The grammar of price.
It's not “drawing two lines on a chart”. It's reading how price moves: swings, trend, levels, breakouts, compression, recurring patterns — often without overlaid indicators.
Para qué sirve
Price action studies price movement as the primary signal. It observes structure (highs/lows), reaction zones, expansion and consolidation, and patterns that repeat with context.
It belongs to the broader family of technical analysis (price + volume). Dow, Schabacker, Edwards & Magee are classic references for trend and patterns. Wyckoff is a bridge: he reads price action through supply, demand and accumulation/distribution phases.
| What it observes | What it measures | When it's useful |
|---|---|---|
| Structure | HH, HL, LH, LL | Direction and invalidation |
| Levels | Support, resistance | Entries, stops, targets |
| Patterns | Candles, chart figures | Setups with context |
| Context | Higher timeframe | Avoid isolated signals |
Core concepts
| Término | In Cyclepedia |
|---|---|
| Trend | |
| Support / Resistance | |
| Breakout / Pullback | |
| Swing high / low | |
| Higher high / lower low | |
| Range / consolidation | |
| OHLC candle | |
| Classic patterns | |
| Head & shoulders / triangles | |
| Trendline / channel | |
| Volatility / ATR | |
| Technical stop / take profit |
Related tools
| Tool | Role |
|---|---|
| Multi-timeframe analysis | HTF context + LTF trigger |
| Fibonacci | Retracements and extensions |
| ATR | Dynamic stops, volatility |
| Volume (confirmation) | |
| Market structure |
Representative traders and authors
| Figure | Contribution |
|---|---|
| Charles Dow | Trend theory |
| Structure and phases | |
| Richard Schabacker | Classic patterns |
| Robert D. Edwards & John Magee | Technical Analysis of Stock Trends |
| Al Brooks | Bar-by-bar price action |
| Linda Raschke | Short-term operational patterns |
| Lance Beggs | YTC price action |
| Steve Nison | Modern candlesticks |
Recommended path
- OHLC Candlestick — reading a bar
- Trend — swings and structure
- Support · Resistance — levels
- Breakout · Pullback — expansion and return
- Double top and double bottom — classic patterns
- Context · Invalidation — filter and logical exit
- Tradición Wyckoff — price action + supply/demand
Prerequisite: Recorrido Bronce.
Enlaces
- Tradición Wyckoff
- Cyclic analysis — timing on the same structures
- Metodologías — Hurst operational patterns