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A
AAA
The highest bond rating. Bonds with AAA ratings are considered safe and have a low risk of default.
Abandoned Baby
A three-candlestick reversal pattern. It consists of a long black body at the end of a downtrend with a Doji that gaps lower and is then followed by a long white body that opens above the Doji’s high. The occurrence of the pattern in a downtrend signals a bullish reversal.
AB=CD Pattern
A 4-point harmonic structure that resembles the ABC correction. It consists of the segments AB, BC and CD. The segment AB is retraced by BC. The retracement is between 0.382 and 0.886. The segment CD is equal to AB. The projection of BC is usually the reciprocal of the C retracement. The BC projection defines the Potential Reversal Zone.
Absolute Advantage
An economics concept in which one party has a direct advantage in efficiency in producing/providing a specific good or service over another party.
Absolute Breadth Index
Developed by Norman G. Fosback. A technical analysis market indicator which calculates the absolute value of the difference between the number of rising issues (i.e., stocks) and the number of declining issues.
Absolute Drawdown
The difference between the initial deposit and the lowest point the equity reached.
Accelerator Oscillator (AC)
A technical analysis indicator developed by Dr Bill Williams. It measures the acceleration/deceleration of the current momentum. Before a price reversal, there is a change in momentum preceded by a deceleration of the current momentum until it comes to zero and starts accelerating in the opposite direction. It is calculated as follows: AC = AO-SMA (AO, 5) A Buy signal is generated when AC is above zero and two green bars follow a red bar. If AC is below zero, then three green bars are required. Similarly, a Sell signal is generated when AC is below zero and two red bars follow a green bar. If AC is above zero, then 3 red bars are required.
Account History
Information of all trade operations performed on the MT4 platform.
Accumulation Area
It is the phase where institutional and informed investors enter the market with Buy positions. It consists of a sideways movement often for a prolonged period where volumes are low in an attempt to keep prices at attractive levels.
Accumulation/Distribution
"Developed by Marc Chaikin. A technical analysis indicator that uses Volume to assess price trends. When a financial instrument is rising it indicates accumulation. When a financial instrument is declining it indicates distribution. Volume is added/subtracted to a cumulative total based on the relationship of the Close price and the range between High and Low. The closer the Close price is to the High price, the more Volume is added. The closer the Close price is to the Low price the more volume is subtracted. If the Close price is in the midpoint of High and Low, then nothing takes place. The Accumulation/Distribution is based on the premise that the more Volume accompanies a trend, the “healthier” it is."
Accumulation Swing Index
Developed by Welles Wilder. A technical analysis indicator representing the cumulative total of the Swing Index.
Actionary Waves
According to Elliott Wave Theory, these are waves that trend in the same direction as the wave of one larger degree.
Active Investing (Active Management)
An investing strategy employed by fund managers aiming to outperform an index or market in order to generate profits.
Adaptive Moving Average
Developed by Perry Kaufman in 1998. A moving average calculation method to address volatility and the corresponding spiky price movements.
Address
String of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key.
Ad Hoc
A phrase of Latin origin that is used in modern English to mean 'for this purpose' or 'specifically for this.'
ADP Non-Farm Employment Change
An economic indicator published monthly, usually two days before the NFP Report by Automatic Data Processing, Inc. It estimates the change in the US non-farm private sector employment excluding the government sector.
Advance Block
A three-candlestick bearish reversal pattern consisting of three consecutive white candlesticks each opening below the previous Close and closing above it. The first two candles are long white bodies with very small or no shadows, whereas the third candle displays signs of weakness either as a smaller body or longer shadows. It signifies the inability of the buyers as they may be running out of steam.
Advance/Decline Line
A market breadth indicator that calculates the difference between the stocks that advanced, and the stocks that declined. It then adds it to the cumulative total: Advance/Decline Line = Previous Advance/Decline Line + (Advancing - Declining Issues)
Advance/Decline Ratio
A technical analysis tool that displays the market’s breadth. It is calculated as the number of stocks that advanced in price, divided by the number of stocks that declined.
Advancing-Declining Issues
A market momentum indicator signifying the difference between advancing and declining stocks on the New York Stock Exchange.
Affiliate
A marketer who promotes NAGA to their online network and earns financial incentives for their referrals.
Afghani (AFN)
The alphabetic code which represents the national currency of Afghanistan; the Afghani. “AF” is the country’s code, and “N” stands for "Afghani". The denomination of Afghani is 100 pul.
Aggregate Risk
The total amount of exposure a financial institution has to a certain negative outcome such as a single trader/investor’s exposure to forex.
Airdrop
When a project distributes free digital assets to its users.
Algerian Dinar (DZD)
The alphabetic code which represents the national currency of Algeria; the Algerian Dinar. “DZ” is the country’s code, and “D” stands for “Dinar”. The denomination of the Algerian Dinar is 100 centimes.
Algorithmic Trading
A set of detailed rules, programmed into computer software to carry out Buy and Sell orders and manage open positions based on precise rules considering price, time and volume. The advantages are speed and discipline.
Allan Hull Moving Average
Developed by Allan Hull in an attempt to reduce the lagging factor of the moving averages while maintaining price smoothness. The formula calculates two weighted moving averages with “n” periods and “n/2” periods, respectively. Then it calculates the difference: 2 * WMA(n/2) - WMA(n) The final step computes the weighted moving average of the difference using a period equal to √n.
Alligator (Williams Alligator)
Developed by Dr Bill Williams in 1995. A technical analysis indicator that combines three moving averages. The blue line which is a 13-period Smoothed Moving Average shifted into the future by 8 bars, is called the “Alligator’s Jaw”. The red line which is an 8-period Smoothed Moving Average and shifts into the future by 5 bars is called the “Alligator’s Teeth”. The green line represents the “Alligator’s Lips” and has a 5-period Smoothed Moving Average, which shifts into the future by 3 bars. During a trend, the three lines are open whereas during a sideways move they are intertwined.
All-Time-High (ATH)
The highest price reached during a specific time period.
All-Time-Low (ATL)
The lowest price reached during a specific time period.
Alpha
It's a measure of how much better or worse an investment performs against the market or a benchmark (i.e., S&P 500).
Altcoin
Other cryptocurrencies besides Bitcoin.
Andrews’ Pitchfork (Bearish)
A technical analysis line study developed by Dr Alan Andrews. The Pitchfork is drawn by selecting three consecutive points on the chart. The first point is a major top (A), the second point is a major bottom (B) whereas the third point is major top (C). The first line (Median Line) is drawn from point A passing through the middle of the line connecting points B and C. The second and third lines (Upper Parallel Line and Lower Parallel Line) are drawn parallel to the Median Line, starting from points B and C respectively. Dr Andrews believed that 80% of the time the price returned to the Median Line. The Upper and Lower Parallel Lines act as support and resistance areas.
Andrews’ Pitchfork (Bullish)
A technical analysis line study developed by Dr Alan Andrews. The Pitchfork is drawn by selecting three consecutive points on the chart. The first point is a major bottom (A), the second point is a major top (B) whereas the third point is a major bottom (C). The first line (Median Line) is drawn from point A passing through the middle of the line connecting points B and C. The second and third lines (Upper Parallel Line and Lower Parallel Line) are drawn parallel to the Median Line, starting from points B and C respectively. The first line (Median Line) is drawn from point A passing through the middle of the line connecting points B and C. The second and third lines (Upper Parallel Line and Lower Parallel Line) are drawn parallel to the Median Line, starting from points B and C respectively. Dr Andrews believed that 80% of the time the price returned to the Median Line. The Upper and Lower Parallel Lines act as support and resistance areas.
Annual Report
A document prepared by most public companies to inform shareholders and other interested parties about their business activities and financial performance during the past year.
Appreciation
The increase in the price of a financial instrument over a period of time.
Arbitrage
The simultaneous purchase and sale of a financial instrument at different exchanges to profit from pricing imperfections. For example, buying a share of ABC at $10 and at the same time selling a share of ABC at $15 on a different exchange.
Argentine Peso (ARS)
The alphabetic code which represents the national currency of Argentina; the Argentinian Peso. “AR” is the country’s code, and “S” stands for “Peso”. The denomination of the Argentinian Peso is 100 centavos.
Arithmetic Scale
A price scale with equidistant price intervals.
Armenian Dram (AMD)
The alphabetic code which represents the national currency code of Armenia; the Armenian Dram. “AM” is the country’s code, and “D” stands for “Dram”. The denomination of the Armenian Dram is 100 luma.
Arms Index
Developed by Richard W. Arms, Jr. A technical analysis indicator that reveals the ratio of the rising or declining stocks and their corresponding volume. It’s calculated as the quotient of the rising stocks divided by the number of declining stocks to determine the Advance/Decline Ratio. Then, the Upside/Downside Ratio is calculated as the quotient of the volume of the rising stocks by the volume of the declining stocks. The final step is to divide the Advance/Decline Ratio by the Upside/Downside Ratio. The Arms Index is considered bullish when below 1.0 and bearish above 1.0. Also known as TRIN or MKDS.
Arnaud Legoux Moving Average
Developed by Arnaud Legoux in 2009. A moving average calculation method to address both the smoothness and the time lag simultaneously.
Aroon Index
Developed by Tushar Chande. A technical analysis indicator used to determine a change in the direction of a financial instrument and measure the strength of the trend during a trending market. It consists of two lines: the Aroon Up and the Aroon Down. The calculation of Aroon Up is: n - (periods since highest high in "n+1" periods) * 100 / n.Similarly, Aroon Down is calculated as: n - (periods since lowest low in "n+1 periods) * 100 /n. The Aroon indicator is interpreted as follows: when Aroon Up is between 70 and 100 an uptrend is signaled. Similarly, a reading between 0 and 30 for the Aroon Down, indicates a downtrend. When the two lines move parallel to each other, then a consolidation may follow. A breakout of the consolidation is expected when the two lines cross over or move to an extreme level like 0 and 100. Anticipation of trending markets is signaled by the crossover of the two lines. When the Aroon Up crosses above the Aroon Down then an uptrend is likely to follow. On the other hand, when the Aroon Down crosses below the Aroon Up, then a downtrend is expected.
Aruban Florin (AWG)
The alphabetic code which represents the national currency of Aruba; the Aruban Florin. “AW” is the country’s code, and “G” stands for “Florin”. The denomination of the Aruban Florin is 100 cents.
Ascending Trend Channel
A technical analysis line study which is drawn by plotting the uptrend line (Basic Uptrend Line) connecting the first two bottoms and then drawing a parallel line (Channel or Return Line) passing through the first top. According to the theory, the price will find support at the basic line and resistance at the return line. Breaking below the basic uptrend line is a sign of trend reversal whereas breaking above the channel line indicates acceleration of the existing trend.
Ascending Trendline
A straight line drawn diagonally to the right connecting at least two successively higher bottoms.
Ascending Triangle
A triangle consisting of two trendlines meeting at a point known as apex. A flat line on the top and a rising line at the bottom. It signifies the buyers’ strength and is typically followed by an upside breakout.
Asian Session
Forex market trading hours (not official) spanning between 11:00 pm (GMT) and 8:00 am (GMT).
Ask
The price to buy a financial instrument.
Asset
Tangible or intangible items that may produce future economic benefit.
Asset Allocation
The diversification of an investment portfolio among different asset classes such as equities, bonds, and cash, based on one’s risk tolerance and time horizon.
Asset Class
A financial asset class is a collection or group of investment “vehicles” also known as financial instruments that share similar characteristics, behavior, purchase and redemption processes, and, of course, the corresponding governing regulations. In general, there are three to five asset classes: • Equities/Stocks • Bonds/Fixed-income securities • Money market and cash equivalents • Real estate • Derivatives
Asset Management
A financial service that handles the client's portfolio with the aim of increasing its value for a fee.
Assets Under Management (AUM)
The total market value of assets being managed on behalf of clients.
Asymmetric Encryption
A technique that uses a public key to encrypt a message and the corresponding private key to decrypt it. The two keys are distinct but mathematically related. Also known as public-key encryption.
Augmented Reality
Abbreviated as AR, it is an interactive 3D technology that combines a view of real life elements with computer-generated elements in real time. The augmented view is made possible through the use of AR goggles or a smartphone camera.
Aussie
A nickname used to describe the Australian Dollar, also known as AUD.
Australian Dollar (AUD)
The alphabetic code which represents the official currency of Australia, Christmas Island, the Cocos (Keeling) Islands, Kiribati, Nauru, Norfolk Island and Tuvalu; the Australian Dollar. “AU” is the country’s code, and “D” stands for “Dollar”. The denomination of the Australian Dollar is 100 cents.
Autocopy
Autocopy is an innovative feature offered by NAGA that allows you to mirror the trading activity of other traders. All you have to do is select a trader of your choice and simply have their trading activity and results mirrored in your own account.
Automated Trading System
A predefined set of detailed rules coded into a computer program on how to enter and exit the market. Orders are submitted automatically from a computer/device to electronic exchanges.
Auto-Scroll
An MT4 icon/command on the Chart’s Toolbar that automatically shifts the chart to the left when a new candle begins to form.
Avatar
A graphical representation of an individual, in a digital world such as a social media platform, internet, forum or the metaverse. An avatar can be in 2D or 3D form, depending on the platform.
Average Directional Index
Developed by Welles Wilder. A technical analysis indicator used to identify trending markets. A reading above 25 indicates a trending market, and a reading below 25 indicates a non-trending market.
Average Directional Movement Index (ADX)
Developed by Welles Wilder. A technical analysis indicator to determine the presence of price trends. It consists of three lines: ADX, +DI and -DI. An ADX reading above 25 signifies a trending market. The direction of the trend is indicated by the crossing of the +Di and the -DI. When +DI crosses above the -DI the trend is up, and a Buy signal is generated. When +DI crosses below the -DI the trend is down, and a Sell signal is in place.
Average Hourly Earnings
The average amount of money, a private employee makes per hour in the U.S, excluding the farming sector. This report is released monthly by the Bureau of Labor Statistics.
Average True Range (ATR)
A technical analysis indicator developed by Welles Wilder. It is a 14-period Moving Average of the True Ranges. The True Range is calculated as the greatest distance between: Current High to Current Low, Previous Close to Current High, and Previous Close to Current Low. Average True Range measures volatility. Wilder perceived a high reading of the ATR as characteristic of bottoms after a sell-off. Similarly, low readings of ATR are characteristics of sideways movements either at tops or bottoms.
Averaging Down
A strategy where traders buy more shares as the market moves against them in order to lower their average cost.
Awesome Oscillator
Designed by Dr Bill Williams, the Awesome Oscillator (AO) is a technical indicator that aims to determine whether bullish or bearish forces are dominating the market. This is calculated by finding the difference between a 5 and a 34-period simple moving average that is applied to the bar’s mid-point prices (H-L) / 2. When the AO moves above the zero lines, buying opportunities appear, and when the AO moves below the zero lines then sell opportunities appear accordingly.
Azerbaijanian Manat (AZN)
The alphabetic code which represents the national currency of Azerbaijan; the Azerbaijanian Manat. “AZ” is the country’s code, and “N” stands for “Manat”. The denomination of the Azerbaijanian Manat is 100 qepik.
B
Baby Bond
A fixed income security with a face value of less than $1000.
Baby Boomers
Anyone born between 1946 and 1964.
Back Month
The expiration date of futures and options that is the farthest away.
Backtesting
Evaluating trading strategies or expert advisors, as they are popularly known, on historical data.
Bagholder
An investor who is left with large amounts of cryptocurrenency even though its value has decreased drastically.
Bags
The portfolio of coins and tokens one is holding. Often related to a poorly performing bag of assets that investors insist to hold.
Bahamian Dollar (BSD)
The alphabetic code which represents the national currency of the Bahamas; the Bahamian Dollar. “BS” is the country’s code, and “D” stands for “Dollar”. The denomination of the Bahamian Dollar is 100 cents.
Bahraini Dinar (BHD)
The alphabetic code which represents the national currency of Bahrain; the Bahraini Dinar. “BH” is the country’s code, and “D” stands for “Dinar”. The denomination of the Bahraini Dinar is 1000 fils.
Baht (THB)
The alphabetic code which represents the national currency of Thailand; the Baht. “TH” is the country’s code, and “B” stands for “Baht”. The denomination of the Baht is 100 satang.
Balance
The amount of available money present in a trader’s account excluding any unrealized profit or loss, or any possible charges for open positions. The balance does not change during open trades.
Balance of Power (BoP)
Developed by Don Worden. A technical analysis indicator which assesses the “trend quality” using the following formula: Balance of Power = (Close price – Open price) / (High price – Low price) A crossing above zero signals accumulation whereas a crossing below zero signifies distribution.
Bangladeshi Taka (BDT)
The alphabetic code which represents the national currency of Bangladesh; the Bangladeshi Taka. “BD” is the country’s code, and “T” stands for “Taka”. The denomination of the Taka is 100 poisha.
Bank Lending
An economic indicator released annually showing outstanding loans held by Japan’s banks, including credit unions (or shrinking).
Bank of Canada (BOC)
The central bank of Canada.
Bank of England (BOE)
The central bank of the United Kingdom.
Bank of International Settlements (BIS)
Established in 1930 and based in Basel, Switzerland, is a bank of central banks and other comparable institutions. It promotes global monetary and financial stability through international cooperation.
Bank of Japan (BOJ)
The central bank of Japan.
Bank Rate (Base Rate)
The interest rate that central banks charge for lending funds to commercial banks.
Bank Stress Test Results
Banks undergo certain tests under hypothetical scenarios to determine whether they can cope with adverse conditions/negative economic shock. The findings of these tests are released by the Federal Reserve for the US Banks.
Barbados Dollar (BBD)
The alphabetic code which represents the national currency of Barbados; the Barbados Dollar. “BB” is the country’s code, and “D” stands for “Dollar”. The denomination of the Barbados Dollar is 100 cents.
Bar Chart
A chart type that depicts the price activity for a specific period. It consists of a vertical line where the highest point is the high price, and the lowest point on the line indicates the low price. A tick to the left is the Open price and a tick to the right represents the Close price. The bar chart is the western type of price charting.
Bar Down
The Close price of a bar is lower than the previous Close.
Barrel
A unit of volume, equivalent to 42 gallons, which is used to measure liquid hydrocarbons.
Bar Up
The Close price of a bar is higher than the previous Close.
Base Currency
The first currency (leftmost) in a currency pair. For example, the USD (US Dollar) is the base currency in USDCHF, USDCAD, and USDJPY. Additionally, the EUR (euro) is the base currency in EURUSD, EURGBP and EURJPY.
Baseline
A variation of the line chart, where a horizontal line cuts through the chart to make price fluctuations more visible.
Basing
A technical analysis pattern that is usually at the end of a downtrend where supply equals demand. It is also referred to as the consolidation phase.
Basis Grade
It specifies the minimum acceptable quality of deliverable commodities in a futures contract.
Basis Point
The common unit used to measure changes in interest rates and bond yields.1 basis point equals 0.01%.
Bat Harmonic Pattern
A 5-point harmonic structure developed by Scott Carney, and according to him, it’s the most accurate harmonic pattern. It consists of the segments XA, AB, BC and C. Segment XA is the longest, and is retraced by segment AB between 0.382 and 0.50. The BC section retraces AB between 0.382 and 0.886. The BC projection is between 1.618 and 2.618. Point D which is the most important number in the Potential Reversal Zone, is determined by multiplying 0.886 the XA retracement.
