Technical Core of Trading: Building a Solid Foundation, Step by Step
When you take trading seriously, you quickly realize that it’s not about following a few signals or placing random orders. Real progress comes from building something solid — and that foundation is technique.
Technique is what enables you to read a chart, understand price movements, manage risk, and make decisions methodically. What we call the technical core here is the shared foundation every trader — beginner or experienced — must master in order to move forward with discipline.
This core doesn’t really change over time. You can adapt it, streamline it to fit your style, but its core principles remain the same. It’s the base for any coherent and sustainable strategy. To master it, the best approach is to proceed step by step, following a clear logic.
Reading Market Structure
Before even thinking about entering a position, take a moment to simply observe the market. The goal is to understand what kind of environment you’re in. Is the price trending up? Trending down? Or stuck in a consolidation phase?
Higher timeframes often give you a clearer view. A well-established long-term trend can offer a more reliable reading framework.
Highs and lows also play a key role. A higher high? A lower low? These are signs of momentum, strength, or weakness.
Then there are structure breaks — when price breaks a key level, it may indicate a reversal or an acceleration. Knowing how to spot these breaks in real-time can give you a real edge.
This initial reading lays the groundwork: What direction is the market moving in? Where are the key levels? From here, you can begin to refine your analysis.
Observing Price Behavior
Once you’ve understood the overall structure, it’s time to zoom in and examine how the price is behaving.
Japanese candlesticks are very telling. They show the battle between buyers and sellers. Certain patterns — like hammers, dojis, or engulfing candles — can indicate reversals or continuation of trends.
Support and resistance zones are also important landmarks. These are often areas where price has reacted in the past, where liquidity is concentrated. Observing how the market behaves around these zones provides valuable clues.
This step lets you move from a broad view to a more detailed, actionable analysis. Possible trade scenarios start to emerge.
Confirming with Technical Indicators
Indicators are there to confirm your analysis — not to replace it. They can complement your reading, as long as they’re used wisely.
- The RSI (Relative Strength Index) helps determine if an asset is overbought or oversold, which can signal a potential reversal.
- The MACD helps spot trend changes via moving average crossovers and can also reveal hidden divergences.
- Moving averages help smooth out price action and make the trend clearer. Sometimes, they act as dynamic support or resistance.
- Bollinger Bands give a sense of volatility. When they tighten, a breakout is often near. When they widen, volatility is expanding.
- The Ichimoku Cloud, though more complex, offers a comprehensive view of the market: trend direction, momentum, and support/resistance levels. Once mastered, it becomes a very powerful tool.he key is to avoid overload. It’s better to deeply understand a few indicators and use them within a consistent method than to get lost in a sea of tools.
Reading Price Without Indicators
Over time, many traders choose to simplify their analysis. They turn to reading the market with no indicators at all — this is pure price action.
This approach relies solely on observing price, candles, and levels. Everything is on the chart. It’s a simple, yet demanding way to analyze the market.
Price action allows for faster, clearer decision-making. It requires some experience, but offers great freedom of interpretation. It’s often a natural evolution for traders who want to refine their edge.
Why This Core is So Essential
This technical core is the foundation. No matter your trading style, the assets you trade, or the tools you use — these basics always come back.
Reading structure, interpreting candles, identifying key zones, using indicators intelligently… These are universal skills. They don’t depend on one particular setup, but on your ability to understand price behavior.
This core should not remain theoretical. It must become a clear, repeatable method that you apply consistently. That’s how you build an efficient routine and avoid impulsive decisions.
Moving into Practice
To truly internalize all of this, regular practice is essential.
Pick an asset. Read its structure. Identify important levels. Observe how price reacts. Add one or two indicators to confirm your read. Then, do the same exercise again, this time with just price — no indicators.
This repetition helps you develop your own market vision, gain confidence, and learn to filter what really matters.