Price Action is the price movement of currency pairs. The price movement is considered in the technical analysis of graphical patterns that try to find order in the sometimes seemingly random price movement. Fluctuations (high and low), resistance tests and consolidation are some of the examples of price movement.

The candle and the price bar are important tools for analyzing price action, as they help traders visualize price movements. Candlestick patterns such as Harami, the absorption model and the cross are examples of visual interpretation of the price.

Everyone will analyze this or that price movement in a completely different way, and that is why many traders find the concept of price action difficult to understand. In a literal sense, price action is everything that the price of a financial instrument does, and just like any other aspect of analysis, its interpretation is purely subjective.