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.

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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

Analysis, ranges, structure — inside the FocusProfit Club private Telegram group.

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