Trading forex involves substantial risk of loss and is not suitable for all investors. This site is for educational purposes only.  Full Disclaimer →
Home / Definition / The Chart as a Record
Definition

The Chart as a Record

A chart is a historical record of the outcomes produced when aggression met the liquidity available at that time.

Full Explanation
Trade the Mechanics treats the chart as a record, not as a map of intentions. A candle does not tell you what price wanted to do, what a level intended to defend, or what the market plans to do next. It records the result of transactions that already happened.

Where price relocated, aggression exceeded the liquidity available at the previous prices. Where price stalled or overlapped, aggression was being absorbed. Highs and lows mark places where relocation stopped at that moment. Candle bodies and wicks compress the territory that was taken, revisited, and given back during the period.

This distinction changes the questions you ask. Instead of seeing a prior reaction and assuming the same price should react again, you use the record as context and watch the current interaction. Historical outcomes can tell you where meaningful interactions occurred. They cannot guarantee that the same orders, participants, or conditions still exist.