A simple lesson in trading price structure

Alright folks, I will take a look at the NASDAQ market getting hammered today as of this recording down a little over 2% or 340 points. Now this is a market that our member subscribers have been alerted to for several weeks at the end of December and heading into early January here as a market that could see a potential pullback now, not only for technical reasons, but also from seasonality perspectives. But today, I want to give you a short little lesson here on trading price structure. So the market as we know has been in a long term uptrend indicated by higher highs, higher lows. But this right here on the daily chart, we can see this large bearish reversal candle or bearish engulfing bar on the daily, it’s the candle, or the area on the chart where price broke short term trend. So that’s an area that we identify as structure, we take this area using a basic rectangle tool, and we draw it out to the right we draw it out into the future where we cannot see or do we know what that price action will be. So we take that out to the right. And then we wait and watch patiently for a particular scenario to occur. What that is, is we wait for price to trade back up into that area reject and then we look to take the market lower with very tight risk, we know that this is an area that will likely hold Will it always hold? Of course not. But we know that it is or should be an reactionary point in the market. So the way we enter these is we come down to the lower timeframes could be the five minute the 30 Minute, the hourly four hour whatever the case may be. And we wait and watch for divergent signals. We wait and watch for divergence signal so we know that we had this area of price that occurred so when price came back into this area on December 27. We start getting bearish divergence signals notice that these bearish divergence signals basically called the interim top of the market right here, getting short here at 16 650. Coming all the way down, and then watch, you’ll see that the market trades back up into this area again, gives us a nother bearish reversal signal right here bearish reversal signal right into an area of structure, letting us take the market to the downside, the risk is pretty simple. Here we put risk above the swing high. I like to use an ATR of whatever timeframe we’re trading from. And then we’re looking to take it level two level. So this is one level, we look to take it to first level here and then when we look back to the left, is there another level that we can consider that next level would be on the higher timeframe here at 15 124, which is an area that we tax