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Market Structure

Internal structure

Advanced

Also calledswing structureminor structure

The smaller zigzag inside one swing leg, as opposed to the major swing structure.

What it means

Internal breaks happen constantly; swing breaks carry the weight. Take direction from swing structure and timing from internal structure.

In practice

Every large swing is built from a smaller zigzag. Traders who time entries on a lower timeframe watch this inner structure for the first sign that a pullback is ending, such as a small break back in the direction of the main trend.

Keeping the two apart prevents confusion: the swing structure sets the direction and the area to trade from, and the internal structure provides the trigger.

What to watch for

Treating an internal break as a trend change is a common error. Price can break minor structure many times during an ordinary pullback while the main trend stays intact.

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