Before indicators.
Before signals.
Before hype.
There is structure. If you donât understand market structure, youâre not really reading the chart youâre reacting to it.
đ What Is Market Structure?
Market structure is the pattern price forms over time. It shows us:
đžïžWho is in control (buyers or sellers)
đžïžThe current trend direction
đžïžWhen momentum is shifting
Price does not move randomly. It moves in waves. And those waves create structure.
đ Bullish Market Structure (Uptrend)
An uptrend is formed when price creates:
Higher Highs (HH)
Higher Lows (HL)
This means: Buyers are strong. Pullbacks are being bought. Momentum is upward.
As long as price keeps making higher highs and higher lows, the structure remains bullish.
Break that pattern and things change.
đ Bearish Market Structure (Downtrend)
A downtrend is formed when price creates:
Lower Highs (LH)
Lower Lows (LL)
This means: Sellers are dominant. Rallies are being sold. Momentum is downward.
As long as price keeps making lower highs and lower lows, the structure remains bearish.
đ What Is a Break of Structure?
A Break of Structure (BOS) happens when price violates the existing pattern.
Example: In an uptrend, if price fails to create a higher high and instead breaks below the previous higher low thatâs a warning sign.
It may signal:
đžïžWeakening buyers
đžïžPotential reversal
đžïžShift in control
Structure shifts before emotions do.
đ§ Why Market Structure Matters
Most traders focus on:
đžïžIndicators
đžïžNews
đžïžPredictions
Smart traders focus on:
đžïžStructure
đžïžLiquidity
đžïžRisk
Because structure tells you direction. You donât fight direction. You align with it.
đĄ The Real Edge
đžïžIndicators lag.
đžïžNews reacts.
đžïžStructure leads.
If you learn to read higher highs and lower lows clearly, you stop guessing and start analyzing.
đžïžPrice moves in patterns.
đžïžPatterns create structure.
đžïžStructure reveals intent.
Final Thought
Structure tells you where price has been. Liquidity tells you where itâs likely going. Master both and the chart starts speaking.
#MarketStructure #PriceAction #CryptoTrading #TechnicalAnalysis
