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Market structure describes a trend using only its sequence of swing points: an uptrend is a series of higher highs and higher lows, and a downtrend is a series of lower highs and lower lows. As long as that pattern holds, the trend is considered intact.
A "break of structure" happens when that pattern fails — for example, an uptrend printing a lower low for the first time — and is often treated as the earliest objective sign that the prevailing trend may be changing.
Order flow builds on this by looking at how price moves between those structural points — whether moves are sharp and one-directional, suggesting strong participation, or slow and choppy, suggesting hesitation or balance between buyers and sellers.
Real-World Example
A trader tracking market structure on gold notices price has been forming a clean series of higher highs and higher lows for weeks, confirming the uptrend at each new structural point. Then, for the first time, price breaks below the most recent higher low without making a new high first, a structural shift, the trader treats this as the first real evidence the uptrend's order flow has changed hands from buyers to sellers, well before any lagging indicator would have caught the same signal.
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