How to Understand Market Structure
Part 2 — Structure Change and What It Really Means
In Part 1, we explained what market structure is and how to distinguish impulse from correction.
Now we move one step further.
We will look at when the structure changes and why this does not automatically mean a trend reversal.
🔹 What is a structure change
A structure change occurs when:
🟡 the market breaks its previous rhythm
🟡 price fails to create the expected higher low or lower high
🟡 the movement starts to lose continuity
This does not automatically mean a reversal.
🔹 Not every structure break means a trend reversal
A very common beginner mistake is assuming:
“The structure broke = the trend is over.”
In reality:
🟡 the market is often just reacting
🟡 a deeper correction is taking place
🟡 important levels are being tested
The trend may continue.
🔹 Correction vs. real structure change
The difference is always in the context.
A correction:
🟡 respects previous key levels
🟡 does not create a new opposite trend
🟡 fits into the overall market movement
A structure change:
🟡 disrupts the previous rhythm
🟡 changes how highs and lows are formed
🟡 signals a possible shift in market behavior
🔹 Why patience is crucial
The market:
🟡 rarely reverses instantly
🟡 often traps traders with fast moves
🟡 tests patience
That is why it is important to:
observe,
not rush,
not force trades.
🔹 How to view structure change correctly
A structure change is not an entry signal.
It is information.
It helps you:
🟡 recognize that something is changing
🟡 prepare for a new scenario
🟡 stop forcing trades that no longer make sense
🔹 Summary
A structure change:
🟡 does not automatically mean a reversal
🟡 requires confirmation
🟡 gives the market a new context
It does not tell you what to do.
It helps you make better decisions.
❓ When you see a structure break,
can you tell
whether it is only a correction
or a real change in market behavior❓