Market Structure in Trading - How to Read the Market Correctly in 2026

[00:02] then down, then up again. It is not clear whether the trend is bullish or bearish. You go long, the price falls. You enter a short position, the price rises. And this happens every time. you are misreading the market structure. And today I will teach you to read it

[00:18] correctly. And after this video, you will know exactly where the market is going. By the way, I have a Telegram channel and a free trading community. There I share my setups, conduct live trading, and personally help each participant. The link will be

[00:33] in the description. Now let's figure it out . . [music] , how to read the market correctly. Today I will cover five

[00:47] key points. First, we'll talk about the three phases of the market that you should know. Next, how to correctly determine a trend through high or low. Then impulses and correction. After that, when the trend really breaks, and I’ll

[01:01] tell you about Break of Structure or Boss. And finally, let's touch on the main After watching this video to the end, you will understand where the market is going. From now on, you will be able to see the structure on any chart, and you will also be able to enter

[01:16] trades correctly. If you are watching my videos for the first time, here is a little about me. My name is Kirill. 4 years in trading. I trade using IC and Smartmana. I work with Forex, gold and crypto. I have also attached my latest

[01:28] can really make good money in trading if you know what to do. But I also want to touch on the fact that trading is not a money button. Therefore, in order to trade wisely, we must know the market structure. This is the base.

[01:44] Accordingly, let's move on to step one. There are three phases in the market that you must know. The first is an uptrend or bullish trend. Next [music] downward or bearish. And there is also consolidation, it is

[01:57] Accordingly, when we have an uptrend or a bullish trend, our task is to buy and under no circumstances sell. Remember, when we have a downward trend, our task is to sell and under no circumstances buy. When we have

[02:14] consolidation or a sideways movement in the market structure , our task is to avoid it until the situation becomes clear, until an upward or downward trend forms. Remember, there is an upward bullish trend in the market. There is also consolidation or

[02:27] sideways movement and, accordingly, there is also a downward or bearish simple. In practice, most traders cannot determine what the actual trend is. They see the price going up, down, up, down,

[02:41] up, down. So, [music] what kind of trend is this? A, bullish, bearish, what should we do: buy or sell? Most people generally use trend lines as a method of determining market structure. But the problem is what

[02:54] happens when the price breaks this line. Accordingly, according to this logic, line. Accordingly, according to this logic, you need to sell, but the price goes up. should never be used to determine market structure.

[03:07] Accordingly, what I will now show you is a method that works for determining the market structure. In order to correctly determine the market structure, we will look at how the price is formed. To do this, we

[03:19] define key levels. I have already noted that for us [music] it is high lows, higher highs, highs. High lows, higher highs, high lows. Here we Accordingly, higher highs are the highest high. High lows are the highest.

[03:34] As we can see, according to this structure, our trend is upward or bullish. And the key idea is that when we see that we have an uptrend, we wait for a correction or pullback to occur. Here our task is to buy,

[03:52] and here our task is to sell. Another important criterion that will determine that the trend is continuing is that each new Accordingly, as we see here, higher high. The new high is higher than

[04:08] the previous one, that is, it is the highest high. The same applies to high lows, this is the highest low, meaning each new one will be higher than the previous one. How do you know if the trend is changing? Accordingly, at some point we will experience a

[04:24] change in the market structure, and it will look like this. That is, we will already have, a, the previous low broken through and formed, a, lower lows, accordingly, then there will be, a, a rollback higher, and we will not break through, a,

[04:40] and renew a new high. Accordingly, [music] will be lower than the previous one. This will be called lower high. Accordingly, when we have a downward or bearish trend, that is, each new low or high will be lower than the

[04:54] [music] Let's remember. That is, now I will sign it for you for convenience. LS LS lower high

[05:09] lower high lower lows, lower high. Accordingly, here, a, we see, a, key levels here, a, we see, a, key levels show that we have a downward trend.

[05:22] According to this logic, when we see that the trend is downward, [music] goes down, and, accordingly, here we sell when the price rolls back, the price [music] goes down. Of course, what I

[05:38] banal example. Let's move on to the graphs. I'll show you everything, don't worry. I'm currently on the EUR USD 4H chart and let's determine what structure we have. As we can see, here we have a bearish one, but let's

[05:51] be precise and define the key levels. That is, here we have a key level high and a swing high. And then we form lower lows.

