What is Market Structure?
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Market structure is the foundation of every trading decision.
It defines whether the market is trending or ranging.
There are two main types:
- Uptrend (Higher Highs & Higher Lows)
- Downtrend (Lower Highs & Lower Lows)
Break of Structure (BOS)
A Break of Structure (BOS) occurs when price breaks a key high or low.
This signals:
- Continuation of trend
- Potential shift in momentum
Change of Character (CHOCH)
CHOCH is an early sign of reversal.
Example:
- Market was making higher highs
- Suddenly breaks a higher low
👉 This indicates possible trend change
Practical Tip
Never trade blindly.
Always ask:
- What is the current structure?
- Is the trend intact?
- Has structure been broken?
Final Thoughts
Structure tells you direction.
Without it — you are guessing.