What is Price Action ?

27

FEB,2018

What is Price Action?

Price Action is a form of technical analysis that focuses solely on past prices that have traded in the market

Price Action Trading (P.A.T.) is the discipline of making all of your trading decisions from a naked price chart. This implies that no lagging FX indicators are present, except perhaps for some moving averages that may help to determine dynamic resistance and support areas, along with trend direction as well.

 

All financial markets generate data about the movement of the price of a market over varying periods of time; this data is displayed on price charts. Price charts reflect the beliefs and actions of all participants (human or computer) trading a market during a specified period of time and these beliefs are portrayed on a market’s price chart in the form of “price action” (P.A.).

 

Whilst economic data and other global news events are the catalysts for price movement in a market, we don’t need to analyze them to trade the market successfully. The reason is pretty simple; all economic data and world news that causes price movement within a market is ultimately reflected via P.A. on a market’s price chart.