Skip to main content
MARKET CLOSED
Loading market data…
← Market structure
Reading trend from price
6 min read · Educational content only, not investment advice.
Swings define trend
An uptrend prints higher highs and higher lows; a downtrend prints lower highs and lower lows.
Mark swing points on a completed-candle chart. A swing high is a candle high with lower highs on both sides; a swing low is the mirror.
Break, pending, confirmed
A break of the last swing low in an uptrend is a warning, not a reversal.
A reversal is confirmed only when price then fails to make a new high and prints a lower high.
Between the break and confirmation the trend is in transition — treat it as unclear, not as the opposite trend.
Indicators support, never override
EMA 20/50 alignment and ADX 14 strength add weight to a structural read.
When indicators disagree with structure, structure wins and confidence drops.
Key takeaways
- Structure first, indicators second.
- A break is a warning; a lower high confirms.
- Transition means stand aside or reduce size.