Market structure is the skeleton of price action: the sequence of swing highs and swing lows that tells you whether the market is trending or ranging. Everything else — levels, setups, entries — should be read in the context of structure.
The three states of a market
- Uptrend: a series of higher highs and higher lows — buyers in control.
- Downtrend: a series of lower highs and lower lows — sellers in control.
- Range: highs and lows are roughly level — neither side in control.
A swing high is a peak with lower highs on either side; a swing low is a trough with higher lows on either side. Marking these gives you an objective map of the trend rather than an opinion. When you can name the current state, you know which setups fit and which to avoid.
The single most useful habit is to trade with structure: favour longs in an uptrend and shorts in a downtrend. Fighting structure is possible but statistically harder, and beginners should master trend-aligned trading first before attempting counter-trend plays.
Read the swings first — structure tells you whether to be looking for buys, sells, or nothing at all.