Understanding Market Structure: The SMC Foundation
Master the art of reading market structure with Break of Structure (BOS) and Change of Character (CHoCH) patterns. Learn how to identify Liquidity Inducements and Premium vs. Discount zones.
The Three Pillars of Structure
Price moves in three distinct phases. Identifying these correctly is the difference between a pro trader and a retail statistic.
Trend Continuation (BOS)
When price breaks a previous swing high (uptrend) or swing low (downtrend). It confirms the institutional path of least resistance.
Change of Character (CHoCH)
The ultimate warning sign. It occurs when price fails to make a new high/low and instead breaks the contra-structural point.
Market Inducement (IDM)
A 'trap' where price briefly breaks a minor structure point to lure retail traders into a false sense of trend, only to reverse and sweep their stops.
Premium vs. Discount Zones
Institutional traders never buy when price is expensive. They use Equilibrium logic (50% rule) to determine value.
Premium Zone (Sell)
The area above the 50% retracement of a structural swing. This is where banks look to exit longs and enter new short positions.
Discount Zone (Buy)
The area below the 50% retracement. Professional traders only look for long entries here, ensuring they are buying at 'wholesale' prices.
Swing vs. Internal Structure
"The biggest mistake is confusing a minor internal pullback for a major trend shift. You must align your bias with the Swing Structure while entering on the Internal Structure."
Eliminate the Guesswork
"Identifying real institutional structure from noise takes years of training."
Live Structure Intelligence
The IXTradingHub Indicator handles all complexity for you. It automatically maps out Higher Highs, Higher Lows, and real BOS/CHoCH points with institutional precision. It even highlights Inducement zones, ensuring you don't fall for the retail traps.
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