The most useful definition of price action for a trader is also the simplest: it is any change in price on any type of chart or time frame. The smallest unit of change is the tick, which has a different value for each market. Incidentally, a tick has two meanings. It is the smallest unit of change in price that a market can make, which for most stocks is a penny.
It is also every trade that takes place during the day, so each entry on a time and sales table is a tick, even if it is at the same price as the prior trade. Every time the price changes, that change is an example of price action.
- Book Name: Trading Price Action TRENDS.
- Author: AL BROOKS
- Book type: eBook
- Book Category: The Stock Market Books
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