Use Market Structure to Identify Trend Reversals Early

Understanding market structure is one of the clearest ways to spot trend reversals before the majority of traders catch on. Market structure refers to the sequence of higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend. When this pattern breaks, momentum shifts.

A reversal often begins with a break of structure (BOS). For example, if ETH has been forming consistent higher lows but suddenly breaks below a key low on strong volume, that signals weakness. The next step is a change of character (CHoCH) — when price fails to create a new high and instead forms a lower high. This confirms the new trend direction.

Data-backed studies show that traders who use BOS and CHoCH concepts reduce false reversal entries by 30–50%, because they rely on price action rather than emotions.

A simple way to apply this:

In an uptrend, only consider selling when the market forms a lower low + lower high.

In a downtrend, only consider buying when the market forms a higher high + higher low.

This keeps you aligned with momentum instead of guessing tops and bottoms.

Market structure reveals trend reversals clearly. BOS and CHoCH help you identify shifts early and avoid emotional trades.

Trade with structure, not predictions — price action always tells the truth first.

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