Market Structure

Headshot of Trent Klarenbach, founder of Klarenbach Research
Trent Klarenbach
April 11, 2024
Business newspaper
April 11, 2024
“Buy Low; Sell High”

I was delivering grain to the Marengo UGG elevator. It was there that I met King Richard, Kevin and Murray.  

King Richard was the manager who always wore a smile on his face with a unique way of putting one on yours. 

Kevin was the assistant with an English gentleman vibe about him. 

Murray would be sitting in the office. Coffee cup in hand. Smile on his face. Offering up tidbits of wisdom. 

That day was no exception.

“What do you know today? I asked

“Buy Low; Sell High” was the reply.

That seems easy to do.

I soon learned that a seemingly simple task is extraordinarily difficult.

The most effective method is to follow the trend by identifying and understanding the four stages of market structure.

You see, the market structure has four stages:

Stage 1: Accumulation

Stage 2: Markup

Stage 3: Distribution

Stage 4: Decline

You can find this market structure in all asset classes and timeframes.

Stocks like General Electric and Apple, currencies like CAD and BTC, and commodities like red lentils and wheat demonstrate this market structure.

This market structure is found on all timeframes from the 1-minute to monthly charts.

The optimum buying time is on the breakout from the Accumulation to the Markup Phase.

The optimum time to sell is on the breakdown from the Distribution to the Decline Phase.

Do you grow wheat or Canola?

Are you a lentil or canary seed grower?

Take a look at your charts.

Can you identify the phase of the market structure?

Four phases of market structure