BBA Mortgage Approvals
The number of new home loan approvals by the British Bankers’ Association (BBA) during the previous quarter.
BBB
Bond-rating that qualifies for investment.
Bear
A seller who expects the market to continue declining.
Bear Candle
A Japanese candlestick depicting the price action of a specific period where the Close price is lower than the Open price.
Bearish
A confident outlook that the market will decline.
Bearish Reversal
A chart or candlestick pattern that signifies the beginning of a downtrend.
Bearish Sentiment
The expectation that a financial instrument or market in general, will decline.
Bear Market
A declining market.
Bears Power
Developed by Dr Alexander Elder. A technical analysis oscillator which measures the difference between the lowest price of the session (i.e., candlestick) and the 13-period Exponential Moving Average of the Closing prices. It is best used with a trend indicator such as a moving average. When the trend indicator is pointing upwards and the Bears Power oscillator is below zero but rising, then it signifies a potential Buy signal.
Bear Trap
A false signal that incorrectly signal that the established uptrend is reversed.
Behavioral Finance
The study of market participants’ psychology. It claims that decision-making in the markets is not rational contrary to Efficient Market Hypothesis.
Belarusian Ruble (BYN)
The alphabetic code which represents the national currency of Belarus; the Belarusian Ruble. “BY” is the country’s code, and “N” stands for “Ruble”. The denomination of the Belarusian Ruble is 100 kopeks.
Belize Dollar (BZD)
The alphabetic code which represents the national currency of Belize; the Belize Dollar. “BZ” is the country’s code, and “D” stands for “Dollar”. The denomination of the Belize Dollar is 100 cents.
Belt Hold (bearish)
A long black candlestick body, at the end of an uptrend, with a short lower shadow and no upper shadow.
Belt Hold (bullish)
A long white candlestick body, at the end of an downtrend, with a short upper shadow and no lower shadow.
Benchmark
Usually an index such as S&P 500 or Dow Jones Industrial Average against which a portfolio performance may be measured.
Beneish M-score
A mathematical model to check the probability of the reported earnings for a company having been manipulated.
Bermudian Dollar (BMD)
The alphabetic code which represents the national currency of Bermuda; the Bermudian Dollar. “BM” is the country’s code, and “D” stands for “Dollar”. The denomination of the Bermudian Dollar is 100 cents.
Beta
A measure of the expected return of an individual share relative to the whole stock market or the S&P 500. For example, a score of 1.20 signifies an expected return of 20% higher than the whole market. On the other hand, a score of 0.70 suggests an expected return of -30%.
Bid
The price to sell the base currency of a pair or a financial instrument.
Bitcoin (BTC)
A decentralized cryptocurrency and peer-to-peer electronic cash payment system developed in 2008 and introduced in 2009 by Satoshi Nakamoto. Bitcoin does not rely on any central authority (i.e., bank) for transaction verification or currency issuance. Instead, it relies on miners to verify transactions who get rewarded by the issuance of new coins to the first to solve a mathematical/computational puzzle based on SHA256. The reward is halved every four years. All transactions are recorded on a blockchain, a global public ledger.
Bitcoin Cash
A cryptocurrency developed in 2017 by a group of programmers who issued a hard fork of the bitcoin blockchain to achieve faster transactions, lower fees and scalability.
Bitcoin Core
The bitcoin software which includes a wallet and transaction validation capabilities.
Black Box
Automated trading strategy whose logic and functionality are kept private.
Black Swan Event
An unpredictable event that is typically followed by severe consequences. It is often characterized as being extremely rare and deviating from what would typically be expected.
Block
A group of cryptocurrency transactions. Blocks are created and added to the blockchain by the winning miner who gets rewarded with a number of bitcoins.
Blockchain
A decentralized digital ledger that records transactions into blocks and links them together cryptographically to prevent modifications. It is shared and distributed to all participating computers in the network. For example, Bitcoin and Ethereum.
Block Explorer
An online tool which analyses any particular blockchain in order to provide its users all necessary information on transaction history, public addresses, cryptocurrency transactions and many more.
Block Height
The number of blocks in the chain between itself and the first block on that blockchain (genesis block or block 0).
Block Reward
The number of bitcoins awarded to the first miner that verifies the next block of transactions. The block reward is halved after the creation of 210,000 blocks, or roughly every four years.
Block Size
The number of transactions a block may store.
Blowoff
A reversal day (i.e., session, candle) at the top of an uptrend. The rapid rise in price on heavy volume during an upward price move. The candlestick records a new high followed by a lower Close. Also, known as buying climax and top reversal day.
Blowout
A reversal day (i.e., session, candle) at a bottom of a downtrend. The rapid decline in price on heavy volume during a downward price move. The candlestick records a new low followed by a higher Close. Also, known as selling climax and bottom reversal day.
Boliviano (BOB)
The alphabetic code which represents the national currency of Bolivia (Plurinational State of Bolivia); the Boliviano. “BO” is the country’s code, and “B” stands for “Boliviano”. The denomination of the Boliviano Dirham is 100 cents (or centavos).
Bollinger Bands
Developed by John Bollinger in the 1980s. A technical analysis indicator that measures volatility and price extremes. It is constructed by a Simple Moving Average (SMA) and two bands around it. The Upper Band is calculated at +2 standard deviations above the SMA, whereas the Lower Band is calculated at -2 standard deviations below the SMA.
Bollinger Bands %B
A technical analysis indicator derived from Bollinger Bands. It indicates the position of the current price in relation to the Bands. For example, a reading of 1.0 indicates that the current price is at the Upper Band. A reading higher than 1.0 implies a position above the Upper Band. Similarly, a reading of 0.0 indicates that the current price is at the Lower Band where a negative reading is below it. A reading of 0.5 positions the current price at the Simple Moving Average. The formula is as follows: (Current Price – Lower BB) / (Upper BB – Lower BB).
Bollinger Bandwidth
A technical analysis indicator derived from Bollinger Bands. It is best used to signal the beginning of a trend after the volatility has fallen to low levels. Hence, it is considered an important tool to be used with “The Squeeze”. A breakout of the Squeeze is usually accompanied by an expansion in the Bandwidth which is a good indication of a sustainable trend. Moreover, the Bandwidth may be used to spot the end of the trend. It usually flattens out while the Band opposite of the trend turns in the same direction as the direction of the trend. The formula to calculate the Bandwidth is as follows: (Upper BB – Lower BB) / Middle BB)
Bond Rating
A method of assessing the quality and default risk of a bond. The credit scores given across rating agencies range from AAA (highly unlikely to default) to D (in default).
Bonds
An asset class that is often referred to as fixed-income securities with the purpose to raise capital. Investors lend money to the bond issuer (governments and corporations) with the promise that the borrower will make interest payments (coupons) and return the principal (face value) at a predetermined date (maturity).
Bond Yield
The annual income from bond investment, usually expressed as a percentage either on the bonds face or market value.
Book-to-Market Ratio
A method to estimate a company’s value by dividing its book value (i.e., total assets – total liabilities) by its market capitalization (i.e., number of outstanding shares x market price of a share).
Book Value
The difference between a company’s total assets and its total liabilities.
Book Value per Share
A firm’s Book Value divided by the number of outstanding shares.
Bosnian Convertible Mark (BAM)
The alphabetic code which represents the national currency of Bosnia and Herzegovina; the Bosnian Convertible Mark. “BA” is the country’s code, and “M” stands for “Convertible Mark”. The denomination of the Bosnian Convertible Mark is 100 Fenings (or Pfenigs).
Bot
A web-based automated software on the internet that is programmed to carry out certain tasks such as chats, scan content or even carry out malicious activities such as content scraping and brute force password cracking.
Bottom
A price chart pattern where a downward move (downtrend or correction) is interrupted by an upward move as buyers exceed sellers.
Breakaway (bearish)
A Japanese candlestick bearish reversal pattern consisting of five candles. A long white body at the end of an uptrend is followed by an average-size white body that gaps higher. As demand is greater than supply, two more white bodies follow recording higher closes. The last candle is a long black body that fills the gap between the first and second candles signaling the end of the upward move and the beginning of a directional move to the downside.
Breakaway (bullish)
A Japanese candlestick bullish reversal pattern consisting of five candles. A long black body at the end of a downtrend is followed by an average-size black body that gaps lower. As supply is greater than demand, two more black bodies follow recording lower closes. The last candle is a long white body that fills the gap between the first and second candles signaling the end of the downward move and the beginning of a directional move to the upside.
Breakaway Gap
The completion of a basing or topping pattern is often signaled by a breakaway gap usually on heavy volume. Breakaway gaps signal the beginning of a new directional move. Usually, these gaps are not filled.
Breakout
A move out of a price pattern ideally on heavy volume to confirm the validity of the signal.
Brent Crude Oil
A type of oil that is sweet, light crude and composed of 0.37% sulfur and API gravity of 38.06. It is considered one of the most important benchmarks for pricing oil. Brent Crude is extracted from the North Sea.
Bretton Woods Agreement
An agreement created in 1944 by the US and its World War II allies. They agreed that their currencies’ exchange rate would be fixed to the US Dollar. The agreement was signed in Mount Washington Hotel, Bretton Woods, New Hampshire.
Broadening Formation
A technical analysis bearish reversal chart pattern. The broadening formation or expanding triangle usually appears at major tops. It consists of three successively higher tops and two successively lower bottoms. The violation of the lower side after the second bottom completes the pattern. It is also known as the megaphone top.
Broker
A company that provides live pricing of financial instruments and enables trade execution on behalf of traders/investors usually for a fee.
Brunei Dollar (BND)
The alphabetic code which represents the national currency of Brunei Darussalam; the Brunei Dollar. “BN” is the country’s code, and “D” stands for “Dollar”. The denomination of the Brunei Dollar is 100 cents (or sen).
Brute Force Attack
A cryptography method to decipher encrypted data such as passwords. It uses all possible combinations by “trial-and-error” until it succeeds.
Buck
The US Dollar in slang.
Building Approvals
A monthly report released by the Australian Bureau of Statistics indicating the number of new building approvals compared to the previous month.
Building Permits
A monthly report released by the Census Bureau indicating the number of authorizations to construct new housing units.
Bulgarian Lev (BGN)
The alphabetic code which represents the national currency of Bulgaria; the Bulgarian Lev. “BG” is the country’s code, and “N” stands for “Lev”. The denomination of the Bulgarian Lev is 100 stotinki.
Bull
A buyer who expects the market to continue rising.
Bull Candle
A Japanese candlestick depicting the price action of a specific period where the close price is higher than the open price.
Bullion
Pure gold or silver usually in the form of bars, ingots, and plates.
Bullish
The expectation that a financial instrument or market in general, will rise.
Bullish Reversal
A chart or candlestick pattern that signifies the beginning of an uptrend.
Bullish Sentiment
The expectation that a financial instrument or market, in general, will rise.
Bull Market
A rising market.
Bulls Power
Developed by Dr Alexander Elder. A technical analysis oscillator that measures the difference between the highest price of the session (i.e., candlestick) and the 13-period Exponential Moving Average of the closing prices. It is best used with a trend indicator, such as a moving average. When the trend indicator is pointing downwards, and the Bulls Power oscillator is above zero but declining then it signifies a potential Sell signal.
Bull Trap
A false signal that the established downtrend has reversed.
Bundesbank
The central bank of the Federal Republic of Germany.
Burundi Franc (BIF)
The alphabetic code which represents the national currency of Burundi; the Burundi Franc. “BI” is the country’s code, and “F” stands for “Franc”. The denomination of the Burundi Franc is 100 centimes.
Bushel
A unit of volume used to measure agricultural products like grains. It is equivalent to 8 gallons, or 2,219.36 cubic inches (36,375.31 cubic cm).
Business Climate
A monthly economic indicator based on a survey regarding the current business conditions and the expectations of firms for the next six months.
Business Confidence
A monthly economic indicator based on a survey regarding the expectation of firms for the next twelve months.
Business Cycle
The different phases of the economy as it expands and contracts. Namely, there are four phases: • Expansion • Peak • Contraction • Trough
Business Inventories
The total value in US Dollars of unsold goods held by manufacturers, wholesalers, and retailers compared to the corresponding figure of the previous month. Released monthly by the Census Bureau.
Butterfly Harmonic Pattern
A 5-point harmonic structure discovered by Bryce Gilmore and developed/refined by Scott Carney. It consists of the segments XA, AB, BC and CD. The segment XA is retraced 78.6% by AB. The BC section retraces AB between 0.382 and 0.886. The BC projection is between 1.618 and 2.24. Point D is determined by 1.27 multiplied by XA which is the most important number in the Potential Reversal Zone.
Buy and Hold
An investment strategy where the investor buys a number of financial instruments and keeps them for a long period of time (usually years) before selling them.
Buy Limit
A Buy order placed below the current market price. The order will be triggered when the Ask price falls at the specific price level.
Buy Order
An order to buy a financial instrument.
Buy Stop
A Buy order placed above the current market price. The order will be triggered when the Ask price equals the specific price level.
Buy Stop Limit
A Buy limit order (Stop Limit price) is placed when the Ask price reaches the specified price level (Price) above the current market price.
BW Zone
Developed by Bill Williams. A technical analysis indicator based on the philosophy that when in the “ZONE” it makes sense for aggressive traders to add to their current position. A Green Zone is defined when both the AC (Accelerator Oscillator) and the AO (Awesome Oscillator) are higher than their preceding histogram bars. Consequently, the corresponding bar on the price chart will be colored green (or blue). Similarly, a Red Zone is defined when both the AC and the AO are lower than their preceding histogram bars. Therefore, the corresponding chart bar will be colored red. A Gray Zone is defined when the AC and AO are of different colors. A Buy signal is generated when a Green Zone chart bar closes higher than the preceding Green Zone chart bar. Conversely, a Sell signal is generated when a Red Zone chart bar closes lower than the preceding Red Zone chart bar.
C
Cable
The nickname used for the GBPUSD currency pair and the British Pound. The name was derived from the transatlantic telecommunication cable between London and New York.
Cabo Verde Escudo (CVE)
The alphabetic code which represents the national currency of Cabo Verde; the Cabo Verde Escudo. “CV” is the country’s code, and “E” stands for “Escudo”. The denomination of the Cabo Verde Escudo is 100 Escudos.
Caixin Manufacturing PMI
A monthly survey based on responses to questionnaires sent to around 500 purchasing managers from private and state-owned manufacturers in mainland China (excluding Hong Kong SAR, Macao SAR and Taiwan). A reading above 50 indicates increase in demand compared to the previous month.
Call Option
A contract that entitles but does not oblige the owner to buy a financial instrument at a specified rate before the expiration date.
Camarilla Equation
A method of pivot point calculation developed by Nick Stott in 1989. The formulas yield the pivot point and four potential support and resistance levels based on the High, Low and Close prices of the previous session: R4 = Close + (High – Low) * 1.1 / 2 R3 = Close + (High – Low) * 1.1 / 4 R2 = Close + (High – Low) * 1.1 / 6 R1 = Close + (High – Low) * 1.1 / 12" PP = (High + Low + Close) /3 S1 = Close - (High – Low) * 1.1 / 12 S2= Close - (High – Low) * 1.1 / 6 S3 = Close - (High – Low) * 1.1 / 4 S4 = Close - (High – Low) * 1.1 / 2
Canadian Dollar (CAD)
The alphabetic code which represents the national currency of Canada; the Canadian Dollar. “CA” is the country’s code, and “D” stands for “Dollar”. The denomination of the Canadian Dollar is 100 cents.
Candidate Block
A temporary block created that a node is trying to mine. If successful, the miner will receive the block reward, and the block will be added to the blockchain.
Candlestick Chart
"A price charting technique attributed to Honma Munehisa, a rice market trader in 17th century Japan. He believed that candlesticks reflect the market psychology and the investors’ emotions, which are essential in forecasting the next price move. The candlesticks display the Open, High, Low, and Close price in a pictorial way. The area between the Open and Close price is known as the body or real body of the candlestick. Its color, black or white, is strictly dependent on the relation between the Open and the Close price. The crowd psychology is revealed at a glance by the color of the body. A white body is bullish meaning that the buyers are in control and the sentiment is positive. Similarly, a black body is bearish meaning that the sellers are in control and the sentiment is negative. A white body simply means that the session closed higher than the Open price. Similarly, a black body means that the session closed lower than the Open price. The price range of the specific session is indicated by the vertical line that runs through the body. The highest price reached during the session is known as the High price, whereas the lowest price reached is the Low price. In the 1980s, Steve Nison introduced the Japanese Candlesticks to the West through his book Japanese Candlesticks Charting Techniques which revolutionized chart analysis."
Capacity Utilization
A monthly report that indicates the percentage of a nation's manufacturing capacity currently in use. A high reading is good for the currency whereas a low reading is negative.
Capital Expenditure
Money spent by an organization to acquire, maintain, improve or upgrade fixed assets such as land, buildings and equipment.
Capital Gains
Profit made as a result of selling a capital asset like a property or an investment at a higher price than purchased.
Capital Loss
Loss made as a result of selling a capital asset like a property or an investment at a lower price than purchased.
Capitulation
When a large portion of investors/traders sell their assets due to fear that the price will not recover in the near future. This tends to be experienced during extended declines and panic selling.
Carbon Credit
A tradable permit that allows a country or a company to emit one ton of CO2 or equivalent of other greenhouse gasses. Any surplus in gas may be sold for profit.
Carry-over Charge
The fee incurred for the storage of physical commodities.
Carry Trade
Borrowing a currency at a low-interest rate and investing in a currency that yields higher interest.
Cash Flow
The total amount of cash a company receives and spends during a specific period.
Cash Market (Spot Markets)
A market where transactions and delivery of assets are settled immediately after the trade.
Cash Rate
A monthly (except January) report issued by the Reserve Bank of Australia that shows the interest rate that Central Banks charge commercial banks for loans.
Cash Settlement
A method in certain derivative contracts where the terms are fulfilled by cash payment instead of a physical delivery of the underlying asset.
Cayman Islands Dollar (KYD)
The alphabetic code which represents the national currency of the Cayman Islands; the Cayman Islands Dollar. “KY” is the country’s code, and “D” stands for “Dollar”. The denomination of the Cayman Islands Dollar is 100 cents.
CB Consumer Confidence
A monthly report released by the Conference Board Inc. in the Unites States that measures the consumer attitudes towards business conditions, economic activity and employment.
Centered Moving Average
A moving average method, used in cycle analysis, which places more emphasis on the center/middle of the period.
Central Bank
An independent financial institution/authority that is responsible for a nation's monetary policy, regulates the commercial banking system, and provides financial services and research. The goal of the Central Bank is to ensure the nation's currency is attractive for international trade, keep employment at high levels, set interest rates and prevent inflation.
Central Bank Intervention
The Central Bank may sometimes intervene in the foreign exchange market by selling or buying its currency when the actual exchange rate is overvalued, thus jeopardizing its competitiveness. Alternatively, if the exchange rate is undervalued, it leads to unsustainable growth and inflation. Additional reasons include adequate liquidity, accumulation of reserves, and controlled exchange rate volatility.
Certificate of Deposit (CD)
A certificate of a low-risk investment with a fixed interest rate and maturity. Usually, offered by banks where the client agrees to keep an amount of funds in an account for a fixed period of time in return for a higher interest compared to a savings account.
