Price action is considered the "king" in chart making because it provides traders with the most relevant and up-to-date information about market movements. Price action is simply the movement of an asset's price over time, and it is reflected in the price chart.
Price action reflects the supply and demand dynamics of the market, as well as the sentiments and emotions of traders. Traders who use price action analysis can interpret market movements and patterns to identify potential trading opportunities and make informed trading decisions.
Some benefits of price action analysis include:
Real-time information: Price action provides traders with the most up-to-date information about market movements. Unlike lagging indicators, which rely on past price movements, price action is a current reflection of market sentiment.
Simplicity: Price action analysis is relatively simple compared to other forms of technical analysis, as it focuses solely on the price chart and does not require complex calculations or formulas.
Flexibility: Price action analysis can be used in any market, on any time frame, and with any asset. Traders can use the same principles of price action analysis to trade stocks, forex, commodities, and more.
Reliability: Price action analysis can be a reliable indicator of market movements, as it reflects the true sentiment of traders in the market.
Overall, price action analysis is considered the "king" in chart making because it provides traders with real-time, relevant information about market movements, which can be used to make informed trading decisions.