How to Read a Price Chart

Part 2 — Practical Guide for Beginners

In the first part, we talked about:

🔹price

🔹market structure

🔹key levels

Now let’s see how to apply this step by step on a real chart.

No indicators.

No signals.

Just price.

🔹 Step 1 — Zoom out first

Before drawing anything:

– zoom out

– look at the bigger picture

Ask yourself:

❓ Is price moving up, down, or sideways?

👉 Never analyze a chart zoomed in only.

🔹 Step 2 — Identify market structure

Look for structure, not entries.

Uptrend:

– higher highs

– higher lows

Downtrend:

– lower highs

– lower lows

No clear structure?

👉 Do nothing. No trade.

🔹 Step 3 — Mark key areas, not exact lines

Do not draw perfect lines.

Instead:

– mark zones

– focus on areas where price reacted multiple times

These are places where:

– buyers defended price

– sellers pushed price down

👉 Think in zones, not precision.

🔹 Step 4 — Where is price right now?

This question is critical.

Is price:

– near a key zone?

– in the middle of nowhere?

👉 The best trades come from areas, not from the middle of the chart.

🔹 Step 5 — Do nothing if nothing is clear

This is also a decision.

If:

– structure is unclear

– price is choppy

– levels don’t make sense

👉 Not trading is the correct trade.

🔹 Common beginner mistake

Beginners often:

– force trades

– draw too many lines

– look for confirmation everywhere

Instead:

– simplify

– remove noise

– wait

🔹 Final checklist before any trade

Before even thinking about an entry, ask:

1️⃣ Do I understand the structure?

2️⃣ Do I know who controls the market?

3️⃣ Am I near a meaningful price area?

If the answer is NO,

the trade does not.

🔹 Final thought

Reading a chart is not about prediction.

It is about understanding context.

Price first.

Structure second.

Entries last.

❓ Which step do you skip most often?

This article is Part 2 of a short series.

In Part 1, I explained the basic principles of reading a price chart.#education