Glossary

Accumulation/Distribution Indicator

This tool makes use of lines to indicate trends or potential turning points.

Yen

This is Japan's currency. This is the third most competitive currency on the Forex market.

Wedge

A Wedge is determined by Trend Lines meeting on a price chart. The highs and lows of a price series, from 10 to 50 periods, are connected by these Trend Lines.

Named after its developer, Larry Williams, the Williams Percentage Range (% R) is a technical indicator that identifies which the assets are overbought and which are oversold. In turn, the distinction helps to identify possible market tipping points.

Forex Volume Indicators

The volume of transactions that occur in the market is a salient indicator within it.

Forex Volume Indicator

In Technical Analysis, the Volume Indicator is a tool that reflects traders' activities within a specific time frame.

Value Date

The Value Date is a future date that determines the value of a product fluctuating in price. It is usually used to know the payment of financial products and accounts where discrepancies may happen due to differences in the timing of valuation. These include: forward currency contracts, option contracts, and the interest payable or receivable on personal accounts.

USD/JPY

The USD,is the acronym for the American Dollar; it is also called "Greenback" or "Buck". The Federal Reserve System (FRS) issues this currency.

USD/CHF

The USD, the Base currency, is the acronym for the American Dollar; it is also called "Greenback" or "Buck". The Federal Reserve System (FRS) issues this currency.

USD/CAD

When taken apart, the USD, the Base currency in the pair, is the symbol or acronym for the American Dollar; it is also referred to as the "Greenback" or the "Buck". The USD is issued by the Federal Reserve System (FRS).

U-Turn Indicator Triple Top

A high trend is a schematic indicator of a triple top's price. Its calculation prevents a decline in price and apparently a reversal.

Triple Bottom U-Turn

A low trend is a schematic indicator of the triple bottom's price; the third thrust in the trend strongly suggests a reversal.

Trend Reversal Patterns

A Trend Reversal Patterns occur when a market trend changes direction. Spotting a potential reversal benefits a Trend Trader as it tells him or her to exit a trade once conditions become unfavorable.

Trend Line

One of the basic concepts of technical analysis is the trend. It is based on assumption that market participants make decisions in herds making asset price movements sustainable for some time.

Trend Continuation Patterns

When a trader encounters a Continuation Pattern, he or she is informed that the price will carry on moving in the same path after said pattern is completed as before.

Trading Order Types

Also called a Trailing Stop-Loss, a Trailing Stop Loss is a special type of trade order. Not set at a single, absolute Dollar amount, the Stop Loss is set at a certain percentage or a certain dollar amount below the market price.

Technical Indicators

Technical Indicators are mathematical calculations that are based on the historic price, volume, or open interest of a security to forecast the trajectory of the financial market or price behavior.

Technical Analysis

Technical Analysis is a trading discipline used to assess security and determine trading opportunities by analyzing statistical trends of the trading activity, such as volume and price movement.

Take Profit Order

Take Profit Order is the limit a trader sets to close an open position for profit. Traders use Take Profit to secure the profit they already gained from their trades, in case the market moves in the opposite direction abruptly.

Symmetrical Triangle

The symmetrical triangle is a trading pattern that consists of simultaneous uptrend and downtrend lines. It shows a situation where supply and demand reached equilibrium or when a security’s price is consolidating.

Support Level

Support level is the level in the trading chart at which the price is anticipated to move in the bullish direction upon contact. The support is likened to a “floor” since it is the tested level at which price reaches its lowest before it rises.

Stop Loss Order

Stop Loss Order is the limit a trader sets to minimize their losses on a position. Traders use Stop Loss as it automatically closes a position once the price falls to the one set by the trader.

Stochastic Oscillator

Stochastic Oscillator is a momentum-indicator that makes use of resistance and support. It compares a security’s specific closing price to its price range over a specific period of time.

SPREAD

Spread is the price difference between the Buy (Ask) and Sell (Bid) rate in Forex. In general terms, spread is the difference between two rates, prices, or yields.

Spot Market

Spot Market or Cash market is a type of financial market that allows the delivery of financial instruments, such as currencies, securities, and commodities immediately.

Security Deposit

Security deposit or Margin is the required amount to secure trade through a forex broker. It is a reserved portion of a trader’s equity account deposited to the broker as a guarantee of fulfillment of futures contract.

Resistance Level

Resistance level is the level in the trading chart at which the price is anticipated to move in the bearish direction upon contact. The resistance is likened to a “ceiling” since it is the tested level at which price peaks before it drops.

