Price Action Trading is a technique that is used by traders to analyse the markets based on the actual price movement on the chart, as opposed to relying on lagging or leading indicators.

Most indicators are in fact derived from prices on the chart; therefore they are unnecessary and are reflective of past information.

Price action traders believe that the only true source of information is the price itself. 

Price action traders make their trading decisions based on the real-time price and use historical price information to determine what price is likely to do in the short-term and in the future.

They use technical and chart pattern analysis in an effort to find order in what might otherwise appear to be random price movement.

Since price action traders rely on technical analysis and not on conventional indicators, their approach is minimalistic.

At its purest, price action trading is based on order flow, the battle between buyers and sellers, which produces zones of support and resistance that can be both horizontal and sloping, and can be applied to any market on any time frame.

Pure Price Action: ‘the language of the charts’ speaks only of structure.