Set 3 — Price Action and Market Structure

What does a candlestick show?

Open, high, low, and close for a chosen time period.

What does the candle body show?

The distance between the open and close.

What do candle wicks show?

The highest and lowest prices reached during the candle.

What is support?

A price area where buying interest has previously been strong enough to slow or stop a decline.

What is resistance?

A price area where selling interest has previously been strong enough to slow or stop an advance.

What is consolidation?

A period where price moves sideways in a relatively tight range.

What is expansion?

A period where price begins moving with wider range and stronger directional intent.

What is a breakout?

Price moving above a defined resistance or range boundary.

What is a breakdown?

Price moving below a defined support or range boundary.

What is a retest?

Price returning to a broken level to see whether it now holds as support or resistance.

What is rejection?

Price briefly moving into an area but failing to stay there, showing lack of acceptance.

What is acceptance?

Price holding beyond a level with enough time or closes to show the market is treating it as valid.

What is a valid breakout?

A break that holds and shows follow-through rather than immediately reversing.

What is a false breakout?

A break beyond a level that fails and quickly moves back into the prior range.

What is a trend?

A directional market condition of higher highs and higher lows or lower highs and lower lows.

What is a pullback?

A temporary move against the dominant direction within a trend.

What is a range?

A market condition where price rotates between support and resistance without clear directional trend.

What is a reversal?

A change from one directional structure to the opposite one.

What is a higher high?

A swing high above the previous swing high.

What is a higher low?

A swing low above the previous swing low.

What is a lower high?

A swing high below the previous swing high.

What is a lower low?

A swing low below the previous swing low.

What is a market structure shift?

A meaningful change in price behavior suggesting trend continuation is weakening or reversing.

Why does context matter more than one candle?

Because a single candle can be misleading without surrounding structure, levels, and session context.

What is internal structure?

Shorter-term swings and price behavior inside the broader trend.

What is higher-timeframe structure?

The larger directional and level context seen on bigger charts like 1H, 4H, or 1D.

What is breakout continuation?

Price breaks a level and continues moving in that same direction.

What is failed breakout reversal?

Price breaks a level, fails to hold, and reverses back the other way.

What is mean reversion?

Price moving back toward a more balanced or average area after becoming stretched.