Market Structure 101: HH, HL, LH and LL

Before indicators, there is market structure — the simple language the chart uses to tell you who is in control.

The four building blocks

Price moves in waves, leaving swing highs and swing lows. Reading their sequence is market structure.

• Higher High (HH): a peak above the previous peak.
• Higher Low (HL): a dip above the previous dip.
• Lower High (LH): a peak below the previous peak.
• Lower Low (LL): a dip below the previous dip.

Reading the trend

HH + HL means buyers are in control — an uptrend. LH + LL means sellers control — a downtrend. Flat, overlapping swings mean a range.

Why it matters

Most mistakes come from fighting structure — buying a downtrend or shorting an uptrend. Label the swings and you naturally trade with the dominant side.

Spotting a change of trend

In an uptrend of HH and HL, the first lower low that fails to make a new high warns that buyers may be losing control. These structure breaks are some of the cleanest signals price action offers.

Putting it together

• Mark recent swing highs and lows.
• Label each HH, HL, LH or LL.
• Read the sequence: uptrend, downtrend or range.
• Combine with support and resistance.

Market structure is the first thing we teach in the Price Action course.