Price structure provides a framework for describing what the market has done. Clear definitions are especially important because many price-action terms vary between traders and methodologies.
05
PRICE ACTION
Market Structure & Price Action
Study trends, swings, breakouts and structural price behavior without assuming that chart labels guarantee future movement.
You should be able to define structural observations objectively, separate standardized concepts from practitioner terminology and avoid turning historical patterns into guarantees.
LEARNING PATH
7 lessons
Study in this order.
01
Beginner
Trends & Ranges
Markets alternate between directional movement and consolidation. Recognizing whether price is trending or ranging can change how indicators, breakouts and mean-reversion ideas are interpreted.
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02
Beginner
Swing Highs & Lows
Swing highs and swing lows identify local turning points in price. Connecting these pivots helps traders describe market structure without relying solely on indicators.
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03
Intermediate
Breakouts & Retests
A breakout occurs when price moves beyond a defined structural area. A retest is a subsequent return toward that area. Neither event guarantees continuation.
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04
Intermediate
BOS & CHoCH
Break of Structure and Change of Character are price-action labels used by some trading methodologies to describe breaks of prior swing structure. Their exact definitions are not standardized across all traders.
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05
Intermediate
Supply & Demand
Supply and demand analysis marks areas where price previously moved away strongly and where traders may watch for renewed reactions. A chart zone does not prove that unfilled institutional orders remain there.
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06
Intermediate
FVG
A Fair Value Gap is a price-action concept used by some traders to identify a three-candle imbalance where part of a strong middle candle's range is not overlapped by the surrounding candles.
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07
Intermediate
Divergence
Divergence occurs when price and another measured series move differently. Traders use it to identify weakening confirmation, but divergence alone does not establish when or whether price will reverse.
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Understand first. Apply second.
Work through the concepts until you can explain what each metric, structure or rule actually measures. Then test how it behaves in different market conditions. No individual concept should be treated as a guarantee of future price movement.
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