Introduction
Market structure is the backbone of technical analysis. By understanding market trends and cycles, traders can align their strategies with the broader market direction.
What is Market Structure?
Market structure refers to how price moves in:
- Uptrends
- Downtrends
- Sideways markets
Types of Market Trends
Uptrend (Bullish Market)
Higher highs and higher lows.
Downtrend (Bearish Market)
Lower highs and lower lows.
Sideways Market
No clear direction; consolidation phase.
Chart Image Suggestion:
- Image: Trend structure diagram
- Alt Text: Example of uptrend, downtrend, and sideways market structure
Market Cycles Explained
Markets move in cycles:
- Accumulation
- Markup
- Distribution
- Markdown
How to Use Market Structure in Trading
- Trade in direction of trend
- Avoid trading against structure
- Use breakouts for entry