Market Structure Framework
Purpose
To provide a rule-based method for identifying the current state of price across timeframes.
This framework answers one question:
Is price trending, ranging, or transitioning — and where are we within that state?
Core Principles
- Price moves in structured sequences, not randomness
- Structure exists on all timeframes
- Higher timeframe structure governs lower timeframe behavior
- Structural shifts precede directional moves
Structural Components
- Swing Highs & Swing Lows
- Higher High / Higher Low
- Lower High / Lower Low
- Range High / Range Low
- Break of Structure (BOS)
- Change of Character (CHoCH)
Framework States
Expansion
Directional impulse
Consolidation
Range or compression
Transition
Structural shift or failure
Application
Used to:
- Define directional bias
- Avoid counter-trend execution
- Anchor multi-timeframe analysis
- Filter low-probability trades
The Market Structure Framework is educational and methodological in nature. It does not constitute investment advice, trading signals, or performance guarantees.