Market Structure and Trading Context

Breakdown

A breakdown occurs when price moves below an important support level, range boundary or established market structure.

Breakout

A breakout occurs when price moves beyond an important resistance level, range boundary or other established market structure.

Downtrend

A downtrend is a market condition in which price generally progresses lower over time, commonly producing lower highs and lower lows.

False Breakout

A false breakout occurs when price moves beyond an important resistance or range boundary but fails to sustain the move and returns into the previo...

Higher High

A higher high occurs when price forms a significant high above a previous comparable swing high.

Higher Low

A higher low occurs when a meaningful price low forms above a previous comparable swing low.

Lower High

A lower high occurs when a significant price high forms below a previous comparable swing high.

Lower Low

A lower low occurs when price forms a significant low below a previous comparable swing low.

Market Structure

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

Pullback

A pullback is a temporary move against the prevailing directional move or trend.

Range

A range is a market condition where price repeatedly trades between identifiable upper and lower areas without establishing a sustained directional...

Reclaim

A reclaim occurs when price moves back above a level it had previously lost and begins trading above it again.

Resistance

Resistance is a price area where selling interest has previously been sufficient to slow, stop or reverse an advance.

Retest

A retest occurs when price returns to an important level after previously breaking through or moving away from it.

Support

Support is a price area where buying interest has previously been sufficient to slow, stop or reverse a decline.

Swing High

A swing high is a local price peak formed when price rises and subsequently moves lower.

Swing Low

A swing low is a local price trough formed when price falls and subsequently moves higher.

Trend

A trend is a sustained tendency for price to move predominantly in one direction over a period. Markets can trend upward, downward or move without...

Uptrend

An uptrend is a market condition in which price generally progresses higher over time, commonly producing a sequence of higher highs and higher lows.