ELI5: Explain Like I'm 5

Price action trading

Price action trading is a way of trading the stock market based on reading the price movement of a stock, commodity or other asset. Instead of relying on complicated indicators or formulas, price action traders look at the historical and current prices of the asset they are trading and try to make decisions based on what they see. They look at trends and patterns in the past to try to make predictions about the future of the asset. Price action trading requires a lot of practice and experience, and it isn't for everyone, but it can be a great way to try and make profitable trades.