CFA Franc BCEAO (XOF)
The alphabetic code which represents the official currency of West African countries: Benin, Burkina Faso, Cote D'Ivoire, Guinea-Bissau, Mali, The Niger, Senegal and Togo; the West African CFA Franc. “XO” is the countries' code, and “F” stands for "Franc". The denomination of the West African CFA Franc is 100 centimes.
CFA Franc BEAC (XAF)
The alphabetic code which represents the official currency of the six independent states of Central Africa: Cameroon, The Central African Republic, Chad, Republic of Congo, Equatorial Guinea and Gabon; the CFA Franc. “XA” is the countries' code, and “F” stands for "Franc". The denomination of the CFA Franc is 100 francs.
CFP Franc (XPF)
The alphabetic code which represents the official currency of French Polynesia, New Caledonia, Wallis and Futuna; the CFP Franc. “XP” is the countries’ code, and “F” stands for "Franc". The denomination of the CFP Franc is 100 francs.
Chaikin Oscillator
A momentum oscillator developed by Marc Chaikin. It displays the difference between the 3 and 10-day EMA of the Accumulation/Distribution indicator. A cross above zero is considered a potential Buy signal where a cross below the zero-line is a potential Sell signal.
Channels
A technical tool used to analyse and forecast future price moves based on historical and current data. It consists of two parallel lines, basic and return/channel line, that act as potential support and resistance levels. When the price reaches the lower line, a rally to the upper parallel line is expected. Hence, a potential Buy order may be in place. Similarly, when the price reaches the upper parallel line a decline in price is expected to follow with a potential Sell trade in place. When the price breaks out of the channel, it is expected to move at least a distance equal to the width of the channel.
Chart
It displays historical and current prices of a financial instrument. Popular chart types include the Japanese Candlesticks, the Bar and the Line chart.
Chartist
A trader whose main tool used for analysis and forecasting is the price chart and chart patterns.
Chicago Board of Trade (CBOT)
Founded in 1848, it is the first grain futures exchange in the United States which eventually became one of the largest futures markets in the world. In 2007, CBOT merged with CME Group with CBOT bringing a suite of interest rates, agricultural and equity index products.
Chicago Board Options Exchange (CBOE)
Founded in 1973 by CBOT, it is the first exchange to list standardized, exchange-traded stock options. CBOE offers trading across a diverse range of products, including options, futures, US and European equities, exchange-traded products, global FX, and multi-asset volatility products.
Chicago Mercantile Exchange (CME)
One of the largest futures and options exchanges.
Chicago PMI
A monthly survey released by ISM-Chicago, Inc., where 200 purchasing managers are asked to give their view about the relative level of business conditions. The respondents share their opinion about employment, production, new orders, prices, supplier deliveries, and inventories. A reading above 50 is good for the economy where a reading below 50 indicates contraction.
Chilean Peso (CLP)
The alphabetic code which represents the national currency of Chile; the Chilean Peso. “CL” is the country’s code, and “P” stands for “Peso”. The denomination of the Chilean Peso is 100 centavos.
Chinese Yuan Renminbi (CNY)
The alphabetic code which represents the national currency of the People’s Republic of China; the Chinese Yuan Renminbi. “CN” is the country’s code, and “Y” stands for “Yuan”. The denomination of the Chinese Yuan Renminbi is 10 jiao and 100 fen.
Choppy Market
A term used to describe a market where prices move up and down without following any specific trend.
Cipher
A tool used to encrypt a message or decrypt it back to the original. This process typically involoves the use of a combination of cryptographic keys (public, private), which determines whether a symmetric or asymmetric cipher algorithm will be used.
Circulating Supply
The global confirmed quantity of cryptocurrency coins or tokens that are publicly available and circulating in the market.
Claimant Count - UK
An important economic indicator that measures the number of people claiming unemployment benefits in the UK. It is published on a monthly basis by the UK's Office of National Statistics.
Cleared Funds
Funds available for immediate use.
Clearing
The process of trade settlement. It is the effective time when the financial instrument and the funds are transferred between the buyer and the seller.
Client Terminal
A section of the MT4 trading platform where traders have the option to receive incoming prices, place and manage orders, perform technical analysis, code, backtest and optimize expert advisors, and develop indicators and scripts.
Closed Position
Indicates a completed transaction, regardless of profit or loss.
Closing Market Rate
The last price of an asset traded during a trading day.
Closing Price
The last traded price during a specific timeframe.
CME Group
The world's largest derivatives exchange based in the United States of America.
Collateral
An asset that serves as a guarantee for the lender in case the borrower fails to repay his loan.
Colombian Peso (COP)
The alphabetic code which represents the national currency of Colombia; the Colombian Peso. “CO” is the country’s code, and “P” stands for “Peso”. The denomination of the Colombian Peso is 100 pesos.
Commission
A fee incurred by the trader for the transactions made via a brokerage.
Commodities Futures Trading Commission (CFTC)
An independent regulatory body in the United States of America that regulates the US derivative markets which consist of futures, options, swaps, etc. It was created in the year 1974.
Commodity
A financial instrument either of natural resource or agricultural product. It is an alternative financial instrument to diversify an investment portfolio.
Commodity Block Currency
Currency of a country that has a strong correlation with a specific commodity. For example, the Australian Dollar has a strong correlation with iron-ore, and the Canadian Dollar has a strong correlation with crude oil.
Commodity Channel Index (CCI)
An unbounded oscillator developed by Donad Lambert. It displays the normalised difference between the typical and average price. Trading signals are usually derived when the indicator crosses a certain threshold, typically -100 and +100. However, these thresholds can be adjusted to compensate for volatility.
Commodity Exchange (COMEX)
A legal entity that enforces rules and procedures for trading commodity contracts. Since commodities are part of a centralised market, it also refers to the physical centre where trading occurs.
Comorian Franc (KMF)
The alphabetic code which represents the national currency of Comoros; the Comorian Franc. “KM” is the country’s code, and “F” stands for “Franc”. The denomination of the Comorian Franc was 100 centime.
Concealing Swallow
"The Concealing Swallow is a four-line Japanese candlestick pattern which is indicative of a bearish reversal. First, a black marubozu candle in a downtrend is formed, followed by a second black marubozu candle which opens within the prior candle's body and closes below the prior closing price. The third candle has a smaller body which gaps below the prior closing price to form a new low, but also has a long upper shadow that extends into the previous body. The fourth candle is a long black candle that engulfs the third candles range, (body and shadow included) thus recording a new low."
Confirmation
A method in technical analysis to establish the reliability of a trading setup using the price. For example, a breakout to the upside on a long bullish candlestick will be more reliable compared to a Doji.
Congolese Franc (CDF)
The alphabetic code which represents the national currency of the Democratic Republic of Congo, the Congolese Franc. “CD” is the country’s code, and “F” stands for “Franc”. The denomination of the Congolese Franc is 100 centimes.
Consumer Price Index (CPI)
An economic indicator that measures the average price change of a basket of consumer goods and services. It is a tool that is used to identify periods of inflation.
Continuing Jobless Claims
An economic report that states the number of unemployed individuals that are receiving unemployment benefits. An increase in numbers may have a negative effect on the US Dollar, while a decrease is considered positive.
Contract for Difference (CFD)
A financial derivative that reflects the prices of the underlying asset. A CFD instrument is a contract (or agreement) between the broker and the trader to pay the difference between the Open and the Close price of the trade. This allows the trader to open both a Buy and a Sell trade as the CFD is based on the speculation of whether the trader believes the price of the underlying instrument will rise or fall.
Contract Month
The expiry date of a future contract.
Contract Months Code
Defined by the CME group as follows: January February March April May June July August September October November December
Contrarian Trading
An investment style based on the belief that if the majority of the market participants are in agreement regarding the direction of the market, then they are probably wrong. For example, a contrarian would buy when the majority of the traders/investors are short and sell when they are long.
Control Points
A method or type of modeling when backtesting an expert advisor on the MT4 platform. It is a crude estimate of expert advisors backtesting based on the nearest timeframe.
Core Consumer Price Index
An economic indicator, released monthly by the Bureau of Labor Statistics, which measures the average price change of a basket of consumer goods and services, excluding food and energy. It is a tool that is used to identify periods of inflation. A high figure is good for the currency, while a low figure is bad for the currency.
Core Durable Goods Orders
An economic report which measures the change of overall value of new orders of manufacturing goods that have a minimum expected useful life of three years, excluding transportation equipment. It is an important economic indicator for investors and economic policy makers.
Core Personal Consumption Expenditures
A monthly economic report, issued by the Bureau of Economic Analysis, which measures the prices paid by consumers for durable goods, products and services, excluding food and energy. A high figure is good for the currency, while a low figure is bad for the currency.
Core Retail Sales
A monthly economic report, issued by the US Census Bureau, which measures the change in retail spending, excluding automobiles.
Correction (Retracement)
A term used to refer to a temporary price move in the opposite direction only to resume in the direction of the trend.
Corrective Wave
Price move against the prevailing trend. For example, in Elliott Wave Theory, waves 2, 4 and A-B-C.
Costa Rica Colon (CRC)
The alphabetic code which represents the national currency of Costa Rica; the Costa Rica Colon. “CR” is the country’s code, and “C” stands for “Colon”. The denomination of the Costa Rica Colon is 100 centimos.
Cost of Living Index
An economic index used to compare the cost of living in different countries, estimating the costs of basic necessities such as groceries, healthcare, housing, and others.
Counterattack Lines
In trading, "counterattack lines" refer to a candlestick pattern that indicates a potential reversal in market direction. This pattern occurs when a long bullish (green) candle is followed by a long bearish (red) candle that completely engulfs the previous bullish candle. This suggests that bears have gained control and are pushing prices lower, and that a potential trend reversal may be imminent. Counterattack lines are considered to be a strong reversal pattern, and traders often use them as a signal to exit long positions or to initiate short positions. However, like all trading patterns, it's important to consider other technical and fundamental indicators before making trading decisions based solely on counterattack lines.
Counter Currency
The second currency in a pair. Also, known as the quote currency.
Coupon Rate
The annual interest that an investor may receive as income for fixed-income securities, such as bonds.
Cover
A buy order used to close an existing sell (short) position.
Cross Rate
A foreign exchange rate between two currencies that do not involve the US Dollar.
Crude Oil
Crude oil is a natural unrefined petroleum found in liquid form in geological formations beneath the earths’ surface. Its major components are hydrocarbons, organic compound as well as metals. Crude oil can be further refined into various forms of fuel.
Crude Oil Inventories
Crude oil inventory which is released weekly by the Energy Information Administration (EIA). It measures the change in crude oil barrels, including those held at refineries, pipelines, and lease tanks and on transit.
Cryptocurrency
A digital currency designed to work as a medium of exchange, operating independently of the traditional banking system. Cryptocurrency transactions are stored on a distributed, decentralized general ledger known as a blockchain.
Crypto Wallet
An online wallet that serves as a means of accessing one's cryptocurencies and tokens on the blockchain. Contratry to traditional wallets they do not store currencies per se, but rather pairs of digital keys (public and private). The public key is needed to generate wallet addresses to receive payments. On the other hand, private keys are used not only to send cryptocurrencies, but also for the creation of digital signatures and transaction verification. There are three main types: software, hardware and paper wallets.
Cuban Peso Convertible (CUC)
The alphabetic code which represents the national currency of Cuba; the Cuban Peso Convertible. “CU” is the country’s code, and “C” stands for “Convertible Peso”. The denomination of the Cuban Peso Convertible is 100 centavos.
Currency
A currency is a monetary unit in paper, metal or digital form, used as a medium of exchange.
Currency Appreciation
When the value of a specific currency increases against another currency.
Currency Futures
An agreement whereby an asset is agreed to be bought or sold at a predetermined price and date in the future.
Currency Pair
A combination of two currencies that forms a tradable pair. For example, Euro and the US Dollar would form the EURUSD currency pair.
Currency Peg
A government policy set to fix (peg) the local currency exchange rate to that of another currency.
Current Account
A country’s net flow of imports and exports of goods and services, as well as any cross-border transactions with other countries. A surplus in the current account is considered good for the country’s currency.
Cycle Lines
A technical analysis tool that plots equidistant vertical lines on the price chart to forecast future turning points (cycles).
Cyclic Principles
Cycle Theory is based on the following principles: Summation – Price movement is the sum of all active cycles. Harmonicity – Neighboring (cycle) waves are related by the number 2 (i.e., double or half) Synchronicity – Cycle waves of different lengths tend to bottom at the same time. Proportionality – Cycles with longer time spans (periods) should have proportionally higher amplitudes. Variation – states that the previous principles are just tendencies as opposed to hard rules. Nominality – A set of harmonically related cycles affect all markets.
Cyprus Securities and Exchange Commission (CySEC)
CySEC is the financial regulatory authority of Cyprus, governing the local investment services sector and supervising market transactions in transferable securities.
Czech Koruna (CZK)
The alphabetic code which represents the national currency of the Czech Republic; the Czech Koruna. “CZ” is the country’s code, and “K” stands for “Koruna”. The denomination of the Czech Koruna is 100 CZK.
D
Daily Chart
A graphical representation of the daily price movement of a financial instrument.
Dalasi (GMD)
The alphabetic code which represents the national currency of Gambia; the Dalasi. “GM” is the country’s code, and “D” stands for “Dalasi”. The denomination of the Dalasi is 100 bututs.
Danish Krone (DKK)
The alphabetic code which represents the official currency of Denmark, Greenland and the Faroe Islands; the Danish Krone. “DK” is the country’s code, and “K” stands for “Krone”. The denomination of the Danish Krone is 100 øre.
Dapps
Decetralized applications that run on blockchains such as Ethereum. They are user-controlled and not regulated by any central authority. Access is based on cryptogtraphic tokens while generation of new tokens relies on a consensus mechaninsm such as proof of stake. They can be used for different purposes including gaming, finance, social media, and many more.
Dark Cloud Cover
A Japanese candlestick formation which consists of two candles that are formed during an uptrend. A long black candle that opens above the prior high eventually closes below the mid-point of the previous long white body signaling a potential reversal to the downside.
Dash
An open-source cryptocurrency forked from the Litecoin protocol. It was launched in 2014 and authored by Evan Duffield. It is an altcoin that is used to send and receive payments. The maximum number of Dash coins that can be issued is 18,921,005.
Data Window
A window in MetaTrader 4 and MetaTrader 5 trading platforms that displays information about a specific candlestick such as the date, price (OHLC), the corresponding volume, indicators and oscillators.
Date and Price Range
A tool on the NAGA Web Trader that puts together the information of the Date Range and the Price Range tools. To apply this tool on the price chart simply select the corresponding tool from the Positions Menu. Two points are needed. Click on the first point on the price chart to mark the beginning of the range and then drag it diagonally upwards or downwards to mark the end of the specific range. The X-axis is highlighted to display the date range while the Y-axis displays the price range. Additionally, the number of bars between the 2 points is calculated as the time elapsed. The price difference between the 2 points is estimated in terms of the assets price, the percentage change and finally in points.
Date Range
A tool on NAGA Web Trader that helps count the number of bars between two points and the time elapsed, it also displays the date range on the X-axis including the start date and the ending date of the range. To apply this tool on the price chart simply select the corresponding tool from the Positions menu, click on the first price and then drag it to the right to mark the end of the date range.
DAX
The German Stock Index (Deutscher Aktien Index) comprised of the 40 largest companies by market capitalization traded on the Frankfurt Stock Exchange. It is used to gauge the health of the Stock Exchange and the German Economy.
Day Trade
A trade that is not kept open overnight. Rather, it is opened and closed within the same day.
Dead Cat Bounce
A short bounce-up of a financial instrument during a downtrend. It stems from the idea that even a dead cat will bounce up if it falls from a big height.
Death Cross
A technical analysis signal for a potential reversal to the downside when a short-period moving average crosses below the long-period moving average.
Decentraland
A virtual 3D world on the metaverse, built on the Ethereum blockchain, which is governed by its "community". Users can buy land, join 3D events, and monetize their creations with Decentraland's native NFTs and crypto (MANA).
Decentralized Autonomous Organization (DAO)
A system of predefined rules that determines the course of action of a decentralized organization.
Decentralized Exchange (DEX)
A cryptocurrency exchange which facilitates trading on a decentralized peer-to-peer network without the need of intermediaries. Users trade directly from their wallets, instead of relying on a central authority.
Decentralized Finance (DeFi)
A decentralized ecosystem of financial tools and services built on blockchain networks, eliminating the need for a central regulator. These include DAOs, flash loans, and smart contracts among many others.
Deep Web
A hidden section of the world wide web containing sites that are not indexed on standard search engines like Google or Yahoo. It is accessible only through a specialized web browser.
Default
A term in finance used to refer to the failure of fulfilling legal obligations of a loan.
Deflation
A decline in the price of goods and services due to a decrease in demand and money supply.
Deliberation
A three-candlestick reversal pattern consisting of three white bodies at the end of an uptrend, each closing higher than the previous. The first two candles have a long white real body while the third has a shorter body. The third candle is a Spinning Top or Doji which gaps above the second candlestick indicating indecision or the weakness of the bulls to pull prices higher. The occurrence of the pattern in an uptrend signals a potential bearish reversal.
DeMarker Oscillator
A technical analysis oscillator developed by Thomas DeMark used to determine overbought and oversold levels in the market. A reading above 0.7 signals overbought conditions, while a reading below 0.3 oversold conditions. The formula is calculated as follows: DeMax (n) = High (n) – High (n-1) provided the difference is positive, otherwise, DeMax = 0. Also, DeMin (n) = DeMin (n) – DeMin (n-1) provided the difference is negative, otherwise DeMin = 0. Finally, DMark (n) = SMA (DeMax, n) / (SMA (DeMax, n) + SMA (DeMin, N)).
Demo Account
A practice account that gives a trader the opportunity to explore the markets and practice trading with virtual money.
Denar (MKD)
The alphabetic code which represents the national currency of the Former Yugoslav Republic of Macedonia; the Denar. “MK” is the country’s code, and “D” stands for “Denar”. The denomination of the Denar is 100 denis.
Depreciation
A decrease in the value of an asset over time.
Depression
A prolonged downturn in the economy where the GDP declines more than 10%.
Depth of Market
A list of pending Buy and Sell orders that are updated in real-time by the trading platform.
Descending Triangle
A variation of the symmetrical triangle that usually appears in a downtrend which is mostly considered as a bearish continuation pattern. It consists of two trendlines where the upper trendline is sloping downwards while the lower trendline is flat. The descending triangle is completed on a decisive close below the lower trendline on increased volume. The minimum price target is estimated by projecting the height of the triangle downwards from the breakout point.
Detrended Price Oscillator (DPO)
A technical analysis oscillator developed to detach the trend from the prices. It is done by dividing the prices by a moving average to reveal the corresponding cycle. The resulting chart will consist of points oscillating above and below the zero line. The points above will correspond to the cycle's crests where the points below the zero line will reflect the cycle troughs.
Difficulty
In terms of cryptocurrency, it refers to the time and computing power required to mine a block. Proof-of-work blockchains set up rules that adjust the difficulty depending on the amount of computing power on the network. This process maintains the the mining time at roughly at 10 minutes per block.
Diorama
A 3D model of a particular place or scene. Examples of dioramas can be museums, parks, battlefields, etc.
