Lesson 4 — Market Structure I
Learn the first layer of market structure: swing highs, swing lows, breaks of structure, and changes of character.
Save your progress
Log in or create an account to track completed lessons inside your dashboard.
Login to Track ProgressMarket structure is the backbone of Smart Money Concepts. It shows whether price is continuing, weakening, or transitioning. Without structure, liquidity and order block analysis become disconnected.
This lesson teaches students to identify swing highs, swing lows, break of structure, and change of character. A break of structure may suggest continuation. A change of character may suggest a possible transition. But no single signal should be used without context.
Students learn that structure should be read as a sequence. Price builds a story through highs, lows, reactions, displacement, and failures. The trader must decide which structural events are meaningful and which are noise.
The purpose is to teach students to read price behavior instead of reacting to every candle.
1. Mark swing highs and lows on a trending chart.
2. Identify one break of structure.
3. Identify one possible change of character and explain it.
- 1. What is market structure?
- 2. What is a swing high?
- 3. What is a swing low?
- 4. What is break of structure?
- 5. What is change of character?