Higher highs & higher lows
Price consistently moves upward, with each pullback staying above the previous low.
Charting Basics ยท Lesson 3
Trends and structure: how markets actually move
Markets do not move randomly. They form trends and structures that reflect the behaviour of buyers and sellers over time.
Lower highs & lower lows
Price consistently moves downward, with each bounce failing below the previous high.
Range
Price moves between support and resistance without a clear directional trend.
Why structure matters
Structure shows whether the market is gaining strength, weakening, or consolidating. It helps traders align with momentum instead of fighting it.
Trend stays intact
As long as higher lows or lower highs continue, the trend is considered intact.
Structure shift
When structure breaks, it may signal a trend change or transition into a range.
Trend vs counter-trend
Trading with the trend generally carries lower risk than trading against it.
Common mistake
Beginners often try to predict reversals too early instead of following the existing trend. This leads to repeated losses in strong trending markets.
Simple rule
If price keeps making higher highs, it is not bearish. If price keeps making lower lows, it is not bullish.