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u/JosephGebru 1 day ago Charts and Setups

Market Structure Question: Which One Is the Correct Lower High — #1 or #2?

Hey guys! I have a quick question about market structure. I’ve been trading for a while now, but there’s one thing that sometimes confuses me, and I’d love to hear your opinions. As you can see in the screenshot, I’ve marked two different areas, **#1 and #2**. **Here’s how I personally see the market structure:** I consider **#2 (the upper circle)** to be the **lower high (LH)** and **#2 (the bottom circle)** to be the **lower low (LL)**, which confirms the bearish market structure in my analysis. However, I’ve heard some traders argue that **#1 should actually be considered the lower high** because price made a bullish retracement (the blue/green candle in the middle) before continuing downward and creating a new lower low. So my question is: **Would you consider #2 or #1 to be the correct lower high in this bearish market structure?** And when identifying a **Market Structure Shift (MSS)** or **Break of Structure (BOS)**, which swing point would you use? I’m personally leaning toward #2 because that’s how I’ve been identifying the overall bearish structure, but I’d love to understand how other traders interpret it. **If you choose #1 or #2, could you please explain your reasoning?** I’m genuinely trying to improve my understanding of market structure. https://preview.redd.it/5ec7d6rl1puh1.png… **Market Structure Question: Which One Is the Correct Lower High — #1 or #2?**
15 comments held Reddit says 0 on reddit ↗
  1. u/rforex-modtools moderator pinned 1 1 day ago
    Price action and technical analysis cover a range of chart-based tools — from candlestick patterns and market structure to indicators and statistical methods for timing entries and exits. The community wiki covers both approaches and how they're used by working traders. Resources: **Price Action Analysis** | **Technical Analysis**
  2. u/Scott_Malkinsons 1 1 day ago
    There is no correct one. Welcome to trading, where it's basically all however you interpret it.
  3. u/JosephGebru OP 1 1 day ago
    thanks
  4. u/Complex-Concern-767 1 1 day ago
    Cop out of a answer bro 
  5. u/Emergency-Falcon-915 1 1 day ago
    On the time frame you are looking at top #2 is a lower high and the bottom number is the lower low. However this screenshot alone doesn’t prove it’s a bearish MarketX all it means is this timeframe currently correcting, and the price action after the lower lo confirms that
  6. u/JosephGebru OP 1 1 day ago
    Thanks for explaining! So you’re saying that even though #2 is the lower high and lower low on the 4H timeframe, it doesn’t necessarily confirm a bearish market structure shift because it could just be a correction in the overall trend? Just wanted to make sure I understood correctly
  7. u/Emergency-Falcon-915 1 1 day ago
    It’s a correction on this timeframe and its bearish structure on a lower timeframe. Ie on the h1 or 5 min
  8. u/JosephGebru OP 1 1 day ago
    Thanks, that makes sense! Just to clarify, if the daily and weekly are also bearish, wouldn’t the lower high and lower low I’ve marked on the 4H still count as bearish external structure? Or would you consider that only internal structure?
  9. u/Emergency-Falcon-915 1 1 day ago
    Bro tbh, idgaf about what an “internal structure is” . All I’m going to say is , every timeframe has its own structure
  10. u/Complex-Concern-767 1 1 day ago
    Really good question. Bump up the time frame and tell me which zones are still there. I mainly would use just the external zones you've circled, but I always bump up the timeframe to see what zone is there and would go off that, so its not always a straight answer. Need to be adaptive with your approach. Even looking at market structure I'd be looking for a reversal 
  11. u/JosephGebru OP 1 1 day ago
    Thanks for the explanation! I actually always check the daily and weekly timeframes, and both look bearish to me. The screenshot I shared is from the 4-hour timeframe, and the pair is NZD/CAD if you’d like to take a look. Based on that, would you still consider #2 the main external structure? I’d love to hear your thoughts!
  12. u/Complex-Concern-767 1 1 day ago
    I'll jump on the charts and have a look for you 
  13. u/Michael-3740 1 1 day ago
    On this chart 1 is just a small pullback. It doesn't form a high at all. The simplest way to decide is to look at the market swings around it.
  14. u/[deleted] 1 1 day ago

    [removed] — already gone when the archive first saw it

  15. u/madeymadey 1 1 day ago
    May i ask you how knowing which one is the lower high will help you in trading?