Story is created when the particular desires of a particular character are frustrated by complications which are dealt with through a sequence of effortful actions (plot) and with their own consequences (plot points) each taking place in a particular setting and scene leading through crisis and climax to success or defeat of the character's intentions (resolution) and insight (for the protagonist and audience) and final denouement.
We understand the life, ours and others, as story. Whatever we choose to do in our lives is better understood and better developed when we have an nuanced understanding of story. I wanted to be a writer, a story maker. We are all story makers, as it turns out. Story craft is an aid to understanding our own stories so we may help others and ourselves to write our lives in action directed toward worthwhile goals.
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DOT FROM two-level-diagram