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Market Structure
Market Structure
OF MARKET STRUCTURES
MARKET STRUCTURE
When we talk about the market structure in chart analysis, we are referring to the patterns
and formations that appear on price charts.These patterns help traders analyze the
behavior of market participants and make predictions about future price movements.
Here are some key components of market structure in chart analysis:
Trend:
The trend represents the general direction in which the price of an asset is moving over a
specific period. An uptrend consists of a series of higher highs and higher lows, indicating
bullish momentum. A downtrend consists of a series of lower highs and lower lows,
indicating bearish momentum. A sideways or range-bound market lacks a clear trend
and shows price oscillating between defined support and resistance levels.
Support and Resistance Levels:
Support levels are price levels at which buying interest is expected to be strong enough
to prevent the price from falling further. Resistance levels are price levels at which
selling pressure is expected to be strong enough to prevent the price from rising
further. These levels are formed by previous price action, where the price has
repeatedly bounced off or been unable to break through.
UPTREND MARKET HH
HH
HL
RETRACEMENT
HH HL
IMPULSIVE MOVEMENT
HL
DOWN TREND
LH IMPULSIVE MOVEMENT
LH RETRACEMENT
LL
LH
LL
LL
RANGING MARKET
RESISTANCE
SUPPORT
RESISTANCE
SUPPORT
RANGE EXPANSION
RESISTANCE
RESISTANCE
SUPPORT
SUPPORT
RANGE CONTRACTION
RESISTANCE
RESISTANCE
SUPPORT
SUPPORT
ROLE OF REVERSAL
UPTREND
RESISTANCE
SUPPORT
RESISTANCE
SUPPORT
DOWN TREND
RESISTANCE
SUPPORT
RESISTANCE
SUPPORT
RANGING MARKET
RESISTANCE
SUPPORT
RESISTANCE
SUPPORT
RESISTANCE
SUPPORT
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