Trend Lines and Market Structure

• An uptrend typically shows a series of higher highs and higher lows
• A downtrend typically shows a series of lower highs and lower lows
• A break in that pattern, such as a lower high forming in what was an uptrend, is often watched as an early signal that the trend may be weakening

Trend lines and structure are descriptive tools, summarizing what price has already done. They can help build context for a bigger picture view, but like any chart-based tool they can be broken or invalidated as new price action develops, so they are best used alongside other confirmation rather than on their own.