What is Market Structure ?

 

Market Structure in ICT

Market Structure is one of the most important concepts in ICT trading. It means studying how price creates highs and lows to understand the current direction of the market and identify possible changes in that direction.

1. Higher High (HH)

A Higher High occurs when price moves above the previous significant high.

Example:

HH → HL → HH

This generally shows that buyers are pushing price higher.

2. Higher Low (HL)

A Higher Low occurs when price pulls back but stays above the previous low.

A sequence of Higher Highs and Higher Lows is commonly considered a bullish market structure.

3. Lower Low (LL)

A Lower Low occurs when price falls below the previous significant low.

Example:

LL → LH → LL

This generally shows that sellers are pushing price lower.

4. Lower High (LH)

A Lower High occurs when price makes a new high but fails to reach the previous high.

A sequence of Lower Lows and Lower Highs is commonly considered a bearish market structure.

5. Break of Structure (BOS)

BOS (Break of Structure) happens when price breaks an important previous high or low.

For example, in a bullish structure:

HH → HL → price breaks previous HH → BOS

Traders commonly use BOS as evidence that the existing market direction may be continuing.

6. Market Structure Shift (MSS)

MSS (Market Structure Shift) is used in ICT-style analysis to describe a potential change in short-term market direction.

For example, if price has been making HHs and HLs, but then strongly breaks an important low, traders may interpret this as a possible shift toward bearish structure.

Simple Summary

Structure	Meaning
HH	Higher High
HL	Higher Low
LH	Lower High
LL	Lower Low
BOS	Break of Structure
MSS	Market Structure Shift