Restart! Reset! Refocus! 2025A Happy New Year Traders.
It's another year to Restart, Reset, Refocus as many times as we need.
I just wanted to share a refresher typical market structure with you.
Basically Market structure is the study of the market behavior.
It’s essentially the structure that the current market is trading in. it helps us know whether or not the market is trending.
Well what's a Trending market?
-A trending market is a market that forms higher highs and higher lows in a bullish trend and lower lows and lower highs in a bearish trend.
-Each trend is accompany by properties and Rules.
For a Bullish Trend:
Properties:
*It forms Higher highs and Higher lows
Rules:
*It must only break higher highs,
*And Respect higher lows.
*We are only looking for Buying opportunities.
*Becomes invalid only when we break below higher low.
For a Bearish Trend:
Properties:
*It forms Lower lows and lower highs
Rules:
*It must only break lower lows,
*And Respect lower highs
*We are only looking for Selling opportunities.
*Becomes invalid only when we break above lower high.
That is as simply as it gets. if we can understand the basic market structure, we will be able to answer the following Questions:
1. Who's in control of the market? Buyers or Sellers?
2. What is the right time and place to enter or exit the market?
3. When you need to stay away?
And Remember market structure differs as we move from one timeframe to another timeframe, this simply means on 4H TF you might be seeing HH-HL formation but on the 15M TF you might see LL-LH formation. This is a result of having HTF structure which could be your swing structure and internal structure on LTF. in the next Post we will look into this further and have a visual representation.
