Topics
Market structure and trend
The basis for reading what structure price is moving in; trend, swing highs and lows, and when the structure changes.
What is a trend?
A trend is price moving mostly in one direction over a period of time.
Swing highs and swing lows
A swing high is a point where price stops rising and turns down, standing above the candles on either side.
Higher highs, higher lows, lower highs, lower lows
Each new swing high and low is labelled by comparing it with the previous one: higher high (HH), higher low (HL), lower high (LH) and lower low (LL).
When does a trend count as changed?
An uptrend counts as broken when price closes below the last important higher low.
Pullback or reversal?
A pullback is a temporary move against the trend that leaves the structure intact.
Trendlines and channels
A trendline is a sloping line drawn by joining the lows in an uptrend or the highs in a downtrend.
Ranges and consolidation
A range is price moving back and forth between two zones without a clear direction.
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