Market Structure: Read Price Before You Automate
Market structure is the map behind every trading rule. Before an EA or Python bot can decide whether to enter, it needs an explicit definition of context: direction, range boundaries, important extremes and the location of price relative to them.
What market structure means
A chart is not a collection of isolated candles. Price forms swings, extremes, consolidations and directional legs. For software, these observations must become measurable states rather than visual impressions.
Start with buyers and sellers
Support and resistance are useful because they describe where buying or selling pressure previously became visible. The engineering task is not to predict a level with certainty, but to identify where the balance of probability may change.
Convert observation into rules
Define the swing window, minimum displacement, level tolerance and invalidation condition. If two developers cannot implement the same rule from your specification, the rule is still too subjective.
Implementation checklist
Automation principle: every visual concept should have explicit inputs, thresholds, states and an invalidation rule before it becomes trading code.
Educational content for software design and trading-system research. Not investment advice. No profit is guaranteed.