Price action is the study of price movement in the market.

Price action is a term often used in technical analysis to interpret and describe price movements of an asset.

Traders that use this technique believe that the asset‘s price is the most important piece of data and it's all you need to make a trading decision.

Price action trading ignores the fundamental factors that influence price movement. Instead, it focuses primarily on the price history, how price moves across a period of time.

All, or most, trading decisions are based on a stripped-down or “naked” price chart.

The simple stripped-down approach of price action trading means there are no technical indicators applied on a trader’s charts.

The sole focus is on the price action itself. The belief is that this price action reflects all the variables (news events, economic data, etc.) that influence price and cause it to move.

Price action traders believe that there’s nothing new in the markets. History repeats itself.  And so they look for repeating price patterns on their charts.

Price action trading is considered a "pure" form of technical analysis and sometimes known as "naked trading" since a price action trader uses a price chart without any technical indicators.

Naked Trading