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Glossary › break of structure

Trading glossary · structure

break of structure

When price breaks the pattern of steps it was making, like a climb falling below its last dip, a sign the climb may be ending.

The fuller meaning

The first violation of trend structure: in an uptrend, price breaking below the most recent higher low; in a downtrend, above the most recent lower high. One break does not always start a new trend; a following lower high and lower low confirm the change.

break of structure.

Related words

above-average volume · bounce · breakaway gap · breakdown · breakout · broken level · channel · choppy market · common gap · daily chart