Price action: trading without indicators
What you learn in 3 minutesThis lesson shows how to read a chart from its own structure, without adding a single indicator. You will learn to mark the highs and lows that price has already printed, see when price is stuck in a range, and spot the moment a range breaks. By the end you can find the same entry a moving-average signal would have given you, but earlier, because the chart itself told you first.
The same entry, read from structure at 1.0850
| Step | Amount | Note |
|---|---|---|
| Range high | 1.0870 | the highest price printed during the sideways stretch |
| Range low | 1.0830 | the lowest price printed during the same stretch |
| Range width | 40 pips | 1.0870 minus 1.0830, both on EUR/USD |
| Break level | 1.0870 | price closes above the range high |
| Entry | 1.0871 | one pip above the break level, taken after the close |
| Stop | 1.0851 | 20 pips below entry, back inside the old range |
| Target | 1.0911 | 40 pips above entry, the range width projected upward |
| Value of one pip on 0.10 lots | ₱58.00 | one pip on one standard lot is 10 units of the quote currency; 0.10 lots is one tenth of that, and the result is converted to pesos at the current rate |
| Risk on 0.10 lots | ₱1,160.00 | 20 pips times ₱58.00 per pip |
| Reward on 0.10 lots | ₱2,320.00 | 40 pips times ₱58.00 per pip |
Your broker may round the pip value, add a spread on entry and exit, and charge a commission or swap. The peso figure also moves with the exchange rate, so treat it as an estimate, not a fixed number.
The mistake people make here
The common mistake is to enter while price is still inside the range, guessing which side will win. A moving-average cross often arrives after the move has already started, and the same is true of a rushed break. Instead, wait for a candle to close beyond the range high or low, then plan the entry, stop and target from the width of the range you just marked. If price closes back inside, the break has failed and the plan is no longer valid.Check yourself
EUR/USD sits between 1.0830 and 1.0870. Price closes at 1.0872. What is the range width in pips, and what is the projected target if you enter at 1.0873?
The range width is 40 pips (1.0870 minus 1.0830). Entering at 1.0873 with the same 40-pip projection gives a target of 1.0913.
On 0.10 lots of EUR/USD, one pip is worth ₱58.00. What is the risk if your stop is 20 pips away, and what is the reward if your target is 40 pips away?
Risk is 20 times ₱58.00, which is ₱1,160.00. Reward is 40 times ₱58.00, which is ₱2,320.00.
You see a break above 1.0870 but the candle closes back at 1.0865. Is the break still valid?
No. The close is back inside the range, so the break has failed. The structure no longer supports the entry.