📘 Zero to Hero: Lesson 2 – Understanding Market Structure
Before you start trading, you need to understand *how price moves* in the market. This is called *market structure*.
🔹 What is Market Structure?
Market structure is the pattern or flow that price follows on a chart. It helps you understand whether the price is going *up*, *down*, or *sideways*.
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🧭 *3 Main Market Trends:*
1️⃣ *Uptrend*
- Price keeps going *higher and higher*
- You’ll see *Higher Highs (HH)* and *Higher Lows (HL)*
- This means buyers are in control
2️⃣ *Downtrend*
- Price keeps going *lower and lower*
- You’ll see *Lower Highs (LH)* and *Lower Lows (LL)*
- This means sellers are in control
3️⃣ *Sideways / Range Market*
- Price moves between a top and bottom line
- It doesn’t go clearly up or down
- Happens when buyers and sellers are balanced
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🔍 Why Should You Learn This?
✅ To make good trades, you must know *where the market is going*
✅ This helps you avoid *buying at the top* or *selling at the bottom*
✅ It helps you decide the best time to *enter* or *exit*
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🎯 Tips for Beginners:
- Use basic chart tools to draw *support and resistance* lines
- Practice identifying highs and lows on real charts
- Don’t trade *against* the trend unless you know what you’re doing
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This is a *core skill* in trading. Once you understand market structure, you’ll see charts differently!
➡️ Stay tuned for *Lesson 3 – What are Candlesticks?