Trading
Market Structure Shift
A significant change in the pattern of highs and lows indicating trend change.
Full Definition
A market structure shift occurs when the established pattern of higher highs/lows (uptrend) or lower highs/lows (downtrend) is broken. This shift often precedes or confirms a trend reversal. It's similar to Change of Character but may refer to a more significant structural break.
Example
Price has been making lower lows and lower highs. Suddenly it makes a higher high, shifting the market structure and suggesting potential bullish reversal.
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