Narrative Structure

Narrative structure, a literary element, is generally described as the structural framework that underlies the order and manner in which a narrative is presented to a reader, listener, or viewer. The narrative text structures are the plot and the setting.

Generally, the narrative structure of any work—be it a film, play, or novel—contains a plot, theme, and resolution. It can also be divided into three sections, which are together referred to as the three-act structure: setup, conflict, and resolution.

Freytag's Pyramid
1. Exposition: setting the scene. The writer introduces the characters and setting, providing description and background.

2. Inciting Incident: something happens to begin the action. 

3. Rising Action: the story builds and gets more exciting.

4. Climax: the moment of greatest tension in a story. 

5. Falling Action: events happen as a result of the climax and we know that the story will soon end.

6. Resolution: the character solves the main problem/conflict or someone solves it for him or her.

http://www.ohio.edu/people/hartleyg/ref/fiction/freytag.html