Trading glossary
What is market structure?
Market structure is the sequence of swing highs and lows that shows whether price is trending up, trending down or ranging.
An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows. A range makes highs and lows at roughly the same levels. Reading market structure means reading that sequence.
Structure is the backbone of most analysis. Patterns, levels and indicators are usually interpreted differently depending on whether the structure around them is bullish, bearish or neutral.
How traders use it
- Mark the last few swing highs and lows before looking for anything else.
- Note the swing point that, if broken, would change the structure. That is the key level.
- Check the higher timeframe's structure so you know whether the move you are looking at is with or against it.
Example
On a four-hour chart, EURUSD makes swing highs at 1.0850, 1.0880 and 1.0910, with swing lows at 1.0800, 1.0830 and 1.0860. That is bullish structure. A close below 1.0860, the latest higher low, would change it.
Frequently asked questions
What is bullish market structure?
A sequence of higher highs and higher lows. It stays bullish until price makes a lower low.
Does Analytix-AI read market structure?
Yes. The analysis starts from the most recent candles and describes the current structure before the levels and scenarios.
Related terms
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.