Market Structure
How to tell which way a market is heading. These terms describe trends through their swing highs and lows, the breaks that confirm a trend or warn that it is turning, and how to combine more than one timeframe.
13
terms in this topic
3
with a chart or figure
13
taught in an Academy lesson
12
other topics
13 terms, A to Z
- 6beginner
- 4intermediate
- 3advanced
- Break of structureBOSA close beyond the last swing point in the direction of the trend, confirming the trend continues.
- Change of characterThe first close against the trend through its last protected swing, an early sign the trend may be turning.
- Dow theoryCharles Dow's ideas, developed by Hamilton in 1922: trends defined by highs and lows, three trends at once, and confirmation.
- Higher high and higher lowEach peak above the last and each dip above the last: the definition of an uptrend.
- ImpulseA fast move in the direction of the trend, with big candles covering a lot of ground.
- Internal structureThe smaller zigzag inside one swing leg, as opposed to the major swing structure.
- Lower high and lower lowEach rally peaking lower and each drop going further: the definition of a downtrend.
- Market structure shiftMSSICT's stricter change of character: a break against the trend that comes with displacement, often right after a liquidity sweep.
- Multi-timeframe analysisUsing a higher timeframe for direction and a lower one for timing the entry.
- PullbackA slower move against the trend between impulses; where many traders look for entries.
- RangePrice bouncing between similar highs and lows with neither side in control.
- Strong low and weak highIn an uptrend, the low that launched a break of structure is strong (protected); the newest unbroken high is weak (a likely target).
- Swing highA turning point whose high is above the highs on both sides (a swing low is the mirror).