The basic idea behind Forex price action is that you're studying how the market moves relative to previous price movement. In other words, how price reacts to previous levels.Price Action Trading is the discipline of making all of your trading decisions from a stripped down. This means no lagging indicators outside of maybe a couple moving averages to help identify dynamic support and resistance areas and trend. All financial markets generate data about the movement of the price of a market over varying periods of time; this data is displayed on price charts. Price charts reflect the beliefs and actions of all participants trading a market during a specified period of time and these beliefs are portrayed on a market’s price chart in the form of “price action”.