It’s a trading method that analyzes only the movement of price over time, usually via clean candlestick charts with minimal or no indicators. Traders use pure price behavior—trends, support/resistance, candlestick formations—to guide decisions.

Indicators are derived from price and often trail the market, potentially causing delayed or conflicting signals. Price action, by contrast, reflects raw market behavior in real time, resulting in cleaner, more intuitive trade decisions.

• Faster, clearer entry/exit decisions

• Easier testing via backtesting or simulators

• Less dependency on external data and complex formulas

• Total flexibility across markets and timeframes

• Highly subjective—traders often interpret the same chart differently

• Frequent false signals and “whipsaws”

• Emotion‑driven errors without discipline

• Time‑consuming to monitor charts and patterns long term

It depends on your trading style:

• Intraday traders often use 5‑minute, 15‑minute, or 60‑minute charts

• Swing traders often rely on 1‑hour, 4‑hour, or daily charts
  Begin with daily or 4‑hour charts for trend assessment, then drill down for entries

Draw horizontal lines where price has previously bounced multiple times (reactive levels). Some traders also draw trendlines or use dynamic MA lines (proactive levels). Psychological round numbers (like ₹ 200, ₹ 500 levels) often act as zones as well.

• Reversal/initiation: pin bar, inside bar, engulfing candles, morning star, hammer

• Continuation: flags, pennants, triangles, break‑and‑retest setups

• Turn patterns: head & shoulders, double tops/bottoms
  These are enhanced when confirmed with volume spikes.

When price breaks clear support or resistance with conviction (often volume confirmed), retesting that same level—now acting as resistance or support—can offer a cleaner entry with defined risk.

• Never risk more than 1–2% of capital per trade

• Use stops just beyond swing highs/lows, candlestick wicks, or beyond consolidation extremes

• Aim for a minimum risk‑reward ratio of 1:2 or better
  Trading success is more about process and discipline than perfection.

Absolutely. On daily or weekly charts, price action can help identify larger reversal or continuation patterns. This method suits both swing trades and position trades depending on your timeframe.

Yes—many traders use minimal indicators (like moving averages, RSI, or volume) as confirmation. But even purists use only price and volume, arguing that clean charts reduce analysis biases.

Varies by individual: some gain competency in a few weeks, others require 3–12 months of focused backtesting, demo trading, and journaling to build consistency and intuition.

Look for:

• Low volume breakouts (likely fakes)

• Market structure context (e.g., inside a larger range)

• Confirmation (e.g., retest holds, follow‑through bars)
  Stops and position sizing are essential if the trade turns invalid.

Works across all major markets—equities, commodities, forex, futures, crypto—because human behavior underpins all price moves.