Cryptocurrency Trading Lecture 5: Market Structure

about 2 years ago

Welcome to the 5th lecture on Cryptocurrency Trading. Today I am going to discuss Market Structure. But before I continue, I will love to do a quick recap of what we have discussed in the previous 4 lectures.

I started by introducing what financial market is. I discuss the different types of financial market, I also explained what instruments are and what tickers are. I discuss the 3 types of analysis which are technical analysis, fundamental analysis and sentimental analysis.

I have discussed in detail what technical analysis is and the different ways of representing price on the chat in a market which led to explaining candlestick in detail and the different candlestick patterns.

Today we are moving on to Market Structure.

Market Structure is the study of the behavior of the market.
We have 3 types of market which are

Trending Market
Ranging Market
Choppy Market

Trending Market

There are 2 types of trending market which are Uptrend and Downtrend.

Uptrend is characterised by series of Higher Highs (HH) and Higher Lows (HL)

Source

Downtrend is characterized by series of Lower Highs (LH) and Lower Lows (LL)

Source

Any move in the direction of the trend is called the Impulse.
Any move that is counter trend is called Pull Back or Retracement or Corrective or Correction Move.

Source