L2.2 — Internal Structure: Swing Points Within a Trend Leg

Internal structure consists of the minor swing points that form within a larger trending move. In a bullish external leg from point A to point B, price does not move in a straight line — it makes a series of smaller higher highs and higher lows on the way up. These minor swings are internal structure. They live inside the trend leg and are only relevant within the context of that leg.

Internal structure matters for two reasons. First, it helps identify pullbacks within a trend — the retracement is complete when internal structure holds and resumes the direction of external structure. Second, it provides early warning signs: if internal structure begins printing lower highs within an external bullish leg, momentum is weakening before the external swing point is broken.

The distinction between internal and external is relative to timeframe. What is external structure on the M15 is likely internal structure on the H4. This is why reading structure top-down prevents the confusion of treating every minor swing as a significant level.