Price Action Technical Analysis

Price Action

• Refers to the movement of a financial asset's price over time.
• Increasing price indicates more demand than supply.
• Versatile and applicable in any market (futures, forex, crypto) and timeframe (one minute, four hour, daily).
• Purest form of technical analysis.

Components of Price Action

• Candles: Open, close, high, and low.
  • Bullish candle: close above open.
  • Bearish candle: close below open.
  • Wicks indicate rejection areas.
  • Bodies represent the range.
• Market Structure: Identified by highs and lows.

Candle Behavior

• Simplified market structure with simplified highs, lows, opens, and closes.
• High timeframe candles create a range for lower timeframes to fill.
• Focus on the logic behind price movements rather than identifying patterns.

Market Structure

• Series of candles that indicate direction.
• Can be combined with candle behavior for analysis.

Fractal Nature of Price

• All timeframes move the exact same way.
  • 15 minute candle broken down into a 5 minute series of candles.
• Align different timeframes to understand price duration rather than specific timeframes.