Thread by @twfforex

Market Structure refers to the evolution of market movements.

The market price usually makes some repetitive movements that forms a structure.

This concept is universal. It relies on your understanding of swing Highs and swing Lows (Fractals)
#forex #forextrader #forextrading

Generally, the market trades from short term low (STL) to short term high (STH) back to a new short term low (STL). As these STL’s and STH’s form, they will develop a “market structure “of price action.
Short term low is swing low
Short term high is swing high

Any short term low (STL) that has higher short term lows (STL) on both sides of it is considered an Intermediate term low (ITL).
Any short term high (STH) that has lower short term highs (STH) on both sides of it is considered an Intermediate term high (ITH).

Any Intermediate term low (ITL) that has higher intermediate term lows (ITL) on both sides of it is considered Long term low (LTL)
Any Intermediate term high (ITH) that has lower intermediate term highs (ITH) on both sides of it is considered Long term high (LTH)