Glossary Complete

A simple reversal pattern identified by Joe Ross. Three key points to confirm the trend change.

A three-wave correction (A-B-C) typical of corrective phases in Elliott Wave theory.

A 4-point harmonic pattern that identifies symmetric price movements to find reversal points.

The interest accrued but not yet paid on a bond since the last coupon payment date.

Wyckoff phase where institutions gradually buy without moving the price. Tight range with irregular volume.

A volume indicator measuring cumulative money flow. Confirms trends and anticipates reversals.

The tendency to always want to 'do something' even when the best choice would be not to trade.

A double bottom with a pointed first low (Adam) and a rounded second (Eve). A bullish reversal pattern.

A trailing stop that dynamically modifies its distance based on current market volatility.

A scam where a small amount is sent from an address similar to the victim's to induce copy-paste errors.

A variant of grid trading with dynamic distances and sizes based on current market volatility.

Average Directional Index. Measures trend strength (not direction) on a 0-100 scale. ADX > 25 = strong trend, < 20 = sideways.

Trading after the official market close. Often used to react to earnings reports.

Free distribution of tokens to holders of a specific cryptocurrency. A marketing tool.

Scalping executed by ultra-high-frequency algorithms, often on milliseconds, impractical manually.

Using automated algorithms to execute orders based on predefined criteria without human intervention.

Excess return relative to the risk-adjusted benchmark. Positive alpha = market outperformance.

The progressive weakening of a strategy's ability to generate excess return over time.

The process of creating excess return relative to the benchmark through skill and active strategy.

Any cryptocurrency other than Bitcoin. Can have high beta relative to BTC.

A period when altcoins outperform BTC. Typically after an extensive BTC accumulation phase.

Accumulation, Manipulation, Distribution: the three phases of a market session according to ICT.

Accumulation, Manipulation, Distribution: the three phases of every market session according to ICT.

An option exercisable at any time until expiration. More flexible than European options.

Automated Market Maker: an algorithm that manages liquidity in DEXs without a traditional order book.

The inability to make decisions due to excessive analysis. Leads to missing opportunities.

The judgment (buy, hold, sell) expressed by financial analysts on a specific stock.

VWAP calculated from a specific point (e.g., earnings, gap) rather than from the daily open.

Giving excessive weight to the first price seen. E.g., expecting a stock to 'return' to the purchase price.

A tool with three parallel lines starting from three pivots, used to project future price channels.

Increasing size after a win and reducing it after a loss. Safer than the classic martingale.

Positioning before a pattern or setup fully completes, based on high probabilities.

The convergence point of two trend lines in a triangle or wedge. Price usually breaks out before the apex.

Direct connection to the broker via API to automate strategies and receive real-time data.

Exploiting price differences of the same asset across different markets. Theoretically risk-free profit, practiced by algorithms.

The principle that the correct price of an instrument should not allow risk-free profits.

A chart that fills the area below the price line, useful for quickly visualizing the general trend.

Measures how much time has passed since the last high/low. Aroon Up and Aroon Down between 0 and 100.

Bullish pattern with horizontal resistance and rising lows. Resolution typically upward.

The range formed during the Asian session. Often 'hunted' by the subsequent London session.

The price at which a seller is willing to sell an asset. Also called the 'offer price'. Always higher than the Bid.

Any tradable financial instrument: stocks, bonds, currencies, commodities, cryptocurrencies, ETFs.

Distributing the portfolio across asset classes: stocks, bonds, commodities, cash.

A situation where the potential gain clearly exceeds the risk assumed, the goal of every ideal trade.

An option whose strike price is equal or very close to the current price of the underlying asset.

Average True Range: measures the average volatility of an asset over a given period. Used to calibrate stop losses.

Theory that markets move through bilateral auctions where buyers and sellers seek fair value.

Nickname for AUD/USD. A pair linked to commodity prices, particularly metals.

Restrictive fiscal policies aimed at reducing public debt by cutting spending or raising taxes.

Algorithmic identification of chart patterns through software, reducing the subjectivity of manual analysis.

Overestimating the probability of events that come to mind easily, like a recent crash.

Adding to a losing position at lower prices to reduce the average cost. Risky technique if misused.

Adding to a winning position to increase exposure in the right direction. Pyramiding.

AO by Bill Williams: the difference between SMA5 and SMA34 calculated on midpoints. Measures market momentum.

Testing a strategy on historical data to validate past performance. Does not guarantee future results.

Dedicated software for testing strategies on historical data, often with realistic simulation of costs and slippage.

A situation where the futures price is lower than the spot price. Indicates immediate scarcity of the underlying.

Studying the term structure of futures to identify supply/demand tensions on the underlying.

A record of all economic transactions of a country with the rest of the world over a given period.

Measures the relative strength between buyers and sellers using close, open, high, and low of each candle.

A price zone where two opposite FVGs overlap, creating a high-probability equilibrium area.

A graphical representation with vertical bars showing the open, high, low, and close of each period.

A series of candles with long wicks and small bodies in a tight range. Indecisive market, best avoided.

The first currency in a Forex pair (e.g., EUR in EUR/USD). You buy or sell the base against the quote currency.

The reference interest rate set by a central bank, the basis for all other rates in the economy.

One hundredth of a percentage point (0.01%). The standard unit for expressing rate and spread changes.

A strategy exploiting the price difference between futures and spot of the same asset for low-risk profit.

Simultaneously opening positions on a group of correlated assets to exploit a common macro theme.

A harmonic pattern with 38.2-50% retracement at point B. Reversal at 88.6% of the XA wave.

The percentage of periods (months/quarters) in which a strategy beats its reference benchmark.

A bearish strategy: selling an ITM call + buying an OTM call. Both profit and risk are limited.

A bearish continuation pattern common in high-volatility crypto markets after an initial sharp decline.

Bearish market with a decline of 20% or more from recent highs. Dominant negative sentiment.

A false bearish signal that induces short positions before a violent rally. Retail liquidity hunt.

Price makes higher highs but the indicator makes lower highs. Signal of potential downside.

A bearish flag: consolidation in an ascending channel after a strong bearish impulse, before continuation.

The last bullish candle before a strong bearish impulse, a potential short entry zone.

A bearish pennant: a small symmetrical triangle after a strong decline, before bearish continuation.

A Fed report published 8 times a year with qualitative information on regional US economic conditions.

A reference index or parameter used to evaluate the relative performance of an investment or strategy.

Sensitivity of an asset relative to the market. Beta > 1: more volatile. Beta < 1: less volatile. Negative beta: opposite.

A position sized considering the stock's sensitivity to the general market, measured by beta.

The price at which a buyer is willing to buy an asset. Always lower than the Ask.

The difference between Bid and Ask price. Represents the implicit cost of trading and market liquidity.

The first digits of a currency pair's price, often omitted in quick quoting among professional traders.

Buy-side Imbalance Sell-side Inefficiency: an FVG created in a bullish move, acts as a bearish magnet.

The first and largest cryptocurrency. A decentralized digital asset created in 2009 by Satoshi Nakamoto.

An unforeseen and extreme event with massive market impact. Term coined by Nassim Taleb.

A distributed and immutable ledger of transactions. Each block is linked to the previous one forming the chain.

A professional platform used by institutions for real-time market data, news, and analysis.

A sudden and extensive move toward a distant liquidity pool, ignoring intermediate levels.

A vertical and parabolic price spike followed by a rapid collapse. Often marks cycle tops.

Large, solid, and consistently profitable companies with a long history. Apple, Microsoft, Johnson & Johnson.

Three bands: central SMA20 +/- 2 standard deviations. Squeeze anticipates breakout. Walking the band = strong trend.

