Market structure (higher highs and lows)

Reading structure means identifying swing points, the local peaks and troughs where price turned. In an uptrend each rally exceeds the previous high and each pullback holds above the previous low. In a downtrend the opposite holds. When neither pattern is clear, the market is ranging. This is one of the oldest ideas in technical analysis, going back to Dow theory.

A break of structure occurs when price takes out a swing point in the trend's direction, confirming continuation. A change in structure, or change of character in SMC language, occurs when an uptrend makes its first lower low, or a downtrend its first higher high, and is read as an early sign of reversal. Crypto traders use these labels on every timeframe, from bitcoin's weekly chart to minute charts for scalping.

The main difficulty is deciding which swings count. A swing that matters on the 15-minute chart may be noise on the daily, so structure must be read on a chosen timeframe and applied consistently.