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Can you describe how each step builds on the previous one?
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Observation- take in the information. Interpretation – explains the meaning of the observation Application- putting it into action.
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First you must have an object/topic/subject to consider. This is observation. Next you then consider what the observation means. What is the purpose or point that it is there for (interpretation)? Finally, knowing that God intended His Word to transcend time, how does what God revealed then affect me today (application).
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One can’t execute the second and third steps without first observing the text. Interpretation and application naturally follow observation.
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You must observe the passage/chapter/book first so that you can see what is there before you move on to interpreting what you have seen. Then, once you understand, you can ask yourself what God wants you to do,
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Each step relies on the previous step in order to do it correctly. In order to apply the Word of God in our lives, we must interpret properly what we have observed in the writing.