Market Structure

Higher Highs, Lower Lows

Define trend direction with objective structure rules.

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An uptrend is commonly defined by higher highs and higher lows. Buyers are willing to pay higher prices, and pullbacks hold above prior lows. A downtrend is defined by lower lows and lower highs, where sellers control rallies and push price to new lows.

These sequences create objective structure. Instead of saying the market feels strong, you can identify whether price is actually building higher value. When the sequence breaks, the trend may be weakening or transitioning.

Use structure as a guide, not a guarantee. A single higher high does not mean every pullback is a buy. Combine the sequence with location, session context, and risk to decide whether the trade is worth taking.