Reading the market

Empty charts and ranges

Lesson 4 of 4 · about 5 minutes

3 questions, each checked the moment you answer it.

4 steps · about 5 minutes

The interactive lesson walks these ideas one screen at a time and checks your answers as you go. The text below covers the same ground for reading.

Price often just moves sideways

Sideways movement is price rising and falling without a clear upward or downward trend. When it stays between clear upper and lower price levels, it forms a range, and a move that carries beyond one of those boundaries is called a breakout. Plenty of charts show none of this. When a stretch has no clear shape in it, leave it unnamed rather than forcing a label onto it.