Relative Vigor Index

The Relative Vigor Index (RVI) is a technical analysis indicator that measures the strength of a trend. It compares a security’s closing price to price range and creates an analysis of the price movement

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of recent price movements. It compares bearish and bullish movement to a specific asset’s price in the trading chart.

Portfolio Trading

Portfolio Trading or Program Trading is the process of trading a basket of stocks in large volumes with the use of computer-generated algorithms. Once the algorithm is set and running, the program begins to generate trades.

Pip (Percentage in Point)

A point in percentage or pip is a standardized unit of measure in an exchange rate. In forex, the value of the exchange of a currency is represented in pips.

PENNANT

Pennant chart formation is a graphical continuation pattern that signals the possible reformation of the previous direction in the future.

PARABOLIC INDICATOR

This kind of indicator was introduced by Welles Wilder with the purpose of validating and rejecting trend direction.

PAIR

This refers to a combination of currencies that can be traded. Pairing is used to express the value of one currency against the other.

ORDER

Basically, an order is a command from an investor to be executed by a broker or a brokerage company. This order is whether to buy or sell. There are various types of orders which allow traders to set a premise in relation to price and time they want their orders to be executed.

ON-BALANCE VOLUME

On-Balance volume is a volume-dependent tool meant to reveal the connection of deals and asset’s price movements. This is used to confirm a trend and reversals.

OCO ORDER

OCO stands for one cancels other type of order wherein it is a combination of two pending orders. Whichever of the two orders gets executed, the other one would be cancelled. Technically, the pending order execution policy is also applied to this type of order.

MOVING-AVERAGE CONVERGENCE/DIVERGENCE INDICATOR

Gerald Appel introduced the Moving-Average Convergence/Divergence Oscillator with a primary aim of exposing changes in directions and trend’s strength.

MOVING AVERAGE OF OSCILLATOR

Moving Average of Oscillator is a tool that enables traders to identify the difference between an oscillator (MACD) and its moving average.

MOVING AVERAGE INDICATOR

This kind of tool is commonly applied in technical analysis to reveal averages prices over a specific time.

MOVING AVERAGE ENVELOPES

An envelopes indicator projects the current state of an oversold or overbought price. This helps traders assess the ideal entry and exit points and identify the probability of trend break-downs.

MONEY FLOW INDEX

This technical indicator was developed to calculate money inflow intensity into a particular asset. It compares price increases and decreases in a specific period.

MOMENTUM INDICATOR

This indicator displays the direction of a trend as it calculates how rapid the price changes.

MARKET FACILITATION INDEX

Market facilitation index is an indicator that aims to assess the ability and willingness of the market to move a price.

MARGIN

A typical transaction that happens through interbank trading ranges from millions to billions of US dollars. Banks and clients, including multinational corporations, hedge funds, and private stakeholders, are known to be the participants of the interbank market.

Liquid market

The liquid market suggests the main advantages of the Forex market and other financial markets. It is free-flowing, and it is always available to any traders who want to buy and sell large volumes of assets.

LIBID/LIBOR

LIBID is the abbreviation for London Interbank Bid Rate. This is the bid rate at which banks are willing to borrow eurocurrency deposits. LIBOR is the abbreviation for London Interbank Offered Rate. This is the offer rate at which banks are willing to lend to each other. LIBOR is administered by the Intercontinental Exchange which asks major global banks how much they would charge other banks for short-term loans. LIBOR is more popular than LIBID.

Leverage

Leverage in the Forex market is the ratio of cash to the size of the trader's leverage broker. Leverage allows you to trade large amounts of money with small capital.

Inverse Head and Shoulders

Inverse head and shoulders were derived from its original head and shoulders, but they have different meanings.

Ichimoku Indicator

Ichimoku Kinko Hyo (overview of balance) is a technical tool for complex analysis created in 1968 by Goichi Hosoda, a columnist in Tokyo.

Head and Shoulders

Head and shoulders is a pattern that describes the end of an existing trend and the remote change in the future of the price movement.

GBP / USD

GBP is the abbreviation for the British pound sterling, which in this currency pair is traded against the United States dollar. The currency pair shows how many US dollars are needed to acquire one British Pound sterling.

Gator Oscillator

Gator oscillator is used as a supplement to the Alligator indicator and is used in conjunction with them.

Fundamental Analysis

Fundamental analysis is the analysis of financial and diplomatic events that can affect the direction of the prices in financial markets.

Fractals Indicator

Fractal indicator is a meter that shows the higher lows and lower highs of the movement of the price where it paused or transposed.

Forex Resistance

Forex resistance serves as the peak, which caps the level of the price of currencies.

Foreign Exchange (Forex) Market

Foreign Exchange (Forex) market is a decentralized type of market that is available globally and where all the world's currencies are traded against each other.

