Market Structure - Uptrend, Downtrend & Ranging Market

[Neca]

Market structure in trading or price action is how many people take advantage of the markets. No indicators, and no volume. Because the market does not have a centralized exchange. Traders often swing trade the market based on the structure to take advantage of the opportunity.Market structure is the behavior, condition, and current flow of the market. It highlights support and resistance levels, swing highs, and swing lows.

An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.

A downtrend is a gradual reduction in the price or value of a stock or commodity, or the activity of a financial market. A downtrend can be contrasted with an uptrend.

Ranging Market occurs when a security trades between consistent high and low prices for a period of time. The top of a security’s trading range often provides price resistance, while the bottom of the trading range typically offers price support. The main feature of the Ranging Market is that the price creates Equal Highs & Equal Lows.