Price Action · 6 min read
Price Action Basics
A foundation for reading structure, context, behaviour, and invalidation without signals.
Educational content only. This article is not personalised financial advice or a trading signal.
Start with context
Price action is the study of how price behaves over time. Begin with market structure, location, volatility, session, and nearby reference areas before looking at an individual candle.
Structure before patterns
A pattern has little meaning without context. Ask whether the market is trending, ranging, expanding, or compressing and where the proposed idea would be invalidated.
Candles describe behaviour
Candle bodies and wicks show movement within a period; they do not guarantee the next one. Use them to describe acceptance, rejection, momentum, or hesitation—not as automatic buy or sell instructions.
Document uncertainty
Write more than one plausible scenario. A disciplined process includes the possibility that no trade is appropriate.
Review the process independently of the outcome.