Trendlines and Market Structure
How to read higher highs, higher lows and draw trendlines that reflect real structure.
Market structure basics
- Uptrends consist of higher highs and higher lows.
- Downtrends consist of lower highs and lower lows.
- When neither pattern dominates, markets are often ranging.
Drawing useful trendlines
- Use swing highs and lows that clearly stand out on the chart.
- Two touches define a line, while three touches strengthen it.
- Trendlines are tools to visualize structure rather than precise barriers.
Break and retest
- A break of a trendline can signal that the previous trend may be weakening.
- Confirmation often occurs when price retests the line and reacts.
- False breaks happen when price quickly returns inside the prior structure.
Checklist
- Does the chart show a clear sequence of highs and lows?
- Is the trendline aligned with meaningful pivots?
- Did price confirm the break with follow-through?
- Where would the structure be invalidated?
Apply this in WOI
Open the scanner, pick one symbol, and practice:
mark zones, decide trend regime, and write one invalidation level.
The goal is a repeatable process, not perfect predictions.
Disclaimer: Educational content only. Not financial advice.