Price Action

Price action is the market's body language. Instead of piling indicators on a chart, price action traders read the candles themselves: where price stalled, where it bounced, how big the wicks were, how strongly it broke a level. Patterns like hammers, engulfing candles and inside bars are their vocabulary.

The appeal is simplicity: indicators are built from price anyway, so why not go to the source? The challenge is that reading price is a skill, and two traders can look at the same chart and see different stories.