Market structure: HH, HL, BoS and ChoCh
Trends are staircases of highs and lows. Breaks of that staircase tell you when control changes.
What it is
An uptrend is a sequence of higher highs (HH) and higher lows (HL). A downtrend is lower highs and lower lows. A break of structure (BoS) is a close beyond the previous swing in the trend direction (continuation). A change of character (ChoCh) is the first close against the trend, for example below the last higher low.
Structure is the backbone of price-action trading: you buy pullbacks to higher lows in an uptrend and stop trading longs when structure breaks.
How to use it
- Mark swing highs and lows (use a consistent method).
- Identify the trend on the higher timeframe.
- Wait for a pullback to a higher low or a zone in that trend.
- Exit or flip bias when ChoCh occurs against you.
Common mistakes
- Marking every tiny wiggle as a swing.
- Calling a trend change on a wick instead of a close.
- Fighting a clear structure because “it must reverse soon”.
Practise it in TradeDesk X
The TradeDesk X chart has BoS and ChoCh layers that mark these breaks automatically, and the Scanner uses structure as part of its confluence checks.
Related lessons
Support and resistance
Prices react at the same zones repeatedly. A broken level often flips its role.
🎯Liquidity sweeps (stop hunts)
Price often runs beyond obvious highs and lows to trigger stops, then reverses.