Definition of Price Action
A trading methodology that analyzes raw price movements (candlestick patterns, support/resistance, trend structure) without relying on lagging indicators. Price action traders read the chart directly.
At a glance
Term
Price Action
URL slug
price-action
Category
Trading styles
Short answer
A trading methodology that analyzes raw price movements (candlestick patterns, support/resistance, trend structure) without relying on lagging indicators.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Price Action” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Price Action” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Price Action” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A trading methodology that analyzes raw price movements (candlestick patterns, support/resistance, trend structure) without relying on lagging indicators.
Knowing the precise definition of “Price Action” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Price Action” as loose slang while your broker/platform specification defines it more narrowly.