All language subtitles for 5-0

Now that we understand market structure,
identifying trends and the three

different types of structure that make
up a trend in how we can understand

what the market is doing in the order
flow, that it is creating via structure.

We can take it a step further in
our understanding and explain.

We can take it a step further
in understanding protected

and targeted structure.

So in essence, when we have an UPT
trend, what we're expecting to see are

a series of higher highs and higher lows
with the expectation that every time a

higher hire is put in, we would start
to see some sort of corrective price

action that would create sub structure
to form a higher low once that higher,

low forms, we find some sort of change
of character, create minor structure.

The swing structure is broken.

Now, if we think of structure in its most
basic elements, what we can say is that

once we've created swing structure, we're
operating between this range of price.

We have our swing low and
we have our swing high.

Now, when we look at that and we
understand that we are in an up trend,

we are expecting some sort of higher,
low, and a continuation of that trend.

We would see price.

Creating sub structure in the way of a
counter trend pullback, we would form

some sort of higher, low, see a change
of character, create minor structure,

and then eventually break the previous
swing high, creating a new, higher high.

So in essence, the idea of this
structural range that we're seeing between

this swing structure, there are two
different ideas or outcomes that could.

one, the continuation of the trend,
where we break swing structure and

create a new high or high or two,
we break swing structure to the

downside, invalidating the bullish
trend and switching to bearish.

So with that idea in mind, when this
high is created, the job of this

high is to invalidate the structural
level, breaking to the downside,

which would then mean that this
would be a strong or protected high.

But if we are to remain
bullish, Price will correct.

It will fail to break this low or
fail to invalidate the bull trend.

And once that happens and we start
to see that shift, that creation of

minor structure, and what that implies
is that this low becomes protected

and this high becomes targeted.

And because we're in a bull trend,
what we can see is price then

continues to move to the upside.

It breaks the swing structure.

It breaks this targeted high and
continues to make a new higher.

And then if we just delete some of these
drawings and what we'll see is once price

creates a new range in price between
this swing low and this swing high.

And our expectation, if this bolt
trend is to remain in play, is that

we would see this previous swing high.

Broken and forming a new high or high.

So the same logic would apply though, that
if this low was invalidated and we seen

a break and close below, that would mean
we are switching from bullish to bearish.

So if we look at this swing high
and it successfully did its job in

breaking and invalidating this low,
we would consider that as protected as

there were enough orders and momentum
to push it and break structure.

But what we can see is price.

Again, create sub structure forms.

Some sort of higher, low starts
to create minor structure.

And once this process happens, we
can start to say that this high has

failed to do its job in breaking the
previous swing low and switching trend.

And that this high is more.

And that this low, this higher low
is more than likely going to be

protected to target this previous high.

And at the end of the day, what
this concept of protected and

targeted structure is ultimately
conveying on the charts is it's just

applying the expectational order
flow principles of what we can.

In an UPT trend or what we
can expect in a down trend.

And what do we expect in an UPT trend?

We expect that higher
highs are going to form.

We're gonna get some sort of pullback,
a higher, low is going to form we're

then going to move to the upside,
again, creating a higher high.

And the expectation is that will
continue and keep continuing

until we start to see a change of
character, a break to the downside.

So when we're using that concept of
protected highs and protected lows,

targeted highs and targeted lows,
so we would know that in a bull.

The highs will all be targeted
and the lows will all be protected

because in essence, price is just
continuing to move to the upside.

All of these lows are doing their
job in breaking swing structure.

It's best to focus on protected
and targeted highs and

lows using swing structure.

Yes, you can apply this to sub
structure and minor structure to

create a framework of understanding.

Inter workings of the order flow
that you're seeing, but it can get

a little bit confusing when you see
multiple things happening, because

what you might see is we see a move.

We start to see a pullback.

So we're starting to understand that
this low might be protected and that

this high is going to be targeted.

But then what we might see is
similar to when we were talking about

sub-structure and minor structure, that
this component would be sub-structure.

Once we see a change of character,
this would be minor structure, but if

we don't actually see a true follow
through that, Targets this previous

high, then that substructure can
then continue before we start to

see true minor structure happening.

Once that happens, we can
start to gain the understanding

that this low is potentially
protected and that this high is.

Targeted.

And again, this all comes back
down to understanding trend.

We're using the concepts of protected
and targeted structure as just a,

an additional tool of understanding
what is going on behind the scenes.

When we are looking at structure,
it's not an end all be all.

It's just an additional tool and
understanding what could happen

when we're seeing price action
navigating throughout structure.

It allows us to create a better
and more structured framework of

understanding where to target our trades.

And we'll talk more about this
when we get into entries, but when

we have say a, an up trend, we're
looking to buy at a higher, low,

once the higher, low is established.

We're under the expectation
that we are to continue bullish.

And as a result, this high, for instance,
failed to take out this low, this low

is starting to create minor structure.

We've seen that change of character.

So based on that understanding, we would
expect that this high would be targeted.

So if we are looking to trade,
especially higher timeframe, swing

structure, like the four hour over
the daily, we could look to target

our trades from a BI position down
at this higher, low at the previous.

Targeted high and end up closing a
portion of our trade to lock in some

profits and let the rest run understanding
that if we are truly in a bull trend,

that price will then continue to move
to the upside to a certain level.

Before we start to see a new pullback in
the process taking over again and again.

So that's really the main
concept and idea behind protected

and targeted highs and lows.

So the easiest and probably
most simplified way that I can

explain protected and targeted
structure, is that a high and a

low, they both have the same job.

Their job is to take out
structure or counter structure.

So highs should take out lows
and lows should take out highs.

And if a high or a low fails
to complete what it is supposed

to be doing, it becomes target.

