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Chart Reading & Price Action·Intermediate· 5 min

Market structure — HH/HL & LL/LH

The framework that tells you whether the market is going up, down, or sideways.

Uptrend

Higher Highs (HH) and Higher Lows (HL). Each pullback bottoms above the previous pullback. Buyers are willing to pay more over time.

Downtrend

Lower Highs (LH) and Lower Lows (LL). Each rally tops below the previous one. Sellers are pressing harder over time.

Break of Structure (BoS)

When an uptrend prints a Lower Low, that's a warning. When a downtrend prints a Higher High, buyers may be reclaiming control.

Change of Character (CHoCH)

The first meaningful break in the opposite direction after a trend. Often the earliest signal that momentum is shifting.

Watch it on the chart
Chart breakdown
HLHHHHHLHHHHUPTREND · higher highs & higher lows
Chart with each swing high and low labeled, and the BoS/CHoCH points highlighted.
Key takeaways
  • Uptrend = HH + HL. Downtrend = LH + LL.
  • BoS = trend is warning of exhaustion.
  • CHoCH = trend may already have flipped.
  • Structure is the map — trade with it, not against it.
Quick check

The market has been printing HH/HL for hours, then suddenly prints a lower low. What is that called?

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Educational simulation only. Not financial advice. Prop firm rules vary between companies — always read the official rules of the specific firm before trading.