Using Market Structure Shifts and Imbalances to Define Entries

Summary

This brief trading model uses a change of market structure, labeled CHoCH, to identify a possible reversal. A bullish shift occurs when price moves above a prior confirmed lower high; a bearish shift occurs when it falls below a prior confirmed higher low. After that signal, the model maps areas of interest using a Fibonacci reference from the post-shift swing and a fair value gap described as forming within the first three candles of the breakout impulse.

Trade management places a long stop below the origin swing low and a short stop above the origin swing high. The first target is the structural breakout extreme, while a second target is the opposing liquidity pool or next structural swing. The document supplies rules but no chart examples, instrument or timeframe guidance, backtest, or evidence of profitability. Its zone description is incomplete, so the precise Fibonacci entry levels and criteria for identifying a qualifying imbalance cannot be reconstructed reliably from the text.

Key ideas

• A bullish shift is defined by a break above a confirmed lower high.
• A bearish shift is defined by a break below a confirmed higher low.
• The model maps post-shift entry areas using a swing reference and a fair value gap.
• Stops are placed beyond the origin swing, with structural and liquidity-based targets.
• The description does not fully specify entry levels or provide performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.