SECTION

GLOSSARY

The smart-money glossary: market structure, liquidity, zones of interest and the FocusProfit method of analysis — one term at a time. Each term is explained in plain language and linked to its related concepts.

Join the queue

Structure

Market structure Market structure is the sequence of price highs and lows that shows who currently controls the move — buyers or sellers. Read → Break of Structure (BOS) BOS (Break of Structure) is a break of the last local extreme in the direction of the current trend, with price closing its candle body beyond that level. Read → Change of Character (CHoCH) CHoCH (Change of Character) is the first sign that structural direction is shifting: price breaks an established extreme against the current trend and… Read → Structure points (HH, HL, LH, LL) HH, HL, LH, LL are the four types of pivot points that make up market structure: HH (Higher High), HL (Higher Low), LH (Lower High), LL (Lower Low). Read → Trend by structure Trend by structure is market direction defined not from indicators or line slopes, but from the sequence of pivot highs and lows. Read → 4H trading range A 4H trading range is a price zone with an upper and a lower boundary on the 4-hour timeframe. Read → Consolidation Consolidation is a phase where price moves within a narrow range with no clear direction, forming a series of reactions between the boundaries. Read → Expansion (impulse) Expansion (impulse) is a phase of directional price movement where the market breaks out of consolidation and quickly covers distance in the direction of… Read →

Liquidity

Liquidity Liquidity is the clusters of pending and stop orders that build up below structural lows and above structural highs. Read → Liquidity Sweep A liquidity sweep is a fast spike through a high or low that takes out the stop orders stacked beyond the level and immediately returns into the range. Read → Liquidity Pool A liquidity pool is a localized cluster of stop orders sitting beyond a specific high or low. Read → Equal Highs and Lows Equal highs and lows are two or more highs or lows that stall at roughly the same level. Read → External and Internal Liquidity External and internal liquidity are the two tiers where pools of stop orders concentrate. Read → Stop Hunt A stop hunt is a deliberate push of price beyond an obvious level to trigger the protective stop orders of the crowd and harvest their liquidity. Read → Inducement (IDM) Inducement (IDM) is a false extreme inside the structure that lures participants to the opposite side so the market can collect their orders before the… Read →

Zones

Order block An order block is the last opposing candle (or a tight cluster of candles) before a sharp, structure-breaking impulse; this is the zone from which a large… Read → Imbalance (Fair Value Gap) An imbalance is a stretch of chart price moved through too quickly, leaving a gap between candles where buying and selling were not in equilibrium. Read → Premium and discount Premium and discount split a trading range in half into an expensive and a cheap side relative to its midpoint (equilibrium, the 50% level). Read → Point of interest (POI) A point of interest (POI) is a zone on the chart where a price reaction is expected because a large participant's interest is concentrated there. Read → Mitigation Mitigation is price returning into a zone of interest from which an impulse earlier began, so a large participant can partly close or rebalance a… Read → Breaker block A breaker block is a former order block that failed to hold price: structure broke the other way, and the zone flipped its role from support to resistance… Read → Supply and demand imbalance A supply and demand imbalance is a state where one side of the market has noticeably more orders than the other, which pushes price sharply toward the… Read → Order Flow (OF) Order Flow (OF) is a zone where a large participant built a position using the opposing side's liquidity. Read → Rejection Block (RB) A Rejection Block (RB) is a two-candle rejection pattern at swept liquidity. Read → Most Traded Volume (MTV) Most Traded Volume (MTV) is a zone at the break of a significant level. Read →

Method

Price movement: points A and B Price always travels from liquidity to liquidity — from point A to point B. Read → Smart money Smart money refers to large market participants whose activity drives the sustained moves in price — banks, funds, and other players operating capital big… Read → AMD model (accumulation — manipulation — distribution) The AMD model (accumulation — manipulation — distribution) describes how price builds a directional move in three sequential phases rather than a single… Read → Market manipulation Market manipulation is the phase of a move where price makes a sharp counter-trend run to take liquidity and lure participants into the opposite direction… Read → Multi-timeframe analysis (MTF) Multi-timeframe analysis (MTF) is a way of reading the market in which structure is analysed across several timeframes at once and decisions follow a… Read → Market narrative The market narrative is a coherent scenario for price movement: an understanding of which phase the market is in, which liquidity target is the priority… Read → Structure fractality Structure fractality is the property of the market by which the same patterns of price behaviour (ranges, BOS, CHoCH, accumulation and manipulation… Read →

SYSTEMATIC WORK WITH THE MARKET

This material is open: no application, nothing to pay. There is one paid product — the Trade Model indicator, and it is not on sale right now: we are taking signups for the queue.

JOIN THE QUEUE