The most useful defnition of price action for a trader is also the simplest: it is any change in price on any chart type or time frame. The smallest
unit of change is the tick, which ha a different value for each market. Incidentally, a tick has two meanings. It is the smallest unit of change in price
that a market can make, and it is also every trade that takes place (so if
you buy, your order wl appear on the Time and Sales table, and your fll,
no matter how large or small, is one tick). Since price is changing with
every tick (trade) during the day, each price change becomes an example
of price action. There is no universally accepted defnition of price action,
and since you need to always try to be aware of even the seemingly least
signifcant piece of information that the market is offering, you must have
a very broad defnition. You cannot dismiss anything because very often
something that initially appears minor leads to a great trade. The broadest
defnition includes any representation of price movement during the course
12 READING PRICE CHARTS BAR BY BAR
of trading. This includes any fnancial instrument, on any type of chart, in
any time frae.