Chart school · Lesson 5

Market structure

Structure is the map of the market: the pattern of its highs and lows. It tells you the trend before anything else.

Uptrend: each high is higher (HH) and each low is higher (HL). Buyers are in control. Look for buys.Teaching diagram, not real market data

Downtrend: lower highs (LH) and lower lows (LL). Sellers are in control. Look for sells.Teaching diagram, not real market data

Range: price bounces between the same high and low. No trend. Liquidity builds up above and below, and the breakout often comes after a sweep of one side.Teaching diagram, not real market data

Key idea

Trade in the direction of the structure on the higher timeframe. Most beginner losses come from buying in a downtrend because "it looks cheap".