☞ ☞ ☞ ☞ ☞ 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...
All three charts below are 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...
consisting of two legs and high lighted with red arrows.
Two shorter trends are contained within the longer term trend
and identified by the red circles - trends within trends..
A reversal of those down trends became apparent to the right
of the vertical line -- a new up trend.