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UNIT 2

Trend & Market Structure

Trend is persistent directional structure; a range rotates without progress.

StructureHigher lowHigher high
What it tells you

Whether price is making higher, lower, or overlapping swings.

When it is useful
  • Selecting strategy families
  • Placing invalidation levels
When it fails
  • Structure is backward-looking
  • Breakouts can fail
COMMON MISTAKE

Calling any volatile movement a trend.

Evidence note

Trend persistence appears in many markets, but its strength and tradability vary over time.

60-SECOND CHEAT SHEET

Remember this.

  1. 1Uptrend = HH + HL
  2. 2Range = overlapping swings
  3. 3A break is evidence, not proof
NEXT ACTIVITYBuild the uptrendRead higher highs and higher lows as structure.
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