Market structure is the overall flow of the market and provides us with a framework to read and understand price. Understanding the market structure of price means knowing the behavior of the price and where price is going to go. The market moves in one of three ways: up (bull trend), down (bear trend) and sideways (consolidation).

Understanding structure in the markets is paramount to knowing the difference between a retracement and an impulse.

Bullish Market Structure

Bullish market structure simply put is the creation of higher highs and higher lows in succession. A higher low is confirmed once the previous high is broken which then goes on to create a higher high. It is our job as traders to identify breaks of structure (highs) and wait patiently for a higher low to form if we are looking to enter a buy position.

Bearish Market Structure

Bearish market structure simply put is the creation of lower lows and lower highs in succession. A lower high is confirmed once the previous low is broken which then goes on to create a lower low. It is our job as traders to identify breaks of structure (lows) and wait patiently for a lower high to form if we are looking to enter a sell position.

Structure is Highs and Lows, LHs and HLs. Highs and Lows are structural swing points, these swing points are fractal meaning they will be present on multiple timeframes.

● When looking at swing points - Think Timeframes!

Understand the swing points, these give a frame to observe price delivery.

The examples below show how price delivery works across multiple timeframes and prints swing points to frame structure following BFI intentions. ( banks and institutions = whales )

Timeframes Intro