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Higher Highs & Lower Lows

Master the foundation of all technical analysis. Learn how to read market structure to identify the trend, reversals, and potential trading opportunities.

Market Structure Trend Analysis Price Action Basics Beginner Friendly

What is Market Structure?

The Language of Price

Before you look at indicators, you must be able to read what price is doing. Market structure is defined by the sequence of "swings" or "pivots" in the market. By looking at how these highs and lows relate to each other, you can immediately tell if a market is trending up, trending down, or moving sideways.

Defining the Trends

Bullish vs. Bearish

Bullish Trend (Uptrend): Characterized by a sequence of Higher Highs (HH) and Higher Lows (HL). This tells you that buyers are aggressively pushing price, and every pullback is being bought at a higher level than the last.
Bearish Trend (Downtrend): Characterized by a sequence of Lower Highs (LH) and Lower Lows (LL). This tells you that sellers are dominant, and every "bounce" is being sold at a lower level than the last.

Frequently Asked Questions

How many pivots do I need to confirm a trend?

At least two structural points are needed to define a trend (e.g., a Higher High and a Higher Low). Once you have a second, higher sequence, the trend is officially "confirmed."

What happens when the structure breaks?

If an uptrend (HH/HL) fails to make a Higher High and instead breaks below the previous Higher Low, this is known as a "Market Structure Break," which is your first sign that a trend reversal may be happening.