Forex glossary
Price Action
Price action means price movement and an analytical approach centered on candles, swings and support or resistance. It does not require a particular indicator, but still uses interpretation rules. An OHLC chart alone cannot reveal complete order flow or buyer and seller intentions.
Illustrative example
How does it work in practice?
Assume EUR/USD lows at 1.0900 and 1.0930, with highs at 1.1000 and 1.1030. Price action analysis describes higher swings without adding RSI, although consistent swing-selection rules are still necessary.
A case to work through
Observation rather than attributed intent
Hypothetically, price closes at 76 above a previously selected high of 75.
- You can record a high break under the close rule.
- OHLC alone cannot identify which bank bought or how large its position was.
What follows? Describe the level, time and rule without assigning an identity.
Example boundary: Pivot selection and timeframe remain analytical assumptions.
A useful distinction
Price Action / Order flow
Price action interprets price movement; order flow needs orders or executed-trade data with specified coverage.
Check your understanding
Distinguish a price observation from an unsupported narrative.
Show the answer and explanation
Close=76 exceeds the previously selected high of 75
It compares two available price levels.
From observations to price structure
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Related terms
Sources and documentation
- StockCharts – support and resistance
Reaction zones, break criteria and possible role reversal of levels.
Document read: - TradingView – Pivot High/Low
Left/right observation comparisons and delayed pivot confirmation.
Document read:
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