How to Identify the Trend and Ignore the Noise

The Moving Average
The Moving AverageApr 2, 2026

Why It Matters

By filtering out chart noise and relying on confirmed candle closures, traders can make more reliable trend calls, leading to better risk‑adjusted returns and fewer costly premature entries.

Key Takeaways

  • Draw horizontal lines at each higher high to filter noise
  • Wait for candle closures below prior structure before assuming trend reversal
  • Use Fibonacci retracements between 0.5 and 0.618 for entry zones
  • Identify consolidation zones when structure breaks, avoid trading inside them
  • Apply Gann box only for range trades, not primary trend entries

Summary

The video teaches a practical framework for spotting genuine market trends while discarding the visual clutter that misleads most traders. By focusing on clear market structure—higher highs, higher lows in uptrends and lower lows, lower highs in downtrends—the presenter shows how to map price action on the NASDAQ‑100 chart from September 2025 onward.

Key techniques include drawing horizontal lines at each new high to isolate true pullbacks, waiting for candle closures below previous structure before labeling a reversal, and placing Fibonacci retracement orders between the 0.5 and 0.618 levels with stops at the prior low and targets at the next high. The speaker also warns against trading inside consolidation boxes and suggests using a Gann box only for range‑bound trades.

Illustrative examples feature a clean higher‑high/higher‑low staircase versus the noisy real‑world chart, the identification of a bearish shift amid political volatility, and the precise placement of limit orders using Fibonacci zones. The presenter repeatedly emphasizes patience, candle‑close confirmation, and the avoidance of “wick” noise.

For traders, mastering this structure‑first approach reduces false signals, improves entry timing, and aligns risk management with actual market momentum, ultimately enhancing risk‑adjusted performance.

Original Description

Figure out what type of trader you are
Learning how to read market structure is one of the most important skills any trader can develop. In this video, I break down the three core market conditions you need to understand before placing any trade — bullish market structure, bearish market structure, and consolidation.
You'll learn how to identify higher highs and higher lows in an uptrend, lower lows and lower highs in a downtrend, and how to recognise when price shifts into a consolidation range. I also show you how to filter out the noise between key structural points so you're only reacting to what actually matters on the chart.
This is pure price action analysis — no indicators, no hype. Just a clean, simple framework for reading where price is likely to go next.
Topics covered:
Bullish market structure — higher highs and higher lows
Bearish market structure — lower lows and lower highs
Consolidation — how to identify a ranging market and what to do in it
How to use horizontal lines to filter price action noise
Candle closures vs wicks — what actually confirms a structural shift
Fibonacci retracement entries within market structure
How to use the Gann box during consolidation ranges
Why you should assume consolidation before assuming reversal
Whether you're trading forex, indices like NAS100 or DAX, or crypto, understanding market structure is the foundation everything else is built on. This framework works across all timeframes and all markets.
For charts Use Trading View
New Official Telegram Group
TMA OFFICIAL®
NOT FINANCIAL ADVICE DISCLAIMER
The information contained here and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
We have done our best to ensure that the information provided here and the resources available for download are accurate and provide valuable information. Regardless of anything to the contrary, nothing available on or through this Website should be understood as a recommendation that you should not consult with a financial professional to address your particular information. The Company expressly recommends that you seek advice from a professional.
*None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

Comments

Want to join the conversation?

Loading comments...