what does price action tell you 
price action can be seen and interpreted using charts that plot prices over time traders use different chart compositions to improve their ability to spot and interpret trends breakouts and reversals many traders use candlestick charts since they help better visualize price movements by displaying the open high low and close values in the context of up or down sessions candlestick patterns such as the harami cross engulfing pattern and three white soldiers are all examples of visually interpreted price action there are many more candlestick formations that are generated off price action to set up an expectation of what will come next these same formations can apply to other types of charts including point and figure charts box charts box plots and so on in addition to the visual formations on the chart many technical analysts use price action data when calculating technical indicators the goal is to find order in the sometimes seemingly random movement of a price for example an ascending triangle pattern formed by applying trendlines to a price action chart may be used to predict a potential breakout since the price action indicates that bulls have attempted a breakout on several occasions and have gained momentum each time 