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  1. Home
  2. /Glossary
  3. /Market Structure
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trading

Market Structure

The pattern of higher highs and higher lows (bullish) or lower highs and lower lows (bearish) that defines the current trend.

Definition

The pattern of higher highs and higher lows (bullish) or lower highs and lower lows (bearish) that defines the current trend. A break of market structure happens when price fails to make a new higher high or lower low, signaling a potential trend change. It's a core concept in price action trading.

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Related Terms

Technical Analysis

Studying price charts and patterns to predict future movements.

Support

A price level where buying pressure tends to overcome selling pressure, preventing further decline.

Resistance

A price level where selling pressure tends to overcome buying pressure, causing price to stall or reverse.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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