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How to Read a Market

The mental model that turns a chart from noise into a story of order flow.

WellingtonCDFS Editorial August 3, 2026 1 min read
How to Read a Market

Steps in Reading

1. Identify the higher-timeframe trend 2. Mark key levels (supply/demand zones, prior swings, round numbers) 3. Identify the current phase (trend, range, accumulation, distribution) 4. Look at momentum (candles, MACD, RSI) 5. Note volatility (ATR, Bollinger width) 6. Plan multiple scenarios (bullish, bearish, neutral)

Reading Order Flow

  • Aggressive candles = participants willing to pay up
  • Wicks at levels = failed attempts, potential reversals
  • Consolidation at highs = building supply / demand

Multi-Market Context

Currencies, bonds, commodities and equities move together. USD strength affects almost everything. Watch DXY, US2Y, SPX and oil for context.

Key Takeaways

  • Reading a market is a *process*, not intuition.
  • Do it the same way every session to build pattern recognition.
  • The chart is a story, not a lottery ticket.