Market Structure
Definition
Market structure is the sequence of swing highs and swing lows on a chart, read to tell whether price is trending up, trending down or moving sideways.
Detailed Explanation
An uptrend prints higher highs and higher lows, a downtrend prints lower highs and lower lows, and a sideways market prints neither for long. Traders use structure to decide direction before they pick an entry, and to place stops under the last swing that must hold. It needs no indicator, but it does need a consistent rule for what counts as a swing, or hindsight creeps in. Structure describes what price has done so far. It can't promise what comes next, and random price data can print short stretches that look like a trend.
Go Deeper