Market Structure: Understanding HH, HL, LH, LL in Trading
Learn how to identify trend direction using price structure
1. Uptrend Structure (Bullish)
- Higher High (HH)
- Higher Low (HL)
2. Downtrend Structure (Bearish)
- Lower High (LH)
- Lower Low (LL)
3. Sideways Market
- Equal highs and equal lows
- No clear direction
4. Structure Shift (Trend Change)
- Break of previous high/low
- Indicates reversal or trend change
5. Trading Based on Structure
- Uptrend → Buy pullbacks
- Downtrend → Sell pullbacks
- Sideways → Trade range or avoid
6. Entry Logic
- Enter after pullback
- Wait for confirmation
- Avoid chasing price
Common Mistakes
- Trading against structure
- Ignoring trend direction
- Entering without confirmation
Final Insight
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