Module 3 of 8 · Free Complete Forex Course

Technical Analysis

The price-action concepts worth testing — trends, FVGs, order blocks, CRT and timeframe correlation — with chart examples for each.

Free — no signup 6 lessons 6-question test

Market Trends

Market trends — the direction the market is generally moving in. There are three types:

Uptrend — higher highs + higher lows. Market is going up.

Downtrend — lower highs + lower lows. Market is going down.

Sideways (Range) — price oscillates between support and resistance with no clear direction.

Trade in alignment with the higher timeframe when possible. A market can be an uptrend on H4 and a downtrend on M15 — both can be correct simultaneously.

Fair Value Gap (FVG)

A Fair Value Gap (FVG) is a price imbalance created when the market moves aggressively in one direction, leaving a gap between candles where little or no trading occurred.

If the high of Candle 1 does not overlap with the low of Candle 3 (in a bullish move), a gap is created between them — that is the Fair Value Gap.

Important: Markets often return to these gaps to "rebalance" price before continuing the trend. Traders use FVGs as potential entry zones and continuation areas.

Order Block

An Order Block is the last opposing candle before a strong impulsive move. Traders believe price may return to this zone before continuing in the same direction.

Price often revisits order blocks because institutions may have unfilled orders, the market seeks liquidity, and it aligns with structure and imbalance.

Not every strong candle creates a valid order block. There are specific order blocks which we will discuss later in the Strategies module.

Candle Range Theory (CRT)

Candle Range Theory (CRT) — every candle has its own liquidity. The next candle fails to break it with a body and "absorbs" the liquidity, leaving only a wick above the previous high.

Price may: sweep one side of the range (high or low), then reverse toward the opposite side.

Not every CRT candle will reverse the trend. Higher time frames show better reversal signals after a CRT candle — 1H, 4H, 1D and the Weekly are the most reliable.

Time Frame Correlation

Time frame correlation means aligning multiple time frames to trade with clearer direction and higher probability.

If the higher timeframe is bullish AND the lower timeframe shows a bullish setup → the trade has stronger alignment
If they conflict → the lower timeframe move may only be a short-term pullback

Always check what the higher timeframe is doing before executing on a lower timeframe. Conflicting signals = wait or skip.

Indicators

Indicators are tools that use mathematical calculations based on price, volume, or time to help traders analyze the market.

Moving Average Indicator

They do not predict the future. They react to what price has already done — they always lag behind price.

Important truth: Indicators lag. They are based on past price data. They should support your analysis — not replace it. Too many indicators create confusion. Price action and structure should always come first.

Section test

Test yourself — 6 questions

Pick an answer to see instantly whether it is right. Nothing is saved to a server and no account is needed.

01What defines an uptrend?
02A Fair Value Gap (FVG) is best described as:
03An Order Block is:
04In Candle Range Theory (CRT), what does the CRT candle do?
05Why do indicators lag behind price?
06What does time frame correlation mean?

Now test it on real historical charts

Reading is step one. Replay real historical data bar by bar, place the trades this module describes, and see whether the idea actually holds up before you risk money on it.

Start backtesting free

Free plan — no card required.