What is price action, how to understand it?
As the words suggest Price[space]Action, the term has to be broken down to understand the definition practically. In simple words, Definition of Price: is the value of a stock or currency or asset at the moment. Just like today's gold, silver, or USD value with respect to any other currency. Definition of Action: is the movement of this price to a higher or lower value depending on supply or demand (in terms of stock) or increase or decrease in the economy (in terms of currency). The term 'price action' also includes a factor of time which basically is not visible by name but has to be considered to predict the direction of the price. That's why price action is the movement of an asset's price to a higher or lower direction within a given time period. The time period could be 1 Sec to 1 Year. While you read these lines, the price in a live chart under a 1-sec time frame would have moved up and down 20 or 30 times. Yes, this is how fast price moves when you see it