How I Identify Market Structure & Momentum Before Every Trade | NDXINV Price Action Guide

 

📌 Overview

One of the biggest mistakes traders make is looking for entries before identifying the overall market direction.

At NDXINV, every trade starts with understanding market structure, momentum, and where liquidity is likely to move next.

Only after establishing the higher-timeframe bias do I move down to the lower timeframes to look for execution.



🧭 Step 1: Identify Higher Timeframe Momentum

The first chart I analyze is the H1 timeframe.

I'm not looking for entries here.

I'm looking for direction.

Questions I ask:

  • Is the market making Higher Highs and Higher Lows?
  • Or Lower Highs and Lower Lows?
  • Is momentum bullish or bearish?
  • Where is price currently trading relative to premium or discount?

The H1 chart tells me where institutional money is likely flowing.


📈 Step 2: Watch for SBR & RBS

Support and resistance are not simply horizontal lines.

I'm more interested in whether they have changed roles.

Support Becomes Resistance (SBR)

When price breaks below a support level and later retests it from underneath, that level often becomes resistance.

This usually confirms bearish market structure.

Bearish clues:

  • Lower highs
  • Lower lows
  • Strong bearish displacement
  • Selling pressure increases after the retest

Resistance Becomes Support (RBS)

When price breaks above resistance and later retests it, that resistance often becomes support.

This confirms bullish momentum.

Bullish clues:

  • Higher highs
  • Higher lows
  • Strong bullish displacement
  • Buyers defend the retest

🔄 Step 3: Wait for the New York Session

Once the higher timeframe bias is clear, I simply wait.

There is no need to force trades during Asian consolidation.

The highest probability setups usually appear during the New York session when liquidity enters the market.

Patience is part of the strategy.



⚙️ Step 4: Drop to M15 or M5 for Execution

Only after establishing the higher-timeframe bias do I move to the lower timeframes.

Now I'm looking for confirmation—not direction.

My execution checklist includes:

  • Liquidity Sweep
  • Fair Value Gap (FVG)
  • Inverse Fair Value Gap (IFVG)
  • Optimal Trade Entry (OTE)
  • Strong Displacement
  • Market Structure Shift (BOS)

The lower timeframe simply provides the trigger.


🎯 My Entry Model

Bullish Setup

H1 Bullish Momentum

Resistance Becomes Support (RBS)

Liquidity Sweep below the lows

Bullish IFVG / FVG

OTE Retracement

Buy

Target Buy-Side Liquidity


Bearish Setup

H1 Bearish Momentum

Support Becomes Resistance (SBR)

Liquidity Sweep above the highs

Bearish IFVG / FVG

OTE Retracement

Sell

Target Sell-Side Liquidity


🧠 Why This Works

Many traders trade every Fair Value Gap they see.

I don't.

A Fair Value Gap without context has little meaning.

The higher timeframe determines the direction.

The lower timeframe provides the confirmation.

This keeps me trading with momentum instead of fighting it.


📌 Key Takeaways

  • Start with the H1 timeframe.
  • Identify whether momentum is bullish or bearish.
  • Watch for Support Becoming Resistance (SBR) or Resistance Becoming Support (RBS).
  • Wait for the New York session.
  • Use M15 or M5 only for execution.
  • Look for Liquidity Sweep, FVG, IFVG, OTE, and strong displacement.
  • Always trade toward a clear draw on liquidity.

🚀 Final Thoughts

Successful trading isn't about finding more indicators—it's about following a repeatable process.

By identifying higher-timeframe momentum first and using lower-timeframe confirmations such as liquidity sweeps, IFVGs, FVGs, and OTE, you can significantly improve trade quality and avoid low-probability setups.

At NDXINV, the higher timeframe builds the bias, while the lower timeframe provides the execution.


Disclaimer: This content is for educational purposes only and does not constitute financial advice. Trading involves risk, and past performance does not guarantee future results.


Tools I Use in My Trading:

I currently use the prop firm below for my trading and evaluations.
It aligns well with my NY session approach and execution style.
If you want to explore it further, you can check it below:

FundingPips — Prop Firm
Used in my live trading & evaluations


TradingView — Charting Platform
Used for analysis, structure, and execution planning



*This is an affiliate link. I may earn a commission at no extra cost to you. I only recommend tools I personally use in my trading.*