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Price Action (PA)

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Definition of 'Price Action (PA)'

Price Action is simply the movement of prices on a chart; the art of Price Action Analysis is recognizing patterns of potential profit.

It includes all facets of the stock or futures price including sometimes volume - even though some traders would argue that is semantically not accurate.

Price Action is highly subjective. What one trader interprets as a pattern another trader may consider noise. Price action can be visualized in common patterns and setups such as the 123 Reversal or the shooting star.

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