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Market Structure

Market structure describes the pattern created by price as it forms highs, lows, trends, ranges and changes in direction over time.

Why it matters to you

Before using indicators, traders need to understand what price itself is doing. Market structure helps answer basic questions: Is price trending? Is it ranging? Are buyers continuing to push price higher? Are sellers taking control? Has an important previous high or low been broken? It provides the framework around which other technical analysis can be interpreted.

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