# Instrument chart

### Introduction

The underlying asset chart simply shows how an asset is performing over time. A general rule is that the longer the time frame, the more reliable the signals being given. As you drill down into time frames, the charts become more polluted with false moves and noise so Ideally, traders should use a longer time frame initially to define the primary trend of whatever they are trading. Once the underlying trend is defined, traders can use their preferred time frame to define the intermediate trend and a faster time frame to define the short-term trend.

{% hint style="info" %}
ℹ️ What is price action?

Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analysis. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions.
{% endhint %}

<figure><img src="/files/eMxLBYsVI5YW3W7q64VO" alt=""><figcaption></figcaption></figure>


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