The risk that a bond's value will fall due to a rate increase, proportional to its duration.

A strategy that staggers the maturities of a bond portfolio to manage interest rate risk and liquidity.

The nominal repayment value of a bond at maturity, typically 100 or 1000 units.

Bond investors who massively sell government bonds to protest against irresponsible fiscal policies.

The total expected return if a bond is held to natural maturity.

The process by which an investment bank gathers orders to determine an IPO's price.

The book value of a company: total assets minus total liabilities. Measures net worth.

Economic cycle characterized by rapid expansion (boom) followed by abrupt contraction (bust).

Break of Structure: breaking a significant high/low in the trend direction. Confirms continuation.

An approach starting from the analysis of the individual asset and then considering the macro context, opposite of top-down.

Building a strategy starting from simple rules and adding complexity only if empirically validated.

A combination of a bull call spread and a bear put spread on the same strikes, for nearly risk-free profit.

A gap that breaks a consolidation zone with strong volume. Signals the start of a new trend.

An Order Block that has lost support/resistance and become a 'breaking' level. Often tested from the opposite side.

The point at which a trade produces neither profit nor loss. Stop loss is often moved to breakeven after a certain gain.

The breaking of a support or resistance level with increased volume. Signal of movement continuation.

Betting against a breakout, expecting it to be false and price to return to the original range.

Waiting for the pullback after a confirmed breakout. Improves R:R compared to direct entry.

A protocol to transfer assets between different blockchains. E.g., from Ethereum to Solana or Avalanche.

Megaphone pattern with rising highs and falling lows. Indicates indecision and high volatility.

A megaphone pattern at the top of a bullish trend, signaling increasing volatility and possible reversal.

Financial intermediary that executes buy and sell orders on behalf of the trader in exchange for commissions.

Buy-side Liquidity: a pool of buy stops above highs. Target of institutional bullish moves.

The yield differential between Italian BTPs and German Bunds. Measures Italy's country risk.

A bullish strategy: buying an OTM call + selling a further OTM call. Reduces cost but limits gain.

A bullish continuation pattern common in crypto markets after an initial strong rally (pump).

Bullish market characterized by constantly rising prices, typically over 20% from lows.

A false bullish signal that attracts buyers before a sharp decline. The opposite of a bear trap.

Price makes lower lows but the indicator makes higher lows. Signal of potential upside.

A bullish flag: consolidation in a descending channel after a strong bullish impulse, before continuation.

The last bearish candle before a strong bullish impulse, a potential long entry zone.

A pattern with a gradual lead-in phase, a steep bump, and a final bearish breakout run.

A candle with a very long body and almost no wick. Indicates strong momentum in that direction.

The economic cycle with four phases: expansion, peak, contraction, trough. Guides sector rotation.

A Fibonacci harmonic pattern signaling potential reversals at extreme extension levels.

Three strikes with options to bet on low volatility near a precise target price.

A buy order placed above the current price, executed when the price reaches that level.

A strategy of buying during a temporary decline of a stock in a bullish underlying trend.

A company's repurchase of its own shares. Reduces float and often increases EPS.

A temporary bullish move to collect buy stops before reversing downward.

Nickname for the GBP/USD pair. The name derives from 19th-century submarine telegraph cables.

Selling a short-term option + buying the same strike at a longer expiration. A theta decay strategy.

A bond that the issuer can redeem early under predetermined conditions before natural maturity.

Annual return divided by max drawdown. Measures how much you earn per unit of drawdown.

A pivot point variant with 8 levels calculated from a different formula, used mainly for intraday scalping.

Studying the length and position of shadows to interpret price rejection in a specific zone.

A graphical representation of price showing the open, close, high, and low of a period.

The process of distributing capital across different positions or strategies to optimize the risk/reward ratio.

Rapid capital flight from a country due to economic or political fears, strongly weakening the local currency.

The profit realized from selling an asset at a higher price than the purchase cost. Subject to taxes.

The set of markets where medium-to-long-term financial instruments are traded: stocks and bonds.

The principle that the number one priority of trading is protecting capital before seeking profit.

The final surrender of traders selling in panic. Often marks market bottoms.

A Forex strategy that involves borrowing a low-rate currency to buy a high-rate one.

The massive closing of carry trade positions. Causes violent movements in the yen and emerging markets.

Commodity Channel Index: an oscillator that identifies overbought/oversold conditions and new trends.

Direct action by a central bank in the currency market to influence the value of its own currency.

Contract for Difference: a derivative that allows speculating on price changes without owning the asset.

The difference between EMA3 and EMA10 of Accumulation/Distribution. Signals divergences in money flow.

A momentum oscillator using the difference between up days and down days. Range -100/+100.

A trailing stop based on ATR anchored to the recent high/low. Used to exit trends dynamically.

A structure formed by two parallel trend lines containing the price movement.

When a classic chart pattern doesn't complete as expected, often signaling an anomalous market.

The process (manual or automatic) of identifying recurring chart configurations on prices.

A tool that allows reviewing the historical chart candle by candle, simulating real trading conditions.

Change of Character: the first reversal signal. Breaking market structure in the opposite direction of the trend.

A 0-100 oscillator that measures whether the market is trending or ranging, regardless of direction.

A mechanism that automatically suspends trading on a market after an extreme move to calm volatility.

An entity that guarantees the settlement of transactions between parties, reducing counterparty risk.

The closing price of a period. The most important data point in a Japanese candlestick.

A variant of the footprint chart that groups volume by price level in a visual and compact way.

Risk concentrated on apparently different positions but exposed to the same underlying market factor.

Chaikin Money Flow: measures money flow based on volume and price to identify buying/selling pressure.

The excess of simultaneously monitored information that reduces the quality of trading decisions.

A progressive compression of the price range similar to a spring, anticipating a violent expansion.

Offline storage of cryptocurrencies. More secure than exchanges but less practical for active trading.

A combination of a protective put and a covered call to limit both risk and potential gain.

Currencies of commodity-exporting countries: AUD, CAD, NZD. Correlated with commodity prices.

A small gap in consolidation or low-volatility zones. Tends to fill quickly.

A company's official forecasts for its future results, often moving the stock more than earnings themselves.

A variant of the double top with a more elaborate structure and confirmation across multiple timeframes.

Interest that generates interest. The most powerful force in the financial universe according to Einstein.

Seeking only information that confirms our thesis, ignoring contradictory information.

A price area where multiple analysis tools converge (Fibonacci, moving averages, trendlines) increasing probability.

An advanced RSI with three components: standard RSI, Streak RSI, and percentile rank. Developed for mean reversion.

The method by which a blockchain validates transactions: Proof of Work, Proof of Stake, and variants.

The 50% of the Fair Value Gap. A precise level where price often reacts within the FVG.

A metric measuring the regularity of a strategy's returns over time, penalizing strong oscillations.

A sideways price phase where there's no defined trend. Range-bound market, often precedes a breakout.

A situation where the futures price is higher than the spot price. Common in markets with storage costs.

A predefined action plan for unforeseen adverse scenarios: sudden crashes, malfunctions, extreme gaps.

A gap that opens in the trend direction during a strong impulse. Confirms continuation.

A chart configuration indicating a temporary pause before the resumption of the previous trend.

A trader who operates against market consensus. Seeks opportunities where others see only risk.

A strategy that trades against the prevailing market sentiment, seeking excess extremes to exploit.

When price and indicator move in the same direction, confirming the strength of the movement.

A bond that can be converted into a predetermined number of shares of the issuing company.

A long-period oscillator used to identify market bottoms and long-term buy signals.

Another name for the Coppock Curve, a long-period oscillator for identifying market bottoms.

