay perfect it's in
26:58 an uptrend if it's in an uptrend we are
27:00 watching the lows perfect Hawkeye those
27:03 things
27:04 watch every single new low that gets
27:07 made okay that's actually something that
27:08 I want
27:16 because we only care about the recent
27:18 ones that get made
27:26 those are the only ones we care about
27:29 okay those are the only ones we care
27:31 about those are the only ones that need
27:33 closure above because who gives a [ __ ]
27:35 right
27:36 if Market's moving like this or
27:39 right I mean we showed it in that GJ
27:41 chart but if markets moving higher highs
27:43 higher lows
27:46 and then and then one of the logs gets
27:48 Wicked below but it keeps going higher
27:50 we don't care about that right because
27:52 Market structure never was broken we
27:55 only care if it gets closed below
27:58 right also right sorry for the most
28:01 recent low Point okay we're going like
28:03 this
28:04 right who cares about this low if this
28:06 new low was already made
28:08 if it's supposed to move in higher highs
28:10 and higher lows than the most recent low
28:12 gets broken gets closed below then that
28:15 means the the structure is shift who
28:17 cares about this one it means we we made
28:20 a new low we made a lower low compared
28:22 to this one
28:23 who gives the [ __ ] about this this was
28:26 the trend this was the most recent low
28:28 no one cares about this low no one cares
28:31 about this High we care about the most
28:33 recent ones that were made
28:34 same thing for the downtrend okay please
28:37 please drill that into your head
28:40 and I suggest you guys write this down
28:44 okay so we know that
28:47 we're in an uptrend and if we're in an
28:49 uptrend we're watching the lows
28:51 we're watching the most recent ones that
28:53 get made and we forget about the old
28:55 ones okay after the most recent one gets
28:57 the most recent ones get made
29:00 and then once it's a break of structure
29:03 to the downside in an uptrend it has to
29:07 close the candle has to close below that
29:10 most recent low
29:12 and that's it that's breaking structure
29:15 we got it okay so what I want you guys
29:18 to do for homework
29:20 is
29:22 find 10 examples of breaks of structure
29:25 this should be very very easy because
29:27 it's pretty easy to spot especially with
29:29 this checklist
29:30 find 10 examples of an actual break of
29:32 structure within the market and then
29:35 find 10 examples of what someone a noob
29:39 who hasn't watched this course who
29:40 hasn't watched this video yet who hasn't
29:42 watched my how to spot a break of
29:43 structure uh in the market video
29:46 find 10 examples of what someone might
29:49 consider a break of structure but
29:51 actually is it a wick below a low or
29:54 like a wick above a high right something
29:56 that might fake somebody out
29:59 that someone might believe is a break of
30:01 structure but isn't so you guys can get
30:03 good at spotting actual breaks of
30:04 structures
30:06 and then fakes
30:08 okay
30:10 do those two things you need you need to
30:11 have 20 examples
30:14 by the end of this okay until you're
30:16 done with your homework you need 10
30:17 examples of breaks of structure and 10
30:19 examples of fake outs or fake breaks of
30:21 structure okay not real
30:24 all right that's your homework
30:26 make sure you get it done before
30:28 tomorrow's video I'll see you boys
30:29 tomorrow
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