Most beginners read a chart like a weather forecast: up means good, down means bad. Price does not work like that. Price moves between levels, and it moves there for a reason. Once you understand the reason, the chart stops looking random.
Market structure
A market in an uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows. That is structure, and it is the first thing to mark on any chart. If you cannot say which one you are looking at in five seconds, you are not ready to trade it.
Support and resistance
Support is a price area where buyers have stepped in before. Resistance is where sellers have. These are zones, not exact lines. The more times a level has held, the more traders are watching it, and the bigger the reaction when it breaks or holds again.
Liquidity: why price sweeps the highs before it falls
This is the concept that changes how you see everything. Above a visible high sit the stop losses of everyone who sold, and the buy orders of everyone waiting to trade the breakout. That cluster of orders is liquidity. Big players need those orders to fill their own positions, so price often pushes just above the high, triggers them, then reverses.
If you have ever bought a breakout and watched it instantly reverse against you, you were the liquidity. The fix is patience: wait to see whether the break holds or fails before committing.
A simple daily routine
- Mark the previous day's high and low.
- Mark the trend on the higher timeframe: up, down or sideways.
- Note today's major news times and stay out around them.
- Wait for price to reach a level. Do nothing in the middle of nowhere.
Reading the market is a skill, and skills need reps. This is exactly what we break down on the weekly video calls, live on real charts.