Automatically replicating the operations of expert traders through dedicated platforms.

A platform that allows automatically replicating the operations of selected traders.

A style consisting of passively replicating the decisions of expert traders without one's own analysis.

Value at Risk calculated considering correlations between positions in a multi-asset portfolio.

A statistical relationship between two assets. Positive: they move together. Negative: they move inversely.

A visual tool showing the correlation between multiple assets with an intuitive color scale.

A table showing correlations between different portfolio assets. Used for diversification.

The risk of having positions that are too correlated and move together, increasing real exposure.

A strategy exploiting statistical relationships between correlated assets to identify trading opportunities.

Commitment of Traders: a weekly CFTC report showing large operators' positions on futures.

Trading against the main trend direction. Requires experience and very precise technical levels.

The risk that the counterparty to a financial transaction will not fulfill its contractual obligations.

The fixed interest rate paid periodically by a bond, calculated on the face value.

Selling a call on an already-owned stock. Generates income but limits maximum potential gain.

Consumer Price Index: measures inflation through the price change of a basket of goods and services.

A harmonic pattern with the most extreme extension at point D: 161.8% of XA. Very precise but rare.

An assessment of an issuer's creditworthiness by agencies like Moody's, S&P, and Fitch.

The yield difference between bonds of different risk. An indicator of financial stress.

A currency pair that does not include the US dollar, such as EUR/GBP or AUD/JPY.

A margin mode where all positions share the same balance, reducing the risk of isolated liquidation.

An exchange rate calculated between two currencies derived from their respective rates against a common reference currency.

Technology that allows the interaction and transfer of assets between different blockchains.

Comparing multiple assets at the same point in time to identify the relatively strongest or weakest.

When two lines or indicators cross, often generating buy or sell signals.

Cryptocurrencies: digital assets based on blockchain technology like Bitcoin and Ethereum.

A prolonged bearish phase in the crypto market, typically with declines exceeding 80% from Bitcoin ATH.

A reserve of tokens locked in a smart contract used to facilitate exchanges on a DEX.

A prolonged period of decline and low interest in the cryptocurrency market, often after a speculative bubble.

A Forex trading platform with Level 2 pricing and advanced analysis tools.

A bullish cup-and-handle pattern. Breaking the cup rim is the entry signal.

A basket of currencies used as a reference to anchor or measure the value of another currency, like the DXY.

A monetary regime where the local currency is rigidly pegged to a foreign currency with full reserve backing.

The central bank buys/sells its own currency to influence its value. Common for JPY and CHF.

Pegging a currency's value to another (often the dollar) to maintain exchange rate stability.

The relative strength of a currency compared to others. A tool to identify the best pairs to trade.

Competition between countries to devalue their own currency in order to favor exports.

A component of the balance of payments that includes trade, investment income, and transfers.

A methodological error of excessively adapting a strategy's parameters to historical data, reducing future robustness.

A financial institution that holds assets in custody on behalf of investors or funds.

Studying recurring time cycles in markets to anticipate future turning points.

Shares whose performance is closely tied to the economic cycle: autos, construction, commodities.

A harmonic pattern with a unique structure: point C exceeds 100% of XA. Reversal at 78.6% of XC.

The expected market direction for the day, derived from Daily/4H analysis before the London open.

The maximum daily loss threshold beyond which trading is interrupted for the rest of the session.

An increase in the daily range relative to the average, often signaling the start of the day's true direction.

Decentralized Autonomous Organization: an organization governed by smart contracts and token holder votes.

A bearish two-candle pattern: bullish followed by bearish that opens above and closes below 50%.

Private markets where large institutional investors trade large blocks of shares away from public markets.

A methodological error of finding random patterns in historical data that have no real predictive value.

Deutscher Aktienindex: the main German stock index, including the 40 largest German companies.

A strategy where all positions are opened and closed within the same day.

The number of days needed to cover all short positions at average daily volume.

A temporary bounce in a bearish trend, followed by further decline. Not a real reversal.

A bearish crossover between a short-term and long-term moving average, the opposite of a golden cross.

The operating range between a significant high and low, divided into premium and discount quadrants.

The EMA50 crosses below the EMA200. A long-term bearish signal.

The legal borrowing limit of the US government. Reaching it creates strong market uncertainty.

The ratio of public debt to GDP. A key indicator of a country's fiscal sustainability.

An approach starting from general theoretical principles to derive specific market predictions.

The risk that a bond issuer will be unable to meet the expected payments.

Recession-resilient shares: utilities, healthcare, consumer staples. Stable dividends.

Decentralized Finance: blockchain-based financial services without traditional intermediaries.

A general and prolonged decline in prices. Can lead to recessionary spirals if consumers delay purchases.

A slang term for a crypto trader who takes extreme risks on high-volatility speculative assets.

Removal of a stock from exchange listing, often due to failure, merger, or failure to meet requirements.

A hedging technique that continuously balances the delta of an options portfolio to neutralize directional risk.

An options portfolio with total delta = 0. Neither gains nor loses from small underlying movements.

A strategy that exactly replicates the movements of the underlying without exposure to gamma or volatility.

Combines price and volume more sophisticatedly than OBV to anticipate price movements.

A price area where there's strong institutional demand. Price frequently bounces from these zones.

A graphical visualization of available liquidity at various price levels, common on crypto exchanges.

A descending expanding wedge with diverging highs and lows. A rare high-volatility pattern.

A bearish pattern with horizontal support and falling highs. Resolution typically downward.

The ability to be detached from the outcome of each individual trade. Fundamental for objectivity.

DPO: removes the trend from price to isolate cycles. Useful for identifying cyclical peaks and troughs.

A deliberate reduction of a currency's value by the central bank relative to other currencies or gold.

Decentralized Exchange: a crypto exchange platform without centralized intermediaries. E.g., Uniswap, dYdX.

Combines different strikes and expirations, merging the characteristics of calendar and vertical spreads.

A diamond-shaped reversal pattern. Rare but very reliable. Precedes explosive moves.

The reduction of existing shareholders' ownership percentage caused by the issuance of new shares.

Buying an asset after a temporary dip in the context of a general bullish trend.

When two currency pairs move in the same direction, like EUR/USD and GBP/USD.

DMI: the basis of ADX, composed of +DI and -DI to measure the direction of movement.

The area below 50% Fibonacci. Ideal zone for longs in the ICT model. 'Discounted' price.

The trader makes decisions based on judgment, experience, and personal analysis case by case.

The percentage difference between price and a moving average. Measures how far price has moved from the MA.

An impulsive move of one or more candles with high range and volume. Creates FVG and indicates institutional intent.

The aggressive movement leg that generates one or more consecutive Fair Value Gaps.

The tendency to close winning trades too early and hold losing ones too long.

Wyckoff phase where institutions gradually sell their positions before a decline.

When price and an indicator move in opposite directions. Signals a possible reversal.

Not putting all eggs in one basket. Reduces specific risk while maintaining expected return.

A company that has increased its dividend for at least 25 consecutive years. A symbol of financial stability.

The dividend return: annual dividend divided by the stock price. Expressed as a percentage.

A candle with nearly identical open and close. Signals market indecision, possible reversal.

Investing a fixed amount at regular intervals regardless of price to reduce the impact of volatility.

Theory: the dollar strengthens both during strong US growth phases and during global crises.

Depth of Market: the order book showing available liquidity at each price level.

A channel formed by the highest high and lowest low of the last N periods. The basis of the Turtle Trading Strategy.

The compulsive search for the dopamine rush of trading, similar to gambling mechanisms.

A Fed chart showing individual FOMC members' forecasts on future interest rates.

A bullish reversal pattern shaped like a W. Confirmed at the break of the neckline between the two lows.

