Is looking at HH HL's or LL LH's a good way to define market structure ?

I look at HH's or LL's as a probe to test if the current value area still hold but without the overall context of what is the fair price of the moment these HH's or LL's on any given timeframe appear to produce unreliable signals. What do you think ? are there any statistics to back this, i mean if a HH is made have we more chance to see another HH or is it just 50/50 ?

context is missing. context is everything.

There is already an extensive thread on price action, I would prefer you use the existing thread and ask your question there:

The Elusive Price Action: How to Trade In a recent survey about webinars, a lot of members expressed interest in learning more about the elusive "price action" that many traders talk about and refer to. It is my intent with this thread to try and document price action from my point …

Mike

trendisyourfriend 

Is looking at HH HL's or LL LH's a good way to define market structure ? ........if a HH is made have we more chance to see another HH or is it just 50/50 ?

As to the first question I quoted, I would say yes.

As to the second, I would say probably 50/50. I've been following nothing but basic trend structure via HH/LLs for most of the time I've been trading. While I think its a good way to frame the market, I think the end your second statement I've quoted is about right.

Big Mike 

There is already an extensive thread on price action, I would prefer you use the existing thread and ask your question there: The Elusive Price Action: How to Trade In a recent survey about webinars, a lot of members expressed interest in learning more about the elusive "price action" that many traders talk about and refer to. It is my intent with this thread to try and document price action from my point … Mike

Mike, i would but i would feel uncomfortable posting anything outside the limit of price action as seen by the anti indicator group.

bojangle 

context is missing. context is everything.

That's a good point as not all HH or LL are equals. But how do you define the context ?

forrestang 

As to the first question I quoted, I would say yes. As to the second, I would say probably 50/50. I've been following nothing but basic trend structure via HH/LLs for most of the time I've been trading. While I think its a good way to frame the market, I think the end your second statement I've quoted is about right.

I would guess many are following this path of tracking HH HL's and LL LH's as they are easily recognizable. This is a pattern that stands out. But if your common sense tells you 50% is probably near reality then the prospect of making at least 2:1 in terms of risk/reward is pretty slim and subject to some variance. Is there a better way to track price without this constraint ?

trendisyourfriend 

Mike, i would but i would feel uncomfortable posting anything outside the limit of price action as seen by the anti indicator group.

I want to avoid split topics. It seems to me your question about HH/HL/LH/LL for market structure is almost identical to the core of the price action thread, and it belongs there.

Mike

trendisyourfriend 

I would guess many are following this path of tracking HH HL's and LL LH's as they are easily recognizable. This is a pattern that stands out. But if your common sense tells you 50% is probably near reality then the prospect of making at least 2:1 in terms of risk/reward is pretty slim and subject to some variance. Is there a better way to track price without this constraint ?

I'm not sure that the RR and the prob of making a new LL/HH are related?