📈Market Structure Explained for Beginners

What is Market Structure?

Market Structure is the pattern of price movement.

Price moves in only three ways:

Uptrend

Downtrend

Sideways

By identifying this, you can decide whether to buy, sell, or wait.

The 3 Types of Market Structure

1. Uptrend (Bullish Market)

In an uptrend, price makes:

Higher High (HH)

Higher Low (HL)

This means buyers are stronger.

Best action: Look for buy opportunities.

2. Downtrend (Bearish Market)

In a downtrend, price makes:

Lower Low (LL)

Lower High (LH)

This means sellers are stronger.

Best action: Look for sell opportunities.

3. Sideways Market

Price moves between support and resistance without a clear direction.

Best action: Wait or trade carefully.

Break of Structure (BOS)

A Break of Structure happens when price breaks the previous high or low, signaling a possible trend change.

Break above Lower High → market may turn bullish

Break below Higher Low → market may turn bearish

This is often where strong new trends begin.

Why Market Structure is Important

Market structure helps you:

Avoid trading against the trend

Improve entry timing

Reduce losses

Trade with confidence

Simple Rule for Beginners

Uptrend → Buy

Downtrend → Sell

Sideways → Wait