{"id":78,"date":"2025-01-07T17:36:49","date_gmt":"2025-01-07T17:36:49","guid":{"rendered":"https:\/\/www.invest92.com\/blog\/?p=78"},"modified":"2025-01-07T18:03:56","modified_gmt":"2025-01-07T18:03:56","slug":"identify-market-structure","status":"publish","type":"post","link":"https:\/\/www.invest92.com\/blog\/2025\/01\/07\/identify-market-structure\/","title":{"rendered":"Identify Market Structure"},"content":{"rendered":"\n<p>Before doing anything first you need to identify the structure of the market. You need to know whether the trend of the scrip is in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Uptrend<\/li>\n\n\n\n<li>Downtrend<\/li>\n\n\n\n<li>Sideways<\/li>\n<\/ul>\n\n\n\n<p><strong>Uptrend<\/strong><\/p>\n\n\n\n<p>When scrip is making HH (higher highs) and HL (higher lows) and price is increasing then the scrip is in uptrend. <\/p>\n\n\n\n<p>Take for example the image below which is the KSE-100 1W time frame chart. As you can see from the chart the index is in an uptrend. Its continuously making HH and HL on the chart. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"826\" height=\"406\" src=\"https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/uptrend.png\" alt=\"\" class=\"wp-image-79\" srcset=\"https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/uptrend.png 826w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/uptrend-300x147.png 300w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/uptrend-768x377.png 768w\" sizes=\"auto, (max-width: 826px) 100vw, 826px\" \/><\/figure>\n\n\n\n<p><strong>Downtrend<\/strong><\/p>\n\n\n\n<p>When scrip is making LH (lower highs) and LL (lower lows) and price is increasing then the scrip is in downtrend.<\/p>\n\n\n\n<p>Take for example the image below which is the STPL 1W time frame chart. As you can see from the chart the scrip was in a downtrend for 2 years. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"886\" height=\"436\" src=\"https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/downtrend.png\" alt=\"\" class=\"wp-image-82\" srcset=\"https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/downtrend.png 886w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/downtrend-300x148.png 300w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/downtrend-768x378.png 768w\" sizes=\"auto, (max-width: 886px) 100vw, 886px\" \/><\/figure>\n\n\n\n<p><strong>Sideways<\/strong><\/p>\n\n\n\n<p>When a scrip moves in a range of highs and lows and does not break those ranges then we say the scrip is in sideways. <\/p>\n\n\n\n<p>Take for example the image below which is the WTL1W time frame chart. As you can see from the chart the scrip has been in a sideways trend for some time now. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"197\" src=\"https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/sideays-1024x197.png\" alt=\"\" class=\"wp-image-83\" srcset=\"https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/sideays-1024x197.png 1024w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/sideays-300x58.png 300w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/sideays-768x148.png 768w, https:\/\/www.invest92.com\/blog\/wp-content\/uploads\/2025\/01\/sideays.png 1077w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Remember one thing and that is to identify the trend in higher time frame like monthly or weekly time frame. Read more about <a href=\"https:\/\/www.invest92.com\/blog\/2025\/01\/07\/understanding-time-frames\/\" data-type=\"link\" data-id=\"https:\/\/www.invest92.com\/blog\/2025\/01\/07\/understanding-time-frames\/\">time frames here<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before doing anything first you need to identify the structure of the market. You need to know whether the trend of the scrip is in: Uptrend When scrip is making HH (higher highs) and HL (higher lows) and price is increasing then the scrip is in uptrend. Take for example the image below which is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"zakra_page_container_layout":"customizer","zakra_page_sidebar_layout":"customizer","zakra_remove_content_margin":false,"zakra_sidebar":"customizer","zakra_transparent_header":"customizer","zakra_logo":0,"zakra_main_header_style":"default","zakra_menu_item_color":"","zakra_menu_item_hover_color":"","zakra_menu_item_active_color":"","zakra_menu_active_style":"","zakra_page_header":true,"footnotes":""},"categories":[4,7],"tags":[],"class_list":["post-78","post","type-post","status-publish","format-standard","hentry","category-education","category-technical-analysis"],"_links":{"self":[{"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/posts\/78","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/comments?post=78"}],"version-history":[{"count":3,"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/posts\/78\/revisions"}],"predecessor-version":[{"id":87,"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/posts\/78\/revisions\/87"}],"wp:attachment":[{"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/media?parent=78"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/categories?post=78"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest92.com\/blog\/wp-json\/wp\/v2\/tags?post=78"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}