Market Structure

Market structure refers to the organised sequence of swing highs and swing lows that defines whether a market is in an uptrend (series of higher highs and higher lows), a downtrend (series of lower highs and lower lows), or a ranging/sideways market (roughly equal highs and lows). Identifying market structure is the first step in most technical and price-action-based trading approaches — it provides the directional bias within which all other trade setups are evaluated. A break of market structure (where price moves beyond the most recent significant high or low) signals a potential shift in trend direction. Market structure analysis is central to Smart Money Concepts (SMC) and is applied across all asset classes and timeframes in Indian equity, futures, and currency markets.