The Trader’s Blueprint: Reading Charts, Market Structure, and Analysis
📍 What is Market Structure?
Market structure is how price moves over time, creating trends, consolidations, and reversals.
It’s made up of higher highs, higher lows, lower highs, and lower lows—which tell you if the market is trending up, down, or just messing around.
Understanding this helps you anticipate where price is likely to go next instead of chasing moves like a headless chicken.
📍 The Three Market Phases You Need to Know
🔹 Trending Market (Uptrend & Downtrend)
Uptrend → Higher highs and higher lows = buyers in control. Look for buys at pullbacks.
Downtrend → Lower highs and lower lows = sellers in control. Look for sells at pullbacks.
🔹 Ranging Market (Sideways Chop Zone)
Price is stuck between support and resistance. No clear direction.
Avoid trading inside ranges unless you know what you’re doing.
📍 Break of Structure (BOS) & Change of Character (ChoCH)Break of Structure (BOS) happens when price breaks a key high or low in a trend, confirming trend continuation.
Change of Character (ChoCH) is when price breaks the opposite way, signaling a possible trend reversal.
🔹 Market Reversals (Trend Shifts)
When an uptrend starts making lower highs → Possible reversal into a downtrend.
When a downtrend starts making higher lows → Possible reversal into an uptrend.
Look for break of structure (BOS) and change of character (ChoCH) to confirm reversals.
📍 How Market Structure Affects Your Trades
Trading with the trend means higher probability setups.
Entering at the wrong place (like chasing a move) = high chance of losses.
Market structure gives you better trade entries, exits, and stop loss placement.
🔑 Key Takeaway:
The market isn’t random—it's structured. Learn to read it properly, and you’ll start making smart trades instead of playing the guessing game.