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Trendlines and Market Structure

How to read higher highs, higher lows and draw trendlines that reflect real structure.
Trendlines and Market Structure
Trendlines and Market Structure
In this guide
Market structure basics · Drawing useful trendlines · Break and retest · Checklist
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.
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Related: Technical Analysis Basics — A Practical Framework · Market Regimes — Trend vs Range · Support and Resistance — Zones, Not Lines · Breakouts & Fakeouts — How to Reduce Traps
Disclaimer: Educational content only. Not financial advice.