Market structure
Market structure describes the sequence of highs and lows: rising highs and lows in an uptrend, falling ones in a downtrend.
Reading structure means identifying the significant swing points. In an uptrend, the market forms higher highs (HH) and higher lows (HL). In a downtrend, lower highs (LH) and lower lows (LL).
A change in structure is a key signal: in a rally, a break of the last significant low suggests buyers are losing control. Traders talk about a break of structure (BOS) for continuation and a change of character (CHoCH) for a first sign of reversal.
Structure depends on the timeframe. A structure break on M15 may be nothing more than a pullback in the daily trend.
See also