Market Structure Shifts

What is a Market Structure Shift

A Market Structure Shift (MSS) indicates a change in the prevailing market trend, 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: Higher highs and higher lows occur. An MSS happens when a new lower low forms, suggesting a potential reversal to a downtrend.

• In a Downtrend: Lower lows and lower highs occur. An MSS is identified when a new higher high forms, indicating a possible shift to an uptrend.

Traders use MSS to adjust their positions in anticipation of a new market trend, making it essential for strategies like 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