The retracement ladder
What a break of structure on one chart means on the chart above it, and why a small break against your bias changes nothing.
This is the most useful rule in the module. It maps every break of structure onto the chart above it.
Every break is a pullback upstairs
A break of structure on one chart is a retracement on the chart one step up.
- A 15 minute break of structure is a 1 hour retracement.
- A 1 hour break is a 4 hour retracement.
- A 4 hour break is a daily retracement.
- A daily break is a weekly retracement.
Read any break as a pullback on the chart above it.
Which is why small breaks are not reversals
This is the rule that stops you abandoning your bias every twenty minutes.
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