In the ICT philosophy, this weakening of trend can lead to what’s called a ‘break of structure’. In an uptrend, a break of structure is visualized as a lower low being made, and in downtrends, it’s visualized as a higher high being made. These are the first signs that the trend is changing, but often, they do not represent the best times to take trades b/c they can lead to reversals in which the previous high or low is tested before the new trend officially takes hold.
Now that we know what to look for to spot both the direction of the trend as well as signs that the trend is changing, let’s circle back to that zig zag indicator and learn some quick ways to utilize it to find these key market structure setups.
