Market Framework 101

Chart Reading Guide

 TECHNICAL ANALYSIS

Support &
Market Condition Resistance Candlestick

• 1st step in analyzing a • Level where we are • Confirmation if levels

price chart. interested in trading. of S/R will hold.
• Trending (Up/Down) • Support = Buy • Confirmation to enter
• Ranging • Resistance = Sell into the trade.
• Choppy
 MARKET CONDITION

Trending
Up Trend Down Trend

Higher High Lower High

Higher High Lower High

Higher Low Lower Low

Higher Low Lower Low

 Up Trend

HH

HL

HH
HH

I-HH HL
HL

I-HL
 Up Trend
HH
HH
HH

HL
HH
HL
HH
HL

HL
I-HH

I-HL
 Down Trend

I-LH

LH

I-LL
LH

LH
LL LH
LL

LL

LL
Down Trend

I-LH

LH
I-LL

LL LH

LL

LL
MARKET CONDITION

Ranging

1 2

1 2
Ranging
2
1

1 2
Ranging
1
2

1 2
Ranging

1 2

1 2
Ranging

1 2

1 2
MARKET CONDITION

Choppy
Ranging
Ranging
SUPPORT & RESISTANCE

Resistance Resistance

Resistance Resistance
Support Support

Support Support
Support & Resistance

Resistance

Support
Resistance

Resistance

Support

Support
Support & Resistance
Resistance

Support

Resistance

Resistance

Support

Support
Support & Resistance
Resistance

Resistance

Resistance Support

Support

Support
Support & Resistance
Resistance

Resistance

Support

Support

Support
 CANDLESTICK

Bullish Neutral Bearish

Engul ng Low Test Doji Engul ng High Test

Tweezer Morning Tweezer Evening

Bottom Star Top Star
fi
fi
Low Test

Low Test
High Test

High Test
Doji

Doji

Doji
Bullish Engul ng

Bullish Engul ng
fi
fi
Bearish Engul ng

Bearish Engul ng
fi
fi
Tweezer Bottom

Tweezer Bottom
Tweezer Top
Tweezer Top
Morning Star

Morning Star
Evening Star

Evening Star
PUTTING IT ALL TOGETHER
PUTTING IT ALL TOGETHER
 TECHNICAL ANALYSIS

Support &
Market Condition Resistance Candlestick

• 1st step in analyzing a • Level where we are • Confirmation if levels

price chart. interested in trading. of S/R will hold.
• Trending (Up/Down) • Support = Buy • Confirmation to enter
• Ranging • Resistance = Sell into the trade.
• Choppy