Market Structure Shifts

What is a Market Structure Shift

A Market Structure Shift (MSS) is an important concept in technical analysis indicating a change in the prevailing trend of a market. It is characterized by a transformation in the series of price highs and lows.

How to Identify a Market Structure Shift

To identify an MSS, you need to observe the sequence of highs and lows:

• In an Uptrend: The price makes higher highs and higher lows. An MSS occurs when a new lower low is formed, signifying a potential trend reversal to a downtrend.

• In a Downtrend: The price makes lower lows and lower highs. An MSS is identified when a new higher high is made, indicating a possible shift to an uptrend.

Traders use the concept of MSS to adjust their positions in anticipation of a new market trend, making it an essential component for strategies such as those used in Sniper Entry Pro.

Example of a Market Structure Shift:

Note that there are a few Market Structure Shifts in the example above and we are highlighting just one for emphasis