Frequently Asked Questions

Price action is the movement of a security’s price over time, serving as the foundation for a trading strategy that analyzes these raw movements to predict future market direction. Unlike traditional technical analysis, which relies on lagging mathematical indicators like moving averages or RSI, price action trading focuses solely on first-hand price data displayed on charts. Traders interpret this data by examining candlestick patterns, support and resistance levels, and trend structures (such as higher highs or lower lows) to identify supply and demand dynamics. This approach assumes that all relevant information—including news, sentiment, and fundamentals—is already reflected in the asset's current price, allowing traders to make decisions based on historical price behavior and market psychology rather than secondary calculations.