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Price action: market structure, support and resistance

Reading raw price without indicators: drawing support and resistance properly, role reversal, real vs false breakouts and three core setups.

What price action is

Price action means trading from price movement and candles themselves rather than indicators. Every indicator is calculated from price, so understanding price action makes you better with indicators too.

Drawing support and resistance

  • Draw zones, not thin lines; use places where price turned sharply at least twice.
  • Start on the higher timeframe (D1, H4) before going lower.
  • Round numbers (2,000, 100,000…) and last week's high/low are often important.
  • Role reversal: broken resistance often becomes support when price comes back to test it.

Three core setups

Break and retestPrice closes through resistance, comes back to touch the zone and bounces: enter, stop below the zone.
Rejection at a zoneA pin bar or engulfing candle at key support/resistance in the direction of the main trend.
False breakoutPrice pokes through a zone and closes back inside: trade the other way, stop beyond the wick.
Watch outPrice can break out and fake out several times around the same zone. Only trade zones you marked beforehand; don't redraw while in a trade.
TipSee the Japanese candlesticks lesson for signal candles and the Dow Theory lesson for swing structure.

Try it on a chart

Educational content only, not investment advice. Practise on a demo account before using real money.