Directional Indicator
Two of the lines in the Average Directional Movement Index (ADX) are namely the plus Directional Indicator (+DI) and the minus Directional Indicator (-DI). A potential Buy signal is generated when the +DI crosses above the -DI. Conversely, a potential Sell signal is generated when the -DI crosses below the +DI.
Direct Quote
The exchange rate of a currency pair in terms of the foreign currency. It states how many units of the base currency are needed to purchase a unit of the foreign currency. For example, in Europe, the Euro represents the domestic currency whereas the US Dollar is the foreign currency. So, the direct quote would be USDEUR = 0.87280.
Discretionary Trading
A trading style that is based on intuition, experience and personal judgment. Emotional control is crucial to success when trading following this method.
Disjoint Angle
A technical tool on NAGA Web Trader to draw a Megaphone or Broadening formation. To draw it, simply select the Disjoint Angle tool from the Line Studies menu, then click on the first top, drag the tool to the right to pass through the second and click on the third top. Eventually, drag the tool down to include the two successive bottoms.
Divergence
A disagreement in the direction between the price and the oscillator. It is usually an early indication of a potential reversal of the predominant trend. A divergence is indicated in an uptrend when the price registers higher tops, while the oscillator displays lower tops. Similarly, in a downtrend, a divergence is spotted when the price registers lower bottoms, while the oscillator displays higher bottoms.
Dividend
A part of a company’s profits distributed to its shareholders.
Djibouti Franc (DJF)
The alphabetic code which represents the national currency of Djibouti; the Djibouti Franc. “DJ” is the country’s code, and “F” stands for “Franc”. The denomination of the Djibouti Franc is 100 centimes.
Dobra (STD)
The alphabetic code which represents the national currency of Sao Tome and Principe; the Dobra. “ST” is the country’s code, and “D” stands for “Dobra”. The denomination of the Dobra is 100 centimos.
Dogecoin
An open-source cryptocurrency created by Billy Markus and Jackson Palmer. It was forked from Litecoin and launched in 2013. It is considered an altcoin that features the image of the Shiba Inu dog on its logo.
Doji
A Japanese candlestick formation consisting of one candlestick with equal, or almost equal opening and closing prices. It signals indecision in the market.
Doji Star
A bullish Japanese candlestick formation consisting of two candlesticks. During the course of a downtrend, a long black candle is followed by a Doji that gaps lower. The weakness of the sellers to push the prices substantially lower signals a potential reversal to the upside.
Dominican Peso (DOP)
The alphabetic code which represents the national currency of the Dominican Republic; the Dominican Peso. “DO” is the country’s code, and “P” stands for “Peso”. The denomination of the Dominican Peso is 100 centavos.
Donchian Channel
A technical analysis tool developed by Richard Donchian. The channel is drawn between the highest and lowest price of the last n periods. It is used to gauge volatility, possible support and resistance levels, as well as breakout levels.
Dong (VND)
The alphabetic code which represents the national currency of Vietnam; the Dong. "VN" is the country's code, and "D" stands for "Dong". The denomination of the Dong is 100 Dongs.
Double Bottom
A popular chart pattern in technical analysis that is formed during the course of a downtrend signaling a potential reversal to the upside. The presence of a bottom that fails to move lower than the previous bottom and a price exceeding the last top signals the end of the downtrend and the early stages of a new trend in the opposite direction.
Double Crossover (Double Moving Average)
A trading system based on two moving averages, one for a long period and the other for a short period. When the shorter period moving average crosses above the longer period, a potential Buy signal is in place. Similarly, when the short period moving average crosses below the long period moving average, a potential Sell signal is in place.
Double Exponential Moving Average (DEMA)
Developed by Patrick Mulloy and introduced to the investment/trading community in 1994, it is a technical analysis indicator that places more weight on recent prices in order to reduce the lag associated with moving averages. The formula for n periods is: DEMA(n) = ( 2 * EMA(n)) - (EMA(EMA(n)) )
Double Spending
When a certain amount of coins are spent more than once. This happens when a group of miners gain control of the majority of the nodes (i.e. 51% attack) in order to defraud it.
Double Top
A popular chart pattern in technical analysis that is formed during the course of an uptrend signaling a potential reversal to the downside. The presence of a top that fails to move higher than the previous top and the price declining below the last bottom signals the end of the uptrend and the early stages of a new trend in the opposite direction.
Dovish
A term used to describe the tone of the Federal Open Market Committee (FOMC) members that tend to have a preference for lowering interest rates, encouraging job and economic growth by increasing the money supply in the economy.
Dow Jones Industrial Average (DJIA)
A stock market index that tracks the performance of the 30 largest companies listed on the NYSE.
Downside Gap Three Methods
A Japanese candlestick formation consisting of three candles. The first candle is long with a black real body that is formed during a downtrend. The second candle is also long with a black body that gaps below the first one thus confirming the downward direction. The third candlestick has a white body that opens within the body of the second candle and fills the gap created between the first two candles. The pattern indicates a possible bearish continuation.
Downside Tasuki Gap
A Japanese candlestick formation consisting of three candles. The first candle is long with a black real body that is formed during a downtrend The second candle is also long with a black body that gaps below the first one thus confirming the downward direction. The third candlestick has a white body that opens within the body of the second candle and closes in the gap created between the first two candles. The pattern indicates a possible bearish continuation.
Downtrend
A series of successively lower tops and lower bottoms.
Downtrend Channel
A technical analysis tool used in a downtrend. It is plotted by drawing a trendline (basic) connecting the tops of the downtrend, and a parallel trendline (return or channel) connecting the bottoms. These lines can act as support and resistance. The basic trendline may be used to open potential Sell orders while the return line may be used as a potential profit level.
Dow Theory
Editorials in the Wall Street Journal written by Charles Dow based on his observations of recurring behaviors in the stock market and the movement of the industrial and railroad averages. The first attempt to formulate Dow's observations into a theory is attributed to S. A. Nelson in his 1902 book The A B C of Stock Speculation. The theory is based on the following premises: 1. The averages discount everything. 2. The market has three trends. 3. Primary trends have three phases. 4. The industrial and railroad averages must confirm each other. 5. The volume must confirm the trend. 6. The trend remains valid until a definite reversal signal occurs.
Dragonfly
A Japanese candlestick pattern that has a long lower shadow with very little or no upper shadow, and a relatively equal open and closing price near the high.
Drawdown
The drop from a peak to a trough in a trading account’s equity. It is an important measure to assess the performance of a trading system. A system that has minor or moderate levels of drawdown is considered to be attractive.
Dumpling Tops
A Japanese candlestick formation consisting of multiple candles. It is formed during the uptrend. A group of short-bodied candles at the end of an upward move indicates low volatility and indecision among traders. The presence of a long black body that gaps lower signals the end of the uptrend and the beginning of a downtrend. The formation indicates a possible bearish reversal.
Durable Goods
Consumer goods that do not wear out quickly and do not have to be purchased frequently. For example, refrigerators, computers, televisions, etc.
Durable Goods Orders
A monthly survey that is conducted by the US Census Bureau, which measures the change in factory orders for durable goods. An Increase in demand is considered good for the economy.
E
Earnings
A company's net income.
Earnings per Share (EPS)
An important ratio used by many investors before buying a share. The higher the ratio, the better. It is calculated as the company's net income divided by the number of outstanding shares.
Eastern Caribbean Dollar (XCD)
The alphabetic code which represents the official currency of the Organization of Eastern Caribbean State: Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines; the Eastern Caribbean Dollar. “XC” is the countries' code, and “D” stands for "Dollar". The denomination of the East Caribbean Dollar is 100 cents.
EBITDA
A metric of a company's financial performance. It denotes earnings before interest, taxes, depreciation and amortization.
Eclipse Attack
Refers to an attack that involves a malicious interferance with network nodes to obsucre the participants' view of the peer-to-peer network and feed them incorrect data. The goal is to cause general disruption, potentially paving the way for more sophisticated attacks and fraudulent acts such as double spending.
ECN Broker
A broker who promotes the exchange of financial products outside traditional stock exchanges, by providing their clients direct access to liquidity providers over an Electronic Communications Network (ECN). A transaction cost is usually charged by ECN Brokers.
Economic Bubble
The rise of a financial instrument to price levels that are not supported by its fundamentals.
Economic Growth
Increase in a nation's quantity of goods and services produced.
Economic Sentiment Indicator
A report that monitors the growth of member states of the European Union. The indicator is a survey carried out on different sectors such as construction, services, industry, consumers, retail, and consumption. A reading above zero is thought to be good for the euro.
Efficient Market Hypothesis
It states that the market incorporates all the information available and is priced correctly. Hence, there is no room for any trading strategy to use but the buy-and-hold.
Egyptian Pound (EGP)
The alphabetic code which represents the national currency of Egypt; the Egyptian Pound. “EG” is the country’s code, and “P” stands for “Pound”. The denomination of the Egyptian Pound is 100 piastres, and 1000 milliemes.
Elliott Wave Theory (Wave Principle)
Developed by Ralph Nelson Elliott in the 1930s, this technical analysis technique uses wave theory to predict possible price behavior. The most basic idea is that the market follows a pattern of three impulse waves labelled 1, 3 and 5, with two corrective waves (counter-trend direction) in between hence a 3-wave correction named A-B-C. The complete cycle is made up of 8 waves in total.
El Salvador Colon (SVC)
The alphabetic code which represents the national currency of El Salvador; the El Salvador Colon. “SV” is the country’s code, and “C” stands for “Colon”. The denomination of the El Salvador Colon is 100 centavos.
Emerging Markets
Economies that have similar characteristics as the developed or advanced economies but are still not fully meeting their standards.
Empire State Manufacturing Index
A survey that is carried out by the Federal Reserve Bank of New York on about 200 manufacturing executives. The index reflects activity in the manufacturing sector of the state economy. The report is released every month and the survey covers factors such as new orders, capital investment, employees, etc. A higher-than-expected reading is good for the US Dollar where a lower-than-expected reading is considered bearish.
Employment Change
The difference between the number of new jobs created and the number of jobs that were lost on a monthly basis. Higher employment is seen as a positive indicator as more people are receiving regular income which will boost consumer spending. On the contrary, low employment levels are considered as a negative indicator that will lead to a decrease in consumer spending and a slowdown in economic growth.
Employment Cost Index
A measure of the changes in total employee compensation on a quarterly basis. An increase in the employment cost index is likely to lead to high inflation levels and vice versa.
Engulfing Pattern (Bearish)
A Japanese candlestick pattern signaling a possible bearish reversal. This pattern is formed by two candlesticks during an uptrend or at a resistance area. A Bearish Engulfing Pattern is formed by a small bullish candle followed by a big bearish candle. The body of the bearish candle completely contains (engulfs) the body of the small bullish candle.
Engulfing Pattern (Bullish)
A Japanese candlestick pattern signaling a possible bullish reversal. This pattern is formed by two candlesticks during a downtrend or at a support area. A Bullish Engulfing Pattern is formed by a small bearish candle followed by a big bullish candle. The body of the bullish candle completely contains (engulfs) the body of the small bearish candle.
Envelopes
The envelope is a technical indicator that consists of an upper and a lower band. The upper band is defined by a Simple Moving Average shifted upwards at a fixed percentage where the lower band is formed by shifting the moving average downwards at the same fixed percentage. A bullish bias is in view when the price reaches the lower band, while a bearish bias is considered when the price reaches the upper band. The upper and lower bands also signify extreme prices.
Equidistant Channel
A technical tool used on the price chart to find up or down trending markets. It’s formed by two parallel trend lines with equal distance apart.
Equity
It refers to ownership of a financial asset.
Equivolume
Developed by Richard W. Arms, Jr., it’s a price charting technique that combines price and volume data in a single, easy to interpret, visual manner by drawing boxes. The boxes have three components, namely the High price, Low price and Volume. A wide box signifies "heavier" volume where a thin box indicates "light" volume. The width of the box is derived from the volume for a specific period.
ERC-20
Abbreviation for "Ethereum Request for Comment 20", it is the technical standrad for tokens issued on the Ethereum blockchain. It is used to determine the function of all tokens created on the Ethereum blockchain and acts as a set of guidelines for the execution of their functionalities. The ERC-20 facilitates token transfers across different accounts, collects data on the current token balance of any particular account as well as the total supply of the tokens on the network. Also, it reviews and approves spending requests made by third party accounts.
ERC721
The technical standard for creating non-fungible tokens (NFTs) native to the Ethereum blockchain. While the standard is the same for all NFTs, each NFT is unique and may hold different value depending on its age, rarity, etc. The ERC721 facilitates the execution of the NFT functions including gathering account, ownership, balance, and supply data. Additionally, it enables NFT transfers of ownership from one holder to another.
Eritrean Nakfa (ERN)
The alphabetic code which represents the national currency of Eritrea; the Eritrean Nakfa. “ER” is the country’s code, and “N” stands for “Nakfa”. The denomination of the Nakfa is 100 cents.
Ether
The native cryptocurrency of the Ethereum platform.
Ethereum (ETH)
A decentralized, open-source blockchain, similar to Bitcoin which may be used to create and circulate smart contracts in a peer-to-peer network without the intervention of intermediaries. Ethereum was invented in 2013 by programmer Vitalik Buterin and was subsequently released in July 2015. Ether is awarded to miners when verifying transactions.
Ethiopian Birr (ETB)
The alphabetic code which represents the national currency of Ethiopia; the Ethiopian Birr. “ET” is the country’s code, and “B” stands for “Birr”. The denomination of the Ethiopian Birr is 100 santim.
Euro (EUR)
The alphabetic code which represents the official currency of the European Union; the Euro. The denomination of the Euro is 100 cents.
European Central Bank (ECB)
One of the world's most important central banks that is responsible for the governing of monetary policies within the Eurozone. The ECB was established in 1998 as the bank for the Euro, headquartered in Frankfurt, Germany.
Eurozone
The monetary union of 19 member states that have adopted the Euro as their sole legal tender and primary currency.
Evening Doji Star
A pattern of three Japanese candlesticks that signals a possible bearish reversal. It is formed during an uptrend or near a resistance area. A long bullish candle confirms the direction of the prevailing trend, followed by a Doji that gaps up. Subsequently the third candle gaps lower and eventually closes well within the first candle’s real body.
Evening Star
A bearish reversal candlestick pattern that is formed at the top of an uptrend or near a resistance area. It consists of three Japanese candlesticks. The first candle, a long white body, forms in the direction of the trend confirming the buyers’ pressure. Subsequently, a small body of either color gaps higher. Eventually, a bearish candle closes below the midpoint of the first candle indicating a potential decline.
E-wallet
An online account used to connect individual's personal banking and cryptocurrencies. E-wallets can also offer other services depending on the provider.
Exchange Execution
Order execution setting available on MT5. Trade instructions are sent to an external trading system/liquidity provider and executed at current market prices.
Exchange Rate (Rate)
The rate at which a nation's currency can be exchanged for another currency. In simple terms, it is the number of units required of one currency to purchase one unit of another currency.
Exchange Traded Funds (ETF)
An Exchange Traded Fund (ETF) is a type of pooled investment security that operates much like a mutual fund that allows several investors to put together sums of money into a collective scheme spread across many investment assets. ETFs are baskets of financial instruments ranging from stocks, bonds, precious metals, and other assets. They mimic the performance of the underlying index whereas actively managed ETFs attempt to outperform the underlying index. For example, an ETF that tracks the performance of the Dow Jones Industrial Average Index will consist of the same shares, of the thirty large companies listed at the NYSE, in the same proportions. ETFs are traded on the stock exchange just like stocks, usually through brokers or online trading platforms. Investors find them attractive as the funds track world-known indices such as S&P 500, offer low operating costs, trade on margin, and offer the potential to profit from both rising and declining markets.
Ex-dividend Date
On or after the ex-dividend date, a stockholder will not receive the next dividend.
Execution
Takes place when a Buy or Sell order is filled in the market.
Exhaustion Gap
It usually occurs at the end of an existing trend which can either be bullish or bearish. It indicates the final attempt to get to new highs or new lows.
Existing-Home Sales
It is a measure of the monthly sales of existing single-family homes published by the NAR (National Association of Realtors). It is considered as a lagging indicator because most home sales deals are closed using mortgages, requiring more time to process the purchase contracts.
Expert Advisor (EA)
Expert Advisors or experts, for short, are computer programs written in MQL4/5 language that can perform trading instructions automatically and without any human intervention. The typical tasks would consist of analysis and calculations, followed by trading operations (Buy/Sell), as well as trade management (take profit, trailing stops, etc.)
Exponential Moving Average (EMA)
Exponential Moving Average or EMA, for short, calculates the average of a predetermined period on a price chart and lays more emphasis and weight on the most recent price. Furthermore, it includes all available historical data in its calculation. Like all other Moving Average methods, it is a lagging indicator.
Exposure
The amount of money at which an investment is faced with risk.
Ex-rights Date
The date following which the owner of a share does not have the right to purchase additional shares at a predetermined price is known as the exercise price.
F
Factory Orders
A survey released by the US Census Bureau, indicating the changes in the production levels of an economy. The report is comprised of data for durable and non-durable goods orders. Traders pay attention to this report, as it provides insights into future growth. Increased figures are good for the economy whereas lower figures hint at a slow-down in the economy.
Failure Swing
During the course of an uptrend, the last top fails to exceed the previous top as the buyers show signs of weakness to maintain the upward direction. What follows is the price falling below the current bottom thus signaling a failure swing reversal to the downside. Similarly, a failure swing to go long is formed during a downtrend where the last bottom fails to fall below the previous bottom and prices swing direction exceeding the current top.
Fair Value
The current price of a financial instrument as is determined by both the buyer and seller’s willingness to transact with each other.
Falkland Islands Pound (FKP)
The alphabetic code which represents the national currency of the Falkland Islands(Malvinas); the Falkland Islands Pound. “FK” is the country’s code, and “P” stands for “Pound”. The denomination of the Falkland Islands Pound is 100 pence.
Falling Knife
A phrase that refers to a rapid decline in an asset's price or value.
Falling Three Methods
A Japanese candlestick pattern that indicates a continuation of an existing bearish trend. It is formed in a downtrend where the presence of a long black candle confirms the sellers' intentions to push prices lower. The three small candles that follow, which are contained within the body of the long black candle, mark a pause in the market. The long black candle that follows signals the resumption of the established downtrend.
Fear Of Missing Out (FOMO)
Abbreviated as FOMO, it describes a feeling of fear and anxiety of missing out on a big opportunity or lucrative investment.
Federal Open Market Committee (FOMC)
Federal Open Market Committee (FOMC) is a committee in the United States of America, responsible for conducting or determining the monetary policy of the nation.
Federal Reserve System (Fed/The)
Established in 1913, it is the Central Bank of the United States of America that comprises of 12 Federal Reserve Banks. Its main goal is to maintain the stability of the financial system, regulate and supervise the banking system while controlling inflation and credit levels in the economy by acting on interest rates.
Fed Monetary Policy Report
A report written by the Federal Reserve Board in the United States which is submitted to Congress semiannually. The report contains a guide for monetary policy, economic developments and economic projections. The report comes with a live speech from the Federal Reserve Board Chair.
Fed’s Beige Book
A report about current and future economic conditions which is published eight times per year by gathering information from each Federal Reserve district, as well as bank directors and market experts.
Fibonacci Arcs
A technical analysis tool drawn between two prominent points, usually a recent top and a recent bottom. These arcs are drawn at a distance equal to Fibonacci ratios: 38.2%, 50% and 61.8%. The arcs act as potential support and resistance levels between the two points.
