Traders should follow the actual market structure (most recent breakout) but never trade against the peripheral structure (broader context). Use the 75% Fibonacci retracement level to identify where a move's directional potential ends and consider exiting or reversing your position there.
Market structure is an art. We need a certain rule that objectifies it. I will read it in 2 layers: peripheral structure and the actual structure. The latest breakout is actual structure, and the peripheral structure will be this. In this case, this level has been actually broken from here. The rule is we follow the actual structure, but we couldn't go against the peripheral structure. We just track a Fibonacci here and here, and we check where is the 75 level. In this case, can be this. So we perfectly know that we can follow this structure till this level. So we can take some kind of trades here. Once this level has been reached, our directional potential finished, and even if the actual structure is actually against us, we can just take a trade from here searching for a long.
