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

• Price Action
• Technical Analysis
• Support and Resistance
• Chart Patterns