GBPJPY H4: Why do these Structures are Count as External CHoCH without breaking Previous swings how to read this ?
Currently, I am working with GBPJPY 4H trend analysis, but I have doubts about interpreting structure in this context. There are three pullbacks that didn’t break their prior swing highs or swing lows by a candle close at all, but are considered as valid External BOS or CHoCH. In all these pullbacks, prices wick above/below a certain key level and bounce, creating the illusion of structure change. For instance, in one of them price wicks above a swing high, but the next leg closes below the prior swing low, implying some bearish structure change without a true candle close breach. In another example, price wicks below a swing low, and after that rally closes the price above the previous high, thereby concluding the pullback. And, finally, in the third pullback price also wicks below a key level and closes strongly bullish above the prior swing highs.
Why do you think that these movements can be qualified as external structure changes even though there was no proper candle close that breached swings? What order flow or volume characteristics should be observed for recognizing these shifts?
