Price Action

The graphic representation of the movement of an asset’s price over time.

A price action simply refers to the movement of the price of an asset or commodity over time as captured in a chart. Because of this graphic representation across units of time, traders are able to identify periods when prices were high, low, rising, falling, etc. Thus, price actions help observers monitor the historical or live movement of an asset or commodity price, thereby allowing the observer to decide on whether to buy, sell, or continue watching the price trend.

Price actions are generally the most fundamental factor for all kinds of technical market analysis. They serve as the most important part of predictive algorithms.