Price action reflects market participants' behavior from "summary" of Charting and Technical Analysis by Fred McAllen
Price action is a key element in technical analysis. It refers to the movement of a security's price over a certain period. Price action is determined by the buying and selling activities of market participants. Essentially, price action reflects the behavior of traders and investors in the market. When we look at a price chart, we are essentially looking at a visual representation of market participants' behavior. Every price movement on the chart is a result of the decisions made by traders and investors. For example, when the price of a stock goes up, it indicates that buyers are more aggressive than sellers. On the other hand, when the price goes down, it suggests that sellers are dominating the market. By analyzing price ...
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