Two traders explain how to read secondary market structure, the price patterns that form during pullbacks and impulses. They show how mapping a higher low confirms your directional bias and tells you when to enter a trade, not just when price hits a high.
The markets move in cycles and tendencies. There's a macro structure, a secondary structure, and a micro structure. On the secondary structure, that is the structure that forms in the pullbacks and the impulses, that structure that forms this inside of it, inside, this is our secondary structure.
So if you were to take, say, this segment here that you have mapped out, it would be a case of then mapping out that higher low. So that line here to then here is what this would look like. So this is your secondary structure. That's the secondary structure.
Okay, I use that secondary structure to identify if my bias, my direction that I identify here, is confirmed. Because the price took a high, I'm not getting in a short position right away. I want to see that weakness in the market that is telling me it's time for a pullback.