Fibonacci Channel
A technical analysis tool used to draw potential support and resistance levels once prices break out of the channel. More specifically, during an uptrend parallel lines are drawn below the channel equal to the Fibonacci ratios at 61.8%, 100%, 161.8%, 261.8% and 423.6% of the channel width. Theory holds that when the prices break out below the channel they will find support at one of the parallel lines. The same is true during a downtrend. This time the parallel lines are drawn above the channel to provide potential resistance once prices break out above the channel.
Fibonacci Expansion
Fibonacci expansion is a technical tool that is plotted between three points on the price chart. point A is the start of wave 1, point B is the end of wave 1 and point C, the end of wave 2. The Fibonacci expansion tool displays three lines by default at 61.8%, 100% and 161.8% the length of wave 1 (i.e. the distance between point A and point B). These lines (i.e. expansions) are drawn starting from the end of wave 2 (i.e. point C). They act as potential resistance levels for the end of wave 3.
Fibonacci Fan
The Fibonacci fan is a technical analysis tool that is plotted by connecting a bottom and a top in an uptrend. Three potential support lines are displayed at 38.2%, 50% and 61.8%. Similarly, in a downtrend, the lines are plotted between a top and a bottom to act as resistance levels at 38.2%, 50% and 61.8%.
Fibonacci Numbers (Sequence)
Leonardo Fibonacci, a brilliant Middle Ages mathematician discovered a sequence of numbers where the sum of two adjacent numbers forms the next number in the sequence. The Fibonacci sequence starts with 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 ... infinity.
Fibonacci Retracement
A technical tool that is plotted from bottom to top in an uptrend and from top to bottom during a downtrend. The horizontal lines between the top and bottom display the Fibonacci retracement levels of 23.6%, 38.2% and 61.8% which act as potential support and resistance areas.
Fibonacci Time Zones
A technical tool that consists of vertical lines spaced apart to a distance equal to the Fibonacci numbers. For example, 1, 2, 3, 5, 8, 13, 21 etc. The tool is plotted between two points on the price chart where potential price changes are expected at the vertical lines produced.
Fiji Dollar (FJD)
The alphabetic code which represents the national currency of Fiji; the Fiji Dollar. “FJ” is the country’s code, and “D” stands for “Dollar”. The denomination of the Fiji Dollar is 100 cents.
Fill or Kill
An order execution policy whereby an order must be executed at a specific price and volume, or it won’t go through (be killed).
Fill Policy
An order window on the MT5 trading platform that offers the following conditions: - Fill or Kill - Immediate or Cancel - Return
Fill price
The price at which an order was executed.
Filtering (candlesticks)
The process of combining other technical analysis tools, like oscillator overbought/oversold levels, to ignore low probability patterns while focusing on more promising candlestick reversal patterns.
Final CPI
An economic indicator released by Eurostat on a monthly basis. It measures the price changes in a basket of goods and services purchased by Eurozone consumers compared to the same period the previous year. A high reading is good for the euro.
Final GDP
It indicates the annual change in the total output of an economy both from the manufacturing and service sectors. It takes into consideration data such as consumption, investment, government expenditure, and exports. It is an economic indicator that hints at whether the economy has strengthened or weakened.
Flag
A price chart pattern that causes a temporary pause in the market due to consolidation. It consists of a sharp price movement, the flagpole, which is followed by a channel sloping in the opposite direction of the trend. A breakout of the channel on heavy volume will achieve a minimum price target equal to the flagpole projected at the breakout point.
Flagpole
The impulse move that precedes the channel in the flag pattern.
Flappening
A term that describes the moment when Litecoin (LTC) surpassed Bitcoin Cash (BCH) in terms of market capitalization.
Flat Correction
In wave theory, it is considered to be an A-B-C corrective pattern against the prevailing trend. Wave A consists of 3 sub waves, as does wave B, whereas wave C contains 5 sub waves. Flats come in three variations: regular, expanded and running.
Flippening
A term that describes the hypothetical moment when Ethereum (ETH) surpasses Bitcoin (BTC) in terms of market capitalization.
Floating Exchange Rate
Unlike a fixed exchange rate, it fluctuates constantly because the value of a currency is determined by supply and demand.
FOMC Economic Projections
The FOMC (Federal Open Market Committee) members present their projections and forecasts about economic growth, inflation and interest rates in the United States of America. It is released four times per year.
FOMC Funds Rate
The interest rate determined by the FOMC (Federal Open Market Committee) used by banks and other depository institutions to lend money to each other. It is a tool used by the FOMC to control inflation and short-term interest rates. The interest rate is of great importance to currency valuation. It is scheduled eight times per year.
FOMC Meeting Minutes
A written report released about three weeks following the last FOMC meeting, used to describe the important monetary policy measures and interest rate decisions taken by the committee. It is scheduled eight times per year.
FOMC Press Conference
A press conference following the release of the interest rate decision which is presented by the Fed Chair. During the press conference, the Chair reads the FOMC Statement regarding the monetary policy and economic projections to the public. Finally, a Q&A session is held to answer journalists' questions. It is not uncommon to witness high volatility in the markets during the conference, which is scheduled four times per year.
FOMC Statement (Fed’s Monetary Policy Statement)
The FOMC holds eight regular meetings throughout the year to discuss financial conditions and issues statements in regard to its monetary policy decisions.
Force Index
A technical indicator developed by Alexander Elder which estimates the buyers' pressure during an uptrend and the sellers' pressure during a downtrend. The formula is: Force Index = (Closecurrent - Closeprevious) x Volume If the current candlestick closes higher than the previous then the Force Index will be positive. On the contrary, if it closes lower then it will be negative. The addition of Volume into the formula signifies the extent of the move either upwards or downwards.
Foreground Chart
A setting in MetaTrader that causes the chart to be drawn in the foreground and all other indicators and objects in the background.
Foreign Exchange (Forex)
A global decentralized market where currencies are traded. The forex market has no central exchange or physical location and trades 24 hours a day, 5 days a week. In forex trading, currencies are traded in pairs, hence a trader exchanges one currency for another. It is the largest financial market in the world.
Forex Chart
A graphical representation of past and live prices. It is a visual aid to help traders apply technical analysis tools in the quest of predicting future price movements.
Forex Scalping
A method of trading where a trader seeks to buy and sell a currency pair within a very short interval. It is an attempt to make a quick profit in the market without being exposed to risk for a long period of time.
Forex Signal System
A combination of analyses that generate Buy and Sell signals depending on the price.
Forex Spot Rate
The immediate exchange rate at which a currency pair may be bought or sold at. It contrasts with the forward rate.
Forex Trading Robot
A trading software that can perform trading instructions automatically without any human intervention. The typical tasks would consist of analysis, calculations, trading operations (Buy/Sell), as well as trade management (Take Profit, Trailing Stops, Stop Loss, etc).
Forint (HUF)
The alphabetic code which represents the national currency of Hungary; the Forint. “HU” is the country’s code, and “F” stands for “Forint”. The denomination of the Forint is 100 filler.
Fractal Adaptive Moving Average
A technical indicator developed by John Ehlers. It monitors price changes very closely and adjusts the lookback period accordingly. It reacts fast to price fluctuations but remains flat during sideways markets. The formula is based on the Exponential Moving Average method along with a filter computed on the current price fractal.
Fractals (Williams Fractal)
A fractal indicator is a technical tool developed by Bill Williams. It is used to identify tops and bottoms on the price chart. There are two types of fractals: Up Fractal and Down Fractal. The Up Fractal consists of five bars (or candlesticks) where the highest high is preceded by two lower highs to the left, and followed by two lower highs to the right. Conversely, the Down Fractal is comprised of five bars where the lowest low is preceded by two higher lows to the left and followed by two higher lows to the right.
Frypan Bottom
A Japanese candlestick pattern signaling a bullish reversal. It is formed during a downtrend where small bodies form a rounding bottom. Lower lows are followed by higher lows and eventually a gap above, ideally with a long white body, to complete the pattern.
FUD
An acronym that expands to “Fear, Uncertainty, and Doubt”. This is a tactical method to spread negative information about a cryptocurrency causing its value to decline.
Fulcrum
A reversal pattern found in Point & Figure charts. It looks similar to a double top and double bottom pattern. It consists of a move back in the congestion area followed by a move in the opposite direction.
Fundamental Analysis
The study of economic, political and environmental factors that affect prices in the financial markets.
Futures Contract (Futures)
An agreement between a buyer and a seller for the transaction to be carried out at a specific date in the future at a predetermined price. Where commodities are involved the quality is also pre-agreed.
G
G20 Meeting
An international forum where the leaders of the world’s largest economies meet to reinforce global economic cooperation. The G20 consists of the European Union and 19 other countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, United Kingdom, and the United States of America). It holds regular summits every year.
Gann Fan
A technical analysis tool Developed by W. D. Gann to study the price charts. He believed that when prices rise or decline at a 45o angle, then price and time are in balance, signifying a sustainable trend. The corresponding line is also known as 1x1. It is read as “one by one” meaning one unit of price by one unit of time. Steeper lines with corresponding greater angles above the 1x1 line are considered steeper and not sustainable. These act as resistance when the price accelerates above the 1x1 line. These lines are: Price x Time Degrees 1 x 8 82,5 1 x 4 75 1 x 3 71,25 1 x 2 63,75 Similarly, four slower lines below the 1x1 act as support: Price x Time Degrees 1 x 1 45 2 x 1 26,25 3 x 1 18,75 4 x 1 15 8 x 1 7,5 Gann considered the 1 x 1 line as the most important for the trend. The Gann fan tool is available on NAGA Trader.
Gann Grid
A technical analysis tool developed by W. D. Gann based on his belief that the 45-degree line represents a sustainable trend. The Grid consists of multiple lines drawn at 45 degrees. Prices above a rising 45-degree line signify an upward direction in the market. Possible acceleration may find resistance at a higher 45-degree line. Similarly, prices trading below the rising line warn for a potential reversal to the downside with potential support at the lower 45-degree line. The same holds for the descending lines. When prices are below the 45-degree line, it signifies a downward direction. Declining prices may find support at a lower 45-degree line. Also, prices trading above the descending line signal possible reversal to the upside with a potential resistance at a higher 45-degree line.
Gann Line
A technical analysis tool developed by W. D. Gann. It consists of a 45-degree line. Prices above the ascending 45-degree line suggest an upward direction of prices. Prices below an ascending 45-degree line suggest a potential change in the direction of prices. Similarly, prices below a descending 45-degree line suggest a downward direction for the market. Prices above a descending 45-degree line suggest a potential reversal to the upside.
Gap
A gap occurs when no price action is present between two candlesticks. It is represented by an unfilled blank space on the chart and it happens when the low price of the current candle is higher than the high price of the previous candle, or when the high of the current candle is lower than the previous candle's low price.
Gas
The cost of executing smart contracts on the Ethereum blockchain.
Gator Oscillator
A technical analysis oscillator developed by Dr. Bill Williams to gauge the different phases of the market. It consists of two histograms with green and red bars. The bars above the zero line represent the difference between the Alligator’s Teeth and Jaw. The bars below the zero line represent the difference between the Alligator’s Lips and Teeth. A green bar signifies that the bar’s value exceeds the value of the previous bar. On the other hand, a red bar indicates that the bar’s value is less than the previous bar’s value. The Alligator may be in four different states: Sleeping, Awakening, Eating or Feeling Full. When both bars are red the Alligator sleeps, while two green bars indicate that the Alligator eats. One red bar, and the other green after sleeping signify that the Alligator is awakening. Lastly, the Alligator feels full when one of the bars is red after eating.
Genesis Block
The first ever block created and stored on a blockchain.
Genetic Algorithm
A method of optimizing the parameters of a trading strategy. The concept was inspired by Charles Darwin's theory of natural evolution. The genetic algorithm continues to use positive contributions and stops using negative contributions in the search for the optimal solution. The advantage is less time for a more optimal solution to the problem; in this case, it’s the best parameter set of a trading strategy.
German Flash Manufacturing PMI
This is a monthly report that is derived from surveying senior purchasing managers of over 500 companies in Germany by considering 5 indices which includes new orders, output, employment, stock of purchased items and number of deliveries by suppliers. A reading above 50 may potentially strengthen the country's currency.
German Flash Services PMI
A report that shows the outlook of the service sector in Germany, derived from data of over 500 companies. The report trails variables like sales, prices, employment and inventories. A reading above 50 shows the service sector is expanding. The report is released every month.
German Ifo Business Climate
A report that shows the German business environment and expected business outlook for a future period of six months. The higher the reading, the better for the economy and vice-versa. The report is released every month.
German Prelim CPI
The prelim CPI is monthly data that shows the level of change in prices of goods and services purchased from the German region of the European Union. The prelim CPI is released a few days before the final CPI.
German Retail Sales
An economic indicator that is released monthly, which measures the change of retail sales within the German region.
Ghana Cedi (GHS)
The alphabetic code which represents the national currency of Ghana; the Ghana Cedi. “GH” is the country’s code, and “S” stands for “Cedi”. The denomination of the Ghana Cedi is 100 pesewas.
GHPR
A performance metric in judging the effectiveness of a trading strategy. The geometric mean of a trade, expressed in percentage change, shows how many times the capital changed after each trade, on average. A positive GHPR value indicates a winning or profitable approach, whereas a negative value indicates a losing strategy.
Gibraltar Pound (GIP)
The alphabetic code which represents the national currency of Gibraltar; the Gibraltar Pound. “GI” is the country’s code, and “P” stands for “Pound”. The denomination of the Gibraltar Pound is 100 pence.
Gold (XAU)
The alphabetic code which represents Gold.
Go Long
To buy a financial instrument when traders anticipate that the price of that instrument will rise.
Goods Trade Balance
The trade balance represents the difference in value between imports and exports of a specific country or region. When exports exceed imports, there’s a balance surplus, and when imports exceed exports, there’s a balance deficit.
Good Til Canceled (GTC)
A type of pending order that can be placed by a trader. It stands for "Good 'Til Canceled" and means that the pending order will remain in effect until it is either cancelled by the trader or filled.
Go Short
To sell a financial instrument when traders anticipate that the price of that instrument will decline.
Gourde (HTG)
The alphabetic code which represents the national currency of Haiti; the Gourde. “HT” is the country’s code, and “G” stands for “Gourde”. The denomination of the Gourde is 100 centimes.
Gravestone Doji
A candlestick pattern that indicates a potential bearish reversal and contains one candlestick with a long upper wick, a non-existent lower wick, and the Open price equal to the Close price. It is formed at the top of an uptrend or upward correction.
Grid
Chart property of MT4 and MT5 trading platforms.
Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) is a measure of the total value of goods and services produced by a country. An increase in GDP is a sign of economic growth.
Gross Loss
The sum of all unprofitable trades.
Gross Profit
The sum of all profitable trades.
Guarani (PYG)
The alphabetic code which represents the national currency of Paraguay; the Guarani. “PY” is the country’s code, and “G” stands for “Guarani”. The denomination of the Guarani is 100 céntimos.
Guinea Franc (GNF)
The alphabetic code which represents the national currency of Guinea; the Guinea Franc. “GN” is the country’s code, and “F” stands for “Franc”. The denomination of the Guinea Franc is 100 centimes.
Guyana Dollar (GYD)
The alphabetic code which represents the national currency of Guyana; the Guyana Dollar. “GY” is the country’s code, and “D” stands for “Dollar”. The denomination of the Guyana Dollar is 100 cents.
Gwei
A denomination of ether (ETH) used to price gas on the Ethereum blockchain. 1 ether is equivalent to 109 gwei.
H
Half-Mast
The flags and pennants are continuation patterns in the direction of the prevailing trend, and they are both preceded by a sharp price move known as the Flagpole. The price objective or target after the breakout of the pattern is expected to be equal to the Flagpole; hence the term Half-Mast.
Halifax HPI
The Halifax price index is the UK's oldest house price index followed by market participants. Since 1983, the index shows the variations of house prices in one month compared to the same month one year earlier.
Halving
A process where the reward of mining is reduced to a half. This is is done in order to control the issuance rate of new coins and ensure an upward momentum to its price as long as the buying pressure persists.
Hammer
A Japanese candlestick pattern signalling a possible bullish reversal. This pattern is formed by a single candlestick. When a hammer is formed at the end of a downtrend, it signals a possible reversal to the upside. A hammer is formed when sellers push prices down, only to be conquered by a strong bullish move. Hence the long lower wick should be 2-3 times longer than the body of the candlestick. The color of the body is not important.
Hanging Man
A Japanese candlestick pattern signaling a possible bearish reversal. This pattern is formed by a single candlestick consisting of a long lower shadow that is two to three times longer than the real body of the candle. The body of the candle is usually very small. Another prerequisite for this pattern is a preceding uptrend before the formation of the hanging man candlestick pattern.
Hang Seng Index (HSI)
A free-float capitalization weighted index consisting of 50 blue-chip stocks. These are companies with a large market capitalization, traded on the Hong Kong Stock exchange. The index is considered as a benchmark of the stock market performance.
Harami (Bearish)
A Japanese candlestick pattern signaling a possible bearish reversal. Harami is the Japanese word for pregnant since the candle formation can resemble the image of a pregnant woman. This pattern is formed by two candlesticks consisting of a long white-bodied candle followed by a small candle of any colour. The strong uptrend followed by the small candlestick signals uncertainty and indecision of the market. This might be interpreted as the uptrend losing its momentum and a possible bearish reversal may be imminent.
Harami (Bullish)
A Japanese candlestick pattern signaling a possible bullish reversal. Harami is the Japanese word for pregnant since the candle formation can resemble the image of a pregnant woman. This pattern is formed by two candlesticks consisting of a long black-bodied candle followed by a small candle of any colour. The strong downtrend followed by the small candlestick signals uncertainty and indecision of the market. This might be interpreted as the downtrend losing its momentum and a possible bullish reversal may be imminent.
Harami Cross (Bearish)
A Japanese candlestick pattern signalling a possible bearish reversal. Harami is the Japanese word for pregnant since the candle formation can resemble the image of a pregnant woman. This pattern is formed by two candlesticks consisting of a long white-bodied candle followed by a Doji. The strong uptrend followed by the Doji signals uncertainty and indecision of the market. This might be interpreted as the uptrend losing its momentum and a possible bearish reversal may be imminent.
Harami Cross (Bullish)
A Japanese candlestick pattern signalling a possible bullish reversal. Harami is the Japanese word for pregnant since the candle formation can resemble the image of a pregnant woman. This pattern is formed by two candlesticks consisting of a long black-bodied candle followed by a Doji. The strong downtrend followed by the Doji signals uncertainty and indecision of the market. This might be interpreted as the downtrend losing its momentum and a possible bullish reversal may be imminent.
Hard Cap
The maximum quantity of tokens that can be sold at an ICO.
Harmonicity
The principle of Harmonicity, in Time Cycles, holds that neighbouring waves have a relationship of a small integer which is usually the number two. For example, a 20-day cycle will have an immediate shorter cycle of 10 days and an immediate longer cycle of 40 days.
Hash
The output generated when data is processed by a hash function. A hash function typically converts the input value into a hexadecimal number. Also known as hash value, hash code or digest.
Hash Rate
It is calculted as the number of hashes computed per second, and determines the efficiency and performance of a mining computer.
Hawkish
Policymakers who are in favor of raising interest rates in order to control inflation.