DEMA: reduces EMA lag by applying the formula twice. More reactive to price changes.

Two consecutive inside bars signaling a very strong volatility compression before the breakout.

A bearish reversal pattern shaped like an M. Confirmed at the break of the neckline between the two highs.

A central bank stance oriented toward maintaining or lowering rates to stimulate growth.

The basis of modern technical analysis: the market discounts everything, trends have three phases, moves in trends.

A measure of volatility considering only negative returns, the basis for calculating the Sortino Ratio.

A sequence of lower highs and lower lows. The technical definition of a bearish trend.

A doji with a long lower wick and no upper wick. Strong bullish signal after a downtrend.

The liquidity target toward which price is theoretically attracted, used to define directional bias.

The maximum loss from peak to lowest point of a portfolio. A key risk management metric.

The percentage return needed to recover from a drawdown, growing non-linearly with the loss.

Measures the sensitivity of a bond's price to changes in interest rates.

US Dollar Index: measures the value of the US dollar relative to a basket of six major currencies.

A resistance that moves over time, like a falling moving average or a descending trendline.

A support that moves over time, like a rising moving average or an ascending trendline.

Do Your Own Research: doing personal research before investing. Fundamental in the crypto market.

Corporate profits. The release of quarterly data (earnings report) moves stocks violently.

When actual earnings exceed (positive) or disappoint (negative) analyst expectations.

Combines price and volume to measure how easily price moves. High values = movement with little effort.

Earnings Before Interest Taxes Depreciation Amortization. Measures a company's operating profitability.

European Central Bank. Manages Eurozone monetary policy and Euro interest rates.

Electronic Communication Network: a broker that directly connects traders' orders to interbank liquidity.

A tool listing macroeconomic data releases with time, expected impact, and forecast/previous values.

A company's lasting competitive advantage that protects it from competition, a concept dear to Warren Buffett.

EMH: a theory that prices always reflect all available information. Controversial among traders.

Measures the force behind a price movement by combining direction, magnitude, and volume.

Colors candles based on EMA and MACD Histogram to identify when to avoid counter-trend trading.

An indicator by Alexander Elder: Bull Power (High - EMA) and Bear Power (Low - EMA) to measure strength.

Theory that markets move in impulsive (5 waves) and corrective (3 waves) according to Fibonacci sequences.

Exponential Moving Average: a moving average that weights recent data more heavily than the SMA.

The ability to follow one's trading plan regardless of momentary emotions.

Systematic recording of the emotional state during each trade to identify behavioral patterns.

The tendency to overvalue an asset simply because one already owns it, making it hard to close at a loss.

A two-candle pattern where the second completely engulfs the body of the first. Reversal signal.

Combining multiple independent models or strategies to obtain more robust and stable predictions.

The price level at which a long or short position is opened.

Bands created around a moving average using a fixed percentage. Less dynamic than Bollinger Bands.

Earnings Per Share: net income divided by the number of shares. A key metric for evaluating companies.

Two or more highs at the same level. They create a liquidity pool (buy stops) above that zone.

Two or more lows at the same level. They create a liquidity pool (sell stops) below that zone.

The 50% Fibonacci of a range or swing. Divides the premium zone from the discount. ICT fair value.

A chart showing the evolution of capital over time. Fundamental for evaluating a strategy.

Exchange Traded Fund: a fund that tracks an index, sector, or asset, traded on an exchange like a stock.

The second crypto by market cap. A platform for smart contracts and decentralized applications.

The EUR/USD pair, the most traded in the world in Forex. About 20% of daily FX volume.

An option exercisable only at expiration. More common in European markets and major indices.

A bearish three-candle pattern: large bullish, indecision, large bearish. Signals top reversal.

A strategy based on specific events: earnings, FDA approval, mergers. High volatility and risk.

An organized market where financial instruments are traded: NYSE, Nasdaq, LSE, Binance.

The actual completion of a market order. Execution quality impacts profitability.

A gap that opens toward the end of a trend. Signals exhaustion of the movement and possible reversal.

A predefined plan to close a position, including stop loss, take profit, and trailing stop.

An option with a non-standard structure: barrier, Asian, lookback. More complex than vanilla options.

Pairs including currencies of emerging economies: USD/TRY, USD/ZAR. Higher spread, more volatile.

A wedge that expands instead of converging. The lines diverge. High volatility and potential reversal.

The expected average return per trade: (Win% × Avg Win) - (Loss% × Avg Loss). Must be > 0.

Expected value of a trade: (Win Rate × Avg Gain) - (Loss Rate × Avg Loss). Must be positive.

A trading robot on MetaTrader that executes strategies automatically according to programmed rules.

The expiration date of an option or future. After this date the contract becomes worthless.

A statistical technique that applies exponentially decreasing weights to historical data. The basis of EMA.

The total capital at risk at a given moment. The sum of open positions.

A condition where price has moved far from the average. Signals a possible retracement.

A prolonged variant of the rounding bottom on very wide timeframes, typical of very long-term accumulations.

Liquidity outside a range, above highs or below lows. Target of main movements.

Taking positions contrary to extreme moves, betting on a return to the historical average.

A pattern where price breaks a key level but quickly reenters, often followed by a strong opposite move.

A price gap created by an impulsive 3-candle move. Price tends to return to 'mitigate' the FVG.

A false break of a technical level followed by a return to the range. Common before real breakouts.

A descending wedge with converging lines. A bullish reversal pattern or continuation in a downtrend.

A break of a key level that doesn't hold and is quickly rejected, often a trap for retail traders.

A crypto-specific index measuring sentiment 0-100. Extreme fear = possible buying opportunity.

A composite indicator measuring market sentiment from 0 (extreme fear) to 100 (extreme greed).

The central bank of the United States. Its interest rate decisions move all global markets.

A currency whose value derives from trust and government decree, not from a physical asset like gold.

Nickname for EUR/USD. The most traded of all global currency crosses, about 20% of volume.

Mathematical levels (23.6%, 38.2%, 50%, 61.8%, 78.6%) used to identify support, resistance, and targets.

Curved arcs based on Fibonacci levels that combine price and time to find reaction zones.

A zone where multiple Fibonacci levels calculated from different swings converge, increasing the level's reliability.

An area where multiple Fibonacci levels from different swings overlap with an Order Block or FVG.

Fibonacci levels projected beyond 100% to calculate price targets: 127.2%, 161.8%, 261.8%.

Diagonal lines drawn from a swing point to Fibonacci levels, used as dynamic support/resistance.

The zone between 61.8% and 78.6% retracement where ICT identifies the optimal trade entry.

Percentage levels (23.6%, 38.2%, 61.8%) used to identify where a movement might stall.

A chart configuration where price retraces to precise Fibonacci levels before resuming the trend.

Vertical lines based on the Fibonacci sequence used to anticipate the timing of future turning points.

A legal obligation of a financial professional to act in the best interest of their client.

Any contract that gives rise to a financial asset for one party and a liability for another.

A measure of how much debt a company or trader uses relative to their own capital.

The simultaneous expiration of tax cuts and spending increases that risks generating a sharp economic contraction.

Increased government spending or tax cuts to stimulate economic growth during a slowdown.

Converts prices into a normal distribution to make extreme reversal points more visible.

A position sizing method that always risks the same percentage of capital. E.g., 1% per trade.

A continuation pattern formed by a pole (rapid impulse) and a flag (channel consolidation).

A sudden and violent price crash in minutes, often caused by algorithms or system errors.

A sideways market with no defined direction. Trend-following traders avoid operating in this phase.

A pattern with a flat horizontal resistance repeatedly tested before the bullish break.

