What Is Market Structure?
Market structure describes how price is forming highs and lows.
Four important terms are:
Higher High — HH
Higher Low — HL
Lower High — LH
Lower Low — LL
Uptrend
An uptrend generally forms:
Higher High → Higher Low → Higher High → Higher Low.
Downtrend
A downtrend generally forms:
Lower Low → Lower High → Lower Low → Lower High.
Range
A ranging market doesn’t establish a clear directional trend.
Price may move between relatively defined areas.
Why Structure Matters
Market structure gives traders a framework for understanding what price is doing rather than simply looking at individual candles.
Disclaimer
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