[06:07] And then we form lower lows. Then we have a lower high formed, and Then we have a lower high formed, and here are lower lows, and here are lower highs. And accordingly, here we form lower lows again. And here we have lower highs. And

[06:21] change in the market structure. That is, we have, a, the price is turning around, going up, a, in a bullish trend. That is, here we have, a, a key

[06:33] scarlet formed, after which we went, a, in the opposite direction. That is, we have lower loads, and here we already have higher highs. And this level higher highs. And this level will already be ours, and high lows. And,

[06:48] accordingly, here, when the price is formed, and goes further, here we will is formed, and goes further, here we will already be able to determine, and, subsequent levels, for example, like Highs and subsequent higher lows. And, actually, to make

[07:02] it clear, I’ll now sign [clears throat]

[07:15] low low high low low low high low low low high low low high low

[07:29] And here, accordingly, I will not mark it any further. And, accordingly, in this way you will gain experience, get the hang of it and will be able to more easily identify the will be able to more easily identify the structure of the market. That is, to make

[07:43] it clearer, I will also demonstrate the lines like this. That is, as we see, and if we draw a line, then we clearly see a

[07:55] accordingly, we are already experiencing a change, and we are experiencing, uh, a change towards a bullish trend. Here. And also, what I want to note is that

[08:07] when we define the key levels by which we identify, and what kind of structure we have, we must define, namely, the key levels. That is, as we see, here we have, a, quite a lot of

[08:23] candles that close downwards. [music] In essence, they also form, uh, a certain level of the bottom. Ah, but it's important to understand that it won't, but, be the key level there lols. Accordingly, we define precisely these

[08:37] significant levels, key levels. Here. Let's look further. That Here. Let's look further. That is, a, let's try to look at a on this graph. That is, here we see that we have [music], and it was also formed here

[08:54] [music], and it was also formed here strong manipulation of liquidity SWIP, but that's not the point. And, in short, from here we also have a bearish trend. And here we have it

[09:11] at this level, that is, after this level, we have formed a hahai again, because we broke through it, and because it was the previous one. That it, and because it was the previous one. That is, up to this point we also had a

[09:26] downward trend, that is, after this we quickly started to reverse. That is, we have broken through here. And after this we already determine that this is a reversal and a bullish trend. That is, if we take high here, a, it turns out that we will have, a,

[09:42] high here, a, it turns out that we will have, a, higher, a, here we will have a higher low, and, accordingly, here we will have, a, it will be determined, that is, this level, a, as also a higher high. And here we will have high low. And, accordingly, here

[09:57] which a reversal also occurs. That is, as we see, the market is quite dynamic, and, uh, in the context of [music] of a certain, uh, schedule, period of time, we have a change in structure that is

[10:10] changing quite actively. That is, it is important to be able to determine to what level we are ready to trade. Now I have shown you how to identify structure on a real chart. And let's move on, ah, to the next step and talk about

[10:24] impulses [music] and corrections. This is also a very important point that you need to know. Pulse is a force, a movement that breaks through the structure and renews our highs. If it's a normal trend, if it's bearish, then it, uh, updates the lays.

[10:38] And, accordingly, a correction is a movement against the trend. It does not break through the structure and simply gives the market the opportunity to rest and accumulate before the next impulse. Accordingly, in this case, the impulse will be,

[10:52] since we have a normal trend, these movements, and these directions, and, accordingly, the correction will be these, a, movements. Our

[11:04] task as traders, if we are in a normal trend, is to buy on the correction, that is, here, and under no circumstances buy here. That is, our task is to buy during corrections and sell when the price reaches new

[11:19] highs. And, accordingly, on the contrary, if we are in a bearish structure, then we are in a bearish structure, then direction of the trend, [music] this will be a correction. That

[11:33] is, if we are in a bearish trend, then, accordingly, our task is to enter a trade here, that is, sell, and exit the trade here. That is, we are entering right at the beginning of the impulse. And here we come out. And

[11:48] then a correction occurs again. And here again is the impulse. Accordingly, let's now move on to the graph, and I'll show you what this looks like on the graph. And on the chart we see that we are in a bearish

[12:01] trend. We have already determined this. Accordingly, we have levels, a, lower, low, lower highs, and also, if we are talking about a normal trend, this is higher lower, high, and, accordingly, this direction of price movement will be

[12:15] determined as impulse. This direction will be defined as a correction. Accordingly, impulse, correction, impulse, correction. When the market structure changes, in this case it happens here. That is,

[12:29] we are moving in a bullish direction. And in this case, this will already be defined as an impulse. This will be a correction. Accordingly, the task as traders is that we want to sell more expensive and buy cheaper.

[12:43] If we talk about, and, short, if we talk about prolong, then accordingly, buy cheaper and sell more expensive. Likewise. [music] And, accordingly, that is, in our case, here we want to enter, and, and here we want, and, to sell. And in

[12:58] this case, if we want to talk about a normal trend, then, accordingly, our task is to enter precisely on corrections, that is, here, and to sell, accordingly, when we reach our logical level or a

[13:12] reach our logical level or a new hayahai. Something like this. Let's move on. Another important point we'll talk about is Break of Structure [music] Boss. And this is a breakdown of the structure.

