M1 · L2Market Structure
Highs and Lows — The Only Thing That Matters
If price keeps making higher highs and higher lows, it's going up. That's the entire trend.
What This Means
Every trend is defined by its swing highs and swing lows. An uptrend makes a higher high (HH) then pulls back to a higher low (HL) before pushing up again. A downtrend makes lower lows (LL) and lower highs (LH). When this pattern breaks, the trend is breaking.
Visual
The Rule
HH + HL = uptrend. LH + LL = downtrend.
Mark every swing high and swing low on your chart before making any decision.
COPY THIS
Tick each step as you complete it1
Open XAUUSD 1-hour chart
2
Find the last 10 swing points (peaks and valleys)
3
Label each one: HH, HL, LH, or LL
4
Ask: is the sequence going up (HH/HL) or down (LH/LL)?
That is your current trend
5
Draw a line connecting the higher lows
This is your uptrend structure — price should respect this line
0/5
Common Mistake
Don't use moving averages to determine trend. Use structure. Price creates highs and lows — those are facts. Indicators are opinions.
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