Break of structure indicates what about the trend?

Break of structure indicates what about the trend?

• A. The current trend is likely to reverse.
• B. The current trend is likely to continue after surpassing prior levels.
• C. Consolidation will begin immediately.
• D. Volume will always increase.

Answer: (B)

A break of structure happens when price moves past a defined previous level, like surpassing a swing high in an uptrend or a swing low in a downtrend. That move shows momentum has shifted and the market is likely to keep moving in the direction of the break after clearing that level. In an uptrend, breaking above a prior swing high and holding suggests buyers are in control and the trend should continue after surpassing that level. It doesn’t guarantee reversal; sometimes the break leads to a pause or a pullback before continuing. Likewise, a break doesn’t force immediate consolidation, and volume isn’t guaranteed to rise every time. So the best takeaway is that the trend is likely to continue after surpassing prior levels.

A break of structure happens when price moves past a defined previous level, like surpassing a swing high in an uptrend or a swing low in a downtrend. That move shows momentum has shifted and the market is likely to keep moving in the direction of the break after clearing that level. In an uptrend, breaking above a prior swing high and holding suggests buyers are in control and the trend should continue after surpassing that level. It doesn’t guarantee reversal; sometimes the break leads to a pause or a pullback before continuing. Likewise, a break doesn’t force immediate consolidation, and volume isn’t guaranteed to rise every time. So the best takeaway is that the trend is likely to continue after surpassing prior levels.