Price action refers to the movement of the price over time. It is used to analyse a security, index, commodity, or currency performance to predict where the price may go in the future. It is the base of all trades, and many traders use the price action analysis alone to define their strategy. In fact, technical analyses are a derivation of price action trading since they use trends to define the formulas used to make the decisions. For many years, traders have been trying to find patterns in the price chart to predict which way the trend will head. Then, based on those predictions, the trader will make his decisions and profit from the trade.