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Market Structure

The market structure represents the dominant trend in the market. It is based on swing highs and lows. For instance if the price makes higher highs (HH) and higher lows (HL) the market structure represents an uptrend. Vice versa if price makes lower lows (LL) and lower highs (LH) the market trend is down.

If the market structure is up, traders can enter positions in a pullback.

Price Action Suite

Market Structure Shift (MSS) (Change of Character (ChoCh))​

A market structure shift occurs when the market transitions from one dominant trend to a different one, often signaling a potential change in the underlying market dynamics. A MSS signals the start of a new trend. It signals the change from an up trend to a down trend and vice versa. Therefore, it is sometimes called change of character (ChoCh). A valid MSS should ideally occur in a strong supply or demand zone. This indicates that the market may be approaching a trend reversal or consolidation.

Break of Structure (BOS)​

A break of structure happens when the market breaks out of its established trading range or pattern. The market continues its dominant trend, indicated by the last MSS.

In an uptrend, for example, each time the price breaks through a new high, a "bullish BOS" is formed. This indicates that the market is capable of overcoming previous resistance levels and continuing to rise.