☞ ☞ ☞ ☞ ☞ PRICE ACTION ☜ ☜ ☜ ☜ ☜
Price Action describes what Is Happening with price
Indicators and/or patterns can suggest what MAY happen to price action.
Price Action is THE fundamental tool - traders need to understand it, IMO.
Price can go up, it can go down or it can go sideways...it can also stop changing entirely...
Price Action is Price Action on any time frame chart...
The three charts below are all showing the same basic Price Action pattern :
Pull backs in an up trend...
Without the scales it's difficult to distinguish what time frames they represent...
PRICE ACTION - TRENDS WITHIN TRENDS
The two shorter trends contained within the down trend are identified by the red circles
-- trends within trends --
A reversal of the down trend is apparent to the right of the vertical line, identified by the green circles
-- a new uptrend --
P/A Trends and a few of the Reversal hints that often accompany them.