Price action is the movement of a security’s price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity or other asset charts.
Price action can be seen and interpreted using charts that plot prices over time. Traders use different chart compositions to improve their ability to spot and interpret trends, breakouts and reversals. Many traders use candlestick charts since they help better visualize price movements by displaying the open, high, low and close values in the context of up or down sessions.