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Lesson 3 of 6Open Setup Analyzer

LESSON 03 · READING THE REACTION

A level is only a location. The reaction tells you what price did there.

The goal of this lesson is to separate a simple touch from meaningful rejection, repeated probing, a failed breakout, or a sweep and reclaim. Record what happened first. Confirmation comes later.

TOUCH

Price reaches the area. A touch alone gives location, not a directional conclusion.

REJECTION

Price tests the area and closes away from it, often leaving a visible wick or strong opposing body.

REPEATED WICKS

Multiple probes into the same area show repeated testing. Study where candles close and whether each probe gains or loses acceptance.

SWEEP / RECLAIM

Price trades through an obvious high or low, then returns back through the level. Treat the reclaim as an observation, not a prediction.

HOW TO READ WICKS

The wick shows where price traded. The close shows where the candle finished.

Upper wick near resistance

Price traded higher during the candle but finished below the wick high. A larger or repeated upper wick can document rejection, especially when it occurs at a pre-identified structural area.

Lower wick near support

Price traded lower during the candle but finished above the wick low. This can document lower-price rejection when it occurs at a meaningful area.

Do not use wick length by itself. Context matters: the level, candle close, repeated attempts, nearby structure, and what happens on subsequent candles all help describe the reaction.

VISUAL EXAMPLE

Repeated upper wicks at resistance

In this simplified example, several candles probe above the marked area but repeatedly finish beneath it. That can be logged as repeated rejection. It is still not the same as a confirmed bearish structure shift.

RESISTANCE AREA

MULTIPLE WICKS

Repeated tests can mean rejection, absorption, or weakening.

Do not assume every set of repeated wicks has the same meaning. Compare the closes and the progress of each test.

Repeated rejection

Probes repeatedly fail and candles keep closing away from the level.

Increasing acceptance

Each test spends more time near or beyond the level and closes progressively closer to it.

Compression into the level

Pullbacks become smaller while price keeps returning to the same boundary. Record the compression; do not pre-label the breakout direction.

FAILED BREAKOUT VS SWEEP

Both move through a level. What happens after the break matters.

Failed breakout

Price breaks outside prior structure but cannot hold there and returns inside. The failure is clearer when acceptance outside the level never develops.

Sweep + reclaim

Price runs through an obvious liquidity reference such as a prior high/low, then reclaims the level. In your framework, this becomes stronger evidence only when later confirmation supports it.

SCRIBE MOOR SEQUENCE

Reaction is step 2, not the entry command.

1 · LEVEL
2 · REACTION
3 · CONFIRMATION
4 · RETEST
5 · CLEAR ROOM
6 · REVIEW

A reaction can earn your attention. Your next lesson will focus on what qualifies as confirmation after the reaction.

CHECKPOINTS

Test the reaction-reading process.

1. Price touches a marked level once and immediately leaves. What do you know for sure?
2. Several candles probe above resistance with upper wicks but repeatedly close back below it. What is the best description?
3. Price briefly trades above a prior high and then returns back below it. What framework observation may apply?
4. What separates a reaction from confirmation in the ScribeMoor sequence?
0/4 answered

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NEXT LESSON

04 · Confirmation

Next we separate a reaction from actual supporting evidence: structure shift, higher low/lower high, 5m confirmation, and displacement.

Return to course overview
Educational use only.

This lesson teaches chart observation and market-structure vocabulary. Wicks, sweeps, failed breakouts, and reclaims are not guarantees, forecasts, or trade recommendations.