Capital movement toward safe assets (T-bonds, gold, yen) during crisis or uncertainty periods.

A hypothetical scenario where Ethereum surpasses Bitcoin in total market capitalization.

The total number of shares available for trading. A low float can amplify price movements.

The number of times the entire float of a stock is traded in a day, indicating strong interest.

A bond with a variable coupon linked to a market reference rate, which updates periodically.

Trading physically executed on the exchange floor by specialists before the digital era.

An optimal state of total concentration. The best traders often operate in this mental state.

Federal Open Market Committee: the Fed committee that decides US monetary policy every 6 weeks.

Fear Of Missing Out: fear of missing an opportunity. Leads to entering late on already-advanced positions.

An advanced chart showing the volume traded at each price level for each candle.

An indicator combining price and volume to measure the strength of market movements.

Foreign Exchange: the global currency market. The largest and most liquid in the world with $6 trillion/day.

A tool that visually shows the correlation between currency pairs over different time periods.

The daily moment (e.g., 16:00 London) when an official reference exchange rate is established.

The flow of real bank orders in the interbank market, often monitored by institutions.

A modification of the blockchain protocol. Hard fork = incompatible with previous version, soft fork = compatible.

Central banks' anticipatory communication about future monetary policy decisions. Expectation management.

The difference between the spot exchange rate and the forward rate, determined by the interest rate differential.

Validating a strategy on live data subsequent to development, before allocating real capital.

FRAMA: a moving average that automatically adapts to volatility using Mandelbrot fractals.

Measures the geometric complexity of price to distinguish between trending and noisy markets.

Theory that markets are composed of investors with different time horizons, creating self-similar patterns.

Patterns that repeat at different timeframes. Bill Williams concept: 5 candles with the central high/low being the highest/lowest.

The percentage of a company's shares available to the market, excluding those of stable large shareholders.

The illegal practice of executing personal orders before client orders using privileged information.

An emerging market in the early stage of development, with lower liquidity and higher risk than emerging markets.

Fear, Uncertainty, Doubt: negative news often exaggerated to create panic selling. The opposite of FOMO.

Studying economic, financial, and qualitative data to determine the intrinsic value of an asset.

The financing rate in the perpetual futures market. Positive = longs pay shorts, and vice versa.

The property by which units of an asset are interchangeable, like money or Bitcoin.

Standardized contracts to buy/sell an asset at a set price on a future date.

The process of closing an expiring futures contract and opening a new one with a subsequent expiration.

The ratio between the sum of monthly returns and the sum of the absolute values of monthly losses.

The erroneous belief that after a series of losses a win is 'due', or vice versa.

The rate of change of an option's delta relative to the underlying price. Second-order sensitivity.

A strategy exploiting delta changes of an option by frequently rebalancing the underlying position.

A violent price movement caused by market makers covering their options positions.

W.D. Gann's diagonal lines combining time and price to predict future support and resistance.

An empty space between the close of one period and the open of the next with no intermediate trades.

A strategy that trades the open on the continuation of a strong opening gap with confirmed volume.

Price opening significantly below the previous close. Indicates strong selling pressure.

The return of price to the gap level to 'fill it'. Gaps tend to be filled over time.

Trading the return of price to fill the opening gap. High historical probability of success.

The risk that price opens far from your stop loss, causing losses greater than planned.

Price opening significantly above the previous close. Indicates strong overnight demand.

The price action of opening significantly above or below the previous close.

A statistical model that estimates future volatility based on past volatility and recent shocks.

A 5-point harmonic pattern (XABCD) based on Fibonacci ratios to identify reversals.

The fees paid on the Ethereum network to execute transactions and smart contracts.

The maximum gas a user is willing to pay for a transaction on Ethereum or similar chains.

A Bill Williams indicator derived from the Alligator. Measures the convergence/divergence of its lines.

Gross Domestic Product: measures the total value of goods and services produced by a country in a year.

The first block of a blockchain, the starting point of the entire chain of transactions.

Risk arising from conflicts, sanctions, or political instability. Shifts capital toward safe havens.

Opening a buy position on an asset expecting the price to rise.

Selling an asset short expecting the price to fall to buy it back at a lower price.

The EMA50 rises above the EMA200. A strong long-term bullish signal.

A doji with a long upper wick and no lower wick. Strong bearish signal after an uptrend.

Greed leads traders to hold positions too long or risk excessively. The enemy of discipline.

An informal nickname for the US dollar. Derives from the green color of American banknotes.

A strategy that places orders at regular intervals above and below the current price forming a grid.

Gross margin: the difference between revenue and cost of goods sold. Indicates a company's production efficiency.

Shares of companies with high expected earnings growth. Often have high P/E and pay no dividends.

A seasonal pattern according to which stock markets perform better from November to April than the rest of the year.

A Bitcoin event every ~4 years that halves the miner reward. Historically bullish for BTC.

A candle with a small body at the top and a long lower wick. Bullish signal after a downtrend.

Like the Hammer but at the end of an uptrend. Bearish signal. Same shape, opposite context.

A two-candle pattern where the second is completely contained within the body of the first. Signals indecision.

A scenario where the attempt to slow inflation causes a severe economic recession.

A physical stop loss placed directly with the broker, executed automatically regardless of the trader's presence.

A family of patterns based on precise Fibonacci ratios (Gartley, Bat, Butterfly, Crab) to anticipate reversals.

The computing power of the Bitcoin network. High hash rate = more secure network and more active miners.

A central bank stance oriented toward raising rates to fight inflation.

A bearish reversal pattern with a head (central high) and two shoulders. Neckline break = entry.

A deceptive move in one direction followed by a rapid reversal in the opposite direction.

A graphical visualization of market performance by sectors and assets. Immediate momentum reading.

A hedging operation to reduce the risk of another open position. E.g., short on a positive correlation.

A strategy combining opposite positions to reduce net exposure while maintaining profit potential.

A type of candlestick using calculated averages to filter noise and make trends more visible.

An extreme monetary policy involving the direct distribution of money to citizens to stimulate consumption.

Following the crowd. In trading it's often counterproductive: the crowd is usually on the wrong side.

An indicator for futures that combines price, volume, and open interest to confirm trends.

High Frequency Trading: ultra-fast algorithmic trading with thousands of operations per second.

A style of algorithmic trading based on thousands of operations per second to capture micro-inefficiencies.

An ICT setup with confluence of multiple elements (liquidity, structure, timing) that increases the probability of success.

A bond with a high yield but a credit rating below investment grade, another name for junk bond.

A higher high relative to the previous high. HH/HL sequence = confirmed uptrend.

A higher low relative to the previous low. Part of an uptrend structure.

An Order Block on a higher timeframe (Daily/Weekly). Has absolute priority over lower TF OBs.

Believing retrospectively that one knew what would happen. Distorts performance analysis.

A bar representation of the difference between two lines (e.g., MACD and Signal line). Shows momentum.

Measures the past variability of an asset's price over a given period. Different from implied volatility.

A strategy of holding crypto long-term regardless of volatility.

A support or resistance at a fixed price. Often more respected than dynamic levels by institutions.

Speculative capital that moves rapidly between markets and countries seeking high returns.

A crypto wallet connected to the internet. More convenient for trading but less secure than a cold wallet.

An advanced moving average that reduces lag compared to traditional averages using square roots of periods.

Measures whether a price series is trend-following, mean-reverting, or random. Values > 0.5 indicate trend persistence.

A combination of systematic and discretionary approaches. The system generates signals, the trader filters.

Out-of-control inflation above 50% monthly. Destroys the purchasing power of currency.

An execution technique that splits a large order into many small orders to reduce market impact.

A complete Japanese system with 5 lines (Tenkan, Kijun, Senkou A, Senkou B, Chikou) for trend and momentum.

