Definition
The overall shape of a market's swings: the pattern of peaks and dips that shows whether it's trending up, trending down or moving sideways.
The story
Instead of watching every tick, traders zoom out and look at the swings. Rising peaks and rising dips describe an uptrend; falling ones describe a downtrend; peaks and dips at roughly the same levels describe a range. When that pattern changes, traders say the structure has shifted.
Why you'll see it
It's the framework many chart-based traders look at before any indicator.
Connects to
Higher highs and higher lowsLower highs and lower lowsTrading rangeTrend and trendlineTrend reversal
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms