Trading knowledge βΊ Price Action Basics βΊ 2/7 Β· 1 min read
Three questions: Trend β Level β Signal
Key idea: ask all three, in order, before any signal.
Three questions
- Trend β highs and lows rising (up), falling (down) or sideways?
- Level β which prior high, prior low or range edge is closest?
- Signal β at that level, a clear pattern on a CLOSED candle?
Seeing a nice candle first and finding reasons later is the fastest way into a bad trade.
What is the right order?
Trend β Level β Signal.
Why only closed candles?
A live candle can still change shape until the last minute.
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Educational content, not investment advice. Leveraged trading can lose more than your initial capital. Examples are built on real PricePlaybook historical candles and scored by rules written in advance β past results do not guarantee future results.