Price action

Price action

What is price action in trading?

Price action describes the movement of the price of a financial instrument. An increase in price action is another way of saying volatility has increased.

Price action trading

Movements in price can be observed and acted upon. There are many ways in which traders can take advantage of price action. Different forms of technical analysis — such as indicators, support, channels, etc. — can be used as a way of identifying changing price action. This allows traders to look for trading opportunities during times of increased volatility.

Fundamental analysis is also used to understand how news and economic events can trigger changes in price action.

Read more about analysing price action:

Use support and resistance, trend lines, multiple time frame analysis and other elements of technical chart analysis to determine future price action.

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