๐Ÿ“ˆMarket 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 โ†’ market may turn bullish

Break below Higher Low โ†’ 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 โ†’ Buy

Downtrend โ†’ Sell

Sideways โ†’ Wait