Price Action Definition

Price action refers to the study of an asset's price movement over time, without relying on technical indicators.

What is Price Action?

Traders using price action focus on patterns, candlestick formations, and support and resistance levels directly on the chart.

It is often used alongside, or instead of, indicator-based technical analysis.

Identifying a reversal based purely on candlestick patterns and prior support levels is an example of trading price action.

A pending order is an instruction to buy or sell an asset once the price reaches a specified level, rather than immediately.

A pip is the smallest standardized price movement in a currency pair, typically the fourth decimal place.

A portfolio is a collection of financial assets, such as stocks, bonds, currencies, or commodities, held by an individual or institution.