Market structure

Example

Say a stock’s swings run high $40, low $36, high $43, low $38: higher highs and higher lows, so the structure is bullish. If the next push reaches $45 but the following dip falls to $35, below the $38 low, the sequence turns mixed. A higher high followed by a lower low fits neither trend, and many traders treat it as a range until a clean sequence returns.

Hypothetical numbers, for illustration only.