What is price action analysis?

In simpler terms: Price action analysis is the use of the natural or “raw” price movement of a market to analyze and trade it. This means, you are making all of your trading decisions based purely on the price bars on a “naked” or indicator-free price chart.

Is technical analysis a derivative of price action?

Technical analysis as a practice is a derivative of price action since it uses past prices in calculations that can then be used to inform trading decisions. Price action generally refers to the changes of a security's price over time. Different looks can be applied to a chart to make trends in price action more obvious for traders.

What are price action patterns?

Different price patterns help assess trading opportunities. Inside bar patterns and pin bar patterns are two examples. Price action traders ignore the fundamental aspects influencing market fluctuations. Instead, they believe that the security’s price movements are the only reliable source of information. What Is Price Action?

What is a price action indicator & how does it work?

The indicator itself is not the ultimate tool when it comes to trading, but rather comes in behind price action. Price action governs the information that the indicator will ultimately provide on the chart. As such, a trader must determine what price action is doing (i.e. the trend) before consulting the indicator for an entry signal.