Quote:
Originally Posted by reefer
what is price action?
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Bids and Offers create desirable interest in market participants which leads to transactions. The cumulative effect will build toward one direction or the other between bullish upward or bearish downward movement of those bids and offers.
This is due to supply and demand forces. If buyers come in heavier and use up the offered pricing those will be taken out as they are filled leaving higher offers. The bids usually will fill that void and take out still more offers.
This will continue until a sense that there is a profit to be had and more offers will be entered to take advantage of the potential. That will then tend to move things in the opposite direction somewhat, all depending on the overall recent history of this action which is known as the short term trend.
There are influences from further up on the trend degree scale which tend to be overpowering to the shorter term trends. All that give and take is known as price action.
Cheers,
Cyclon