[13:24] You will see this on every trader's charts, as they mark Break of Structure or Boss. A break of structure is when the price breaks through and the previous significant high or low, depending on what trend we are in, is bearish or bullish.

[13:40] If we are in a bullish trend, it will look like this: we form a high, then the price rolls back and after that the impulse breaks through the structure. Ah, that is, we see what is happening here, a

[13:54] break in structure. Then we formed but high. accordingly, at this level we have a breakfure again.

[14:06] breakfure again. Let's sign this for clarity.

[14:19] . And we are again, ah, breaking through the structure. This will also be a structure. This will also be a break of structure.

[14:35] look at the bearish one. That is, here everything happens in a similar way, only in the opposite direction. That is, here we have lower low. And when we break through this significant low, that is, here we also have a break

[14:50] of structure, and here this will also be a break of structure. I'll be a break of structure. I'll sign it for you now. There

[15:10] market structure changes completely, we go in the other direction. That is, it will happen as follows. We have higher low, high, high, high, low. We are forming a higher high. And here we have a lower low. That is, here we,

[15:23] uh, break through our previous significant level. And that means there is already potential for the structure to change, and, most likely direction. That is, for this we wait [music] for the next

[15:38] movement. That is, we see that here it does not break through our previous high. Accordingly, here we have a lower high forming. After this we see that the price goes even lower. And after that it breaks through and forms a new lower low.

[15:52] That is, what is happening here is, uh, a breakdown of the structure. That is, in this way, a, we have a break of structure, a breakdown of structure can occur in three cases: when, a, we are in a bullish trend, when we are in a bearish trend and

[16:08] when a change in the market structure occurs . It is Break of Structure will be valid. That is, we, uh, look at the body of the candle. Accordingly, the body of the candle should pass completely and close higher. This

[16:24] way we will know that the Break of Structure will be valid. If in our case the Break of Structure is closed only by, uh, a shadow, yes, I'll show you this later on the chart, only a shadow, and the body of the candle is located here. That

[16:38] is, we broke through the structure only by the shadow, then this is not a Brock of Structure, this is a liquidity SwiP, that is, this is a collection of liquidity. Now I will show you what a Break of Structure or elephant structure looks like on charts. That is, we

[16:51] have determined that we are in a bearish trend, we have a bearish structure, that is, we have lower low, lower high, lower low, lower high, lower low, lower high, lower low. That is, we look and determine where our

[17:05] structure was broken at key levels of the level. That is, here we see that we have an extreme point here, when we have formed a lower low. We also look here and determine and see that on this candle we have a breakdown of the

[17:19] structure. Let me sign this for you. experiencing a rollback. Accordingly, then we go with a new, a, with a strong impulse,

[17:31] and we have a new key lower low level. That is, here we have a lower low level. That is, here we have a lower low mark, and it is broken by this candle. That is, at the level of this candle we have another breakdown of the

[17:44] structure. And now I will sign it. This will also be a break of structure or, well, a breakdown of the structure. From this moment on, we are experiencing a change in the market structure. and the direction changes

[17:58] to the bulls. That is, if we had lower, high, lower, low, it became higher, low. And, as we see, here the previous level of the high was this one, if we don’t take this one into account. Ah, ah, and as we can see, here on this candle

[18:18] structure. In the same way. Next we update the high, and we have a rollback. And, accordingly, our price goes higher. In this case, we have a key goes higher. In this case, we have a key level higherha high, this is the level

[18:32] . And here we also break it with this candle. Here we also have a breakdown of the structure. I showed you what the market structure cm looks like. We've looked at what a structural breakdown looks like during a bearish trend. And here, also

[18:46] on a regular trend, I showed you what it looks like here. That is, this is when the key low or high level is broken , depending on what trend we are in. And now also a super important criterion for determining whether a

[19:00] Break of Structure is valid or not is to look at how the previous level is broken through. And the previous level is completely broken by a candle. The candle closes and the body of the candle closes higher, or it is broken through, and only the shadow

[19:15] remains higher. If we have a breakout of the level, and in such a way that the body of the candle is below, and the shadow is above, then this will not be considered a valid break of structure. It will be simple, ah, liquidity [music] swip, that is, the big

[19:29] guys collected liquidity and that’s it. That is, it will not be a fact that the structure has collapsed. I also recorded a previous video where I liquidity works, how large players, smart money, banks, institutions, and

[19:44] hatch funds knock you out on stops, manipulate you so that they themselves can, well, enter into transactions as profitably as possible. If you're interested, the link will be in the description. And, accordingly, [the music] looks like this

