Price Action
The study of raw price movement — candlestick patterns, swings, and structure — without relying on lagging indicators.
Price action is the analysis of how price itself moves: the shape of candles, the sequence of swings, and the context of structure — all without overlaying derived indicators. The core idea is that price already discounts all information, so studying raw price gives the most direct signal.
Price action traders identify setups through:
- Candlestick patterns (pin bars, engulfing candles, inside bars).
- Swing structure (higher highs, lower lows, range boundaries).
- Volume confirmation of moves.
Price action skills are the foundation under every other indicator-based technique — if you can't read a chart naked, overlaying indicators won't save you.
Related Terms
Bar Chart
A chart showing each period's open, high, low, and close as a vertical bar with left and right tick marks.
BeginnerCandlestick Chart
A price chart that draws each period as a candle — body between open and close, wicks to the high and low — showing the session's battle at a glance.
BeginnerLine Chart
A chart connecting closing prices with a continuous line — the simplest representation of price history over time.
BeginnerMulti-Timeframe Analysis
The practice of reading price action across multiple timeframes to align the higher-degree trend with lower-timeframe entries.
IntermediatePivot Point
A calculated average of the prior period's high, low, and close used as a benchmark level for the current session.
IntermediateResistance
A price level where selling pressure has historically halted or reversed an upward move.
BeginnerSupport
A price level where buying pressure has historically halted or reversed a downward move.
BeginnerTimeframe
The duration each candle represents — from 1-minute to monthly — defining the granularity at which price action is analysed.
BeginnerTrend
The persistent directional bias of price over a defined timeframe — up, down, or sideways.
Beginner