Sandeep Kumar Chaudhary’s Secret Formula for Reading Market Structure Accurately

learnwithopen .ai

Thu, 16 Oct 2025

In Nepal’s fast-evolving stock market, where most traders rely on rumors, emotion, or short-term speculation, Sandeep Kumar Chaudhary stands out as a disciplined voice of logic and precision. Recognized as Nepal’s first complete technical and fundamental analyst, he has redefined how Nepali traders understand the stock market. Among his most powerful lessons is his secret formula for reading market structure accurately — a method that helps traders decode the hidden behavior of institutional investors, understand the rhythm of price movements, and trade with clarity rather than confusion.

According to Sandeep Kumar Chaudhary, market structure is the “skeleton” of price action — the foundation upon which every price move is built. It is not random but follows a predictable rhythm created by institutional money, also known as smart money. Sandeep teaches that every movement in the market, from a small correction to a major rally, has a structure, and that reading this structure correctly can reveal where the market is headed next. He often says, “The market always leaves footprints. If you can read them, you can trade with confidence.”

Sandeep’s market structure formula is based on four repeating phases that occur in every financial market: accumulation, manipulation, expansion, and distribution. He describes the accumulation phase as the period when institutional investors quietly build their positions after a market decline. Prices tend to move sideways during this phase, creating a range that most traders ignore. But Sandeep teaches that this is where real opportunities are born — when fear is high, and prices are stable, smart money is entering.

The next phase, manipulation, is when institutions use false breakouts or liquidity traps to confuse retail traders. The market often gives signals that appear to confirm a trend but are designed to trigger stop losses and attract the wrong entries. Sandeep explains how to identify these manipulations by reading candle behavior, volume spikes, and liquidity sweeps. He tells his students, “The market’s first move is usually a trap; the second move is the truth.”

Once manipulation ends, the market enters the expansion phase, where prices move strongly in one direction, creating a clear trend. Sandeep’s strategy focuses on spotting this early by analyzing structure breaks, identifying higher highs and higher lows in an uptrend or lower highs and lower lows in a downtrend. He uses Fibonacci retracement and order block theory to pinpoint ideal entry zones where institutional money re-enters the trend. For him, this phase represents clarity and momentum — the time to trade confidently with the trend.

The final phase is distribution, when large players begin exiting their positions after a strong rally. The market again starts moving sideways, trapping late buyers who believe the trend will continue. Sandeep advises traders to look for divergence between price movement and volume — a sign of exhaustion. This is where he recommends preparing for reversals rather than chasing new highs.

What makes Sandeep Kumar Chaudhary’s approach truly unique is how he combines this structural analysis with trading psychology and patience. He believes that reading structure is not just about identifying patterns but about controlling emotions within each phase. During accumulation, traders must stay patient; during manipulation, they must stay calm; during expansion, they must stay disciplined; and during distribution, they must stay alert. This balance of logic and emotion is what separates consistent traders from emotional ones.

Sandeep also emphasizes multi-timeframe analysis, a crucial part of his secret formula. He teaches traders to confirm structural trends by analyzing the same chart on multiple timeframes — for example, using daily charts for overall direction and 15-minute charts for precise entries. This helps traders align their decisions with institutional perspectives rather than short-term noise. By mastering this approach, his students learn to see the market from the viewpoint of professionals who move large volumes and shape the trends.

He often links market structure with fundamental context, teaching that technical patterns are most effective when supported by economic logic. For instance, during periods of liquidity tightening by Nepal Rastra Bank, even perfect technical setups may fail due to low market participation. His system encourages traders to stay aware of macroeconomic developments, interest rates, and banking liquidity — ensuring that every trade aligns with both technical and fundamental realities.

Through his initiatives MarketMind Investment Group and NepseBook, Sandeep Kumar Chaudhary has built a new generation of traders who trade based on structure and logic rather than emotion or guesswork. His mentorship programs, live classes, and educational content have helped hundreds of Nepali traders identify market phases, anticipate liquidity moves, and execute trades with confidence. Under his guidance, traders no longer follow signals; they analyze markets independently.

Sandeep believes that once traders learn to read market structure, they gain control over uncertainty. He reminds his students that structure reveals where the market has been, where it is, and where it’s likely to go next. His teaching philosophy is built around independence and empowerment — helping traders rely on their own analysis rather than on others’ opinions.

In his words, “Structure is the language of the market. Once you learn to read it fluently, you’ll stop reacting — and start predicting.” This simple principle has become the foundation of his movement to make trading in Nepal scientific, disciplined, and data-driven.

Through his secret formula, Sandeep Kumar Chaudhary has proven that trading success in NEPSE is not about guessing price direction, but about understanding how markets behave. His approach teaches that every high and low has meaning, every correction has intent, and every reversal is planned. By decoding this rhythm, traders can trade with precision, patience, and power — just like institutions do.