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Module 3 · Read price in context

Read price in context — Trading Academy

Describe what completed observations show, while keeping pattern labels, confirmation timing and later outcomes separate.

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First lesson: Describe swings without hindsight. No sign-up required.

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Lesson 1 of 3

Describe swings without hindsight

Not completed

By the end of this lesson

  • Recognise a sequence of higher or lower swings.
  • Identify when a confirmed swing actually becomes knowable.

Suggested preparation: Read a currency quote

Read the reference guide

Work it through

Draw five completed bars and mark a proposed swing high. Add a rule requiring two later lower highs, and label the later moment when confirmation becomes available.

Check your understanding

1. A swing-high rule requires two completed bars on each side to have lower highs. When is a proposed swing confirmed?
2. An hourly uptrend contains a five-minute sequence of lower highs and lower lows. What follows?

Lesson 2 of 3

Read the candle before the label

Not completed

By the end of this lesson

  • Calculate body and wick dimensions from OHLC values.
  • Explain why a valid pattern can still precede a losing outcome.

Suggested preparation: Describe swings without hindsight

Read the reference guide

Work it through

Use the guide’s hammer OHLC values to calculate its body and both wicks. Compare the same entry plan under target-first and stop-first paths.

Check your understanding

1. A rising candle opens at 1.1008, closes at 1.1010, has a high of 1.1012 and a low of 1.0990. At 0.0001 per pip, how long is its lower wick?
2. A later OHLC candle reaches both a planned stop and target. What does that candle alone tell you about which came first?

Lesson 3 of 3

Mark and test a price zone

Not completed

By the end of this lesson

  • Record boundaries before observing the later reaction.
  • Separate a retest condition from an assumption that a zone will hold.

Suggested preparation: Describe swings without hindsight, Read the candle before the label

Read the reference guide

Work it through

Mark a hypothetical 1.1000–1.1010 zone. Write one completed-bar rule for a break, one for a retest and one condition that cancels the hypothesis.

Check your understanding

1. Why record a zone’s boundaries before the next price reaction?
2. An hourly-close rule defines a break. A five-minute bar closes above the zone while the hourly bar is still forming. Has the stated break condition occurred?

Prepared by InsomniCapital. Checked 2 October 2026. Sources and detailed assumptions appear in each linked guide. Read the risk disclosure.