Lesson 5: Trend Structure
📺 What is Trend Structure? Welcome to Candlestick Confessions!
The studio lights dim. The audience hushes. Tonight's burning question: "How do you REALLY know if the market is going up or down?"
The Panel: Three candlestick personalities are ready to confess their secrets about trend structure.
Watch the dramatic confession unfold as The Grumpy Red Bear, The Indecisive Doji, and The Dramatic Green Bull reveal the truth about market trends!
Trend Structure = The pattern of peaks and valleys
Think of it like climbing stairs (uptrend) vs. walking downstairs (downtrend)
🎬 How Trend Structure Works: The Bull vs Bear Battle
The Overseer: "Let's cut to the chase. Two patterns dominate the market - which one controls your chart?"
🐂 The Bull's Pattern: Higher Highs + Higher Lows (HH/HL)
The Dramatic Green Bull takes the stage: "Darling, when I'm in charge, everything CLIMBS!"
🐻 The Bear's Pattern: Lower Highs + Lower Lows (LH/LL)
The Grumpy Red Bear grumbles: "And when I run the show, everything FALLS!"
Each valley HIGHER than the last
Peak 1: $45 → Peak 2: $48 → Peak 3: $52 ✅
Valley 1: $40 → Valley 2: $43 → Valley 3: $47 ✅
"Like climbing stairs to victory!" - The Bull
Each valley LOWER than the last
Peak 1: $55 → Peak 2: $52 → Peak 3: $48 ✅
Valley 1: $50 → Valley 2: $47 → Valley 3: $43 ✅
"Walking down the stairs of despair!" - The Bear
🕯️ The Doji Reveals: "Here's the secret - watch for POWER SHIFTS when one pattern breaks..."
🔴 Bull Losing Power
The Warning Sign: Price makes a Lower Low
The Doji whispers: "The Bull's reign might be ending..."
What You Do: Consider taking profits, the Bear might take over
"When I see a Lower Low after Higher Highs, I know drama's coming!" - The Doji
🟢 Bear Losing Grip
The Warning Sign: Price makes a Higher High
The Doji reveals: "The Bear's control is slipping..."
What You Do: Look for buying opportunities, Bull might return
"A Higher High during Lower Lows? The Bear is nervous!" - The Doji
⚪ The Standoff (My Specialty!)
The Signal: Similar Highs and Similar Lows
The Doji admits: "This is literally me - total indecision!"
What You Do: Wait for the breakout, someone will win eventually
"When neither Bull nor Bear is winning, I'm in my element!" - The Doji
📊 See It Live
The Overseer: "Enough talk. Let's see these patterns on a real chart..."
January: High $150, Low $145
February: High $155, Low $148
March: High $160, Low $152
The Overseer's Analysis:
- Highs: $150 → $155 → $160 (Higher Highs ✅)
- Lows: $145 → $148 → $152 (Higher Lows ✅)
- Verdict: "The Bull is in total control - classic uptrend!"
The Plot Twist - April Arrives:
The Dramatic Green Bull's face drops: "Wait... what?!"
- April shows: High $158, Low $149
- The Alert: Lower High ($158 vs $160) - uptrend cracking!
The Overseer nods knowingly: "And there it is, folks. The first sign of weakness. The Bear is making his move..."
Integration Wisdom: "Trend structure is like watching a power struggle. Combine it with your EMA crossovers and MACD signals to know who's REALLY winning the battle."
🎬 The Show's Golden Rules (Never Forget These!)
The Overseer stands for the closing segment, the panel nods in agreement:
1. "The trend is your friend - until it's not"
Trade with the Bull or Bear in charge, not against them
2. "Trends continue until they confess otherwise"
Don't predict the end - wait for the Lower Low or Higher High to prove the shift
3. "When the trend breaks, the game changes"
First sign of reversal? Adjust your strategy immediately
The Dramatic Green Bull whispers to camera: "Remember darlings - I ALWAYS leave clues before I exit the stage..."
The Grumpy Red Bear adds: "And I ALWAYS signal before I crash the party..."
🎉 That's a Wrap! Studio Lights Fade...
🚀 Become a Trend Detective
✓ Spot Higher Highs & Higher Lows automatically
✓ Get alerts when trends start breaking down
✓ See the Bull vs Bear battle in real-time
Want to rewatch the confessions? Explore our MACD momentum lesson or check the support section for help.