3 Types of Structure

Types of Market Structure in Structure Lab

Structure Lab organizes market structure into three distinct types, each tailored to provide a deeper understanding of market behavior. Here’s how they work:

1. Swing Structure

• Definition: Represents the largest and most significant price movements.

• Purpose:

  • Establishes major market trends.

  • Serves as the primary driver of directional bias.

2. Internal Structure

• Definition: Medium-sized price movements within swing structure.

• Purpose:

  • Maps the transitional behavior of price between swings.

  • Identifies and confirms swing pullback opportunities.

3. Fractal Structure

• Definition: The smallest observable price movements in the market.

• Purpose:

  • Acts as an early warning system for trend changes.

  • Provides insights into immediate market behavior and momentum.

Summary

Each type of market structure—swing, internal, and fractal—plays a unique role in market analysis, giving traders a multi-layered approach to navigating price action with Structure Lab. By understanding these layers, traders can align their strategies with broader trends, transitional movements, and short-term shifts.

https://s3.tradingview.com/snapshots/b/bSKxZ1wp.png