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The skeleton of price action - reading the sequence of highs and lows that define trends
Market Structure is the foundation of price action trading. It's simply the pattern of swing highs and swing lows that price creates as it moves. By reading this structure, you can identify trends, anticipate reversals, and understand where you are in the market cycle.
The core principle: Trends are defined by the sequence of highs and lows. An uptrend makes Higher Highs (HH) and Higher Lows (HL). A downtrend makes Lower Highs (LH) and Lower Lows (LL). When this pattern breaks, structure shifts.
This is objective - no indicators needed. Just price and the ability to identify swing points.
Higher highs AND higher lows. Bulls in control. Buy dips to HL.
Lower highs AND lower lows. Bears in control. Sell rallies to LH.
Equal highs and lows. No clear direction. Trade the range or wait.
Price breaks above the last Lower High in a downtrend. Structure shifts bullish. Look for long entries.
Price breaks below the last Higher Low in an uptrend. Structure shifts bearish. Look for short entries.
Before looking at any indicator, read the market structure. Higher highs and higher lows = uptrend. Lower highs and lower lows = downtrend. If you can't identify the structure, you have no business placing a trade.
The Academy teaches this concept through structured lessons with real chart examples.
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