In this article, we’re diving into the ICT (Inner Circle Trader) advanced market structure, focusing on key elements like the Short-Term High (STH), Intermediate Term High (ITH), and Long-Term High (LTH). By understanding these concepts, you’ll be able to read market structure like a seasoned trader, making more informed trading decisions.
What is Market Structure?
Market structure is essentially the foundation of how the market moves at any given time. It tells us the market’s current state, helping traders make sense of price behavior by analyzing the highs and lows of market swings. Understanding market structure allows traders to follow price action more effectively and predict possible future movements.
The market generally moves in three main types of structures:
- Bullish Market Structure: When prices are consistently moving upward, creating higher highs and higher lows. This indicates a strong trend and suggests that buyers are in control.
- Bearish Market Structure: When prices are steadily falling, forming lower highs and lower lows, signaling that sellers are dominating the market.
- Sideways Market Structure: When prices trade within a range, neither going significantly higher nor lower, leading to equal highs and equal lows. This usually suggests indecision or consolidation in the market.
Now, let’s break down the ICT advanced market structure and the role of Short-Term High (STH), Intermediate-Term High (ITH), and Long-Term High (LTH).
Short Term High (STH)
A Short-Term High (STH) is a simple concept, and it’s one of the most common patterns you’ll encounter in your charts. It involves a three candle formation, where the high of the middle candle is higher than the candles on either side of it. This middle candle’s high is what we call the Short-Term High (STH).
Identifying these STHs can help you spot minor trend reversals or temporary price peaks, useful for intraday traders or short-term strategies.

Intermediate-Term High (ITH)
The Intermediate-Term High (ITH) is essentially a more significant Short-Term High. Think of it as a high that stands between two other Short-Term Highs. This high is more reliable because it represents a more substantial price move, and it can signal an upcoming shift in the market’s direction.
Spotting ITHs can help in planning mid-term trades and give you more confidence in your decision-making by recognizing stronger market reversals.

Long-Term High (LTH)
A Long-Term High (LTH) is the largest of the three. It’s formed when an Intermediate-Term High is between two lower Intermediate-Term Highs. This often occurs after a major price reaction at higher timeframes, marking the peak of a larger market move.
In a bullish market, prices typically continue to make higher Long-Term Highs and higher Long-Term Lows. However, if the price breaks below a previous long-term low, it can indicate that the bullish momentum is weakening, signaling a potential shift to a bearish trend.

Practical Application of ICT Market Structure
As a trader, understanding these highs STH, ITH, and LTH allows you to analyze the market on different timeframes with more accuracy. It helps you identify key turning points in the market, understand market cycles, and make informed trade entries or exits based on where the market is likely headed next.
If you’re trading in a bullish market structure, you’ll want to see higher Long-Term Highs and Lows being created. A violation of these lows could mean that the market is shifting, and it may be time to adjust your strategy.
Conclusion
By mastering the ICT market structure and identifying these highs—whether short-term, intermediate, or long-term—you can gain a clearer view of market behavior and make better trading decisions. Remember, the more comfortable you are with reading market structure, the better your ability to respond to the ever-changing conditions of the market.
Frequently Asked Questions (FAQs)
A Short-Term High (STH) is a three-candle formation where the middle candle’s high is higher than the candles on either side. This pattern can indicate a temporary price peak and is useful for identifying minor trend reversals.
An Intermediate-Term High (ITH) is more significant than an STH. It is essentially an STH that stands between two other STHs, indicating a stronger price move. It can suggest a more reliable market reversal compared to an STH.
A Long-Term High (LTH) is the highest point in the market structure, formed by an Intermediate-Term High sitting between two lower ITHs. It typically marks the top of a significant market move and is a key signal for longer-term market shifts.
In a bullish market structure, you will see higher Long-Term Highs and Lows. If the price breaks below a recent long-term low, it could be a sign that bullish momentum is fading, signaling a potential shift toward a bearish trend.
Market structure helps traders identify the current phase of the market, whether it’s bullish, bearish, or sideways. By understanding the structure, traders can better predict price movements, improve their entry and exit strategies, and make more informed trading decisions.