Market Structure Question: Which One Is the Correct Lower High — #1 or #2?

Hey guys! I have a quick question about market structure.

I’ve been trading for a while now, but there’s one thing that sometimes confuses me, and I’d love to hear your opinions.

As you can see in the screenshot, I’ve marked two different areas, **#1 and #2**.

**Here’s how I personally see the market structure:**

I consider **#2 (the upper circle)** to be the **lower high (LH)** and **#2 (the bottom circle)** to be the **lower low (LL)**, which confirms the bearish market structure in my analysis.

However, I’ve heard some traders argue that **#1 should actually be considered the lower high** because price made a bullish retracement (the blue/green candle in the middle) before continuing downward and creating a new lower low.

So my question is:

**Would you consider #2 or #1 to be the correct lower high in this bearish market structure?**

And when identifying a **Market Structure Shift (MSS)** or **Break of Structure (BOS)**, which swing point would you use?

I’m personally leaning toward #2 because that’s how I’ve been identifying the overall bearish structure, but I’d love to understand how other traders interpret it.

**If you choose #1 or #2, could you please explain your reasoning?** I’m genuinely trying to improve my understanding of market structure.

https://preview.redd.it/uty7wh1d1puh1.png?width=1163&format=png&auto=webp&s=f8327b306911f13daca7ae37ceb67d33499ee478