Trend Identification and Market Structure

These flashcards cover key vocabulary and concepts related to trend identification and market structure.

Bearish Trend

A market condition where prices are falling or expected to fall.

Bullish Trend

A market condition where prices are rising or expected to rise.

BOSS (Break of Structure)

Occurs when the market breaks the previous recent low in a bearish market.

CHOG (Change of Character)

The first move of the trend reversal; when the market breaks previous low and high.

Change of Characteristics

A sign that the market is reversing from bullish to bearish or vice versa.

Lower High

A price point that is lower than a previous high, indicating a downtrend.

Confirmed Low

A low that has been validated by the market breaking a previous high.

Lower Low

A price point that is lower than a previous low, confirming a bearish trend.

Trend Continuation

A situation where the market continues to move in the same direction after a breakout.

Swing High

A high point where the price moves down after reaching that peak.

Swing Low

A low point where the price moves up after reaching that trough.

Minor Pullback

A small price correction against the prevailing trend.

Break Off Structure

A significant price movement that breaks previous support or resistance levels.

Internal Structure

Minor price movements that form between significant highs and lows without confirming a new trend.

Liquidity Sweep

A price movement that briefly moves through a previous high or low without a significant close, often to trigger stop-loss orders.

Higher High

A price point that is higher than the previous high, indicating a potential bullish trend.