Read market structure step by step
Choose a scale, mark the swings and separate observations from interpretation.
Define the observation scale
A rise on an hourly chart may be a small correction on a daily chart. Start with the instrument, candle source, timeframe and observation time. A statement such as “the trend changed” is ambiguous without them.
Choose the higher working timeframe before examining detail. Define which swings count using a consistent rule; selecting convenient highs and lows after the outcome creates a different method on every chart.
Write down facts first
“The latest high is above the previous high” describes an observation. “Buyers control the market” is an interpretation requiring further evidence. A sequence of higher highs and lows describes a period but cannot guarantee continuation.
Treat reactions as areas and record whether the reference uses a wick, a close or a price band. Data sources can differ. Clear definitions make a later review possible without quietly moving the goalposts.
Keep an alternative explanation
A local break may become continuation, a failed range exit or part of a wider correction. Explain which new observations would help distinguish them. You do not have to present one outcome as certain.
For each idea, define what would make you revise it. If a key low no longer holds, reassess the premise. Redrawing levels so the original story always survives makes the idea impossible to test.
Practise without hindsight
Open the Break & Retest study in Initial plan mode. Identify the range boundary, breakout and return. Explain why a completed close is the confirmation used here and why touching the level is insufficient.
Then display the invalidation model. Separate information available before entry from observations that arrived afterward. Completed charts make movements seem obvious; this exercise exposes that hindsight effect.
Methodology references
General references for planning and position sizing. They do not validate this invented setup or GASFINA’s performance.
CME Group · Risk Management and Your Trade Plan ↗CME Group · Proper Position Size ↗Educational material. Market outcomes are uncertain and trading can cause losses. GASFINA does not manage client funds.