[TIKITRADER]

Here is a 5 minute ES chart consolidated from June 16.
There are containers for price, and some horizontal zones marked from previous price congestion areas and end points.
Would this chart be considered price action, or do the addition of trendlines change that ?

[Kiwi]

Tiki,

Its easily overdone. If you make a trade because of what price is doing it is price action.

That's different from making a trade because (say) the RSI turns up.

Horizontal and diagonal forms of support and resistance indication (trendlines, channels, horizontal zones, mas, vwmas, vol@price, and market profile) help you to figure out where people might perceive value. Perceived value makes price action that might not be relevant in the wide open space between areas of perceived value worth trading.

Eg. at the trendline you get an inside bar and then a bullish engulfing bar ... so the probability of the entry resulting in an up move rises. The pa also defines when you are wrong (stop under the beob) nicely so you can define risk reward as well as knowing probability is higher.

So, if you trade because price (ticks, bars, candles, etc etc) is doing x rather than derivative (ma xover, rsi, stoch turn up) is doing y then you trade price action. The fuzzy argument tends to be around the question of this S&R vs that S&R (horizontal only is most pure )