Head and Shoulders
One of the most popular reversal patterns in technical analysis. A prerequisite of this bearish reversal pattern is the existence of an established uptrend. The left shoulder, a top in the direction of the trend, is followed by a correction in the opposite direction thus signaling a warning. Subsequently, prices register higher highs to form the head of the pattern but on lighter than usual volume. The head is followed by a correction that moves below the top of the left shoulder alerting for the weakness of the buyers to maintain the uptrend. Subsequently, the third top of the pattern; the right shoulder, is formed on lighter volume and also fails to exceed the previous top hence alerting for weakness. Eventually, prices break below the neckline (the line connecting the two bottoms) on high volume signaling the end of the uptrend and the beginning of a new trend in the opposite direction.
Hedge
An investment made to limit risk. An example of hedging would be through the diversification of the portfolio, which means investing in different unrelated financial assets so that the risk is well divided between those assets in case of an adverse price movement. Investors/traders sometimes refer to hedging as an act of taking the opposite direction of their existing investment during periods of uncertainty in an effort to offset their market exposure.
Hedge Funds
Alternative investment funds which use nontraditional investment strategies to generate high returns for their investors. Hedge funds invest in a variety of financial assets in order to manage risk.
Heiken Ashi
A technical analysis chart type that filters out noise, so trends, consolidations and reversals are easier to identify and follow. The identification of: • an uptrend is defined by white candles • a downtrend is defined by black candles Similarly, identification of a strong: • uptrend is defined by long white bodies with no lower shadow • downtrend is defined by long black bodies with no upper shadow Reversals are identified by a: • change of color • Doji after a trend Consolidations are identified by a: • Series of Dojis Heiken Ashi candles use the following modified prices: haClose = (Open + High + Close + Low) / 4 haOpen = (Previous haOpen + Previous haClose) / 2 haHigh = Max (High, haOpen, haClose) haLow = Min (Low, haOpen, haClose)
High-Frequency Trading
Algorithmic trading based on a big number of trades on high volumes and high speed.
High Price
The highest price reached during a specific timeframe.
History Center
"It stores historical data including Open, High, Low, Close prices, Volume and the corresponding date and time. Access to the historical data is based on add, edit, delete, import, and export operations. Additionally, historical data may be downloaded directly from the MetaQuotes server. The amount of data stored is directly linked to the specific timeframe."
HODL
Acronym for 'hold on for dear life' which stems from a typo for 'hold'. It describes a situtation where one refuses to sell their crypto despite its recent drop or general volatility. The typo became a kind of meme, and is now frequently used to mean 'hold' in the crypto world.
Homing Pigeon
A Japanese candlestick pattern signaling a possible bullish reversal. This pattern is formed by two black candlesticks. A long black candle, followed by a shorter black body. The small black candlestick should be completely engulfed by the big black one. This signals weakness, lower volatility and sets the stage for a possible bullish reversal. The ideal location for this candlestick pattern to form is at the end of a downtrend or at a support level.
Hong Kong Dollar (HKD)
The alphabetic code which represents the national currency of Hong Kong; the Hong Kong Dollar. “HK” is the country’s code, and “D” stands for “Dollar”. The denomination of the Hong Kong Dollar is 100 cents.
Horizontal Count
In Point and Figure charting, the Horizontal Count is used to estimate the price objective after a breakout of a congestion area occurs. Count the number of columns in the congestion area and project an equal number of boxes in the direction of the breakout. The wider the congestion area, the higher the price objective. The Horizontal Count applies to 1-box and 3-box reversal charts.
Housing Starts
A key economic indicator released on a monthly basis by the US Commerce Department, which shows the number of new residential projects.
Hryvnia (UAH)
The alphabetic code which represents the national currency of Ukraine; the Hryvnia. “UA” is the country’s code, and “H” stands for “Hryvnia”. The denomination of the Hryvnia is 100 kopiyky.
I
Ichimoku Kinko Hyo (Ichimoku Cloud Charts)
Developed by Goichi Hosoda, a Japanese newspaper journalist in the early 1940s, the Ichimoku Kinko Hyo indicator was made known to the public in 1968 when he published his book. It’s a technical analysis system used to identify the direction of the market with ""one look at the chart"" and provide Buy and Sell signals without the need for any other indicator. It consists of the following six elements: 1. Tenkan-sen (Highest High + Lowest Low) / 2 for the last 9 periods 2. Kijun-sen (Highest High + Lowest Low) / 2 for the last 26 periods 3. Senkou Span A (Tenkan-sen + kijun-sen) / 2 projected 26 periods ahead 4. Senkou Span B (Highest High + Lowest Low) / 2 for the last 52 periods, projected 26 periods ahead 5. Chikou Span Today’s Close plotted 26 periods back 6. Cloud (or Kumo) The area between the Senkou Span A and Senkou Span B
Identical Three Crows
A candlestick reversal pattern consisting of three long black bodies. The first candle appears at the end of an uptrend alerting for a potential weakness of the buyers to maintain the upward direction. The second and the third black candles open at or near the previous close. Also, they both close lower than the previous close. The occurrence of the pattern in an uptrend signals a bearish reversal.
Immutability
The inability to be altered after being finalized. Blockchains are considered to be immutable as they prevent manipulation, tampering, or any alteration of the data stored on the blocks.
Impulse Waves
Waves in Elliott Theory that move in the direction of the prevailing trend. Namely, waves labelled 1, 3 and 5.
Index
A pool of financial instruments that tracks the performance of a group of shares, sector, or the stock market in general.
Indian Rupee (INR)
The alphabetic code which represents the national currency of India; the Indian Rupee. “IN” is the country’s code, and “R” stands for “Rupee”. The denomination of the Indian Rupee is 100 paise.
Indicator (Technical Indicator)
In technical analysis, it is a mathematical/statistical tool to identify the direction of the market, its momentum and extreme levels.
Indirect Quote
The exchange rate of a currency pair where the base currency represents the domestic currency and the quote currency indicates the foreign currency.
Inflation
An extended rise in the price of a basket of goods and services over a specific period which leads to a decrease in the purchasing power of a currency. It is actively monitored by central banks which can decide to increase or decrease interest rates depending on inflation levels.
Initial Coin Offering (ICO)
A method of raising funds using cryptocurrencies. Although often compared to IPOs, in this case the investors don't buy any ownership in the company, instead they get coins native to the project with the hope that the project will succeed and the value of the coin will increase.
In Neck Line (Bearish Continuation)
A Japanese candlestick pattern formed by two candles during a downtrend. It consists of a long-bodied bearish candle followed by a bullish candle that gaps down below the close of the previous bearish candle but closes slightly above the previous close. It indicates a bearish continuation.
In Neck Line (Bullish Continuation)
A Japanese candlestick pattern formed by two candles during an uptrend. It consists of a long-bodied bullish candle followed by a bearish candle that gaps up above the close of the previous bullish candle but closes below its open. It signals a bullish continuation.
Inside Day
An inside day is a two-bar pattern, which is formed when the range of a bar is within the previous bar's range.
Interbank Rate
The rate at which banks borrow and lend money to other banks.
Interest Rate
A percentage charged on the capital borrowed. In other words, it is the cost of borrowing money. For savings, it is the percentage that is paid to the saver as a reward.
Intermarket Analysis
A market approach that shows the existing correlation between different asset classes. Some markets have a positive correlation which means that they move in the same direction, while others have an inverse correlation which means that when one market is rising the other is falling.
Intermediate Cycle
In cycle theory, it is a dominant cycle that lasts nine to twenty-six weeks.
Intermediate Trend
In trend classification, the trend is broken down into three categories: primary, intermediate and near term. The intermediate or secondary trend, as it is also known, lasts from three weeks to many months.
Internal Trendline
A trendline that passes through the price action touching many tops and bottoms.
International Monetary Fund (IMF)
An organization formed in 1945 to promote global economic stability, to facilitate international trade, and promote economic growth and employment. The IMF is made up of about 186 member countries.
Interoperability
The ability to exchange or transfer an asset or piece of information from one blockchain to another, making them compatible.
Intraday Trading
Closing trading positions before the end of the trading day, also known as Day Trading.
Inverse Head and Shoulders
A chart pattern used in technical analysis that signals a possible bullish reversal. The chart pattern is made up of 3 troughs/bottoms with their respective tops. The middle bottom is known as the head, and the other two bottoms are called shoulders. For this pattern to be valid, it needs to form at the end of a downtrend, and the middle head/trough should be the lowest.
Inverted Hammer
A Japanese candlestick pattern signaling a possible bullish reversal. This pattern is formed by a single candlestick. An inverted hammer is formed when buyers push prices higher, only to be conquered by a strong bearish move to close lower near its opening price. Hence the long upper wick should be 2-3 times bigger than the body of the candlestick.
Iranian Rial (IRR)
The alphabetic code which represents the national currency of the Islamic Republic of Iran; the Iranian Rial. “IR” is the country’s code, and “R” stands for "Rial”. The denomination of the Iranian Rial is 100 dinar.
Iraqi Dinar (IQD)
The alphabetic code which represents the national currency of Iraq; the Iraqi Dinar. “IQ” is the country’s code, and “D” stands for “Dinar”. The denomination of the Iraqi Dinar is 1000 fils.
Island Reversal
A candlestick pattern at the end of a usually strong trend separated by two gaps. It’s separated by an exhaustion gap in the direction of the prevailing trend, signaling for potential weakness. It is also followed by a breakaway gap in the opposite direction signaling for the end of the established trend and the beginning of a new trend in the opposite direction.
ISM Manufacturing PMI
An economic indicator derived from a survey by the Institute of Supply Management (ISM) carried out on purchasing and supply managers of over 400 manufacturing companies. Questions about the survey include new orders, export, import, production, inventories, employment, etc. An increase in reading may have a positive effect on the economy while a decrease in reading may have a negative effect. 50 is the benchmark for good reading.
ISM Non-Manufacturing PMI
An economic indicator derived from a survey by the Institute of Supply Management (ISM) carried out on purchasing and supply managers of about 300 service companies. Questions about the survey include employment, new orders, production, prices, etc. The ISM Non- Manufacturing PMI is also known as ISM Service PMI.
J
Jamaican Dollar (JMD)
The alphabetic code which represents the national currency of Jamaica; the Jamaican dollar. “JM” is the country’s code, and “D” stands for “Dollar”. The denomination of the Jamaican dollar is 100 cents.
January Barometer
In 1972 Yale Hirsch said: “As the Standard & Poor’s goes in January, so goes the year”. The direction of the S&P 500 in January will determine the direction of the market for the rest of the year.
January Effect
A tendency for stocks to rise in the month of January.
Japanese Candlesticks
A charting technique, originating in Japan and made known to the West in the 1980s by Steve Nison. It consists of a rectangle area defined by the Open and the Close price. The color of the rectangle area corresponds to the relation between the Open and Close price. If Close is higher, then the candlestick is considered bullish and it’s hollow or white. Otherwise, if the Close is lower, then the candlestick is considered bearish, and its color is black or filled. The area between the Open and Close price is known as the Body or Real Body. The line extending above the Body is called the Upper Shadow or Wick. The highest point on the Upper Shadow/Wick denotes the highest price reached during the specific session and is known as the High price. Similarly, the line below the Body is called the Lower Shadow or Wick. The lowest point on the Lower Shadow/Wick denotes the lowest price reached during the specific session and is known as the Low price. The area between the High and the Low price denotes the Range of the Day.
Japanese Yen (JPY)
The alphabetic code which represents the national currency of Japan; the Japanese yen. “JP” is the country’s code, and “Y” stands for “Yen”. The denomination of the Japanese Yen is 100 sen.
Jensen Index
It determines whether an investment manager outperforms a market index by using the capital asset pricing model.
JOLTS Job Openings
The Job Openings and Labor Turnover Survey (JOLTS) is a survey released at the last business day of the month by the Bureau of Labor Statistics. It reports the number of job openings (both full-time and part-time) during the reported month, excluding the farming industry.
Jordanian Dinar (JOD)
The alphabetic code which represents the national currency of Jordan; the Jordanian Dinar. “JO” is the country’s code, and “D” stands for “Dinar”. The denomination of the Jordanian Dinar is 100 qirsh.
Joseph Effect
The concept is that price movements are more likely to be predictable than random. It stems from the Old Testament where Joseph predicted seven years of plenty followed by seven years of famine by interpreting the Pharaoh’s dream.
Juglar Cycle
Clement Juglar identified a 9 year economic cycle, popularly known in Technical Analysis as the Juglar Cycle. In this cycle, Juglar identified four phases: prosperity, crisis, liquidation, and recession.
Junk Bonds
Bonds that are considered as higher risk by credit rating agencies and have a higher probability of default than most bonds issued by corporations and governments. They are usually issued at a higher yield.
K
Kagi Charts
A charting technique originating in Japan and made known to the West by Steve Nison. It is made up of a series of connecting thick and thin vertical lines. The thick vertical lines represent that demand is greater than supply, where the thin lines signify that supply exceeds demand. A series of higher highs and higher lows show an uptrend, where a series of lower highs and lower lows show a downtrend. A Buy signal is generated when the Kagi Charts change from a thin to a thick line. Similarly, a Sell signal is generated when the Kagi Charts change from a thick to a thin line. The Kagi Charts ignore the passage of time.
Kangaroos
Refers to Australian stocks.
Keltner Channels
Developed by Chester Keltner, it’s a technical analysis line study. The Keltner Channels are drawn based on the Average True Range (ATR) and the 20-period Exponential Moving Average (EMA). The Upper Line is constructed by adding two ATR above the EMA (20), where the Lower Line is drawn by subtracting two ATR from the EMA (20). The ATR is calculated over ten periods. A Buy signal is generated when the price closes above the Upper Line. Conversely, a Sell signal is generated when the price closes below the Lower Line.
Kenyan Shilling (KES)
The alphabetic code which represents the national currency of Kenya; the Kenyan Shilling. “KE” is the country’s code, and “S” stands for “Shilling”. The denomination of the Kenyan Shilling is 100 cents.
Keynesian Economics
An economic theory attributed to British economist, John Maynard An economic theory attributed to British economist, John Maynard Keynes, who advocated that government intervention is necessary to ensure economic growth and stability.
Kicking (Bearish)
A candlestick pattern that indicates a bearish reversal and contains two candles: a black Marubozu and a white Marubozu. This pattern is formed while the price is rising in the direction of the rally, confirming the buyers’ decision to move the market higher as shown by the presence of a white Marubozu. The second candle is a long black body with small or non-existent shadows, usually a black Marubozu, that gaps down lower than the previous candle, putting an end to the rally while signaling the beginning of a decline.
Kicking (Bullish)
A candlestick pattern that indicates a bullish reversal and contains two candles: a black Marubozu and a white Marubozu. This pattern is formed while the price is falling in the direction of the decline, confirming the sellers’ decision to move the market lower as shown by the presence of a black Marubozu. The second candle is a long white body with small or non-existent shadows, usually a white Marubozu, which gaps up higher than the previous candle, putting an end to the decline while signaling the beginning of a rally to the upside.
Kina (PGK)
The alphabetic code which represents the national currency of Papua New Guinea; the Kina. “PG” is the country’s code, and “K” stands for “Kina”. The denomination of the Kina is 100 toea.
Kitchin Wave
Discovered by Joseph Kitchin. A popular 40-month cycle of economic activity. Kitchin supported that the cycle was present in the stock markets.
Kiwi
The nickname of the New Zealand Dollar (NZD). Kiwi is also a flightless bird and the national symbol of New Zealand.
Klinger Oscillator
Developed by Stephen J. Klinger. A volume-based indicator used to identify long and short-term trends of money flow. It compares the volume flowing in and out of an asset to price movement. Signals are generated in the direction of the prevailing trend by crossing the zero line or the trigger line. Additionally, the divergence between the oscillator and the price generates signals
Know Sure Thing (KST)
Developed by Martin J. Pring. It is a momentum oscillator based on the Rate of Change. It is calculated as the sum of four smoothed Rates of Change. The signal line is computed as a 9-period Simple Moving Average of the KST. The divergence between the KST and the price, signals potential reversal to the opposite direction. The crossing of the zero line to the upside signifies positive momentum or bullish sentiment. On the contrary, the crossing of the zero line to the downside signifies negative momentum or bearish sentiment. Upside momentum is increasing when KST is negative and crosses above the signal line. Similarly, downside momentum is increasing when KST is positive and crosses below the signal line.
Know Your Customer (KYC)
A set of guidelines that enables financial institutions to prevent illegal financial transactions related to money laundering, terrorist financing and corruption. The procedures involve identity verification, customer’s financial activities and the potential risks they pose.
Kondratieff Cycle
Discovered by Nikolai D. Kondratieff, it’s a long cycle of approximately 54 years of economic activity. It has been identified in many agricultural commodities and interest rates. Also know the K Waves.
Krona (ISK)
The alphabetic code which represents the national currency of Iceland; the Krona. “IS” is the country’s code, and “K” stands for "Krona”. The denomination of the Krona is 100 Kronor.
Krugerrand
22-karat and 1 Troy oz Gold coins minted by South Africa in 1967 to promote South African gold in the markets.
Kuna (HRK)
The alphabetic code which represents the currency of Croatia; the Kuna. “HR” is the country’s code, and “K” stands for “Kuna”. The denomination of the Kuna is 100 lipa.
Kuwaiti Dinar (KWD)
The alphabetic code which represents the national currency of Kuwait; the Kuwaiti Dinar. “KW” is the country’s code, and “D” stands for “Dinar”. The denomination of the Kuwaiti Dinar is 1000 fils.
Kwanza (AOA)
The alphabetic code which represents the national currency of Angola; the Kwanza. “AO” is the country’s code, and “A” stands for “Kwanza”. The denomination of Kwanza is 100 centimos.
Kyat (MMK)
The alphabetic code which represents the national currency of Myanmar; the Kyat. “MM” is the country’s code, and “K” stands for “Kyat”. The denomination of the Kyat is 100 pya.
Kyrgyzstani Som (KGS)
The alphabetic code which represents the national currency of Kyrgyzstan; the Kyrgyzstani Som. “KG” is the country’s code, and “S” stands for “Som”. The denomination of the Kyrgyzstani Som is 100 tyiyn.
L
Labour Cost
The total of wages, payroll taxes and benefits paid to employees. It can be broken into fixed and variable costs.
Labour Force Participation Rate
The ratio of the labour force divided by the total working-age population (ages 15 to 64). It is a measure of the active workforce of an economy.
Labour Productivity
An economic report that captures the real gross domestic products and services produced hourly. Labour productivity can be measured in two ways, in physical terms or price terms. It is also known as workforce productivity.
Lagging Indicator
An economic indicator that tends to show delayed Buy/Sell signals.
Lao Kip (LAK)
The alphabetic code which represents the national currency of the Lao People’s Democratic Republic; the Kip. “LA” is the country’s code, and “K” stands for “Kip”. The denomination of the Lao Kip is 100 att.
Lari (GEL)
The alphabetic code which represents the national currency of Georgia; the Lari. “GE” is the country’s code, and “L” stands for “Lari”. The denomination of the Lari is 100 tetri.
Latency
It refers to the delay, usually in milliseconds, for an order sent by a trader to be executed by the broker's server.
