QuestionsCategory: Market StructureWhat is happening when the white and magenta lines on the daily MSP Market Structure Projection are moving in different directions and not agreeing?
Anonymous asked 3 years ago
1 Answers
mcm-petermcm-peter Staff answered 3 years ago

This is a very interesting question. We will answer it here in text and then follow up with some example charts and situations. In general market structure represents something significant related to the markets. Large institutions and entities tend to have very methodical ways of decision making and execution. We have 3 algorithms for calculation of daily market structure probabilities. The most prominent of these approaches is the thick light line on the daily MSP charts. We also plot secondary market structure as when both methods agree there is just a bit more confidence in the directional bias.
 
However, the most significant thing that happens between the two is that when they are diverging it implies tension on market structure forces which most often results in a choppy, overlapped and sideways market activity.