GLOSSARY · MARKET STRUCTURE
What is Market Structure Break (MSB)?
A market structure break is when price breaks the most recent swing point against the trend, signaling a possible reversal.
In an uptrend, price makes higher highs and higher lows. When it breaks below the last higher low, the uptrend's structure is broken. The reverse applies in a downtrend.
Traders use MSBs to stop trading with the old trend and look for entries in the new direction.
EXAMPLE
ES makes higher lows at 5,000, 5,012 and 5,020, then drops through 5,020. That break of the last higher low is an MSB to the downside.
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