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Market Structure

What is Market Structure?

The skeleton of price movement — the sequence of swing highs and swing lows that defines trend.

The DefinitionMarket Structure, defined

Market Structure is the framework of swing highs and swing lows that price creates as it moves. An uptrend is defined by higher highs (HH) and higher lows (HL). A downtrend is defined by lower highs (LH) and lower lows (LL). When that sequence breaks — a lower high in an uptrend, or a higher low in a downtrend — structure has shifted, and the previous trend assumption is invalid. LA Traders marks structure on the 4-hour and 1-hour charts before every session.

Why It MattersWhy Market Structure matters

Structure is the map. Without it, every candle looks the same. With it, you know exactly where price is in the larger sequence — and more importantly, you know when the sequence has changed.

In PracticeMarket Structure — a real example

Example · New York Session

ES makes a high at 5,850, pulls back to 5,838, makes a new high at 5,853. That's HH + HL — uptrend intact. When price breaks below 5,838, structure shifts. Longs are done.

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