The Investor Diary Entry #121: April 10, 2026
In this stage of my journey, I continue documenting how I am building my understanding step by step. Recently, I went through a frustrating experience with the recording platform, but despite that, I am continuing to focus on what matters most, which is progressing in my learning process and refining my approach to Forex trading analysis.
TL;DR
This post explains how I returned to Market Structure in Forex Trading after struggling with results, and how I am now refining my approach by focusing on correct application rather than adding more tools. I walk through how I analyze higher time frames, define trading ranges, use Fibonacci levels, and apply strict risk management rules as part of building a solid Forex trading plan and understanding how to become a successful Forex trader.
Returning To Market Structure
I started with Market Structure in Forex Trading, then moved away from it when I experienced a poor win-loss ratio. I tried filtering trades using RSI, stochastic, and even classical tools like support and resistance, but none of these approaches worked for me.
At some point, I realized the issue might not be the concept itself, but how I was applying it. So I went back and started training myself again on how to properly use market structure. This process is about building repetition and familiarity, almost like creating a kind of mental muscle memory.
Building A Structured Approach
Now, I focus on one currency pair and analyze it across multiple time frames. I start with the weekly chart and follow the same process on each time frame. First, I define the trading range by identifying the upper and lower boundaries. Then I wait for price to interact with inducement before drawing points of interest such as order blocks, order flow, and engineered liquidity.
A key rule I follow is based on Fibonacci retracement. The concept is to buy in discount and sell in premium. The midpoint of the Fibonacci determines these zones, with the upper half being premium and the lower half being discount.
Using Fibonacci As A Core Element
Instead of relying heavily on identifying the exact point of interest, I introduced the Fibonacci 0.786 level into my approach. This helps me define a consistent entry level while maintaining my fixed risk-to-reward ratio of 1:3.
In a bearish structure, I place my stop loss at the high of the trading range and target a move downward. I prefer this because if the stop loss is hit, it indicates a change of character in the market, which aligns with my understanding of structure.
This adjustment became an important part of building a solid Forex trading plan that suits my style.
Simplifying Decision Making
After defining the setup on the weekly chart, I ask myself two questions. The first is whether price is reacting from a point of interest. The second is whether price is moving toward a point of interest.
If there is no clear reaction, I check if price is heading toward a key level. If neither condition is clear, I do nothing. This helps me avoid forcing trades and keeps my Forex trading analysis focused.
I repeat the same process on the daily and 4-hour charts. Each time frame gives additional context, but the structure remains the same.
Handling Trade Opportunities
There are two types of opportunities I consider. One is trading with the structure when price reacts from a point of interest. The other is taking counter-trend trades when price is moving toward a point of interest.
I observe these movements and, if needed, move to lower time frames to refine entries. However, due to my current capital and strict risk management rules, I often cannot take trades on higher time frames because the stop-loss distance is too large.
My risk per trade stays close to 0.5%, and I rarely go above that. This limitation affects the number of trades I can take, but it keeps my exposure controlled.
FAQ
What is Market Structure in Forex Trading in your approach?
It is the foundation of my analysis, where I define trading ranges, identify points of interest, and understand how price moves within a structure.
Why did you stop using indicators like RSI and stochastic?
Because they did not improve my results. I realized the issue was in how I applied market structure, not the lack of indicators.
How do you decide when to take a trade?
I ask whether price is reacting from or moving toward a point of interest. If neither is clear, I do not take a trade.
How does this relate to how to become a successful Forex trader?
For me, it is about refining understanding, staying consistent, and building a process that fits my style rather than constantly changing strategies.
Conclusion
This is still an ongoing process. I am continuing to refine how I apply Market Structure in Forex Trading and how I connect different time frames together. My focus remains on building consistency through repetition and maintaining discipline within my rules. This is part of my journey in developing a solid Forex trading plan and working toward understanding how to become a successful Forex trader.
The Investor
Friday 10 April 2026
About The Author
I started to look into individual stocks in January 2022. I created this diary initially for myself to track my investing progress, and second, as a place where I can share my ideas publicly, not only on stock investment, but on any venture that I start learning, such as Forex Trading, Blogging, or any other future venture that I might think of trying out.
By repeating things to myself, I learn by trying to explain them to others; therefore, I help myself better understand what I am learning. Additionally, hoping that others will share their ideas and learn from each other, and lastly as an online business where some links that I share are affiliate links, and if anybody bought anything by clicking those links, I will get a commission based on that successful sale, which of course will not affect the price at which you are buying the product or service.
For more detailed information on my affiliate disclosure, please refer to the Full Affiliate Disclosure page.
This blog is also part of my blogging learning project. I’m using a platform to learn this part. If you are interested in it, it is called Wealthy Affiliate.
Furthermore, this site is in no way or form giving any financial or investing advice, nor is it encouraging or discouraging people to buy or sell any financial instrument. This is a personal diary in which I track my own progress and share it for informational, educational, and entertainment purposes.