Yet another funded forex trader has made it! I know what you’re thinking, another funded forex trader?! These guys keep churning a funded trader ever week! As you will notice we tell you why each trader stands out. Philip Dede stands out because he did not use any fancy indicators, he primarily used Market Structure Strategy… an application of a simple breakout strategy (the one for trading, not the economics for you premature Googlers!). More on this later.
Let us talk about our favourite topic: psychology. (With that in mind, we do have a psychology program; a tailored version of our mentoring program)
— But if you want to check out the funding scheme that Philip passed, click here —
Why do traders like to add lots of indicators and multiple forms of analysis? They do have their place and functions. But this is more for new traders… why do they do this?
Control, the idea is they feel they will have some control. As we have written before, lots of indicators will not give you confluence. Sometimes less is more as our newest funded forex trader demonstrates.
A lot of top traders in our funded trader program also showcase this too- but it seems a lot of people have to learn themselves sometimes. Or read our articles!
Now that we have primed you with psychology, let’s dig deep into the topic:
Market Structure – the foundations of a breakout strategy?
Market structure may sound fancy, but really it is just a fancy way to talk about basic price movements. Effectively, support, resistance, swing highs and swing lows. It also covers ranges, bullish and bears moves.
As you can expect it effectively tells you that there are 3 types of market structures:
Bull trends – defined by a series of higher-highs.
Bear trends – defined by a series of lower-lows.
Ranging markets – defined by equal lows and equal highs.
The notion is that the trader will be able to read the continuation of the trend, or the failure of the trends.
(You experienced traders may hate this, but you newbies will love this.)
A disclaimer, different time frames will have different trends.
Though, it is worth noting that typically the lower time frames are controlled by the higher time frames.
This may seem rudimentary, but market structure forms the basis of many sophisticated trading strategies. Hence why no matter your trading style virtually every trading mentor worth their salt will urge that you master the concept and how they look. As Philip demonstrates, you could feasibly trade with pure market structure and nothing more.
Without further ado, here is Philip’s interview: