Market Structure: Seeing In Swings

Market Structure is simply making distinctions in price flow. its putting structure around what looks like chaos so that we have a way to measure and orient ourselves to any market in any timeframe. When I look at a market, I want to see objectively in swings.

Swings are the common thread that weaves through all markets and timeframes, clearly indicating who is in control at any given moment. They consist of distinct components and follow a process, forming the foundation of my trading strategies and setups.

Market Structure Definitions:

Confirmed Swing High/Low: A new high confirms a
swing low and a new low confirms a swing high.

Major Swing: The largest reaction leg in your frame.
Minor Swing: the next largest reaction leg.

Balanced/Relative Swing: Same size reaction legs.

Expanded Swing: Reaction leg larger than previous reaction leg.

Components of a Swing:

Impulse Leg: The leg that takes out a previous high or low.

Reaction Leg: The retracement or pullback after the impulse leg.

Impulse Leg Shelf: a small range at the end of an impulse leg

Reaction Leg Shelf: A small range at the bottom of a reaction leg