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All terms

Definition

Market Structure

Market structure is the pattern that price creates by making highs and lows. It helps traders determine whether the market is trending or reversing.

Quick take

The pattern price creates with highs and lows.

Keep this in mind every time you see market structure on the chart — context is everything.

Did You Know?

Professional traders use market structure on multiple timeframes — what looks like a downtrend on the 5-minute chart can be a small pullback on the daily.

Common Beginner Mistake

Only looking at one timeframe and missing the bigger picture that explains why price is behaving the way it is.