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Price action: trading without indicators

Reading the market: charts, tools and instruments3 min read
What you learn in 3 minutesThis lesson shows how a chart can be read from its own structure — the highs, the lows, the ranges and the breaks — without adding a single calculated line. On USD/INR, one pip on one standard lot is ₹10, so a move of 20 pips on 0.10 lots is 20 × 0.10 × ₹10 = ₹20. By the end you will be able to describe where price is, and why that place matters, using only what the chart already shows.

One entry found at 83.2500 by structure alone

StepAmountNote
Range low83.2200The lowest point of the sideways stretch on the chart.
Range high83.2800The highest point of the same sideways stretch.
Range height600 pips83.2800 minus 83.2200 = 0.0600, which is 600 pips.
Break level83.2800The upper edge of the range, watched as the decision line.
Entry83.2820A close above 83.2800, so the entry is 20 pips above the range high.
Stop level83.2620Placed back inside the range, 200 pips below the entry.
Risk on 0.10 lots₹200200 pips × 0.10 lots × ₹10 per pip = ₹200.
Target level83.3220The range height of 600 pips projected above the break: 83.2820 + 0.0400.
Reward on 0.10 lots₹400400 pips × 0.10 lots × ₹10 per pip = ₹400.

The exact entry price, the spread and any commission vary between brokers, so the rupee figures above will differ slightly from a live account. Some brokers also round the pip value on USD/INR, and swap or carry charges may be added if the position is held overnight.

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The mistake people make here

The common mistake is to wait for an indicator to confirm what the chart has already said. By the time a calculated line turns, the break at 83.2800 may be far behind, and the stop needed to stay inside the structure becomes wider than the plan allowed. Another version is to call every poke above a high a break, when a single tick is not a close. Read the structure first: mark the high, mark the low, and let the close decide. If the close does not happen, there is no break, and no trade.

Check yourself

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A range runs from 83.2100 to 83.2600. Price closes at 83.2620. What is the range height in pips, and where does the entry sit relative to the range high?

83.2600 minus 83.2100 = 0.0500, so the range height is 500 pips. The entry at 83.2620 is 20 pips above the range high of 83.2600.

Using that entry at 83.2620 with a stop 150 pips away, what is the risk in rupees on 0.20 lots?

150 pips × 0.20 lots × ₹10 per pip = ₹300.

If the target is the range height projected from the entry, what is the target level and the reward on 0.20 lots?

500 pips above 83.2620 is 83.3120. The reward is 500 pips × 0.20 lots × ₹10 per pip = ₹1,000.

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Next in Reading the market: charts, tools and instrumentsSmart money: order blocks, FVG, liquidity
Trading forex and CFDs carries a high risk of losing money. Most retail accounts lose. Nothing here is a recommendation to trade or a forecast of any result.Meerayour course guide