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