Guide / Market structure

Market structure: higher highs, higher lows, and trend context

Market structure is a way to describe how swings relate to one another. It creates context before any single candle gets too much attention.

Start with the swing sequence

A sequence of higher highs and higher lows can describe upward structure. Lower highs and lower lows can describe downward structure. Repeated reactions in a range can describe balance or consolidation.

These labels are descriptions of what has happened in the visible chart, not guarantees about what will happen next.

Context comes before a conclusion

Look at the timeframe, the size of the swings, and the relationship between the latest move and the wider view. A short-term break can sit inside a larger range or trend.

Watch for a change in character

A structure read becomes more useful when it names what would challenge it: a failure to hold a swing, a break back into a range, or a new sequence that contradicts the earlier trend context.

Use structure as a question

Ask: “What is the chart currently doing, what evidence supports that description, and what would make the description less useful?” This keeps the read testable and avoids turning a pattern label into a prediction.

Next: map support and resistance