Structure Segmentation

Overview

The Structure Selection component allows traders to filter and segment their mapped market structure, providing a focused view of structural behavior. Traders can refine their analysis by selecting structure type, phase, direction, and statistical significance using the 80/20 filter.

Key Features

1. Structure Type Selection

   • Choose between Swing Structure and Internal Structure to isolate major or minor market movements.

2. Phase Selection

   • View all structural phases or focus on a specific phase (A, B, C, D) within the selected structure type.

3. Directional Filtering

   • Options to display All, Up Only, or Down Only structures, allowing traders to analyze trends more effectively.

4. 80/20 Statistical Filter

   • 80% (Most Common Structures) – Focuses on the most statistically significant and frequently occurring structural patterns.

   • 20% (Outliers) – Highlights less frequent, high-variance structures, which may indicate unusual market conditions or potential turning points.

The 80/20 Filter: Practical Insights

1. Identifying High-Probability Setups

   • Differentiates between reliable, repeating market behaviors (80%) and less predictable anomalies (20%).

   • Helps traders focus on setups with historical consistency, reducing exposure to low-probability trades.

   • Avoids unnecessary risk by filtering out unpredictable “black swan” events.

2. Pattern Recognition and Strategy Refinement

   • Reveals which structural patterns occur frequently, providing a statistical foundation for strategy development.

   • Highlights deviations from the norm, signaling when market conditions may be shifting.

   • Encourages data-driven trading, reducing reliance on subjective interpretation or emotional bias.

Why This Matters

The 80/20 filter applies the Pareto Principle to trading—suggesting that 80% of reliable trade opportunities come from 20% of market behaviors. This allows traders to:

• Trade with clarity, focusing on repeatable structures rather than reacting to market noise.

• Recognize changes in market conditions, as deviations from common patterns may indicate increased volatility or trend shifts.

• Build consistency, by aligning trade decisions with historical market tendencies rather than assumptions.

Think of it like traffic patterns—most traders plan their commutes around predictable rush hour flow (80%), rather than random accidents or detours (20%). The same logic applies to trading market structure, ensuring traders focus on what statistically matters most.