Market Structure: Higher Highs, Lower Lows, and Trend Changes
Understand market structure using swing highs, swing lows, trend continuation, and reversal evidence before adding indicators.
· 6 min read · market-structure, trend, support, basics
Market structure is the map of swing highs and swing lows. Before RSI, MACD, or moving averages, structure tells you whether buyers or sellers are controlling the auction. If you can read structure, every indicator becomes easier to interpret.
The four basic labels
Price chart with a lower support zone and an upper resistance zone. After a breakout, prior resistance acts as new support (polarity).
HH means higher high, HL means higher low, LL means lower low, and LH means lower high. Uptrends are HH plus HL. Downtrends are LL plus LH. Ranges are messy because neither side controls long enough.
Trend change needs two clues
After an uptrend, a break below the last higher low is the first warning. A lower high after that break is stronger evidence. The first clue says control is weakening; the second says control may have changed.
Use structure to filter indicators
An RSI oversold reading in a strong uptrend can be a pullback. The same reading in a downtrend can be continuation. Structure gives the indicator its meaning.