Encyclopedia Classification
Category: Price Action • Market Structure • Trend Analysis
Discipline: Technical Analysis • Auction Theory • Multi-Timeframe Trading
Prerequisites
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Article 193 — Smart Money Concepts: Institutional Footprints, Liquidity, Order Blocks, and Market Structure
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Article 190 — Market Profile: Auction Theory, Value Migration, and Institutional Market Structure
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Article 161 — Trend Analysis: How Professionals Identify Trend Strength, Weakness, and Reversals
Related Articles
Support and Resistance • Trend Analysis • Price Action • Smart Money Concepts • Elliott Wave • Wyckoff Method
Definition
Market structure analysis is the study of how price organizes itself through:
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Higher highs.
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Higher lows.
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Lower highs.
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Lower lows.
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Breaks of important levels.
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Changes in trend behavior.
Market structure answers:
"Who currently controls the auction: buyers or sellers?"
The central idea:
Price does not move randomly. It creates recognizable sequences that reveal control, weakness, and potential transitions.
Beginner Explanation
A chart is a story.
A bullish market tells this story:
Buyers push higher.
↓
Price pulls back.
↓
Buyers defend.
↓
Price makes a new high.
This creates:
Higher High.
Higher Low.
Higher High.
A bearish market tells the opposite story:
Sellers push lower.
↓
Price rallies.
↓
Sellers reject.
↓
Price makes a new low.
This creates:
Lower High.
Lower Low.
Market structure is reading that story.
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