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Market Structure

What is Trend?

The directional bias of price, defined by the sequence of higher highs/lows or lower highs/lows.

The DefinitionTrend, defined

A Trend is the sustained directional movement of price, objectively defined by structure. Uptrend: higher highs and higher lows. Downtrend: lower highs and lower lows. No sequence = no trend = range. Trends persist until structure breaks. The LA Traders approach is to identify the trend on the 4-hour, refine it on the 1-hour, and only take setups in the direction of the prevailing structure until a CHoCH says otherwise.

Why It MattersWhy Trend matters

'The trend is your friend' is a cliché because it's true. Counter-trend trades have lower win rates and worse R:R. Trade with structure, not against it.

In PracticeTrend — a real example

Example · New York Session

4H: HH at 5,860, HL at 5,822. Uptrend. Your A+ longs are valid. Your shorts are counter-trend — skipped unless a CHoCH prints.

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