Market Structure

What market structure means

Reading structure means tracking where price makes its swing points. As long as each pullback holds above the prior low and price pushes to a new high, the uptrend is intact. When price fails to make a new high and then breaks the last higher low, that break of structure warns the trend may be turning.

How market structure is traded

• →Trade with the structure: look for longs in an uptrend of higher highs and higher lows, shorts in a downtrend.
• →Use the most recent higher low or lower high as your invalidation level.
• →Treat a break of structure, price closing past the last swing point, as an early signal of a shift.
• →Wait for a pullback into structure rather than chasing price at the highs or lows.

Common mistakes

• ✕Calling a trend change on the first pullback instead of waiting for a real break of structure.
• ✕Ignoring the higher timeframe structure while trading the noise on a lower one.

Watch: market structure explained