The 'cloud' of the Ichimoku formed by Senkou Span A and B. A dynamic future support/resistance zone.

Initial Coin Offering: initial fundraising for a crypto project through token sales, popular in 2017.

An ICT operational model that combines liquidity sweep, MSS, and return into an FVG for a precise entry.

Overestimating one's ability to control or predict the random outcome of markets.

A temporary loss suffered by liquidity providers in DeFi pools when the price of assets diverges.

The price change expected by the market within an expiration, derived from the price of at-the-money options.

The future volatility expected by the market, derived from options prices. High IV = more expensive options.

IVR: current implied volatility relative to the historical range. High IVR = expensive options, better to sell.

An option with positive intrinsic value. Call ITM: strike < price. Put ITM: strike > price.

A basket of securities representing the performance of a market or sector. S&P 500, Nasdaq, DAX.

An apparent setup created to attract retail in the wrong direction before the real move.

An approach starting from empirical data observation to build general rules and principles.

QE without predefined time or amount limits, used in the most severe crises to stabilize markets.

A general increase in prices over time. The CPI index measures inflation. High inflation = higher rates.

Measures a strategy's active return relative to the benchmark, divided by the tracking error.

The minimum deposit required to open a leveraged derivatives position with the broker.

A candle whose range is completely contained within the range of the previous candle. Indicates consolidation.

Buying and selling shares based on non-public confidential information. An illegal practice in most jurisdictions.

A candle with a wide range representing an institutional order. Often the origin of an Order Block.

An organization that invests large sums of money on behalf of others: pension funds, hedge funds, banks.

The flow of large orders generated by banks and funds, traceable through displacement and OB.

A large financial operator: banks, hedge funds, pension funds. They move large volumes of capital.

The financial instrument being traded: stock, index, currency, commodity, crypto.

The exchange rate traded between large banks, generally the most competitive before retail broker markups.

The interest rate set by central banks. Impacts currencies, bonds, and stock markets.

The difference between the interest rates of two countries, the main driver of carry trade flows.

The cost of money. Determined by central banks, they influence currencies, bonds, and stocks.

Studying relationships between different markets: bonds, currencies, commodities, and stocks.

Liquidity created within a consolidation range. Target of intermediate movements.

Opening and closing all positions within the same day. No overnight risk.

The risk inherent in the very nature of an asset, independent of external market factors.

The real value of an ITM option: the difference between price and strike. OTM options have only time value.

The price beyond which the technical thesis of a trade is considered wrong, often coinciding with the stop loss.

The bearish version of the Cup and Handle. An inverted cup with a handle, downward break as a signal.

When two currency pairs move in opposite directions, like EUR/USD and USD/CHF.

Crypto futures contracts denominated in the crypto itself rather than stablecoins, common on Bitcoin and altcoins.

Inverse Head and Shoulders: a bullish reversal pattern. The bullish version of Head & Shoulders.

A candle with a small body at the bottom and a long upper wick. Bullish signal in a downtrend.

A credit rating classification indicating low default risk for a bond or issuer.

Initial Public Offering: a company's first listing on the stock exchange. Often accompanied by high volatility.

A strategy with options betting on a sideways market by selling a strangle and buying external protection.

A group of candles isolated by two opposite gaps. Indicates a complete sentiment reversal. Rare and reliable.

Institute for Supply Management: publishes data on US manufacturing and services. Heavily impacts markets.

A margin mode where each position has a dedicated balance, limiting the maximum loss to that position.

The Fed's annual symposium in Wyoming. Often used to anticipate monetary policy changes.

The historical tendency of small caps to outperform in January, attributed to year-end tax effects.

A graphical technique developed in Japan in the 18th century by Munehisa Homma for the rice market.

A trading diary where each operation, motivation, emotions, and results are recorded for improvement.

The initial false move in the wrong direction at the start of the New York session to collect liquidity.

A high-yield bond with a low credit rating (below investment grade), therefore high risk.

A Japanese chart that changes direction only when price reverses by a fixed amount.

KAMA: an adaptive moving average. Slow in sideways markets, fast in strong trends. Reduces false signals.

A formula for optimal size: (WinRate - LossRate/WinLossRatio). Often used at 25-50% for safety.

Volatility bands based on EMA and ATR. Used with Bollinger Bands to identify squeezes.

A condition where Bollinger Bands contract inside the Keltner Channel, anticipating a volatility expansion.

A significant price level where the market has historically reacted multiple times. High-probability zone.

A violent two-candle reversal pattern with a gap between them. One of the strongest patterns ever.

A high-volatility time window during the opening of major sessions (London, New York, Asia).

Nickname for NZD/USD. Correlated with AUD and New Zealand agricultural commodity prices.

Combines volume and price to identify long-term trends and reversal signals.

KST: a momentum oscillator based on four smoothed rates of change. Good for swing trading.

An indicator that confirms movements that have already occurred. Moving averages are lagging by definition.

Delay in order transmission. Critical in HFT, relevant for scalping.

The main blockchain: Bitcoin, Ethereum, Solana. The base layer of security and decentralization.

Solutions built on top of an L1 for scalability and reduced costs. E.g., Lightning Network, Arbitrum.

An indicator that anticipates future price movements. Oscillators like RSI and Stochastic.

Visualization of the order book with all available bids and asks at different price levels.

A mechanism that amplifies gains and losses using borrowed capital from the broker. High risk.

A buy or sell order at a specific price or better. Does not guarantee execution.

A chart connecting only closing prices with a continuous line. The simplest among chart types.

A channel around a linear regression line, with standard deviation bands to identify extremes.

A line that minimizes the distance from prices. Shows the statistical trend without MA lag.

The forced closure of a leveraged position when losses exceed the available margin.

Zones where other traders' stop losses accumulate. Institutions 'hunt' this liquidity to fill orders.

The distribution of available liquidity at different price levels around the current price.

Providing liquidity to DEXs in exchange for token rewards. A form of passive yield in DeFi.

A zone where many stop losses are concentrated. Price spikes toward these zones often reverse afterward.

An entity that provides continuous buy and sell orders, ensuring the fluidity of market trading.

A rapid price movement toward an evident liquidity pool, often followed by a reversal.

A price reversal immediately after sweeping an evident liquidity pool above or below a level.

A situation where near-zero rates can no longer stimulate the economy because money demand is infinite.

A price zone with almost no trades, typically after rapid moves. Price tends to return to it.

The period after an IPO when insiders and early investors cannot sell their shares.

A logarithmic chart scale where equal percentage changes occupy the same vertical space.

A Forex strategy that trades the break of the Asian range at the London session open.

The midnight London Time. A reference point for daily bias in the ICT model.

A buy position on an asset with the expectation that the price will rise.

Buying a call and a put at the same strike. Gains from strong movements in either direction.

Buying an OTM call and an OTM put. Cheaper than a straddle, requires larger movements to profit.

A very long wick indicating strong price rejection at that level. Long wicks are reversal signals.

Analysis of the performance of a strategy or asset over time, observing the evolution over extended periods.

Nickname for USD/CAD or the Canadian dollar. Correlated with Canadian oil prices.

The tendency to feel losses about 2.5 times more intensely than equivalent gains. A cognitive bias.

The maximum loss limit a trader imposes on a daily, weekly, or monthly basis.

Standard unit in Forex: 1 lot = 100,000 units. Mini lot = 10,000, Micro = 1,000.

A path toward a liquidity target free of intermediate structural obstacles. High probability of reaching it.

A lower high relative to the previous high. Part of a downtrend structure.

A lower low relative to the previous low. LH/LL sequence = confirmed downtrend.

