What Is a Market Structure Shift (MSS)?
A Market Structure Shift is a concept used to identify a potential change in directional price behaviour.
For example:
- Price has been making lower highs and lower lows.
- It takes out an important swing high.
- The previous bearish structure may be weakening.
Some traders then look for additional confirmation before considering a bullish opportunity.
The importance of the broken swing matters. A minor internal break may not change the larger trend.
Remember: A structure shift suggests a possible change, not a guaranteed reversal.
Do you distinguish internal structure from external structure?