Structure points (HH, HL, LH, LL)

HH, HL, LH, LL are the four types of pivot points that make up market structure: HH (Higher High), HL (Higher Low), LH (Lower High), LL (Lower Low). Their alternation is how the direction and health of a trend are read.

A sequence of HH and HL describes an uptrend: the market rises and holds its lows, with the initiative on the buy side. A sequence of LH and LL describes a downtrend: the market falls and fails to make new highs, with the initiative on the sell side. Breaking this sequence is the basis for a BOS (continuation) or a CHoCH (possible reversal).

Importantly, not every local extreme is a true structural pivot. Some act as inducement (IDM) and serve manipulation, so pivots are read together with liquidity context. The Trade Model indicator marks the significant structural extremes automatically, separating them from market noise.