📈 MARKET BASICS
This market condition is characterized by higher highs and higher lows.
What is bullish price action?
Often called the market's “floor,” this is an area where price has previously struggled to continue lower.
What is support?
On a bullish candle, this price is located at the bottom of the candle body.
What is the open?
A decisive close above a meaningful previous structural high is called this.
What is a bullish BOS?
The letters POI stand for:
What is Point of Interest?
This market condition is characterized by lower highs and lower lows.
What is bearish price action?
Often called the market's “ceiling,” this is an area where price has previously struggled to continue higher.
What is resistance?
On a bearish candle, this price is located at the bottom of the candle body.
What is the close?
A decisive close below a meaningful previous structural low is called this.
What is a bearish BOS?
Name three examples of areas that could be considered POIs in our framework.
What are FVGs/IFVGs, Order Blocks, Breakers (Flip zones), or meaningful Support/Resistance areas?
These are the major turning points that help us identify market structure.
What are swing highs and swing lows?
True or False: Support and resistance should always be treated as one exact price.
What is False?
A long upper wick at resistance is showing that price attempted to trade higher but failed to maintain those prices.
What is bearish rejection?
This is an aggressive move away from an area, typically characterized by large candle bodies, acceleration and relatively little overlap.
This was described on the call as aggressive movement away from the zone—volume, aggression and acceleration.
A three candlestick pattern where the wicks of candle 1 and 3 do not overlap, leaving an imbalance on candle 2.
What is an FVG (fair value gap)?
Price is making higher highs and higher lows, but suddenly breaks below a trendline. This alone does NOT confirm this.
What is a bearish reversal / change in trend?
Price reaches resistance, trades slightly above it, leaves a large upper wick, and closes back below.
What is rejection?
This candle pattern occurs when a strong candle body overtakes the previous candle's body and can provide evidence of stronger follow-through.
What is an engulfing candle?
Put these in the correct order:
Displacement — Liquidity — MSS — Reaction
What is Liquidity → Reaction → Displacement → MSS?
Price reaches a HTF POI and immediately forms a wick. The trader enters solely because price reached the POI. What important idea did they forget?
What is a POI is a location—not an automatic entry signal?
A trader immediately opens the 1-minute chart and begins identifying every high and low as meaningful. This is the major step they're missing.
What is higher-timeframe context?
Price reaches resistance, strongly closes above it, and continues holding above the level. Instead of rejection, price is showing this.
What is acceptance / breakout / continuation?
A green candle trades above a previous high but leaves a large upper wick and closes back inside the range. The candle's color does NOT change this important fact.
What is rejection?
Sellside liquidity is swept. Price forms a beautiful bullish pin bar—but there is no displacement and no structural shift. This is the best action.
What is WAIT?
Put these in the correct order:
Entry → HTF POI → Displacement → Liquidity → Reaction → MSS
What is HTF POI → Liquidity → Reaction → Displacement → MSS → Entry?