Module 8: Advanced Market Concepts
Market Structure
6 min read
Market structure describes the sequence of swing highs and lows that defines a trend or range.
Highs and lows
An uptrend makes higher highs (HH) and higher lows (HL). A downtrend makes lower highs (LH) and lower lows (LL). A range moves between roughly equal highs and lows.
A break of structure (for example, price falling below the last higher low in an uptrend) can be an early sign that the trend is weakening. It is a warning, not a certainty.
Using structure
Identify structure on a higher timeframe first, then look for entries on a lower timeframe in the same direction. This keeps decisions consistent and makes stop placement logical, just beyond the swing that would invalidate your idea.
Key takeaways
- Trends are defined by swing highs and lows.
- A break of structure is a warning sign.
- Use higher timeframes for context.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.