In price action and ICT methodology, traders often struggle to differentiate between MSS (Market Structure Shift) and SMS (Structure Market Shift). These two concepts are essential for correctly confirming when the market is preparing to reverse โ and when it has fully reversed.
This guide breaks down the difference between MSS and SMS, and shows how to combine them for reliable trend-shift confirmation.
What Is MSS (Market Structure Shift)?
MSS is an early warning signal that the market may be preparing to reverse.
It happens when price breaks a minor or internal structural point with displacement.
Characteristics of MSS
- Breaks internal structure (minor HL/LH)
- Comes with displacement in the opposite direction
- Happens after liquidity is taken
- Shows a shift in momentum, not in trend
- Tells you to prepare, not execute aggressively
Purpose of MSS
MSS tells you:
โMomentum changed โ but the trend is not yet broken.โ
It is the first sign of a potential reversal.
What Is SMS (Structure Market Shift)?
SMS is the confirmation of a true trend reversal.
It occurs when price breaks a major swing point (major HL or LH), proving that the previous trend has failed.
Characteristics of SMS
- Breaks major market structure (HL or LH)
- Confirms a trend reversal
- Happens after an MSS
- Shows institutional willingness to reprice in the new direction
- Allows high-confidence entries
Purpose of SMS
SMS tells you:
โTrend is officially broken. A new trend is starting.โ
This is the confirmation you need before committing to a swing continuation.
MSS vs SMS: Key Differences
| Term | Level of Structure | Meaning | Usage |
|---|---|---|---|
| MSS | Minor / Internal structure | Early momentum shift | Prepare for reversal |
| SMS | Major structure | Confirmed trend reversal | Enter trend continuation setups |
How MSS and SMS Work Together for Trend Reversal
Below is the step-by-step confirmation model used in ICT price action:
1. Identify the Existing Trend
Example:
Uptrend โ series of HH (Higher Highs) and HL (Higher Lows)
Downtrend โ series of LL and LH
2. Liquidity Grab
A reversal usually starts with liquidity taken from:
- Buy-side liquidity (BSL) above HH
- Sell-side liquidity (SSL) below LL
- Premium or discount imbalance
- Mitigation ends of larger timeframes
This liquidation phase prepares for MSS.
3. MSS: Early Indication
After the liquidity grab:
- Price displaces in the opposite direction
- Breaks an internal HL or LH
- Creates an MSS
This signals: โmomentum is switching.โ
But the trend is still intact at this stage.
4. Retracement Into a Premium/Discount Zone
Price then retraces to:
- An order block (OB)
- Fair Value Gap (FVG)
- Breaker block
- Mitigation zone
- Premium (for sells) / Discount (for buys)
This is where you anticipate the real confirmation.
5. SMS: Confirmed Trend Reversal
Price continues and breaks the major HL/LH, which confirms:
โ Trend reversal
โ New directional intent
โ Swing structure shift
โ Institutional order flow change
Once SMS forms, it’s safe to follow the new trend.
Example: Bullish to Bearish Reversal
- Market is in an uptrend (HH, HL, HH, HL)
- Price grabs buy-side liquidity above a previous HH
- Strong bearish displacement breaks a minor HL โ MSS
- Price retraces into a premium OB/FVG
- Price breaks the major HL โ SMS (trend is now bearish)
- Trend continuation sells become high probability setups
How to Use MSS and SMS in Your Trading
Using MSS
- Do not enter blindly
- Use MSS to anticipate the reversal
- Wait for price to retrace into a quality POI
- Prepare for confirmation
Using SMS
- SMS is your execution confirmation
- Once SMS prints:
- Look for OB/FVG retests
- Enter in the direction of the new trend
- Target external liquidity
This combination helps you avoid premature entries and follow institutional order flow.
Clean Rules for Trend Shift Confirmation
For a Bearish Trend Reversal (Sell Setup)
- Liquidity grab above a HH
- MSS = break of minor HL
- Retrace to premium
- SMS = break of major HL
- Enter on mitigation (OB, FVG, breaker)
- Target sell-side liquidity
For a Bullish Trend Reversal (Buy Setup)
- Liquidity grab below a LL
- MSS = break of minor LH
- Retrace to discount
- SMS = break of major LH
- Enter on mitigation
- Target buy-side liquidity
Conclusion
Understanding the difference between MSS and SMS is essential for timing reversals with precision.
- MSS gives you the early signal
- SMS gives you the confirmation
Together, they form one of the most reliable structures for identifying new trends using ICT methodology.
