Price Action

Price action trading means making trading decisions based on raw price movements — what the chart is actually showing you — rather than relying on lagging indicators. Price action traders study candlestick patterns, support and resistance levels, trend structure, and the behavior of price at key zones to determine their entries and exits.

The philosophy behind price action is that indicators are derivative — they're all calculated from price. So why not go to the source? A candlestick pattern at a key support level tells you something happening right now, while a moving average crossover tells you about something that already happened. Price action aims to be more responsive.

Pure price action traders use clean charts — often nothing but candlesticks, horizontal lines, and maybe a simple moving average for context. This minimalist approach forces you to truly understand market structure: what higher highs and higher lows look like, how support becomes resistance after a break, and what different candlestick patterns reveal about buyer-seller dynamics.