A measure of money supply including cash, deposits, and short-term instruments. An indicator of systemic liquidity.

Moving Average Convergence Divergence: a trend and momentum indicator. MACD/Signal cross = signal.

A fund that speculates on global macroeconomic themes: rates, currencies, commodities, rather than individual stocks.

Specific intraday moments (e.g., 09:30, 10:00, 13:30 ET) where ICT predicts significant moves.

The minimum margin level to maintain to avoid a margin call during the open position.

The main currency pairs vs USD: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD, NZD/USD.

An exchange rate regime where the currency floats freely but the central bank occasionally intervenes to stabilize it.

The phase of the Power of Three where price moves in the opposite direction of the expected real move.

An area where price is artificially pushed in one direction to trigger orders before the reversal.

The security deposit required by the broker to open a leveraged position. A portion of the total value.

A broker's request to deposit additional funds when losses exceed the available margin.

The minimum capital required to open and maintain a leveraged derivatives position.

A return pattern that contradicts the efficient market hypothesis, like the January effect or the value premium.

Measures how many stocks participate in an index movement. Broad participation confirms trend solidity.

Market capitalization: price × number of shares outstanding. Measures a company's size.

The recurring pattern of expansion and contraction. On average 4-7 years to complete a full cycle.

The four cyclical phases of markets: accumulation, markup, distribution, markdown.

The quantity of buy and sell orders available at various price levels at a given moment.

The percentage of total crypto market cap held by Bitcoin. Indicates risk appetite.

By Bill Williams: measures the efficiency of price movement per unit of volume in a bar.

An entity that provides liquidity to the market by continuously buying and selling, earning on the spread.

An ICT model describing how market makers accumulate before a rally through SSL sweeps.

An ICT model describing how market makers distribute before a decline through BSL sweeps.

An order executed immediately at the best available price. Guarantees execution but not price.

An imbalance between buy and sell orders in an auction, which can cause violent opening price movements.

The sequence of highs and lows that defines whether the market is in an uptrend, downtrend, or sideways.

Simultaneous purchase of a stock and a protective put, to limit downside risk from day one.

Doubling size after each loss. Extremely dangerous: a series of consecutive losses empties the account.

A candle with a full body and no wicks. Indicates strong directional determination without hesitation.

Uses the High-Low range to identify trend reversals. Signal when it exceeds 27 and returns below 26.5.

An advanced phase of a trend where momentum begins to slow, increasing the risk of reversal.

The maximum loss from peak to bottom recorded in a period. A fundamental risk management metric.

MEV: profit extractable by reordering or inserting transactions in a block, often through specialized bots.

MAE: the maximum intraday loss before a winning trade closes in profit. Optimizes stops.

MFE: the maximum intraday profit reached. Useful for optimizing take profits and trailing stops.

A moving average that automatically adapts to market speed. Reduces whipsaws and lag.

The theory that prices return to their historical average. The basis of many contrarian strategies.

A price area statistically far from the average where the probability of a return to equilibrium increases.

A bearish projection: the second leg has the same amplitude as the first descending one.

A bullish projection: the second leg has the same amplitude as the first. Used for price targets.

The average of High and Low of a period: (H+L)/2. Used as an alternative input for some indicators.

Another name for the Broadening Formation. Rising highs and falling lows, high indecision.

A cryptocurrency based on a meme with no fundamental utility. DOGE, SHIB. Extreme speculative volatility.

The waiting area where unconfirmed blockchain transactions remain before being included in a block.

Treating money differently based on its origin, e.g., risking more 'house profits'.

An exit level decided mentally without an order placed with the broker. Risky for emotional discipline.

MT4: a trading platform for Forex and CFDs. The most widespread in the world with Expert Advisors and custom indicators.

MT5: an improved version of MT4 with more timeframes, markets, and backtesting features.

0.01 standard lots in Forex, equivalent to 1,000 units of the base currency. For small accounts.

0.10 standard lots in Forex, equivalent to 10,000 units of the base currency.

Validation of Bitcoin transactions through computational calculation. Reward in BTC for miners.

Currency pairs without USD: EUR/GBP, EUR/JPY, GBP/JPY. Often less liquid than Majors.

The return of price to an Order Block or FVG to 'mitigate' it. Reduces the future probability of that level.

The rate of price change. High momentum indicates trend strength.

A discrepancy between the speed of price and that of an oscillator, often preceding a trend change.

An algorithmic technique that triggers rapid price movements to activate others' stops and automatic orders.

Measures the price change relative to N periods ago. The conceptual basis of many derived oscillators.

A rapid sequence of small continuation patterns within a strongly directional trend.

A stock with strong recent price momentum, often the subject of momentum trading strategies.

Buying assets in a strong uptrend and selling those in a strong downtrend based on relative strength.

The total amount of money in circulation plus bank reserves at the central bank.

MFI: a volume-weighted RSI. Identifies buying/selling pressure by considering volumes.

A statistical technique to simulate thousands of possible future scenarios of a strategy.

Each candle represents a month. Fundamental for long-term bias and cyclical analysis.

A bullish three-candle pattern: large bearish, indecision, large bullish. Bottom reversal.

The average of closing prices over a number of periods. Filters noise and shows the trend.

Market Structure Shift: a change in market structure. Similar to ChoCH, used in SMC nomenclature.

Simultaneous study of multiple asset classes to identify common macro themes and confirm directional bias.

A platform that aggregates multiple broker accounts into a single management and monitoring dashboard.

An arrangement of multiple charts on the same screen to compare assets or timeframes simultaneously.

A strategy with multiple simultaneous components (e.g., options spreads) to precisely manage risk and return.

Analyzing the market on multiple timeframes simultaneously. Bias on high TF, entry on low TF.

A visualization that overlays or places side by side multiple timeframes of the same asset for combined analysis.

A bond issued by local entities or municipalities, often with tax advantages for investors.

Non-Accelerating Inflation Rate of Unemployment. The level of full employment without inflationary pressures.

Selling an option without owning a hedging position in the underlying. Potentially unlimited risk.

The American tech exchange. The Nasdaq 100 index includes the 100 largest non-financial companies.

New Day Opening Gap: the gap between yesterday's close and today's open. Often filled intraday.

A support line connecting the lows in a Head & Shoulders. The break confirms the pattern.

NVI: tracks price changes on days with below-average volume. Institutional money.

The difference between long and short positions. Indicates the net directional risk of the portfolio.

A candle with a very small body indicating substantial balance between buyers and sellers in the period.

The theoretical interest rate that neither stimulates nor restrains economic growth, neither raises nor lowers inflation.

A platform that collects real-time financial news from multiple sources for centralized access.

Trading on macroeconomic data releases. High volatility and widened spreads. Speed is essential.

A style focused exclusively on trading around high-impact macroeconomic data releases.

Non-Farm Payroll: monthly US employment data. One of the most market-impacting macro events.

Non-Fungible Token: a unique, non-replicable token on a blockchain. Used for digital art and collectibles.

A computer that participates in the blockchain network by maintaining a copy of the ledger and validating transactions.

Random and irrelevant price fluctuations that overlay the real trend.

The face value of a financial instrument, not adjusted for inflation or market changes.

A forward contract on non-convertible currencies. Settled in dollars, used for emerging economy currencies.

A bell-curve distribution used to model returns. Real markets have fatter tails (fat tails).

Underestimating the probability and impact of extreme events, believing the current situation will continue.

The total value controlled by a leveraged position, often much greater than the margin actually deposited.

Narrow Range 7: the candle with the narrowest range of the last 7 days. Anticipates explosive breakouts.

New Week Opening Gap: weekly opening gap. Rarer and more significant than NDOG.

