Market Structure

The Roadmap of Price

Market Structure is the most fundamental concept in technical analysis. It tells you "who is winning" the battle between buyers and sellers. By objectively mapping out the Highs and Lows, you can trade with the dominant flow rather than fighting against it.

This tool automates the tedious process of labeling structure, giving you a clean, objective map of the market in real-time.

Structure Types

We separate structure into two distinct layers to help you see both the "Big Picture" and the "Immediate Action."

1. Macro Structure (Swing)

• Purpose: Defines the overall trend bias (Daily/4H style structure).

• Usage: Trade in this direction. If Macro is Bullish, look for Longs.

• Settings: Controlled by Macro Length. A higher number (e.g., 50) filters out noise and shows main pivots.

2. Micro Structure (Internal)

• Purpose: Defines the short-term momentum (15m/5m style structure).

• Usage: Used for entries and early warning signals. A Micro CHoCH often precedes a Macro reversal.

• Settings: Controlled by Micro Length. A lower number (e.g., 5) catches every minor pullback.

Structural Events

We automatically detect and label three key events:

BOS (Break of Structure)

• Meaning: Trend Continuation.

• Bullish BOS: Price breaks above a Higher High. The uptrend is healthy.

• Bearish BOS: Price breaks below a Lower Low. The downtrend is healthy.

CHoCH (Change of Character)

• Meaning: The first sign of a potential reversal.

• Bullish CHoCH: Price breaks above the last Lower High. The downtrend might be ending.

• Bearish CHoCH: Price breaks below the last Higher Low. The uptrend might be ending.

CHoCH+ (Confirmed Change)

• Meaning: A higher-probability reversal signal.

• Logic: Standard CHoCH can be triggered by a wick. CHoCH+ requires a candle close beyond the structural level to confirm the breakout.

Visualizing the Swings

Zigzag

Connects the Highs and Lows with a line.

• Benefit: Instantly visualize the "Wave" of the market. See impulsive moves vs. corrective moves at a glance.

Swing Points

Labels the specific pivots with symbols.

• HH / HL: Higher High / Higher Low.

• LH / LL: Lower High / Lower Low.

• Customization: You can change the shape (Circle, Square, Diamond) to fit your aesthetic.

Strong vs. Weak Highs/Lows

This is a powerful concept for placing Stop Losses and Take Profits.

Strong High/Low

• Definition: A pivot that caused a Break of Structure.

  • Example: A High that pushed price down to make a new Low.

• Psychology: Institutions defended this level and pushed price aggressively. It is likely to hold again.

• Action: Place your Stop Loss here. It is a safe invalidated point.

Weak High/Low

• Definition: A pivot that failed to break structure.

  • Example: A High that failed to make a new Low and price reversed.

• Psychology: This level failed to do its job. It is "weak." behaviorally, price often returns to "sweep" these levels for liquidity.

• Action: Target this for Take Profit. Price is likely to trade through it.