What happens in each act
Act one: who this is and what has broken for them
The task of the first act is not to "introduce the world" but to plant a question the audience will stay to see answered
Three things happen inside the first act: the audience sees the hero in their ordinary life, an event occurs that disrupts that life, and the hero decides to act. The ordinary life is shown only as much as is needed to see what exactly has been disrupted - one or two scenes, not half the act
The event that sets everything off is called the inciting incident. It comes to the hero from outside, and it cannot be left unanswered: a letter, a phone call, someone's arrival, a found object, someone else's death
In The Matrix it is the message on the computer screen - "Follow the white rabbit" - and the meeting with Trinity in the nightclub. In Die Hard it is a group of armed men seizing the building in the middle of a corporate party
Act two: attempts and resistance
The second act is the hero acting and the world refusing to yield. Every attempt must produce a result: either a partial success that complicates the situation, or a failure that narrows the choice
The key rule of the second act: the obstacle must be stronger than the hero. If it gives way at once, there is no second act - there is one scene with nothing after it
The obstacle is not necessarily a villain. The antagonist can be time, distance, someone else's decision, one's own fear, a law of nature. A lease that runs out on Friday works as a full counterforce if the hero's success depends on it
About the middle of the second act there is an event that changes direction: the hero learns what they did not know, and from then on plays a different game. In Titanic this turn is the collision with the iceberg: before it the film is about two people, after it - about who will survive
Act three: the choice and its consequence
The third act begins where the hero has run out of workarounds and only one is left - the most expensive
The climax is not a fight and not a chase. It is the moment when two things important to the hero stop being compatible, and one is sacrificed: reputation for someone else's life, career for a relationship, revenge for peace. A chase and a fight can be the shell of such a decision, but without it they do not work as an ending
The resolution after that should be short. The audience needs to see the new state of things - and that is all. A dragged-out third act reads as several endings in a row and spoils the impression more than a sagging second act