Structure mapping with Elliott wave and SMC I hope this helps someone, i struggled a lot with structure mapping and it was one of the big reasons i was never profitable. I have learned a lot from this community and i feel like its my time to share something. If you wanna learn more in detail visit the "trading hub" on youtube. You wont regret it.
*Inducement = Pullback (Induces traders to buy in) Typically the first inducement is taken out which fakes out bullish traders in going long
*Engineered liquidity = Pullback (created within the previous structure). There is a lot more to this but its the simplest answer
*BOS= Break of structure
*CHOCH= Change of character
#1. Structure can only be created when the Inducement (Pull back) is taken out and price breaks to a new high (BOS). The lowest point in the structure now becomes your Choch (Change of Character)
#2. I typically see minor and major structures, the only difference is a major structure completely wipes out liquidity from the previous structure and typically fakes out traders going short because the choch was broken and the trend line. (Trend line liquidity) I see this a lot in Wave 3 or 5 in Elliott wave
Keep in mind:
*When a new structure is created the Choch moves with it. New structure = New choch.
*Minor structures are taken out quite often so be careful jumping into shorts. I typically wait for the major structure chochs to be taken out before changing trade directions. Fade the short term trend
#3 These are not structures, the reason they are not structures is because price took out the previous low but could not break to a new high. I see this typically in a blow off top and it typically means we are in the wave 5.
#4. Price passes the CHOCH of the major structure and it typically holds more weight vs the minor structures, Typically the A wave. When ENG LIQ (Pull back) is taken out and a new low is created a new bearish structure is created.
