Higher high / Higher low

Two highs and two lows, read in sequence, and you have your bias. Each peak higher than the last, each trough higher than the last, and order flow is pushing up. Everything the system builds on top of that read, the entries, the stops, the targets, assumes the sequence is still intact. ### Only mark the swings that matter Most swings are noise. Mark every wiggle and the chart stops telling you anything, because you will be able to find an HH/HL sequence pointing in whatever direction you already wanted. Mark only structure significant enough to actually trade from, and when two valid breaks compete, the most recent one wins, because it reflects the freshest order flow. The system also splits those swings in two. **External** structure is the major swing that defines the leg. **Internal** structure is the smaller swings that form inside it. A tidy HH/HL sequence on internal structure does not outrank the external picture. External always beats internal, because more traders watch a major level, so more resting orders cluster there and price reacts off it more reliably. ### What actually counts as the crack The uptrend is intact until a low is genuinely taken out, and *genuinely* has a number attached. A true break of structure means a candle closes with at least 50 percent of its body past the wick of that swing low. A wick that pokes below and closes back inside is a wick test, not a break, and in an uptrend it is very often the sweep that funds the next higher high rather than the end of the move. That rule is the reason the sequence is worth watching at all. It hands you a fixed, unemotional line for when your bias dies. You do not have to guess whether the trend is over. You wait to be shown, and until you are shown, a scary-looking pullback is just a pullback. ### The quiet warning before the crack Structure can be intact and tired at the same time. If price prints a higher high while RSI prints a *lower* high, momentum is not confirming the new extreme. That is bearish divergence: the rally is running on fumes. It does not flip your bias, and it is never a trade on its own. In this system divergence is a confluence criterion, one more box that confirms a setup you already like for structural reasons, and on a setup with no sweep of protected structure it is mandatory rather than optional. One last check before you commit to any HH/HL read: the neighbouring timeframes have to agree. A clean 15M sequence of higher highs sitting underneath a Daily that is printing lower highs is not a bias. It is a pullback inside someone else's trend. *Module 9, Lesson 4: Structure Rules, and Lesson 12: External vs Internal Probability.*