Market Structure
The overall pattern of price movement and key levels that define market behavior and trends
What is Market Structure?
Market structure refers to the overall organization and behavior of price movement in a market, including key support and resistance levels, trend patterns, and areas of supply and demand. It helps traders understand market context and make informed trading decisions.
Key Components
Price Levels
- Support/resistance zones
- Higher highs/lower lows
- Market swing points
- Accumulation areas
- Distribution zones
Pattern Analysis
- Trend direction
- Market phases
- Break of structure
- Continuation patterns
- Reversal patterns
Trading Applications
Decision Framework
- Trend identification
- Entry point selection
- Stop loss placement
- Target setting
- Risk assessment
Analysis Methods
- Price action study
- Volume confirmation
- Time frame correlation
- Pattern recognition
- Liquidity analysis
Related Terms
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