03/10/2026
Price action is about reading what the market is actually doing through candles, structure, key levels, and price reactions. This chart brings together 9 important concepts that traders can use to build a cleaner chart-reading framework. ๏ฟฝ
IG +1
๐น 1. Order Block Formation
The chart shows price consolidating before a strong breakout. The marked OB represents the area traders may monitor for a potential reaction after the impulsive move.
๐น 2. Gap Filled
Price initially leaves a gap and later returns into that area. A gap fill occurs when price trades back through the previously untraded region. ๏ฟฝ
IG
๐น 3. Gap / Imbalance
The highlighted gap represents an area of price inefficiency between candles. Traders often watch these zones to understand where price moved rapidly.
๐น 4. Break Block Reversal
Price breaks through the marked block and subsequently changes direction. The chart highlights the potential entry area created around that structural transition.
๐น 5. Fresh Liquidity Area
The marked liquidity zone sits around a key resistance area. Traders watch these regions because clustered orders and stops can contribute to sharp price reactions.
๐น 6. Structure Retest
After breaking the key structure, price comes back to retest the level. The reaction around the retest can provide additional information about whether the new structure is holding.
๐น 7. Bearish Fakeout
Price moves through the liquidity area before reversing higher. This illustrates why traders should wait for confirmation instead of assuming every breakout will continue.
๐น 8. Bullish Fakeout
Here, price pushes into the upper liquidity area and then reverses lower. The key lesson is to distinguish a genuine breakout from a liquidity sweep or failed move.
๐น 9. Supply Retest
After a bearish structure break and the creation of a new low, price retraces toward the marked supply zone. The subsequent rejection shows how a previous area can become important during a retest.
๐ฏ The Bigger Picture
Don't study these concepts as isolated signals. Context matters. Start by identifying the broader market structure, then mark important highs/lows, liquidity areas and reaction zones before looking for an entry. Price-action patterns generally have more meaning when they appear around significant technical levels. ๏ฟฝ
IG +1
Save this chart as a quick reference guide and practice identifying each concept on historical charts before using it in live trading.
โ ๏ธ Educational content only โ no setup guarantees a profitable trade. Always use a defined invalidation level and proper risk management.