Price action is a trading methodology that analyzes price movement using raw candlestick charts, without relying on indicators or oscillators.

Core Concepts

1. Support & Resistance

  • Price levels where buying/selling pressure concentrates
  • Support = floor, Resistance = ceiling

2. Candlestick Patterns

  • Pin bar — Reversal signal
  • Engulfing — Strong reversal
  • Doji — Indecision

3. Chart Patterns

  • Double top/bottom
  • Head and shoulders
  • Triangles and flags

4. Trend Analysis

  • Higher highs + higher lows = Uptrend
  • Lower highs + lower lows = Downtrend

Advantages

✅ Clean, uncluttered charts ✅ Works on any timeframe ✅ No indicator lag ✅ Develops market intuition

Disadvantages

⚠️ Subjective interpretation ⚠️ Requires screen time and practice ⚠️ No mechanical rules

Key Levels to Watch

  • Round numbers (1.0900, 1.1000)
  • Previous day’s high/low
  • Weekly open
  • Major swing points