Understanding Market Structure on a Deeper Level

Market structure is the foundation of price action trading and serves as a roadmap for

institutional order flow. Once you've mastered the basics, the next step is to refine your

understanding with liquidity concepts, smart money manipulation, and deeper trend

dynamics.

Let’s break down the advanced aspects of market structure that separate retail traders from

professionals. 👇

1. Market Structure Breaks (MSB) vs. Change of Character (ChoCh)

🔹 Market Structure Break (MSB) – Trend Continuation ✅

A Market Structure Break confirms that the trend remains intact. When price forms a higher

high (HH) or lower low (LL) and then breaks past a key swing level, it signals a continuation of

the trend.

• Bullish MSB → Price breaks previous higher high (HH) 🔼 → Trend continuation
• Bearish MSB → Price breaks previous lower low (LL) 🔽 → Trend continuation

🔹 Change of Character (ChoCh) – Trend Reversal ⚠