version 1.05
Let's use the Market Structure indicator.
When you see giant arrows, trade more than 0.01 lot.
In the M15 charts, just sit and wait for arrows.
Easy to trade system.
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MARKET STRUCTURE
This indicator is based on Larry Williams' ideas of market swings. The indicator detects short-term swing points. It groups them into intermediate- and long-term points. This creates a clear picture of how the price is moving.
Larry Williams is one of the most respected names in trading. He is a stock and commodity trader with a long track record. He is also the author of many trading books. One of his best-known releases is "Long-Term Secrets to Short-Term Trading". Many traders study this book for its practical approach to market structure and swing analysis, which serves as the foundation for this article.
Larry Williams gained significant recognition after winning the World Cup Championship of Futures Trading in 1987. In that contest, he turned ten thousand dollars ($10000) into more than one million dollars ($1000000) within twelve months. No one has ever broken that record. Ten years later, his daughter Michelle Williams entered the same contest and won as well. This demonstrated that his ideas could be learned and applied successfully by others.
His work continues to influence modern technical trading. This makes him a perfect reference point for building structured tools such as this market structure indicator.
Understanding Williams' Market Structure Logic
Market structure, as taught by Larry Williams, is based on how price swings form over time. These swings appear naturally as the market moves up and down. When we understand these swings, we can follow the trend more confidently and judge whether the market is turning or continuing to move. This method removes guesswork and replaces it with a simple mechanical framework.
Larry Williams divides swing points into three groups. These are short-term, intermediate-term, and
long-term swings. Each group is built from the one below it, allowing us to see the structure forming layer by layer. With a few rules, we can read charts in a clean, organized way.
A short-term swing forms when the price completes a small move and turns back in the opposite direction. For example, a short-term low occurs when the price falls to a new low, fails to continue lower, and then rises again. In simple terms, the lowest bar sits between two bars with higher lows. This tells us that the downward move has finished for the moment.
Intermediate-term Swings
When enough short-term swings form, we can identify a swing of the next level. An intermediate-term high is a short-term high that stands above two other short-term highs.
intermediate high
intermediate low
This level of swings allows us to remove slight noise and see the structure more clearly. The chart begins to form waves that are easier to track. The market no longer looks random because we can see a sequence: short-term highs and lows combine to form intermediate swings.
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