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Reading Price and Trends

Candlesticks, structure and why the trend matters.

Reading Price and Trends illustration

A candlestick shows the open, high, low and close for a period. The body is the open-to-close range; the wicks show the extremes. Colour conventions differ by platform, so check yours.

Price action is the study of movement and structure without relying only on indicators. Support is where buyers have stepped in repeatedly; resistance is where sellers have.

Trend is the dominant direction: higher highs and higher lows (up), or lower highs and lower lows (down). Many evaluation rules reward trading with the trend and penalise fighting it.

A clean chart on a single time frame you understand beats a cluttered chart stacked with indicators.

Never enter a trade without first stating where you are wrong (your stop). Price action gives you the structure to place that stop meaningfully rather than at a random distance.

Takeaways

  • A candlestick shows open, high, low and close; wicks show rejection.
  • Support and resistance are zones where price repeatedly reacts.
  • Trade with the trend: higher highs/lows up, lower highs/lows down.

Self-check

Where should a stop loss usually be placed?

Beyond the meaningful support/resistance level, not on it, so normal noise doesn't stop you out.

Trading involves risk. Educational only, not advice. Mark it complete to bank progress.

Your process. Capital behind it.

90% of the profit stays yours, capital to $200K, rules published before checkout.

Commission may be earned on this link. Scores exclude it.