This lesson gives you the base language for everything that comes later. If you cannot mark structure cleanly, concepts like FVG, order block, or liquidity sweep will stay disconnected.

Step 1: mark swing highs and swing lows

A swing high is a local high that stands out against the candles around it. A swing low is the opposite.

Use simple rules:

• compare highs with highs and lows with lows on the same timeframe
• prefer obvious turning points over tiny noise
• wait for confirmation instead of labeling every candle immediately

Step 2: decide the market state

At a basic level, structure comes down to sequence:

• uptrend: higher highs and higher lows
• downtrend: lower highs and lower lows
• range: neither side is building a clean sequence

Your first job is not prediction. Your first job is description.

Step 3: understand BOS

BOS means Break of Structure. It usually supports the current trend.

• in an uptrend, price breaks a prior swing high
• in a downtrend, price breaks a prior swing low

That does not mean “enter immediately.” It means the trend has shown continuation strength.

Step 4: understand MSS

MSS means Market Structure Shift. It warns that the prior order may be weakening.

• in an uptrend, price breaks a prior swing low
• in a downtrend, price breaks a prior swing high

MSS is not a guaranteed reversal. It is a change in behavior that deserves attention.

Step 5: put the process together

Use the same checklist every time:

1. Mark the current swing structure.
2. Decide whether the market is trending or ranging.
3. Note the nearest important swing high and swing low.
4. Ask whether the latest move is BOS, MSS, or just noise.
5. Only then bring in tools like key levels, liquidity, or entry models.

Common mistakes

Mistaking a pullback for an MSS

A normal pullback inside trend structure is not a shift. The key question is whether structure order was actually broken.

Calling wick-only probes a BOS

Many false breaks poke through a level and immediately return. Context matters more than a dramatic wick.

Next reads

• Market Structure Basics
• BOS vs MSS
• Liquidity Sweep

Educational content only. Not financial advice.