I’m currently trying to improve my understanding of market structure, especially how to correctly identify BOS (Break of Structure) and CHoCH/MSS on the Daily and 4H timeframes.
One problem I keep running into is that the market contains a lot of minor/internal structure within a larger move. Sometimes these smaller swings break and create what looks like a CHoCH, but the overall trend doesn’t actually change. Price may simply continue in the original direction after taking out a minor swing.
So I’m trying to understand the correct way to map market structure without marking every small move as a swing high/low.
For example:
How do you decide which swing highs/lows are structurally significant and which ones are just minor/internal swings?
What exactly should be broken for a valid BOS?
What exactly should be broken for a valid CHoCH/MSS?
How do you distinguish between a genuine trend reversal and a temporary break of minor structure?
Should I be focusing mainly on the major impulse legs/waves, rather than every small retracement and reaction?
On the 4H timeframe, how much should I care about internal structure when my overall bias comes from the Daily timeframe?
Is there a specific rule or framework you use to determine which swing is the protected high/low or the point that actually defines the current trend?
When mapping structure, should I think of the market more as a series of major waves/impulses and retracements, rather than treating every small high and low as a separate swing?
I’m specifically looking for a clear and rule-based approach to market structure mapping on D/4H, because I feel like I’m currently over-marking the chart and treating too many minor moves as BOS/CHoCH.
If possible, I’d really appreciate an explanation with examples or chart-based rules for identifying valid vs invalid BOS/CHoCH.