Price action is the market’s native language. Indicators are translations; sometimes helpful, always late. Reading price means reading people: where they got trapped, where they took profits, where they were forced to puke. Darren’s mantra, “No close, no break,” separates noise from information. In this guide you’ll learn to read candles, structure and context so confirmations become obvious and entries feel boring.
Candles as micro‑stories
Each candle compresses a battle: the open tells you where the fight began, the wick shows how far one side pushed, the close reveals who controlled the last word. Long upper wicks into resistance often mark profit taking or absorption; long lower wicks at support reveal rejection and trapped shorts. A sequence of large bodies in one direction signals initiative—someone is paying up to get filled.
Break & Close logic
A poke through a level isn’t a breakout. Only a close beyond the level proves acceptance. Wait for the candle to close on the other side; then trade the retest or the next impulse. This one rule filters a shocking number of failed breaks that lure impatient traders.
Trend structure
- Uptrend: higher highs and higher lows; pullbacks should be shallow and rejected quickly.
- Downtrend: lower highs and lower lows; rallies fade at prior supply.
- Transition: a lower low after an uptrend, or a higher high after a downtrend, often precedes a bigger rotation.
Context and zones
Draw areas, not razor‑thin lines. Zones matter because institutions work orders across prices, not a single tick. Combine HTF zones with intraday triggers like 2B (failed break) and 3CR (three‑candle reversal). The zone gives you a reason to care; the trigger gives you a reason to act.
Execution and management
Place the stop beyond invalidation—the point at which your story is wrong. Size the trade so that a hit is insignificant to the account. Targets should be logical: previous swing, measured move, or ADR boundary. Partial profits are tools, not obligations—use them when they align with structure.
Practice loop
- Collect 50 screenshots of textbook breaks and closes. Label each with “why valid/invalid”.
- Replay a month of price at 4x speed and call the story candle by candle.
- Trade only A+ setups for two weeks. If nothing sets up, you succeeded.
Bottom line: candles don’t lie—impatience does. Learn the language and confirmation becomes obvious.