Name: Market Structure
Author: Dean Cross

Price Action Trading with Break of Structure, Change of Character and Trend Reversals — Read the Trend, Place the Stop, Protect Your Money

Stopped out, then watched the stock go on without you?

Structure will not tell you where price is going. It will tell you where you are, where your stop belongs and how much to buy.

You read the trend right. You bought the breakout. You put your stop where the books said to put it. Then a normal dip took you out, and the stock went on to do what you expected, without you. It is the most common loss in trading, and it is not a problem with your read. It is a problem with where the stop went.

Market structure is the oldest way to read a price chart: higher highs and higher lows, the break of structure that says a trend is going on, the change of character that says it is over. Every course teaches it. Almost no one checks it. This book wrote thirteen of those teachings down as exact rules and counted what price did next on 3,399 American stocks across more than nine million trading days since 2002, including more than 1,600 companies that failed or disappeared.

Part I teaches market structure the way it is taught everywhere, clearly and fairly: swing highs and lows, trends, breaks of structure, changes of character, pullbacks, sweeps, and ranges. Part II counts what price did, one teaching at a time, and ends every chapter on something to use or something to stop doing. Part III turns the findings into six rules and a seven-step routine you can run on any chart in a few minutes.

No indicators, no jargon, and no promises about where price is going.

What this book will help you do

Stop being shaken out of good trades. After 34,895 breakouts, a stop one ordinary day's range below the entry was hit about three times in four within a month; a stop three ranges away was hit less than one time in three
Size every trade to its stop, so a wider stop doesn't have to mean a bigger loss
Name the trend on any chart: up, down, range, or no trend yet, and what to do on the days the rules and your eye disagree
Plan for a short trend: half of all trends were over within 32 sessions
Step aside when a trend breaks rather than turning around and shorting it, the worst trade in the book
Measure a target before you trust it: distance decided how often a level was reached, not the name of the pattern

Three parts, 43 charts and diagrams, and every count printed in the back so you can check it yourself.