Market Structure Trading Explained: How to Read Trends Using BOS, BMS, SMS and Price Action
Market structure explains how trends form by studying price highs and lows, not indicators. An uptrend shows higher highs and higher lows, a downtrend shows lower lows and lower highs, and sideways markets rotate without direction. A Break of Structure (BOS) signals change but is not a trade by itself. Break in Market Structure (BIMS) includes a fakeout and liquidity sweep, making it higher probability. Shift in Market Structure (SMS) changes gradually and needs two breaks, but has lower probability. Reading structure near current price helps traders identify trend direction, avoid traps, and trade with better probability using price action.
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