Market Structure & FVGS

📈 Market Structure


📖 Understanding Market Structure

Market Structure refers to the overarching price trend defined by significant patterns such as Higher Highs/Lows and Lower Highs/Lows that reveal market direction. MarketSync Elite helps visualize these patterns through:

  • BOS (Break of Structure): Signals when price breaks previous structure, potentially indicating trend change

  • MSS (Market Structure Shift): Identifies when price confirms a new trend direction


⚙️ Market Structure Settings

  • Internal/External Classification: Filter market structure signals by their significance

  • Equal Highs & Lows: Identify when price makes approximately equal levels (consolidation)

  • Swing Points: Mark significant pivot points on your chart


🛠️ Practical Application

Market structure signals provide critical information about trend direction and strength

Market Structure indicators with FVG shown on the chart

🔁 Confluence with Order Blocks

  • High-probability setups occur when market structure signals align with order blocks

  • Trend Identification:

    • Series of higher highs/higher lows indicate uptrend

    • Series of lower highs/lower lows indicate downtrend

  • Trade Management:

    • Use structure breaks as signals to adjust stop-loss or take profit


📉 Fair Value Gaps (FVG)


📖 What Are Fair Value Gaps?

Fair Value Gaps (FVGs) are price areas with significant gaps between trading sessions that suggest potential continuation or reversal points. These gaps represent inefficiency in the market where price moved too quickly, often leading to future price revisiting those areas.


⚙️ FVG Settings

  • Timeframe: View FVGs from the current timeframe or a higher timeframe

  • Opacity: Adjust the transparency of FVG zones

  • Max Width: Filter out excessively large gaps

  • Mitigation Method: Choose how FVGs are considered filled

    • Touch

    • Wicks

    • Close

    • Average

  • Fill/Shade Options: Control how filled FVGs are displayed

  • Mid Line: Add a central line through FVGs

  • Max FVG: Set the maximum number of FVGs displayed

  • Extend: Extend FVG zones to the right edge of the chart


🧭 Types of FVGs

  • Bullish FVGs:

    • Form when price gaps up, creating an area below current price

    • These often act as support

  • Bearish FVGs:

    • Form when price gaps down, creating an area above current price

    • These often act as resistance


🛠️ Practical Application

FVGs provide valuable trading opportunities:

  • Mean reversion setups: Enter when price returns to an FVG, especially with other confirming factors

  • Stop-loss placement: Place stops beyond relevant FVGs

  • Take-profit targets: Use opposing FVGs as potential exit points

  • Market efficiency analysis:

    • Multiple unfilled FVGs can indicate a strongly trending market

Last updated