Latter Bottom
The latter bottom is a five-candle, bullish reversal formation pattern that occurs at the end of a bearish trend especially at a support area. The latter bottom is formed when there are three consecutive bearish candles with long bodies, which have their Close and Open below the Close and Open of the previous candle. They are followed by a fourth candle that is of a bearish short body with a longer upper wick, and a fifth candle of a long bullish body which gaps above the real body of the previous one.
Latter Top
The latter top is a five-candle bearish reversal formation pattern that occurs at the end of a bullish trend especially at a resistance area. The latter top is formed when there are three consecutive bullish candles with long bodies with their own corresponding Open and Close price above the Open and Close price of the previous candle respectively. They are followed by a fourth candle that has a bullish short body with a long lower wick, where a fifth candle of a long bearish body gaps below the real body of the previous candle.
Layer 2
Layer 2 is everything that is built on top of an existing blockchain. It allows for increased scalability without the necessity of changing foundation (Layer 1) protocols.
Leading Economic Index
Also known as the composite index of leading indicators. It is a report that is used to assume global economic direction towards growth or recession. It comprises ten economic components whose changes give insight into the overall economy. The leading economic index is an economic indicator that is used by investors and businesses to plan towards economic performance and also guide against economic downturns.
Leading Indicator
Any technical indicator that signals a potential change of the market direction even before prices.
Lebanese Pound (LBP)
The alphabetic code which represents the national currency of Lebanon; the Lebanese Pound. “LB” is the country’s code, and “P” stands for “Pound”. The denomination of the Lebanese Pound is 100 piasters.
Lek (ALL)
The alphabetic code which represents the national currency of Albania; the Lek. “AL” is the country’s code, and “L” stands for "Lek". The denomination of Lek is 100 qindarka.
Lempira (HNL)
The alphabetic code which represents the national currency of Honduras; the Lempira. “HN” is the country’s code, and “L” stands for “Lempira”. The denomination of the Lempira is 100 centavos.
Leone (SLL)
The alphabetic code which represents the national currency of Sierra Leone; the Leone. “SL” is the country’s code, and “L” stands for “Leone”. The denomination of the Leone is 100 cents.
Leverage
The ability to control more capital than has been deposited. For example, if a trader deposits $1000 with a leverage of 1:100 then their trading power is multiplied by 100, hence they control $100000. Leverage is a double-edged knife as it may multiply profits but at the same time, it may multiply losses.
Liberian Dollar (LRD)
The alphabetic code which represents the national currency of Liberia; the Liberian Dollar. “LR” is the country’s code, and “D” stands for “Dollar”. The denomination of the Liberian Dollar is 100 cents.
Libyan Dinar (LYD)
The alphabetic code which represents the national currency of Libya; the Libyan Dinar. “LY” is the country’s code, and “D” stands for “Dinar”. The denomination of the Libyan Dinar is 100 dirham.
Lilangeni (SZL)
The alphabetic code which represents the national currency of Eswatini; the Lilangeni. “SZ” is the country’s code, and “L” stands for “Lilangeni”. The denomination of the Lilangeni is 100 cents.
Limit Order
An order to execute a trade, at a predetermined price or better. A Buy Limit order can only be executed at the limit price or lower, while a Sell Limit order can only be executed at the limit price or higher.
Limit Price
The precise price when placing a limit order by a trader.
Linearly Weighted Moving Average
A technical indicator, and more specifically a moving average method, which puts more weight on the most recent prices. Hence, it is more sensitive to price fluctuations compared to the Simple Moving Average.
Linear Regression Channel
A three-line technical indicator to identify and analyse trends. It is comprised of a centerline, derived by the least square technique or best fit method. The center line is also known as the Linear Regression Trendline. Two additional equidistant lines from the Trendline, the Upper Channel Line and the Lower Channel Line indicate the maximum Close price deviation from the Trendline.
Line Chart
It connects the closing price of each session to form a line.
Liquidity
Liquidity is the constant availability of buyers and sellers in the market for almost any price. For example, the foreign exchange market is said to be very liquid due to the fact that trade orders get filled almost instantly.
Litecoin (LTC)
It is a peer-to-peer cryptocurrency created in 2011 by Charles Lee. It differs from Bitcoin as it generates blocks faster and uses Scrypt for proof-of-work instead of SHA-256. It has a coin limit of 84 million.
Logarithmic Scale Charts
A type of price chart that displays equal distance on the Y-axis for equal price ratios. In simpler terms, the distance on a Logarithmic Scale Chart from 1.0000 to 2.0000 will be the same as from 4.0000 to 8.0000 as both price ratios are 100%.
Long Black Body
A Japanese candlestick pattern that often appears in a resistance area. It is recognised by its long real black body with little or no shadow at all. It signals a potential bearish reversal.
Long Legged Doji
A Japanese candlestick pattern with long upper and lower shadows. Its opening and closing price are fairly equal, resulting in a really small body. It signals indecision.
Long Position
It refers to a Buy position when the investor expects a financial instrument’s price to rise in the future.
Long White Body
A Japanese candlestick pattern that often appears at a support region. It is recognised by its long white real body with little or non-existent shadows. It signals a potential bullish reversal.
Loonie
The nickname for the Canadian Dollar "CAD".
Lot
Represents a size of 100000 units of the base currency in a currency pair.
Loti (LSL)
The alphabetic code which represents the national currency of Lesotho; the Lesotho Loti. “LS” is the country’s code, and “L” stands for “Loti”. The denomination of the Loti is 100 lisente.
Low Price
The lowest price recorded during a session/timeframe for a financial instrument.
Lunar Cycle
Theory has it that commodity markets tend to form a trading cycle every four weeks, that is every 28 days. A possible reason for that is the lunar cycle.
M
Malagasy Ariary (MGA)
The alphabetic code which represents the national currency of Madagascar; the Malagasy Ariary. “MG” is the country’s code, and “A” stands for “Ariary”. The denomination of the Malagasy Ariary is 5 Iraimbilanja.
Malawi Kwacha (MWK)
The alphabetic code which represents the national currency of Malawi; the Malawi Kwacha. “MW” is the country’s code, and “K” stands for “Kwacha”. The denomination of the Malawi Kwacha is 100 tambala.
Malaysian Ringgit (MYR)
The alphabetic code which represents the national currency of Malaysia; the Malaysian Ringgit. “MY” is the country’s code, and “R” stands for “Ringgit”. The denomination of the Malaysian Ringgit is 100 sen.
Margin
Margin is an amount required to keep a position open.
Margin Call
A warning message that the broker sends to a trader usually when their margin level falls below 100%. The expected action is to deposit more funds or close losing positions to maintain the required margin.
Margin Level
A ratio expressed as a percentage between Equity and Used Margin of the open positions. The higher the Margin Level the better.
Market Execution
A Buy or Sell order that will execute at the next available price.
Market Facilitation Index
An indicator developed by Dr Bill Williams to gauge the efficiency of a price movement. It is calculated by combining price and volume: MFI = (High-Low) / Volume. By comparing the current candle's MFI and volume with the previous candle's MFI and volume, four possible scenarios may be formed: MFI rises and Volume rises (Green): The market is accelerating as new traders enter the market. This is assigned a Green color indicating that traders should be having positions in the direction of the prevailing trend. MFI declines and Volume declines (Fade): Both MFI and Volume fade, resulting in no interest to advance further. This usually occurs at the end of a trend. MFI rises and Volume declines (Fake): Price movement without the confirmation of Volume is a sign of a fake move. MFI declines and Volume rises (Squat): The increased Volume signifies the increased number of participants entering the market. The Squat as Bill Williams named it, implies a reversal in the opposite direction or continuation of the prevailing trend. The breakout of the corresponding candle will usually define the direction.
Market Maker
A broker, willing to buy or sell an asset on their own account, in order to aid trading and infuse liquidity.
Market Order
An order to Buy or Sell an asset immediately. This type of order usually guarantees execution but not price. In most cases, it is executed at, or very near to, the current Bid or Ask price.
Market Price (Market Rate)
The most recent price of an asset.
Market Profile
Developed by J. Peter Steilmayer and introduced to the investing/trading community in 1984. It is a technical analysis indicator that originated in the floor pits. It is a way to display the ongoing auction process, overvalued, undervalued and fair value areas. Additionally, it indicates whether the short-term or long-term traders are in control.
Market Watch
A window in Metatrader 4 and Metatrader 5. It consists of the Symbols and the Tick Chart window. The Symbols window displays all available or selected financial instruments (symbols), together with their Bid and Ask prices. Additional information may be displayed such as the Spread, the Highest/Lowest price recorded in the day, and the time of the last incoming price. The Tick Chart window shows the incoming Bid/Ask prices for the selected financial instrument. The Market Watch window title displays the current server time.
Mark-to-Market
The profit or loss an open position would generate if closed at the current market price.
Marubozu
A long Japanese candlestick with small or no shadows.
Mass Index
A technical indicator developed by Donald Dorsey in the early 1990s. The Mass index is a technical indicator that identifies market reversals by measuring the range between previous highs and lows of a financial instrument. A reading of the 25-period Mass Index above 27.0 and then a decline below 26.5 is referred to as a ""reversal bulge"" which signifies a potential reversal. A potential buy signal is triggered when a ""reversal bulge"" occurs while a 9-period Exponential Moving Average of prices is moving downwards. Similarly, a potential Sell signal is triggered when the ""reversal bulge"" occurs while the 9-period Exponential Moving Average is trending upwards.
Matching High
A Japanese candlestick bearish reversal pattern consisting of two bullish candles formed during an uptrend. The first candle is long whereas the second is shorter. Both candles share the same closing price with no upper shadows. The second candle opens above the previous open but it fails to register a higher high. The weakness of the bulls to pull the prices higher signals a potential reversal to the downside.
Matching Low
A Japanese candlestick bullish reversal pattern consisting of two bearish candles formed during a downtrend. The first bearish candle is long whereas the second is shorter. Both candles share the same closing price. The second candle opens lower than the previous open but it fails to register a lower low. The weakness of the bears to push the prices lower signals a potential reversal to the upside.
Mauritius Rupee (MUR)
The alphabetic code which represents the national currency of Mauritius; the Mauritius Rupee. “MU” is the country’s code, and “R” stands for “Rupee”. The denomination of the Mauritius Rupee is 100 cents.
Maximum Drawdown
The peak-to-trough decline in a position's or portfolio's value. It is the difference in value between the lowest trough and the highest peak before the trough.
McClellan Oscillator
A market breadth indicator developed by Sherman and Marian McClellan in 1969. It is used to gauge the balance between advancing and declining stocks. The McClellan Oscillator is plotted by calculating the Exponential Moving Average (EMA) difference between Advancing Issues (stocks which gained in value) and Declining Issues (stocks which fell in value) over a 19 and 39-period respectively. McClellan Oscillator = 19-period EMA (Advances-Declines) - 39-period EMA (Advances - Declines). A reading above 100 indicates an overbought condition, while a reading below -100 is an oversold condition. A Buy signal is in place when the indicator falls between -70 and -100 and then moves upwards. Similarly, a Sell signal is triggered when the indicator moves above the overbought area between +70 and +100 and then declines.
Median Price
It is calculated by adding the High price over a specific period to the Low price over the same period, and dividing the total by two. Median Price = (High + Low) / 2"
Meeting Lines (Bearish)
A Japanese candlestick bearish reversal pattern that is formed during an uptrend consisting of two candles of opposing colors. The first is a long white candle confirming the buyers' pressure where the second opens higher creating a rising window (gap) but eventually closes lower at the previous candle's close. The weakness of the bulls to pull the prices higher signifies a potential reversal to the downside.
Meeting Lines (Bullish)
A Japanese candlestick bullish reversal pattern that is formed during a downtrend consisting of two candles of opposing colors. The first is a long black candle confirming the sellers' pressure where the second opens lower creating a window (gap) but eventually closes higher at the previous candle's close. The weakness of the bears to push the prices lower signifies a potential reversal to the upside.
Meme Stock
Refers to stocks of companies that suddenly gain popularity and skyrocket in price and trading volume. The rally is typically driven by hype from investors on social media platforms and forums.
Merkle Tree
A binary hash tree or a tree of hashes, used to organize large quantities of data.
MetaEditor
A programming environment integrated with MT4 and MT5. One can program Trading Robots, Indicators and Scripts using the MQL4/MQL5 language in the MetaEditor.
Metaverse
A virtual 3D world where participants have the ability to interact, socialize, engage, play, work and invest.
Mexican Peso (MXN)
The alphabetic code which represents the national currency of Mexico; the Mexican Peso. “MX” is the country’s code, and “N” stands for “Peso”. The denomination of the Mexican Peso is 100 centavos.
Micro Lot
It represents 1 000 units of the base currency in a currency pair.
Middle Rate
This is the mid-price between the Bid and Ask price.
Mini Lot
It represents 10 000 units of the base currency in a currency pair.
Minimum Bid Rate
The interest rate at which banks borrow money from the European Central Bank when they are short of liquidity. It is also known as the main refinancing rate.
Mining
The process of verifying transaction on a blockchain and adding blocks of data to the blockchain. This is done by powerful computers known as nodes solving complex mathematical puzzles. This is also how new cryptocurrencies are 'mined' and added into circulation.
Mining Farm
A large collection of powerful computers, typically located in a warehouse, devoted to mining cryptocurrencies.
Model
A method to represent past price data to test expert advisors. In MT4's strategy tester tab, there are three modelling methods available, namely: · Open Prices only (fastest method to analyze the bar just completed) · Control Points (data from the nearest lower time frame is used) · Every tick (based on all available data from lower timeframes)
Moldovan Leu (MDL)
The alphabetic code which represents the national currency of the Republic of Moldova; the Moldovan Leu. “MD” is the country’s code, and “L” stands for “Leu”. The denomination of the Moldovan Leu is 100 bani.
Momentum
It is the rate of change observed in the price of a financial instrument over a specific period.
Momentum Oscillator
A technical tool that measures the price change of a financial instrument over a period of time. If momentum crosses above the 100-line and keeps rising, this is indicative that the corresponding financial instrument is bullish and a potential Buy signal is triggered. On the other hand, a reading below 100 signifies a downward direction in the financial instrument and a potential sell signal. A divergence between the oscillator and price is an early indication of a potential reversal.
Monetary Policy Statement
Through monetary policy statements, central banks are communicating their approaches in regard to money flow and credit markets. The goal of monetary policy is to ensure full employment, price stability and sustainable economic growth.
Money Flow Index
A momentum oscillator that measures the strength of money flowing in and out of a financial instrument. It combines both price and volume to spot overbought and oversold market conditions. The Money Flow Index can also be used to anticipate reversals by observing the divergence between the price and the technical indicator. The Money Flow is calculated as the product of the typical price multiplied by the volume of the corresponding session. When the current session's Money Flow is greater than the previous then Positive Money is in place. Negative Money is considered in place when the current session's Money Flow is less than the previous. Subsequently, the Positive Money Flow is calculated as the ratio of the Positive Money over the Negative Money for a number of sessions. Similarly, the Negative Money Flow is calculated as the ratio of the Negative Money over the Positive Money over a number of sessions. Additionally, the Money Ratio is computed as Positive Money Flow over the Negative Money Flow. Finally, the Money Flow Index is calculated as MFI=100/ (1 + Money Ratio). A reading above 80 warns for market tops whereas a reading below 20 alerts for market bottoms.
Money Management
A crucial component of trading and investing. It includes risk management, asset allocation and diversification.
Mooning
A term that describes what happens when a cryptocurrency is experiencing a significant uptrend. It implies that the crypto price is climbing so high it's headed for 'the moon'.
Morning Doji Star
A Japanese candlestick bullish reversal pattern formed during a downtrend. It consists of three candles. The first is a long black body formed in the direction of the downtrend. The second is a Doji that gaps lower signaling indecision and also the weakness of the sellers. The third candle is a long white body that closes above the middle of the first long black body thus signaling the buyers' intention to pull prices higher.
Morning Star
A Japanese candlestick bullish reversal pattern formed during a downtrend. It consists of three candles. The first is a long black body formed in the direction of the downtrend. The second is a small candle that gaps lower alerting the sellers' weakness to push prices lower. The third candle is a long white body that closes above the middle of the first long black body thus signaling the buyers' intention to pull prices higher.
Moroccan Dirham (MAD)
The alphabetic code which represents the national currency of Morocco; the Moroccan Dirham. “MA” is the country’s code, and “D” stands for “Dirham”. The denomination of the Moroccan Dirham is 100 santimat.
Motive Wave
Introduced by Ralph Nelson Elliott in his popular wave theory, a motive wave subdivides into 5 smaller waves that move in the direction of the prevailing trend. Hence they move in the direction of the trend of a larger degree. It consists of waves 1, 2, 3, 4 and 5.
Moving Average
The moving average is a technical indicator that displays the average price of a financial instrument over a specific period of time. It is plotted as a curving line on the price chart. A Buy signal is generated when the price moves above the moving average line, whereas a Sell signal is in place when the price moves below the moving average line. It is a trend following indicator and as such it produces false signals and poor results during a range. It is also a lagging indicator and therefore cannot predict the future but rather follows the price action. There are many different methods of calculating a moving average but the main difference stems from the weight assigned to the current prices.
Moving Average Convergence Divergence (MACD)
An oscillator developed by Gerald Appel. The Moving Average Convergence/Divergence (MACD) is a momentum oscillator consisting of two moving averages. The fast-moving average is a 12-period Exponential Moving Average (EMA) whereas the slow is a 26-period EMA. The crossing of the EMAs indicates a change in the direction of the market. A 9-period Simple Moving Average of the MACD is known as the Signal line. It may be used in conjunction with the other two lines to provide faster signals.
Moving Average of Oscillator (OsMA)
A technical oscillator that plots the difference between the MACD and its signal line. This oscillator is unbounded so visual inspection is the preferred method to identify overbought and oversold levels. A crossing below the zero line identifies a downward direction whereas a crossing above the zero line signals an upward direction in the market.
Mozambique Metical (MZN)
The alphabetic code which represents the national currency of Mozambique; the Mozambique Metical. “MZ” is the country’s code, and “N” stands for “Metical”. The denomination of the Mozambique Metical is 100 centavos.
MT4
A trading platform that can be used to trade CFDs on forex, indices, cryptocurrencies, and commodities.
MT5
An advanced trading platform that can be used to trade CFDs, forex, commodities, stocks, indices, and futures.
Mvdol (BOV)
The alphabetic code which represents the currency of Bolivia; the Mvdol. “BO” is the country’s code, and “V” stands for “Mvdol”. The denomination of the Mvdol is 100 mvdol.
N
NAGA Coin
NAGA's native cryptocurrency (NGC) enables investors to trade virtual goods and global financial assets without the need for a bank account or fiat money. It acts as a utility token that fasttracks VIP user levels, allows users to receive bonuses and benefit from reduced fees on copytrading and social betting.
Naira (NGN)
The alphabetic code which represents the national currency of Nigeria; the Naira. “NG” is the country’s code, and “N” stands for “Naira”. The denomination of the Naira is 100 kobo.
Namecoin
Released in April 2011 and limited to 21 million coins, Namecoin is a peer-to-peer cryptocurrency launched by Vincent Durham.
Namibia Dollar (NAD)
The alphabetic code which represents the national currency of Namibia; the Namibia Dollar. “NA” is the country’s code, and “D” stands for “Dollar”. The denomination of the Namibia Dollar is 100 cents.
Nano
Launched in October 2015, by Colin LeMahieu, Nano is a decentralized, open-source cryptocurrency. This peer-to-peer digital currency has a supply limit of 133,248,297.
