Market Structure: Support, Resistance, and Order Flow
Higher highs, higher lows explained. Break of structure (BOS) vs change of character (CHoCH). Order blocks and liquidity grabs.
Structure Is Everything
Market structure tells you who's in control: buyers or sellers. Higher highs and higher lows = buyers winning. Lower highs and lower lows = sellers winning. Break of structure = trend change.
Understanding Market Structure
Uptrend Structure
Higher Highs (HH) + Higher Lows (HL) = Uptrend
Chart: Uptrend with HH/HL, then Break of Structure (BOS)
Break of Structure (BOS)
BOS occurs when price breaks the most recent structural point. This signals potential trend change.
Bullish BOS Example:
- • Downtrend: Lower lows at $180, $175, $170
- • Price breaks above $175 (previous lower high)
- • This is BOS - trend may be reversing
- • Confirmation: Price makes higher high above $180
Trade with structure, not against it. In uptrends, buy pullbacks to higher lows. In downtrends, short rallies to lower highs. When structure breaks, be ready to flip.
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