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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?**