A market is an auction, not a line

In Forex, Market Structure means the way price moves and organizes itself over time—specifically, how price forms swing highs and swing lows.

It helps you answer one critical question:

Is the market moving UP, DOWN, or SIDEWAYS?

Price creates:

Higher High (HH) → Higher Low (HL) → Higher High (HH) → Higher Low (HL)

Example:

HH
/ \
/ \
HL / \
/ \ HH
/ \ / \
/ \ / \
───── HL

This indicates an uptrend.

Price creates:

Lower Low (LL) → Lower High (LH) → Lower Low (LL) → Lower High (LH)

HH
\
\ LH
\ \
\ \
LL \
\ LH
\
LL

This indicates a downtrend.

Price repeatedly moves between a relatively clear high and low without establishing a sustained sequence of HH/HL or LH/LL.

Resistance
────────────────────
/\ /\
/ \ / \
/ \ / \
/ \/ \
────────────────────
Support

The market is consolidating/ranging.

When studying SMC (Smart Money Concepts), you will commonly hear:

A BOS occurs when price breaks an important previous swing point in the direction of the existing trend.

For example:

Bullish:

HH → HL → BREAK previous HH = Bullish BOS

It suggests continuation.

A CHOCH is an early indication that the current market direction may be changing.

For example:

Bullish structure:

HH → HL → HH → HL

Then price breaks the important HL.

That can indicate:

Bullish → potentially Bearish

This is why CHOCH is often used as an early reversal/change signal.

MSS is also used to describe a meaningful shift from one directional structure to another.

Different SMC traders/indicators sometimes use MSS and CHOCH differently, so the exact definition should be standardized within your trading system.

Think of market structure as the skeleton of price.

StructurePrice PatternMeaningBullishHH + HLBuyers in controlBearishLL + LHSellers in controlRangeHigh ↔ LowNo clear directional controlBOSBreak in trend directionPossible continuationCHOCHBreak against current structurePossible changeMSSSignificant structural shiftDirection may be changing

Market Structure is not a complete entry signal by itself.

You can combine it with things such as:

Liquidity Sweep → CHOCH/MSS → Order Block → FVG → Pullback → Confirmation → Entry

That gives you a much more structured way of identifying a trade rather than simply buying or selling because price went up or down.