What is Market Structure?

in voilk •  2 months ago

    What is Market Structure?

    Market structure refers to the way price moves in an asset (like crypto or stocks). The first thing you need to learn in technical analysis is identifying trends and trend changes.

    The Three Main Market Structures:

    ✅ Uptrend: The price makes higher highs (HH) and higher lows (HL).
    ✅ Downtrend: The price makes lower highs (LH) and lower lows (LL).
    ✅ Range-bound (Sideways Market): The price moves between support and resistance without a clear trend.

    Why Is This Important?

    ✅ If the market is in an uptrend → Look for buying opportunities.
    ✅ If the market is in a downtrend → Look for selling opportunities.
    ✅ If the market is ranging → Wait for a breakout or trade within the range.

    Exercise for Today:

    1. Open TradingView and check the Bitcoin chart or any asset you prefer.
    1. Identify the latest trend: Is it uptrend, downtrend, or range-bound?
    1. Mark the highs and lows on the chart with a line.

    Once you complete this exercise, tell me what trend you found and what you learned!

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