Break of Structure
Recognize when price confirms continuation or possible reversal.
7 min read
Video coming soon
A break of structure occurs when price trades through a meaningful swing point. In a trend, a break in the trend direction can confirm continuation. Against the trend, a break can warn that control may be shifting.
Not all breaks are equal. A tiny wick through a level that immediately fails is weaker than a strong close with follow-through. Volume, speed, and the reaction after the break help determine whether the move is accepted or rejected.
A practical approach is to wait for break, reaction, and confirmation. Let price show whether the broken level becomes support or resistance. This reduces the chance of chasing the first move into a false breakout.