Market Structure (MS) is the framework you use to determine whether the market is in an uptrend, downtrend, or ranging phase — and where it is within that trend. It's built entirely from swing points: the significant highs and lows that define the rhythm of price.
Swing High = a high greater than all immediately surrounding highs
Swing Low = a low lower than all immediately surrounding lows
Bullish MS = each new swing high is higher (HH) and each swing low is higher (HL)
Bearish MS = each new swing high is lower (LH) and each swing low is lower (LL)
Lesson
Reading Swing Points & Market Rhythm
Swing points are the skeletal structure of any chart. Mark them correctly and the market reveals its intentions. Focus on HIGH TIMEFRAME swing points — they carry the most weight.
A new swing high is confirmed when price breaks above the previous swing high
A new swing low is confirmed when price breaks below the previous swing low
Bullish MS: buyers defend at Higher Lows; every new high expands the uptrend
Bearish MS: sellers cap at Lower Highs; every new low expands the downtrend
S/R flips occur precisely at swing point levels — making them prime entry zones
HTF swing points carry more weight than LTF swing points — always check the higher frame
Market structure breaks are the most important events to identify — they signal a potential trend reversal
Check Yourself
Price made a new swing high at $114. It has now pulled back to $107. Is this a Higher Low maintaining bullish structure, or a sign of structural weakness?
● Higher Low — bullish market structure is maintained
● Lower Low — bearish reversal is now in play
● Structure break — need more data before determining bias
Answer it (with a live chart) in the interactive lesson.
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