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A SCREENSHOT WORTH READING ILLUSTRATION
EXAMPLE · 1H · LINEAR SCALE 110 105 100 MON TUE WED CONTEXT / LEVELS / SCENARIOS Start with what you can see.
The reading list 18 practical guides / From chart to setup
Candlestick patterns 4 guides LONG-LEGGED DOJI AT THE TOP OF A RUN · DAILY ILLUSTRATION
stop 110.3 110.3 entry 106.8 106.8 target 100.5 100.5 1 2 3 92 108 1 Day 7 doji: O 108.2, C 108.3 H 110.1, L 106.9 (long-legged) 2 Day 8 closes 106.5, below the low 3 Day 4 low 100.5: prior swing low Short 106.8, stop 110.3, risk 3.5 Target 100.5, reward 6.3, 1.8R day 1 day 4 day 6 doji day 8 FOUR DOJI SHAPES Standard Long-legged Dragonfly Gravestone open and close within a few ticks 01 / Candlestick patterns A doji says the session ended where it began. Whether that is a turn or a pause depends on the run before it and the candle after it.
Read the guide Hammer and hanging man: one candle, two locations ILLUSTRATION
A. Decline from 58 to 50, then the candle: hammer 56.1 50.7 48.0 target 56.1 = 50.7 + 5.4 entry 50.7 risk 2.7 · reward 5.4 · 2R O 50.4 · H 50.6 · L 48.2 · C 50.5 stop 48.0, below the 48.2 low 1 2 51.8 B. Rise from 42 to 50, then the candle: hanging man body low 50.4 50.4 3 4 O 50.4 · H 50.6 · L 48.2 · C 50.5 next close 49.3, under the body 02 / Candlestick patterns A small body and a long lower wick. After a slide it is a hammer; after a rally it is a hanging man. The next close decides which reading survives.
Read the guide BODY OR WICK, AND WHERE IT PRINTS ILLUSTRATION
71.0 69.4 72.0 69.1 72.3 70.8 69.6 68.8 1 BODY ENGULFING 2 WICK ENGULFING support ≈ 69 target 80.0 80.0 entry 72.4 72.4 68.6 stop 68.6 1 2 3 3 WORKED EXAMPLE AT SUPPORT, DAILY 03 / Candlestick patterns The second candle covers the first. Check whether it covered the body or only the wicks, then check where on the chart it printed before you plan a trade.
Read the guide PIN BAR RULES ON A 4-HOUR CHART ILLUSTRATION
Worked example, 4-hour candles support 30.4 31.3 top third 30.7 entry 31.95 stop 30.05 high 31.9 body 31.55 to 31.7 wick 1.45 = 81% of 1.8 low 30.1 target 35.75, above this view 3.8 above entry: 2R against 1.9 risk Five candles, same three rules 32.0 resistance 30.4 support 85% valid A 86% valid B 79% valid C 59% invalid D 83% invalid E 04 / Candlestick patterns A long wick catches the eye. Three measurements and one level decide whether it is a rejection worth planning around or a candle to ignore.
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Chart patterns 4 guides BULL FLAG / BEAR FLAG ILLUSTRATION
BULL FLAG PAUSE AFTER THE POLE BEAR FLAG PAUSE AFTER THE POLE 01 / Chart patterns Start with the move before the flag. Then check the pause, the break and whether the target still leaves room.
Read the guide DOUBLE TOP / DOUBLE BOTTOM ILLUSTRATION
DOUBLE TOP NECKLINE DOUBLE BOTTOM NECKLINE 02 / Chart patterns Two peaks or two lows catch the eye. The price between them decides whether the reversal has actually developed.
Read the guide Head and shoulders top, daily bars ILLUSTRATION
Neckline 140 140 Measured target 124 124 Stop A 149.5 149.5 Stop B 142.5 142.5 Left shoulder 148 Head 156 Right shoulder 149 Close 139.2 16 16 03 / Chart patterns Three peaks catch the eye. The neckline under them decides whether the reversal exists, how far it projects and where it is wrong.
Read the guide THREE TRIANGLES / ONE MEASURING RULE ILLUSTRATION
1 ASCENDING flat top 200 target 212 188 192 195 197 height 200 − 188 = 12, target 212 2 DESCENDING 100 flat floor target 88 112 108 105 103 height 112 − 100 = 12, target 88 3 SYMMETRICAL +10 −10 60 58 56.5 50 52 53.5 height 60 − 50 = 10, target ±10 04 / Chart patterns One flat edge names the shape, the sloping edge supplies the bias, and the height at the widest point sets the target. The same rule covers all three.
