Price action is simply the movement of price.
You see, many fundamental traders get wrapped up in the study of the management team, economic conditions, competitors, threats, price-to-earnings ratios and a whole bunch of other financial statement ratios to determine whether or not it's a good investment.
But, if the recent market crash has taught anybody anything ... it's that it doesn't matter how good a company is or how much cash it has ... the only thing that matters is whether or not investors would be willing to purchase the stock.
... and, the same holds true if you're trading the e-mini futures, Forex or options!
Price moves UP or DOWN based on what people are willing to pay for a particular stock, currency or commodity.
If investors aren't willing to pay the asking price ... the price will go lower until they find a buyer.
If investors aren't willing to sell their shares, lots or contracts at a lower price ... the price will go up.
It's the basic law of supply and demand.
And, as one of my friends always says: "There are reasons and results, the only thing that matters is the results."
... and, where fundamentals may try to come up with the reasons, the FACTS ARE IN THE CHARTS!
Master the charts and master your financial future.
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