EUR/USD

This is the ticker name for a popular currency pair where the Euro is traded against the U.S. Dollar.

Euro

The Euro (symbolized as €) is a currency that replaced the national currencies of the seventeen countries that make up the European currency block, or the Eurozone in 2002.

Envelopes Indicator

An Envelopes Indicator is a technical analysis tool that reflects off either the overbought (upper) or oversold (lower) bounds of the trading price plotted through trend lines in a graphical representation of data or price chart.

Double Top

The Double Top graphical price pattern is a longer chart formation that usually indicates a sign of a reversal in an uptrend.

Double Bottom

The Double Bottom graphical price pattern is a chart formation that usually indicates a reversal of a current downtrend.

Diamond

The Diamond formation, or commonly known as ‘Diamond top’ is a chart formation or price pattern, which usually indicates a sign of a subsequent reversal of a current uptrend.

Descending Triangle

A Descending Triangle is a graphical representation of bearish-focused price patterns mostly used in technical analysis to determine and confirm existing trend continuation.

DeMarket (DeM) Indicator

The DeMarker Indicator or DeM was developed by Tom Denmark as an oscillator to figure out and spot potential opportunities at the most minute detail to gain signals for entering and exiting the market.

Daily Chart

A daily chart is a graphic representation of information about market movements that had occurred within a day’s time frame.

Currency Pair

A currency pair is the quotation of two separate currencies and is used as a financial instrument to buy or sell the currencies in exchange for the other.

Cross Pair

Cross pairs or cross currency pairs, are a financial asset of the market which is considered less popular than major currency pairs. This class includes local currency currencies. Their liquidity level is determined by the price of global reserve currencies: the US Dollar and the Euro.

Commodity currencies

Commodity Currencies or Major Currencies are the currencies of countries whose significant exports compromise of natural resources.

Commodity Channel Index (CCI)

The Commodity Channel Index, introduced by Donald Lambert in the 80s, is a technical analysis indicator initially created to spot new market trends.

Channel

A trading channel or Forex channel is a primary method of technical analysis drawn as a pair of parallel lines that resembles a “corridor” or a “channel,” as its name states.

CFD - Contract for Difference

CFD or Contract for Difference is an agreement or contract between a seller and a buyer.

Bullish Rectangle

The Bullish Rectangle is a pattern seen when two parallel trendlines (support, resistance) connect the recent lows and highs of the price which encapsulate price fluctuations.

Bull Market

Commonly used to describe the stock market, the concept of Bull Market is also applicable to other markets including bonds, real estate, commodities, and currencies.

Broker

Acting as middlemen, brokers are the ones working in the real estate industry and the online financial market. Brokerage firms can be classified into several major types.

Bollinger Bands Indicator

This is one of the more popular indicator tool used in trading as it has shown its reliability by yielding accurate results and signals.

Bill Williams Chaos Theory

William’s Chaos theory, combined with the psychology of trading, gave birth to this study and the inception of several technical indicators.

Bid/Ask Spread

Bid-ask spread are set by the market makers who usually act as mediators between a trader and the financial market.

Bid Price

The Bid Price is mainly devised to make an exact representation of an outcome from the one bidding.

Base Currency

This is the point of reference for how much the buyer needs to pay in order to purchase the base currency. For instance, if you choose the USDJPY currency pair, USD is the base currency.

Awesome Oscillator

The Awesome Oscillator is useful to traders as it produces the following trade signals.

Average True Range Indicator

This tool is responsible for determining the volatility values relative to the price of the trading instrument.

Average Directional Index

How the Average Directional Index Indicator works.

AUD / USD

AUD/USD is a financial instrument that includes the Australian dollar and the US dollar.

Asset

Assets are classified into several forms. It can be current assets, fixed assets, financial assets, and intangible assets.

Ask price

When choosing a currency pair in the market, the values of exchange are indicated in two prices, which are the bid price and the asking price.

Ascending Triangle

The Ascending Triangle Formation or pattern is formed when the price range between high and low prices narrows, thus creating a triangular shape.

Alligator Indicator

How Alligator Indicator works.

Force Index

Force index is a meter to track the competence of price movements. It is also used in understanding the process of its three main factors, which are magnitude, volume, and direction. The indicator usually moves around zero. This is the point of a conditional balance between power shifts. Alexander Elder modernized force index.

Bearish Rectangle

The Bearish Rectangle is projected when two parallel tradelines (support and resistance) connect the latest lows and highs of the price, which contain many price fluctuations inside.

Accelerator/Decelerator

This tool yield results through 0.00 level median fluctuations that correspond to the balance of the driving forces of the market.

Glossary

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