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Price action 4 guides BREAK / RETURN / RESPONSE ILLUSTRATION
BREAKOUT RETEST FAILED RETEST PRIOR RESISTANCE ZONE 01 / Price action A break gets your attention. The return to the level shows what held, what failed and how the available price changes the trade.
Read the guide EURUSD 1H / BULLISH ORDER BLOCK ILLUSTRATION
target, 100 pips 1.0950 swing high 1.0890 1.0820 1 2 3 1.0920 entry 1.0850 order block 1.0830 to 1.0850 stop 1.0820, invalid on a close below possible path 1 last opposite candle 2 displacement 3 close above the swing high 02 / Price action The last candle against a strong move gets a name and a zone. Three conditions decide whether it earns one, and a single close decides when it stops.
Read the guide BOS THEN CHOCH / ONE SEQUENCE OF 4H CLOSES ILLUSTRATION
reference high 104 reference low 98 108 95 1 HL 95 2 HH 104 3 HL 98 4 BOS · close 105 above 104 5 HH 108 101 6 failed high 106 7 CHoCH · close 97 below 98 8 LH 103 9 LL 94 4H · every label is a close, not a wick 03 / Price action A BOS closes through the swing that extends a trend. A CHoCH closes through the swing that protects it. Label both on one sequence, then decide.
Read the guide NQ 5M / BULLISH FVG AND ITS INVERSION ILLUSTRATION
the gap and the 50% return target 20,065, 45 points 20,065 20,030 20,020 20,010 1 2 3 candle 3 low 50% line, entry 20,020 candle 1 high stop 20,005, 15 points possible path 1 candle one 2 displacement 3 candle three, gap 20 points later: the inversion (IFVG) 20,030 20,010 4 4 close below 20,010, then resistance 04 / Price action Three candles leave a space between the first high and the third low. Where the 50% line sits, what the return means, and what happens when price closes through it.
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Indicators 2 guides PRICE AND MOMENTUM / TWO DIFFERENT LOWS ILLUSTRATION
PRICE RSI LOWER PRICE LOW HIGHER RSI LOW 01 / Indicators Price makes a new low. RSI does not. Read what that disagreement shows, and what still needs to happen on the chart.
Read the guide SIGNAL-LINE CROSS / ZERO-LINE CROSS ILLUSTRATION
ZERO 1 / ABOVE THE SIGNAL LINE 2 / ABOVE ZERO MACD SIGNAL 02 / Indicators Two lines cross, but where? A crossover below zero tells a different story from one above it.
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Risk and execution 1 guide One entry at 50.6, three candidate stops ILLUSTRATION
Daily bars · ATR(14) = 1.1 · risk budget $100 (1% of $10,000) 50.6 49.6 48.4 48.0 1 entry 50.6, the close after the recovery C. fixed 2%: 49.6 · distance 1.0 · $100 / 1.0 = 100 shares B. two ATR (2 × 1.1): 48.4 · distance 2.2 · 45 shares A. structure, under the 48.2 low: 48.0 · distance 2.6 · 38 shares 2 swing low 48.2 01 / Risk and execution Three stops on the same 50.6 entry: under the swing low, two ATR away, or a fixed 2%. The distance you pick sets the share count, so the trade-off is the point.
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Chart preparation 1 guide A SCREENSHOT WORTH READING ILLUSTRATION
EXAMPLE · 1H · LINEAR SCALE 110 105 100 MON TUE WED 01 / Chart preparation A readable price axis. The right timeframe. Enough history. Small details that change what a chart can tell you.
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Reading context 1 guide ONE MARKET / THREE LENSES ILLUSTRATION
DAILY / CONTEXT 4H / SETUP 1H / TIMING 01 / Reading context A rising hourly chart can sit inside a falling daily chart. Give each timeframe a job before deciding what the move means.
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Checking the read 1 guide OBSERVATION → CHECK → SCENARIO ILLUSTRATION
EXAMPLE · 1H · LINEAR SCALE 110 105 100 MON TUE WED ? CHECK THE LEVEL, THEN THE CLAIM 01 / Checking the read A confident explanation can still start with the wrong price. Check the observation before trusting the story.
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A closer look at your market Four markets / Four different reads