How Does the Concept of “Market Structure” Apply to Identifying Trends in Crypto Assets?
Market structure is the pattern of price swings, specifically the sequence of highs and lows. An uptrend is characterized by higher highs and higher lows (HH/HL).
A downtrend is lower highs and lower lows (LH/LL). A true reversal involves a break of the previous market structure, for example, a downtrend changing to a HH/HL sequence.