Market structure is the objective skeleton of price: the sequence of highs and lows that defines trend and reveals when it changes. Master it and most advanced concepts become readable.
Reading structure
An uptrend is a series of higher highs and higher lows; a downtrend, lower highs and lower lows. Marking these swing points objectively — not by feel — gives you a clear map of who is in control.
Break of structure (BOS)
A break of structure is when price makes a new high in an uptrend (or new low in a downtrend), confirming the trend continues. BOS is simply continuation: the existing direction is being maintained.
Change of character (shift)
A change of character (or market-structure shift) is when the pattern breaks the other way — e.g. an uptrend fails to make a higher low and instead takes out a prior low. It's the earliest objective hint that control may be changing hands. Most 'smart money' language is just precise labelling of these structure events.
Key takeaways
- Trend = sequence of higher/lower highs and lows; mark swings objectively.
- BOS confirms continuation (a new high in an uptrend, new low in a downtrend).
- A change of character warns the trend may be shifting — the earliest structural clue.