Market StructureIntermediate#SMC#Technical Analysis
Market Structure Break (MSB)
M
Definition
When price breaks the previous valid high/low, signaling a potential shift in the primary market trend.
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Concept Diagram
Key Takeaways
1
An MSB occurs when price breaks a significant swing high or low indicating a potential trend change
2
A bullish MSB is a break above a previous lower high confirming a shift from bearish to bullish structure
3
A bearish MSB is a break below a previous higher low confirming a shift from bullish to bearish structure
4
MSB is the foundational concept of Smart Money Concepts for identifying trend transitions
Practical Example
BTC makes lower highs at $68K, $65K, $62K (bearish structure). Price then breaks above $65K with strong volume — this Market Structure Break signals the bearish trend may be reversing to bullish.
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Related Terms
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Liquidity SweepA sharp price movement used to trigger stop losses before reversing, generating the liquidity needed for large institutional positions.
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Change of Character (CHoCH)The first sign of an internal trend shift on low timeframes, often occurring before a major high-timeframe trend reversal.
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Order Block (OB)The last candle in the opposite direction before a strong directional expansion, marking institutional entry points.
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DisplacementA powerful move in price that shows clear institutional intent, leaving multiple Fair Value Gaps behind.
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