[19:56] . That is, we see that quite a strong manipulation has occurred here, as we can see, right? That is, here are the logical stops, all of this, what was in the stops above, everything has been knocked out. Now let's talk about the main mistake

[20:09] that kills deposits. What I see happens to most newbies. internal structure. So what do we We have momentum upwards, we have a higher high happening. Then we have

[20:22] a correction and we form a high low. And then we have strong upward momentum again. We have a high going on. And the price begins to trade within this range between the previous higher low and higher high. Now what happens

[20:36] next? The price is going down. We have a breakthrough and the previous low is local. Let me note the important word local. [music] So we have a break of structure here. Well, at least that's what most people think. They are now

[20:50] structure has collapsed. And we are heading in a bearish direction. And now we are short position. That is, we put, we, more precisely, we first of all expect a pull, and then we consider the code for a short position. So it will

[21:06] look something like this. That is, we are making this [music] deal. But what happens next? What happens next is that the price simply goes up and

[21:18] breaks new highs. So the problem here is that you're looking at the internal structure. You look at what happened inside, a, this key range. That is, we have not yet broken through the

[21:31] key Low level before you begin to enter into a short position. That is, first of all, wait until the elephant structure of the key level is broken through and only after that, consider entering a trade.

[21:43] Because, as I see it, most traders, after situations like this, simply liquidate and lose money. So what should you pay attention to first? On what range you are trading in,

[21:57] whether the key high or high low levels have been broken. After this, you can only consider entering a trade, because then the price simply went up, happened there again, and the level was updated, there we had a

[22:12] high-high and then we will have a pullback. But in any case, you have already been eliminated. looks like on a graph. And [music] we have key levels lower, low, and lower, high. That is, now we are looking at this range, yes,

[22:27] between this level [music] and this level. That is, ae level. That is, ae was formed, and here a lower low, here it was formed, and low high. And that

[22:40] is, we have further price movement downwards again. But after that, what downwards again. But after that, what happens? find ourselves in this [music] situation. We have an update happening, a

[22:54] local high, and after that a local [music] low, then a

[23:06] break the high again. And so, by this logic, we now expect that we are expecting pulbk. Aa, since we see that we have a bullish trend, since we see that we have a bullish trend, we are now expecting,

[23:20] a, a small correction and we will enter, a, [music] into a long position. But what's going on? And we wait, uh, uh, until the price goes back down, uh, we go,

[23:33] uh, long, we put a stop behind the previous low. Ah, and, well, even if we leave it at one to two, then okay, it will also be clear, ah, visible. So what is our situation? Yes, we reached a level, and then we rolled back, but then what

[23:50] happens? We haven't even reached our level. We just went down. We went down, and what happens is , uh, the formation of a new, uh,

[24:02] lower low, then lower high, and here we have a change in the market structure, because here, here we see that the previous low was not updated, and after that, it is only in this candle that a change in the

[24:15] only in this candle that a change in the market structure occurs. That is, even if we judge it by this price, it will not be relevant in any way. That is, the problem is that most newcomers, most traders in general

[24:27] most newcomers, most traders in general , plan to trade within a local structure. That is, it is always important to look at the higher time frame and draw conclusions from it about what kind of narrative you are in, what trend

[24:40] you are in. Understanding this aspect, understanding how the structure works and how to work with it, will make your life much easier. ah, it will make your life much easier, save money, and in some moments

[24:54] you will trade more effectively. you will trade more effectively. [music] bullish we buy, bearish we sell, sideways we don’t trade. [music] To

[25:09] key levels. Higher highs, higher lows - this is beep. Lower highs, lower lows [music] - this is down. I don’t forget to pay attention to momentum and corrections. enter. Also, a break of structure is a real

[25:25] break through the previous high or low, and the body [music] of the candle closes higher, the shadow does not count. And don't make mistakes with the internal structure. Trade only key levels. Internal is noise. To enter trades, always

[25:40] time frame first, wait for a correction, [music] then determine the zone, get confirmation on the lower time frame and only then enter. This way you will get the maximum [music] possible deals. The structure is just the foundation.

[25:53] Without it, everything else won't work. Learn to read it and you will know where the market will go. Also, if you want to dig deeper, I have a Telegram channel and a Free Trading Community. There I share my setups,

[26:05] conduct live trading and publish specific entry points. I also publish educational and training content and personally answer everyone's questions. The link will be in the description. [music] Come on in. Also, don't forget to subscribe to my

[26:18] YouTube channel and write in the comments what topic I'd like to discuss next. Well, this structure was only the basis. There will be much more interesting things to come. be much more interesting things to come. See you in the next video. M.