technical analysis</a>. </strong>This is because it uses previous prices to forecast future price changes. Traders seek formations, trends, and patterns in market structure using price action and chart analysis. They do that in order to generate new trading ideas.</p>\n<p>Price action traders mainly rely on examining the price behavior of a certain asset. Many price action traders that look for short-term investment opportunities utilize price action specifically to determine trade setups.</p>\n<p>Other traders, on the other hand, use a variety of technical indicators to improve their price movement analysis. The premise is that by combining price movement analysis and technical indicators, more trustworthy trading signals can be generated.</p>\n<p>Various charting techniques can be employed to assess price action. 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Thus, their decisions usually provide mediocre results if they are a part of a team. Prisoner's dilemma is especially popular in <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-game-theory/">game theory</strong></a>.</p>\n<p>The following is the standard situation of the prisoner's dilemma. It was proposed by mathematicians Melvin Dresher and&nbsp;Merrill Flood. Later it was codified by Albert W. Tucker.</p>\n<p><em>Two criminal gang members are apprehended and held in separate rooms for questioning. There are no other witnesses. The authorities only have enough evidence to convict one of the criminals. However, they can only do that if the other criminal testifies against them. The authorities make a deal with each criminal. They have two options &ndash; betraying the other criminal by testifying that he committed the crime; or cooperating with the other criminal by remaining silent.</em></p>\n<p>There could be<strong> three potential endings:</strong></p>\n<ul>\n<li><strong>Both criminals end up serving two years each.</strong> This would happen if they betray each other.</li>\n<li><strong>Both criminals end up serving one year each.</strong> This would happen if they both remain silent.</li>\n<li><strong>One criminal is set free</strong> because he betrays the other. However, <strong>the other criminal ends up serving three years</strong> because he remains silent.</li>\n</ul>\n<p>Betrayal is more rewarding than working the other criminal. Thus, it&rsquo;s reasonable to believe that all completely rational criminals will betray each other. This would leave only one potential outcome: <strong>both prisoners betraying one other.</strong> On paper, an individual reward should result in a better outcome. However, in the prisoner's dilemma, <strong>individual reward results in a worse individual outcome.</strong></p>\n<p>Many situations in the economy deal with the prisoner's dilemma. However, over time, a variety of strategies have been established to prioritize the collective good over individual rewards.</p>\n<p>In real-life examples, the majority of interactions are repeated multiple times. A prisoner's dilemma can also occur several times. When this happens, it's called an <strong>iterated prisoner's dilemma.</strong> In this case, individuals are able to apply techniques that provide rewards for collaboration.</p>\n<p>The rewards that individuals get can also be modified by using institutional techniques. Prisoner&rsquo;s dilemma can be guided towards a more collectively advantageous solution by knowing the collective goals. The ability to accomplish cooperative behavior through various sets of rules is also important to reach a solution that is advantageous to a group of individuals.</p>","level":"medium","meta_title":"What is Prisoner's Dilemma? Definition & Meaning | Crypto Wiki","meta_description":"Prisoner's Dilemma meaning: Prisoner's Dilemma - an illustration of why two people might refuse to cooperate, even if it appears to be in their best interests.","meta_keywords":null,"language":"en","created_at":"2022-05-24T06:02:11.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-prisoners-dilemma"},"prevSection":{"id":1011,"original_id":null,"author_id":42,"translator_id":null,"title":"What is Polkadot Crowdloan?","slug":"what-is-polkadot-crowdloan","section":"P","keyword":"Polkadot Crowdloan","status":"published","definition":"the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.","content":"<p>The process of staking Polkadot tokens is known as Polkadot Crowdloan. It's done specifically to raise funds for certain projects.</p>\n<p>Polkadot is an open-source protocol. It allows data and applications to be shared between different blockchains. There are two types of blockchains in the Polkadot ecosystem &ndash; the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-relay-chain/">Relay Chain</strong></a> and<strong> <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-parachain/">parachains.&nbsp;

/n

Relay Chain can be thought of as <strong>the core of Polkadot.</strong> Essentially, it connects different parachains. Parachains, on the other hand, are similar to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-plasma/">Ethereum Plasma chains</strong></a>. Basically, they can conduct transactions without relying on the Relay Chain. As a result, parachains can significantly <strong>improve blockchain scalability.</strong></p>\n<p>Parachain projects need to lease a slot for their parachains through the <strong>Parachain Slot Auction</strong> if they want to connect to the Relay Chain. Projects stake <strong>DOT</strong> tokens to bid for a spot in the auction. The ones that stake the biggest amount of DOT tokens become the parachains of Polkadot. They can lease a slot for around 3 to 22 months.</p>\n<p>The staked DOT is locked into the project's slot auction bid once the users engage in the crowdloan. The tokens stay locked in the parachain slot until the lease of a slot ends.</p>\n<p>You might be wondering how to get the DOT tokens. <strong>This is where Polkadot Crowdloan comes in </strong>since it can be used to obtain these tokens. Essentially, crowdloan is a <strong>crowdsourcing system.</strong> In a crowdloan, users stake DOT to support the parachain projects they favor. For doing that, they get various rewards, including tokens from the parachain they support.</p>","level":"easy","meta_title":"What is Polkadot Crowdloan? Definition & Meaning | Crypto Wiki","meta_description":"Polkadot Crowdloan meaning: Polkadot Crowdloan - the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.","meta_keywords":null,"language":"en","created_at":"2022-05-20T13:32:43.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-polkadot-crowdloan"},"currentChapter":"P","currentSection":"what-is-price-action","chapterTitle":"P","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-price-action","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">

Crypto Terms: Letter P

What is Price Action?

Price Action MEANING:
Price Action - the movements of the financial asset’s price over a period of time.
Easy
1 minute

Let's find out Price Action meaning, definition in crypto, what is Price Action, and all other detailed facts.

Price action is the heart of all technical analysis. This is because it uses previous prices to forecast future price changes. Traders seek formations, trends, and patterns in market structure using price action and chart analysis. They do that in order to generate new trading ideas.

Price action traders mainly rely on examining the price behavior of a certain asset. Many price action traders that look for short-term investment opportunities utilize price action specifically to determine trade setups.

Other traders, on the other hand, use a variety of technical indicators to improve their price movement analysis. The premise is that by combining price movement analysis and technical indicators, more trustworthy trading signals can be generated.

Various charting techniques can be employed to assess price action. The Japanese candlestick chart, line chart, and bar chart are the most prevalent. Traders use all of them to better identify and comprehend market trends. This is the case because they all depict price activity in different ways. Though keep in mind that each of these chart settings has its own set of benefits. Thus, which one to employ for price action analysis is a matter of personal needs.

Though the chart patterns that the price action relies on the most are candlestick patterns. Such patterns are basically recurrent price action formations. Traders can spot and use them to generate new trading ideas. The whole concept of this trading approach is that these patterns tend to repeat themselves. Therefore, trade ideas based on candlestick patterns are usually successful.