If it is successful in doing
what it's supposed to be

doing, it becomes protected.

This also roots into looking at
supply and demand because more often

than not these protected areas,
coincide with supply and demand zones.

And that's ultimately what's creating
them because like I said, in the supply

and demand section, What we are doing
by trading using supply and demand is

we're identifying the footprints of large
orders being entered into the markets.

And when these large orders are
entered in the markets, does it seem

reasonable that price will go lower
of where large orders have in place?

No, it doesn't.

We would be riding with those orders.

So the understanding of the
protected lows in this case would

be this low is protected because
a large grouping of orders.

Was created at this demand zone.

And as a result, the next logical
spot to target would be the

previous structural swing high.

And what we'll touch on more in
the liquidity section is also that.

There are multiple groupings of orders
that would exist above the swing high.

So from that perspective, we
have a protected low, we have

a targeted high, why is it
targeting it because of liquidity?

But again, we'll dig into
that into the next section.

Just to get your mind thinking
at the end of the day of what

is actually being targeted when
this sort of phenomenon happens.

But again, these protected points,
whether it be a protected hire or a

protected low are gonna coincide with
some sort of supply and demand zone or

liquidity grab, that's going to see an
injection of orders into the market.

That's going to cause a run or a target
of the other side of the structure.

So again, if it's a protected
low, we're going to.

Target the previous swing high.

And if it's a protected high, we are
going to target the previous swing low.

So, what I recommend now doing is jumping
to your charts more specifically to the

exercise that you would've done in the
previous video, specifically mapping

out swing structure, sub structure,
and minor structure, and really digging

into that bit of information, looking at
highs and lows, applying this framework

to those bits of market structure.

Seeing when we created a low was the low
successful in taking out the high, if not.

Was they low targeted and on the
flip side was a high successful in

taking out a low or was it targeted?

And what this is going to do
is going to just reaffirm your

understanding of market structure.

It's gonna reaffirm your understanding
of trend, and it's gonna take you

to a whole new level once you final,
once you're able to fully integrate.

All of the supply and demand con concepts
into the market structure concepts,

and then apply the protected and
targeted structural components to that.

It's gonna make you a more robust
trader in understanding the order

flow that's happening on the charts.

And then once we dive into liquidity
concepts, it's going to just take that

to a whole new, another level because.

This concept is really bringing into play.

Now is liquidity.

Why price is moving to the
areas that it is moving into.

But again, we'll discuss
that in the next section.

And it's important right now to
fully understand this concept and be

able to identify it on your charts.

One other thing to note about the
concept of protected and targeted highs

and lows or structure is how we can
integrate that to supply and demand.

So what I'll do really
quickly is just clear up this.

We're gonna draw in another bull trend.

Seeing higher highs, higher
lows, higher highs, higher lows.

And if we're looking at this bull trend
from the basis of supply and demand, we

know that as price is creating higher
highs and higher lows, the higher lows

are more than likely going to tap into
some form of demand zone and prices

going to continue tapping into demand
zones and continuing to move off.

So what we're also able to gain from that
is, as price is creating the swing highs.

It's also creating supply zones that
is pushing price down into forming the

higher lows that we see on the chart.

So when we.

So when we add in the concept of protected
and targeted swing, highs and lows, what

we're expecting in an UPT trend is that
demand zones are going to get respected

and that supply zones are going to
fail and just be totally disregarded.

So when we use that, understanding
what we see quite clearly is that

this supply zone failed to break
any bit of structure or take out the

previous low or previous demand zone.

And as a result, the
supply zone is target.

We can keep moving on this supply
zone or high failed to take

out this demand zone or low.

Therefore this high or supply zone
would be targeted this supply zone and

this high failed to take out this low
and this demand zone, therefore this

supply zone and this high is targeted.

And that's another way you can
bridge the gap and understand the

relationship between supply and.

Market structure and how we
can apply these protected and

targeted concepts to that.

Because at the end of the day, the
understanding of market structure and

supply and demand go hand in hand.

And as we apply all of the concepts
that we've learned thus far, we need

to understand how they bridge together,
how we can use all of the concepts

together, just to recap and summarize
everything as we are in an up trend.

Our expectation is that demand will be
respected and that supply will fail.

. And when we're looking at an UPT trend,
from the perspective of protected and

targeted structure, we'd be expecting
that all of the swing highs would

fail to take out the swing lows.

Therefore, the newly created higher lows
would become protected and we would be

targeting the previous swing structure.

And as we continue, our newly created
higher high swing structure fails

to break our previously established
swing structural low or higher.

And as a result, it makes our
new higher, low protected.

And as a result, our previous swing
structural high or high is targeted

and broken, forming a new higher
high, this higher high fails to

take out the previous higher, low.

Therefore it creates a protected
higher, low that is going to target

the previous higher high swing
structure to create a new, higher high.

And this will continue until we start to
see supply being respected and demand.

And demand failing.

We start to see this.

Once we see highs taking out lows,
creating the shift from protected

lows, to protected highs and
targeted highs to targeted lows.

And this is the interaction between
supply and demand and structure.

Because as we know, we're creating
higher highs and higher lows demands

being respected and a down trend
we're creating lower lows and lower

highs and supplies being respected.

So the easiest way to remember all of
that is higher highs, higher lows, UPT.

Respecting demand zones,
protected lows, targeted highs.

And if we're looking at a down trend,
lower lows, lower highs, supply being

respected, protected highs, targeted lows.

It's as simple as that, but it's
incredibly powerful to understand how

all these components work together and
how we can use them in a convenient

package to understand order flow
from a supply and demand and market

structure perspective, to get the
best possible idea and indication

of what order flow is suggesting.

So we can put ourselves
in the best positions to.