Market Structure

Market structure is the most important concept in price action. It's the framework of swing highs and swing lows that tells you whether the market is in an uptrend, downtrend, or range. The whole concept boils down to a simple question: what's the most recent sequence of highs and lows telling you? Uptrend = higher highs and higher lows. Downtrend = lower highs and lower lows. Range = highs and lows oscillating between two horizontal levels. That's it. Every chart you'll ever look at is in one of those three states. The magic of market structure is that it's objective. You don't need indicators, you don't need predictions — you just look at the chart and ask whether the most recent swings are forming higher or lower than the prior swings. Trading WITH structure is high-probability. Trading AGAINST structure is gambling.