Market Structure
Trade based on market structure. Higher highs/lows, break of structure (BOS), change of character (CHOCH), and structural shifts.
4 Strategy Templates
Market Structure is the foundational framework underlying nearly all price-action methodologies: it reads markets as sequences of swing highs and swing lows, identifies trends by the pattern of those swings, and times entries around structural breaks and shifts. An uptrend is defined by higher highs and higher lows; a downtrend by lower highs and lower lows; a range by overlapping highs and lows within defined boundaries. Structure is what lets a trader answer the basic question: is this market trending or ranging right now?
The strategies in this category operationalize structure reading into mechanical entries. Break of Structure (BOS) Entry trades the continuation signal. A close beyond the most recent significant swing in the trend direction. Change of Character (CHOCH) Reversal trades the first structural break against the prevailing trend, typically a higher-timeframe reversal warning. Equal Highs Sweep trades liquidity grabs above relative-equal swing highs where retail stops cluster. Structure-Shift Early attempts to identify trend reversals before they fully confirm, entering on the first lower low in an uptrend with tight stops. Reading structure correctly requires timeframe discipline. Establish bias on a higher timeframe (4H or Daily), take entries on a lower one aligned with that bias. Trading low-timeframe structure in isolation produces whipsaws.
Break of Structure (BOS) confirms trend continuation. When price breaks a significant swing high/low, it validates the current trend direction.
CHOCH is the first sign of a trend reversal. When an uptrend breaks its first significant low, or a downtrend breaks its first high, character changes.
When two or more swing highs form at the same price level, stop orders from short sellers cluster above them. Price often sweeps these 'equal highs' to harvest liquidity before reversing. Trade the re...
A Change of Character (ChoCH) is the first lower-high after a series of higher-highs (or first higher-low after lower-lows). Enter on the confirmation of the shift. Catching the new trend at its earli...