Definitions & Methodology
The Market Flow approach interprets price structure through time-based hierarchy, pivots, and wave behavior — not prediction. Each chart highlights where structure confirms or fails, showing the balance between continuation and correction.
1. Pivot Levels
Pivots are the structural turning points that define trend direction on each timeframe.
Orange lines mark pivots — the backbone of structure.
A confirmed close beyond a pivot signals potential trend shift.
The smallest active pivot defines invalidation — where the idea fails.
2. Timeframe Hierarchy
Each chart blends multiple timeframes:
Monthly → Weekly → Daily → H4 → H1 → M15 → M5 → M1
Higher timeframes define the dominant phase; lower ones reveal trigger behavior within it. If timeframes conflict, the higher one prevails.
3. Trigger Levels & Zones
Triggers (green for long, red for short) identify the decisive breakout or breakdown area.
A setup becomes triggered when price breaks a higher-timeframe trigger on the next-lower active chart (e.g., H1 through H4) with waves support.
It becomes confirmed once a full candle closes beyond that level on its own timeframe.
4. Expansion Levels
Marked as EXP, these represent the start of full directional continuation.
These levels are the highest (for longs) or the lowest (for shorts) clean (not yet touched/tested) breakdown/breakout
Long expansions are green, short expansions red.
Price trading beyond both the expansion level and countertrend line enters the Expansion Phase — the market’s fastest moving and most directional state.
5. Invalidation
The invalidation level is the smallest active pivot.
A confirmed close beyond it on its own timeframe invalidates the current structural path and bias.
6. Market Phases
The Market Flow framework defines six structural phases that progress in a repeating cycle of expansion, correction, and consolidation.
Each phase transitions naturally into the next. As structure matures through the cycle, participation risk increases — lowest during expansion, highest during indecision.
Expansion
Price trades beyond both the countertrend line and the trigger or expansion level, confirming directional intent.
Represents active trend continuation with strong momentum.
➡️ Typically low risk with the cleanest structural alignment.
Start of Correction
Begins when the higher timeframe completes its expansion target or reaches a structural exhaustion zone, and a lower-timeframe pivot breaks against the main trend.
➡️ Usually the best phase to trade a correction, as direction is clear but not yet extended.
Deep in Correction
Retracement extends beyond the 38.2% Fibonacci level of the prior impulse.
Structure remains corrective unless the main-trend pivot is violated.
➡️ Moderate to higher risk, as trend context weakens.
Accumulation (Bullish Context)
A sideways basing phase occurring below or around the trigger/expansion zone within an uptrend.
Represents institutional positioning before potential breakout or continuation.
➡️ High risk, as it’s undecided whether correction continues or a new expansion begins.
Distribution (Bearish Context)
A sideways topping phase occurring above or around the trigger/expansion zone within a downtrend.
Reflects exhaustion of buying pressure and gradual supply transfer.
➡️ High risk, similar to accumulation, due to structural indecision.
Countertrend Break
Price breaks the countertrend line and trigger zone but has not yet cleared the expansion level.
Marks the early stage of structural transition, often preceding a new expansion but requiring confirmation.
Cycle Summary:
Expansion → Start of Correction → Deep in Correction → Accumulation / Distribution → Countertrend Break → Expansion
7. Targeting
Targets derive from Fibonacci projections (typically 138.2%–200%) and prior structural levels. They represent measured expansion objectives, not price forecasts.
8. Reading the Charts
Color and tooltip labels define structure:
Orange: Pivot / Invalidation
Green / Red: Trigger or Expansion levels
White: H1 or below
Turquoise: H4 structure
Blue: Daily
Purple: Weekly
Light Purple: Monthly
Always read the numeric label at the right edge — it’s the precise value.
9. Structural Confirmation
Only a full candle close beyond a level confirms structural intent.
Wick tests or projections remain in formation. Confirmed closes define actionable flow; failed closes mark invalidation.
10. Analytical Flow
Each analysis follows the same structure:
Identify pivots and wave alignment.
Verify phase (Expansion → Correction → Accumulation/Distribution → Countertrend Break → Expansion).
Define triggers, invalidation, and target path.
Summarize bias and phase.
The Market Flow methodology focuses on objective structure, not prediction — translating multi-timeframe price behavior into actionable context.
If any part of the methodology, terminology, or chart interpretation remains unclear, feel free to ask in the comments. I’ll address questions directly there or expand this section over time to include the most common clarifications. Your feedback helps refine how The Market Flow framework is presented and understood.