Nasdaq
Ranking second by market capitalization of shares traded, Nasdaq is a New York city-based Stock Exchange. Its major index is the NASDAQ composite and the weighted NASDAQ-100 index.
Nasdaq Composite Index
A stock market index that includes a high number of technology stocks and is listed on the Nasdaq Stock Exchange.
National Futures Association (NFA)
The National Futures Association in the USA.
Navigator
The Navigator window in MT4 lists all the trader’s accounts. It also displays Expert Advisors, scripts and indicators and can be displayed/hidden by the Ctrl+N keys.
Negative Divergence
It occurs when the price of a financial instrument registers higher tops where the oscillator marks lower tops instead. This usually displays a potential weakness in the market and a bearish bias.
Negative Volume Index (NVI)
Developed by Paul L. Dysart Jr and was brought to light by Norman Forsback in the 1970s. The Negative Volume Index (NVI) is useful for the identification of primary market trends and possible short term trend reversals. The NVI is calculated when today’s trading volume is less than yesterday's trading volume. The NVI is derived with the below formula. NVI = PNVI + (((TCP - YCP)/YCP) *PNVI) PNVI = Previous Negative Volume Index TCP = Today's Closing Price YCP = Yesterday's Closing Price
NEO
Founded by Da HongFei and Erik Zhang in 2014 as Antshares (ANS). NEO is an open source decentralized blockchain platform with a supply limit of 100 million NEO tokens.
Nepalese Rupee (NPR)
The alphabetic code which represents the national currency of Nepal; the Nepalese Rupee. “NP” is the country’s code, and “R” stands for “Nepalese Rupee”. The denomination of the Nepalese Rupee is 100 paisa.
Net Asset Value (NAV)
The difference between a company’s total assets and liabilities.
Netherlands Antillean Guilder (ANG)
The alphabetic code which represents the national currency of Curaçao and Sint Maarten (Dutch part); the Netherlands Antillean Guilder. “AN” is the countries’ code, and “G” stands for “Guilder”. The denomination of the Netherlands Antillean Guilder is 100 cents.
Net Volume
A net volume is a statistical tool used by market technical analysts. It subtracts an instrument’s uptick volume from its downtick volume over a specific period of time set by the trader.
New Highs/Lows Ratio
The ratio of the stocks that recorded new 52-week highs, divided by the stocks that reached new 52-week lows.
New Home Sales
The percentage increase of the sale of new single-family houses published and updated on a monthly basis. It is a strong economic indicator. An increase in new home sales is usually considered a positive sign for the economy.
New Israeli Sheqel (ILS)
The alphabetic code which represents the national currency of Israel; the New Israeli Sheqel. “IL” is the country’s code, and “S” stands for “Sheqel”. The denomination of the Rupiah is 100 agora.
News (Tab)
A tab on the Terminal window of MT4 or the Toolbox window of MT5. The news tab displays market-relevant news headlines by subject, category and time.
New Taiwan Dollar (TWD)
The alphabetic code which represents the national currency of Taiwan (Province of China); the New Taiwan Dollar. “TW” is the country’s code, and “D” stands for “Dollar”. The denomination of the New Taiwan Dollar is 100 cents.
New York Stock Exchange (NYSE)
The New York Stock Exchange was founded in 1792. It is the world's largest stock exchange with a market capitalization over 26.2 trillion USD (2021). The Dow Jones Industrial Average (DJIA), Standard and Poor's 500 (S&P 500) and NYSE Composite are all indices of the NYSE.
New Zealand Dollar (NZD)
The alphabetic code which represents the national currency of New Zealand; the New Zealand Dollar. “NZ” is the country’s code, and “D” stands for “New Zealand Dollar”. The denomination of the New Zealand Dollar is 100 cents.
Ngultrum (BTN)
The alphabetic code which represents the national currency of Bhutan; the Bhutanese Ngultrum. “BT” is the country’s code, and “N” stands for “Ngultrum”. The denomination of the Ngultrum is 100 chhertum.
Nicaraguan Cordoba Oro (NIO)
The alphabetic code which represents the national currency of Nicaragua; the Cordoba Oro. “NI” is the country’s code, and “O” stands for “Cordoba Oro”. The denomination of the Cordoba Oro is 100 centavos.
Nikkei 225 (JPN225)
A price-weighted equity index of 225 large stocks on the Tokyo Stock exchange.
Nison Steve
A technical analyst, Nison Steve is an author and speaker, famous for pioneering candlestick charts in the western world. He authored the world-known Japanese Candlestick Charting Technique and boasts an M.B.A in finance and investments. He has also received the Chartered Market Technician (CMT) designation.
Ni-Vanuatu Vatu (VUV)
The alphabetic code which represents the national currency of Vanuatu; the Ni-Vanuatu Vatu. “VU” is the country’s code, and “V” stands for "Vatu". The denomination of the Ni-Vanuatu Vatu is 100 Vatu.
No Dealing Desk
A category of forex brokers that pass clients’ trades to the interbank platform to be filled by liquidity providers.
Noise
Erratic price fluctuation.
Nominality Principle
The principle of Nominality states that a group of related cycles are common in all markets.
Nominal Value
A term in the financial world that is used in various contexts. It is also known as the face value or par value. It states the price written in front of an instrument or a financial security.
Nonce
Refers to a random number that can only be used once. It is typically used for verification purposes in blockchain mining.
Non-Failure Swing
"During the course of an uptrend, as defined by successively higher tops and bottoms, the violation of the last bottom signals a reversal known as the Non-Failure Swing which indicates a potential Sell signal. On the other hand, in the course of a downtrend, the violation of the last top signifies a Non-Failure Swing reversal which indicates a potential Buy signal."
Non-Farm Payroll Report (NFP)
One of the most important economic indicators that shows the change in employment excluding the farming sector. The Non-Farm Payroll (NFP) is released on the first Friday of every month by the US Bureau of Labor Statistics. The number of new jobs created on a monthly basis represents a good sign for the US Economy growth and is actively monitored by the Central bank to adjust interest rates policy accordingly.
Non-Fungible Token (NFT)
Non-fungible tokens (NFTs) are units of data that are tokenized and stored on a blockchain. They are used to prove authenticity and ownership of unique items. Eventhough they have been initially assocciated with art they may refer to anything in digital format such as music in mpeg4, video games, sports videos, articles, tweets, concert tickets, etc.
North Korean Won (KPW)
The alphabetic code which represents the national currency of North Korea; the North Korean Won. “KP” is the country’s code, and “W” stands for “Won”. The denomination of the North Korean Won is 100 chon.
Norwegian Krone (NOK)
The alphabetic code which represents the national currency of Norway; the Norwegian Krone. “NO” is the country’s code, and “K” stands for “Norwegian Krone”. The denomination of the Norwegian Krone is 100 ore.
Notional Value
The total value of a position.
O
Offer Price
The price that a trader will pay to buy a financial instrument.
On Balance Volume (OBV)
Developed by Joseph Granville in the 1960s, this volume indicator shows whether the volume is flowing in or out of a financial instrument. OBV is drawn as a curving line to gauge the health of the price trend. A divergence between the indicator and the price alerts for a weakening of the trend and an impending correction or reversal. The On Balance Volume is calculated as a cumulative total where the volume is added to it when the financial instrument under study closes above the previous session’s close. Conversely, when the closing price is below the previous session’s close, the corresponding volume is subtracted.
On Neckline (Bearish Continuation)
A two-candlestick bearish continuation pattern, that occurs during a downtrend. The first candlestick is a long black body, whereas the second is a small white body that opens below the previous candle and closes at the previous low. It is also known as atekubi in Japanese.
On Neckline (Bullish Continuation)
A two-candlestick bullish continuation pattern, that occurs during an uptrend. The first candlestick is a long white body whereas the second is a small black body that opens above the previous candle and closes at the previous high.
On the close order
An order to be executed near the close of the market.
On the opening order
An order to be executed at the opening price.
Open Contracts
Contracts that have not been closed out or delivered.
Open-end funds
Funds that allow the purchase and redemption of their units at any time. New investors may buy the units of the fund at any time and they may be redeemed at will.
Open Interest
Reflects the number of futures contracts that have not been closed at the end of the day. It reveals money flowing in as the open interest increases, and money flowing out as it decreases. A rising open interest signifies strong sentiment and a “healthy” trend, whereas a declining open interest indicates a weak sentiment.
Open outcry
A communications method on the trading floor involving verbal and hand signals to pass information about trade orders.
Open Position
A long or short position that has not been closed yet.
Open Price
The first price a financial instrument trades at during a specific interval (i.e. timeframe).
Operating in the red
A term used to describe a company that continues to operate while losing money.
Options
Financial derivative contracts that give the holder the right but not the obligation to buy (call) or sell (put) the underlying financial instrument at a specific price (strike price) before the expiration date.
Order
An instruction to the broker to buy or sell a financial instrument.
Order ticket
The details of a trading order.
Ordinary Shares
Common stock, also known as ordinary shares or voting shares. Ordinary shareholders hold/own part of the company, receive part of the company’s profits as dividends when the company decides to distribute profits among the shareholders, and have voting rights during the AGMs.
Organization of the Petroleum Exporting Countries (OPEC)
The Organization of Petroleum Exporting Countries was founded in 1960 in Baghdad, Iraq. It consists of thirteen countries: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela. OPEC’s mission is to help stabilize the oil markets and offer an efficient and affordable supply of petroleum to consumers. This is done by coordinating the member countries, and by creating a fair return on capital for investors of the industry.
Oscillator
A statistical tool based on historical data that swings above and below a base or equilibrium line signifying an upward and downward direction of the market. Readings above the extreme high area indicate an overbought market whereas readings below the extreme low area signal an oversold market.
Oscillator Analysis
Oscillator analysis is most useful in the following three situations: · Readings reach above the extreme high area suggesting that the market has reached overextended prices and a correction or a reversal to the downside may be imminent. Similarly, readings below the extreme low area of the oscillator suggest that prices have reached overextended low prices and an impending correction to the upside may be expected. · A crossing above the midpoint level signifies an upward direction whereas a crossing below the midpoint signals a downward direction. · A divergence between the oscillator and price signifies a warning for an impending correction or reversal.
Ouguiya (MRO)
The alphabetic code which represents the national currency of Mauritania; the Ouguiya. “MR” is the country’s code, and “O” stands for “Ouguiya”. The denomination of the Ouguiya is 5 khoums.
Outside Bar
A bar pattern where the high of the current bar is higher than the previous, and the low of the current bar is also lower than the previous. It usually signifies turbulence and nervousness in the markets, especially during high impact news.
Outstanding Shares
The number of stocks a company has issued.
Overbought
An oscillator’s reading above the upper extreme level suggests that the price of the underlying financial instrument may have risen to extended high levels and a correction or a reversal may be imminent. False signals may be triggered during the beginning of a new uptrend or during a strong uptrend as the oscillator may remain in the overbought area or register frequent false breakouts.
Overnight Position
A trade, either long or short, that is not closed at the end of the day but remains open until the next trading day.
Overnight Rate
The interest rate at which banks and other financial institutions borrow and lend one-day (i.e. overnight) funds amongst each other.
Oversold
An oscillator’s reading below the lower extreme level suggests that the price of the underlying financial instrument may have declined to extended low levels and a correction or a reversal may be imminent. False signals may be triggered during the beginning of a new downtrend or during a strong downtrend as the oscillator may remain in the oversold area or register frequent false breakouts.
Over the Counter (OTC)
A decentralized market where transactions are performed without a central exchange.
P
Pa’anga (TOP)
The alphabetic code which represents the national currency of Tonga; the Pa’anga. “TO” is the country’s code, and “P” stands for “Pa’anga”. The denomination of the Pa’anga is 1000 seniti.
Pakistan Rupee (PKR)
The alphabetic code which represents the national currency of Pakistan; the Pakistan Rupee. “PK” is the country’s code, and “R” stands for “Rupee”. The denomination of the Rupee is 100 paisa.
Palladium (XPD)
The alphabetic code which represents Palladium.
Panamanian Balboa (PAB)
The alphabetic code which represents the national currency of Panama; the Panamanian Balboa. “PA” is the country’s code, and “B” stands for “Balboa”. The denomination of the Balboa is 100 centésimos.
Paper Wallet
A physical piece of paper that contains the public and private keys needed to execute a cryptocurrency transaction. It is printed as two QR codes along with their alphanumeric strings.
Parabolic SAR
Developed by Welles Wilders, the Parabolic Stop and Reverse indicator, also known as SAR, PSAR, Parabolic SAR, is a technical indicator used by traders to determine trend direction. The indicator is formed by dots that follow the price at a decreasing distance. It will first start away from the price and move closer as the move extends. For an uptrend, the PSAR dots will be below the price, and for a downtrend, the PSAR will be above it. The PSAR dots are considered a trailing stop to help traders gauge when the move is exhausted. Traditionally, this strategy is always in the market, either long or short, depending on the PSAR. This indicator is well suited for strong trends but tends to have many false signals in ranging markets.
Passive Management
A trading approach that follows the performance of an index such as the S&P 500, as opposed to relying on active exposure.
Pataca (MOP)
The alphabetic code which represents the national currency of Macao; the Pataca. “MO” is the country’s code, and “P” stands for “Pataca”. The denomination of the Pataca is 100 avos.
Peer-to-Peer (P2P)
Abbreviated as P2P, this is a network of two or more computers that connect, communicate, and share resources with each other without the need for a centralized server.
Pegged Currency
Refers to a policy where a fixed (pegged) exchange rate is allocated between two currencies.
Pending Orders
"These are orders to either Buy or Sell financial instruments in the future. There are two categories of Pending Orders; Stop orders and Limit orders. A Buy Limit is an order to buy in the future at a specific price lower than the current market price. However, a Sell Limit is an order to sell in the future at a specific price higher than the current market price. A Buy Stop is an order to buy in the future at a specific price higher than the current market price. On the other hand, a Sell Stop is an order to sell in the future at a specific price lower than the current market price."
Pennant
Pennant is a chart pattern that indicates the continuation of the trend. It is formed when there is a long movement either upward or downward, followed by a consolidation that has an upper limit and lower limit that can be connected with diagonal lines. The long price move is known as the Flagpole. When the diagonal lines that connect the upper and lower limits converge, the diagram formed looks like a symmetrical triangle. The minimum price target of a Pennant breakout is equal to the Flagpole projected from the breakout point. A "healthy" breakout of the Pennant should be on high volume.
Personal Consumption Expenditures (PCE)
A monthly report released by the Bureau of Economic Analysis, and Department of Commerce that measures the total expenditure of individuals.
Peso Uruguayo (UYU)
The alphabetic code which represents the national currency of Uruguay; the Peso Uruguayo. “UY” is the country’s code, and “U” stands for “Peso Uruguayo”. The denomination of the Peso Uruguayo is 100 centesimos.
Philippine Peso (PHP)
The alphabetic code which represents the national currency of the Philippines; the Philippine Peso. “PH” is the country’s code, and “P” stands for “Peso”. The denomination of the Peso is 100 centimos.
Piercing Line
Piercing line is a Japanese candlestick pattern that is formed during a downtrend or near a support area. It consists of a bearish candle followed by a bullish candle that gaps down and eventually closes above 50% of the previous body. The piercing line is a bullish reversal pattern.
Pip
A Pip is the standard unit for measuring how much an exchange rate has changed in value. A Point in Price, ""PIP"", corresponds to the fourth decimal digit in all currency pairs, with the exception of the Japanese Yen and the Hungarian Forint currency pairs, where the PIP corresponds to the second decimal digit. For example: EURUSD = 1.18735 AUDUSD = 0.80321 USDJPY = 109.925 USDHUF = 292.858
Pivot Points
Technical indicators used to determine market sentiment based on the previous High, Low, Open and Close values. The Pivot Point is calculated to determine potential support/resistance areas and potential turning points. The Pivot Point can be calculated by one of the following five methods: Standard, Fibonacci, Camarilla, Woodies' and DeMark's. The daily timeframe is the preferred timeframe for using Pivot Points.
Platinum (XPT)
The alphabetic code which represents Platinum.
Point
A Point is the smallest price increment of an instrument's exchange rate.
Point & Figure
A price chart that displays supply and demand. It does not consider time like candlestick charts, but instead, it focuses on price movement only. The Point and Figure chart consists of columns with Xs or Os. Each X represents a price move above a certain predefined size. Each O represents a similar move to the downside. The size is known as the box size. The main reason to use Point and Figure charts is to rule out noise since no price movement less than the box size is depicted on the chart.
Position
A term used to indicate when a trader opens a Buy or a Sell trade.
Pound Sterling (GBP)
The alphabetic code which represents the national currency of the United Kingdom of Great Britain and Northern Ireland, Guernsey and Isle of Man; the Pound Sterling. “GB” is the country’s code, and “P” stands for “Pound Sterling”. The denomination of the Pound Sterling is 100 pence.
Price Action
Refers to the price movement of a particular financial instrument over a period of time. It is observed by many traders to identify the prevailing trend and potential trading setups.
Private Key
A specific combination of alphanumeric characters that acts as a password, to allows users to access, transfer, and otherwise manage their crypto funds. A private key is available only to its user.
Producer Price Index (PPI)
A price index published by the US Bureau of Labor Statistics (BLS) that shows the average changes in prices received by domestic producers. It is an indicator to track inflation, which, unlike the CPI, measures inflation from a consumer angle. The PPI is also looking at the variation in prices from a producer standpoint.
Profit Factor
A ratio estimated by dividing the Gross Profit by the Gross Loss. A number higher than 1 indicates a winning strategy.
Profit Taking
Profit taking is the act of closing (fully or partially) an open position in order to book profits.
Profit Trades
The number of profitable trades closed by a trader.
Proof of Stake (POS)
An acronym for proof-of-stake, which is an alternative method of veryfing blockchain transactions. Using this model, holders of the native cryptocurrency lock a part of their holdings in a process known as staking. By doing so they become candidates for validating transactions into the blockchain, also known as mining. Though miners are chosen by an algorithm, the more coins the holders stake, the higher the probability of them being chosen. If they are chosen to become miners, the holders can receive more coins as a reward.
Proof of Work (POW)
An acronym for proof-of-work, which is a consensus method of verifying transactions into blocks. Using this model the participating nodes compete to be the first to solve a complex mathematical/cryptographic problem to 'prove their work' and verify the transactions. In return, the first miner to solve the problem is rewarded with a number of native cryprtocurrencies and/or transaction fees.
Public Key
A cryptographic code that enables users to receive cryptocurrencies into their accounts. It is used to verify the digital signature that proves ownership of the private key.
Pula (BWP)
The alphabetic code which represents the national currency of Botswana; the Pula. “BW” is the country’s code, and “P” stands for “Pula”. The denomination of the Pula is 100 thebe.
Pump and Dumb
This happens when a group of investors who collectively decide to start buying a specific coin, creating demand and driving up its value, only to sell it a higher price.
Q
Qatari Riyal (QAR)
The alphabetic code which represents the national currency of Qatar; the Qatari Riyal. “QA” is the country’s code, and “R” stands for “Riyal”. The denomination of the Riyal is 100 dirhams.
Quadrant Lines
A visual insight of the price action. They consist of five equidistant horizontal lines between the highest and lowest price of a price range.
Qualitative Analysis
Subjective valuations, unquantifiable factors such as traders’ sentiment, market sentiment, intuition, ps