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Lesson 3 of 10 ~5 min + checkpoint

Break of Structure

Written and reviewed in-house. No named analyst yetUpdated Jul 17, 2026

The idea in one breath: A break of structure is a close beyond the most recent swing point in the direction of the trend. A wick through that level is price being rejected from it — which is the opposite signal, and mistaking one for the other roughly doubles your signal count while ruining all of them.

Close, not touch

The requirement is a candle closing beyond the level. This single rule does more filtering than anything else in structural analysis, and it is the one most often relaxed — usually by a trader who wants to already be in.

Not all breaks are equal

A break with displacement, on expanding volume, in agreement with the higher timeframe is a different event from a marginal close after four failed attempts. Both are breaks; only one is worth much, and grading is how you tell them apart before the outcome does it for you.

Checkpoint

Grade this break of structure, then pick where the idea is invalid.

Your grade
Where is it invalid?
Next

Put it on a live chart

You have done the checkpoint. The concept is worth more on a symbol you actually care about than on a teaching example — the first read is free and needs no account.

Grade a chart free

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