How to Do Structure Mapping with Multiple Time Frames. Smart Money Concepts SMC with Top-Down Analysis Explained ICT

If you think that structure mapping is not efficient for profitable trading, you get it wrong.

What newbies traders always miss is that structure mapping works effectively only with multiple time frame analysis.

In this article, I will show you how you can build profitable trading plans and accurate predictions on forex market with structure mapping alone.

Learn top-down analysis secrets and how to map structure properly in Smart Money Concepts SMC ICT.

Start With That

In order to effectively use structure mapping for scalping, day trading and swing trading, always start it from higher time frames.

Examine my complete structure mapping on USDJPY forex pair on a daily time frame.

• You can see that first, the pair was trading in a strong bearish trend.

• Then, we had a confirmed bullish reversal with Change of Character.

• After that, the market started an extended consolidating movement, not being able to update the highs.

  
  

• And finally, the last bullish wave managed to update a high, confirming a completion of a consolidation and a resumption of a bullish trend.

Structure mapping reveals that USDJPY is now bullish on a daily and the last bearish movement is a correction in uptrend.

We can expect a start of a new bullish wave soon.

To understand when exactly it is going to happen, you will need to dive your analysis deeper.

The Next Step

You should start structure mapping on lower time frames.

And you should execute a price action analysis there in relation to your structure mapping on a higher time frame.

4H time frame structure mapping will reveal a price action within the last bearish move that we spotted on a daily.

• We see that the market is trading in a bearish trend.

• The price started a local correctional movement after a formation of the last low.

4h time frame structure mapping provided a detailed intra week perspective.

The Logic

And why are we doing all that?

Remember that big waves always start from minor reversals.

The earlier you are able to find strong confirmations, the earlier you will open a trading position and the more profits you will make.

The Next Step

Hourly time frame analysis, we reveal hidden intraday trends that will unveil more insights.

• On an hourly time frame, our structure mapping shows that the market is already bullish.

• A bearish trend that USDJPY followed is already violated, and the price is updating the highs.

Missing Part

Following our analysis, the only thing that we need to confirm a start of a bullish trend is a confirmed trend reversal and a change of character on a 4H time frame.

It will validate an intra week bullish trend.

We will need the price to break the underlined blue resistance based on the last lower high in a bearish trend.

That will provide an accurate signal for us to buy.

And we can anticipate a rise a least to a current daily higher high then.

Takeaway

When you do structure mapping on forex market, never forget to do that on multiple time frames. Multiple perspectives and short-term/mid-term/long-term projections will help you to build a more efficient trading plan.

Remember that you can expand your structure mapping even for minute time frames. It will provide a unique perspective for scalping forex.