Intermediate · 35 min · 5 chapters

    Market Structure

    Label swings, spot when a trend breaks or shifts, understand where liquidity sits, and trade around structure.

    You will be able to

    Mark swing highs and lows consistently

    Distinguish a break of structure from a shift

    Recognise where stops tend to cluster

    Plan entries and stops around structure

    Chapter 1 of 5: Swing points
    1. 1Swing points
    2. 2Breaks and shifts
    3. 3Liquidity: where the stops are
    4. 4Supply and demand zones
    5. 5Trading with structure

    Chapter 1 of 5

    Swing points

    Every structure read starts with marking the swings correctly.

    Higher highs (HH) and higher lows (HL) define an uptrend. The last higher low is the line in the sand.

    A swing high is a candle with lower highs on both sides. A swing low is a candle with higher lows on both sides. How many candles you require on each side decides how sensitive your read is.

  1. 2 to 3 candles each side: Short-term swings, more of them, more noise.

  2. 5 or more each side: Major swings, fewer, more significant.

    3. Pick a setting and stick to it so your reads are consistent.

    Labelling

    In an uptrend, label each swing high HH (higher high) and each swing low HL (higher low). In a downtrend, LH and LL. When the labels stop following the pattern, the trend is in question.

    The protected low

    In an uptrend, the most recent higher low is the level that must hold. While price stays above it, the trend is intact. It is also where many traders place stops, which becomes important in the liquidity chapter.

    Key takeaways

    • Use a consistent swing definition
    • Label HH/HL or LH/LL to make trend objective
    • The last higher low (or lower high) is the level that must hold

    Educational content only, not financial advice. Trading involves risk and you can lose money. Indicators describe market conditions, they do not predict outcomes.