What Is Market Structure

Ten turns, each one named

Market structure is the run of a chart's turning points, with each one named against the one of the same kind before it. A high is a higher high if it is above the last high, or a lower high if it is below it; a low is a higher low or a lower low in the same way. The Dow — the index of thirty large American companies, quoted in points — turned ten times between April and August 2025. The first low and the first high had nothing before them to compare with; of the eight turns after them, seven were higher than the turn of the same kind before them. One, the 1 August low at 43,314, was lower. That run of names is the structure.

The frame of a building

The picture is the frame of a building before the walls go on. The beams are the turns — each high and each low — and the frame is the order they stand in. Take away the candles and the structure is what is left: a few turning points, and whether each one stands above or below the one before it. A frame whose beams step up is a rising structure; one whose beams step down is a falling one; one whose beams stay level is a sideways one.

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