The change in the price of the cryptocurrency within a certain time interval is referred to as price action. These actions involve the increasing and decreasing prices of the asset. The market traders use price actions to identify the entry and exit points for a successful trade.
Charts are leveraged by having a strong interpretation of the price action. Candlesticks are the most common form of chart analyzed to read the price action of a particular asset. Technical indicators of a particular asset can also be created using the price action data of the same. Price action is often used as a source of information by experienced day traders to identify trends and breakouts.
Price action is particularly famous among swing traders. Strategies such as long wick candles, trendline trading, and inside bar after breakouts are analyzed with the help of price action data. The time required for trading price actions is shorter and has its own drawbacks, just like any other strategy. One must be very careful while using any strategy while investing their hard-earned money in any investment tool.