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.