Significant highs and lows from previous sessions or days, often future liquidity targets.

A performance metric considering the entire distribution of returns, not just mean and variance.

OBV: accumulates the volume of up days and subtracts that of down days. Flow trend.

Analysis of blockchain data: active addresses, transactions, whale movements. Supplements technical analysis.

Risk related to the lack of information transparency on an asset, common in OTC or poorly regulated markets.

The total number of open futures/options contracts not yet liquidated. Indicates market participation.

An opening gap that often serves as an intraday support/resistance level until it's filled.

ORB: using the range of the first 15-30 minutes as the basis for the day's directional breakout.

The value of the best alternative use of resources. Every trading decision has an opportunity cost.

An extension beyond 100% of the impulsive wave used to project additional targets after the OTE.

Contracts giving the right (not the obligation) to buy or sell an asset at a fixed price by a date.

The last opposing candle before a strong institutional impulse. High-probability reaction zone.

The process of narrowing an Order Block to obtain a more precise entry and a tighter stop.

An imbalance between buy and sell volume in the order book, often anticipating short-term direction.

Analysis of incoming orders in real time through Depth of Market and footprint charts.

Analysis of incoming orders in real time through Depth of Market and advanced footprint charts.

OMS: software that manages the order lifecycle from submission to execution.

Analysis of real-time orders (bid/ask ladder, footprint chart) to understand operators' intentions.

A valid block mined but not included in the main blockchain chain because another arrived first.

Over The Counter: an unregulated market where instruments are traded directly between parties.

Optimal Trade Entry: the ideal ICT zone between 62-79% Fibonacci of the last impulse. High probability.

An option with no intrinsic value: call OTM if strike > price, put OTM if strike < current price.

Validating a strategy on data never used during the development or optimization phase.

Judging a decision only by the final result, ignoring whether the decision-making process was correct.

The difference between actual GDP and an economy's potential GDP. Positive = overheating, negative = recession.

A candle whose range completely exceeds the range of the previous candle. Momentum signal.

A candle that completely engulfs the range of the previous one and closes in the opposite direction of the trend.

Overbought: an asset has risen excessively, possible reversal or pause. RSI > 70.

Overestimating one's abilities after a series of winning trades. Leads to risking too much.

A derivative strategy applied on top of an existing portfolio to modify its risk profile without selling it.

The risk of holding positions open overnight, exposed to opening gaps.

Oversold: an asset has fallen excessively, possible bounce. RSI < 30.

Opening too many positions, often caused by boredom, revenge trading, or FOMO. Destroys capital.

Price-to-Earnings: the ratio between price and earnings. High P/E = high growth expectations. Low P/E = possible value.

Long the weaker and short the stronger of two correlated assets. A market-neutral strategy.

Widespread and irrational selling caused by collective panic during strong market declines.

A trader who sells in panic at the first correction. The opposite of long-term 'diamond hands'.

An indicator that follows price with dots that change sides when the trend reverses.

When two currencies have the same value (e.g., EUR/USD = 1.0000). A rare event with strong psychological impact.

Closing a portion of a position to realize profits while maintaining market exposure.

An opening gap that is only partially filled during the session, leaving a residual open.

A recurring chart configuration that tends to produce predictable price movements.

The ratio between the average gain of winning trades and the average loss of losing trades.

Premium/Discount Array: the set of ICT levels (OB, FVG, BB) ordered by priority in a given zone.

A continuation pattern with a symmetrical triangle after a strong impulse. Similar to a flag but with rising lows.

A very low-priced stock (often under $5) with high volatility and risk of manipulation.

The position of price relative to Bollinger Bands. 1.0 = upper band, 0.0 = lower band.

Futures without expiration on crypto markets. A periodic funding rate is paid to maintain the position.

Another name for crypto perpetual futures, without expiration date and with a periodic funding rate.

A personal rule imposing a trading pause after a certain number of consecutive losses.

A system in which oil is globally traded in US dollars, strengthening structural demand for the currency.

The inverse relationship between inflation and unemployment. The foundation of central bank monetary policies.

A bullish two-candle pattern: bearish followed by bullish that closes beyond 50% of the first.

TradingView's programming language for creating custom indicators and strategies.

Percentage in Point: the minimum price change in Forex. For EUR/USD it's 0.0001 (4th decimal place).

Two adjacent candles with long downward wicks at the same level. Strong bullish reversal signal.

A tenth of a pip. The fifth decimal place (e.g., 1.12345). Used by brokers with 5-decimal pricing.

A level calculated as the average of previous High, Low, and Close. Defines supports R1/R2 and resistances S1/S2.

Purchasing Managers Index: a leading indicator of economic activity. > 50 = expansion.

Application of the Power of Three to the entire trading day: accumulation, manipulation, distribution.

A chart using X (rises) and O (falls) without considering time. Excellent for support and resistance.

The price level with the highest traded volume in a given period in the Volume Profile.

A defensive strategy used by companies to make a hostile acquisition unattractive.

The total risk of the portfolio by summing all open positions. Do not exceed 5-10% of the account.

A tool that aggregates and monitors the performance of all a trader's positions and assets in real time.

A rule that limits total exposure on strongly correlated assets to avoid hidden concentrated risk.

The maximum number of simultaneously open positions allowed by one's risk management strategy.

A tool that automatically calculates the correct size of a trade based on capital, risk, and stop distance.

Calculating the correct position size based on the percentage risk of capital.

Holding positions for weeks or months. Similar to investing. High tolerance for volatility needed.

PVI: tracks changes on high-volume days. Represents retail trader behavior.

ICT concept: every session has three phases — accumulation, manipulation, distribution.

Producer Price Index: measures inflation at the producer level. Often anticipates CPI.

Trading that occurs before the official market open. Lower liquidity and wider spreads.

A systematic verification of size, R/R, and correlation before every position opening.

A sequence of habits (analysis, breathing, checklist) to enter an optimal mental state before trading.

The area above 50% Fibonacci. Ideal zone for shorts in the ICT model. 'Expensive' price.

PGO: measures the distance of the closing price from an SMA in terms of average ATR.

Reading the market based solely on price movement, without indicators. A pure approach.

The process through which the market determines the equilibrium price of an asset.

The difference between two price moving averages expressed in absolute or percentage value, similar to MACD.

An evident rejection of price at a level, visible through long shadows or reversal candles.

PVT: a cumulative sum of percentage price changes multiplied by daily volume.

Martin Pring's Know Sure Thing: an oscillator based on four smoothed ROCs at different periods.

The secret key that gives access to a crypto wallet. Whoever possesses it controls the funds. Never share it.

Evaluating trading decisions based on the process (correctness of logic) not just the outcome.

The ratio of total gains to total losses. PF > 1 = profitable strategy, > 1.5 = good.

A synthetic measure combining win rate, average R/R, and trade frequency into a single quality score.

A cryptographic verification demonstrating that an exchange actually holds the declared client assets.

A zone that propelled price toward a new swing. Often tested as dynamic support/resistance.

Buying a put on an already-owned stock as insurance against declines. Portfolio insurance.

The voting right of shareholders exercised by proxy during corporate meetings.

A round price (e.g., 1.1000, 100.00) where traders tend to place orders, creating support/resistance.

A temporary retracement against the main trend. Often the best entry opportunity in a trend.

An option giving the right to sell an asset at a set price. Gains when the price falls.

Adding positions in a winning direction as the trade moves favorably.

A moving average of the difference between close and open. Measures buying/selling pressure over time.

A trader or analyst who uses complex mathematical and statistical models to make trading decisions.

A style based entirely on mathematical and statistical models, without human discretion in decisions.

An approach based on mathematical and statistical models to identify trading opportunities.

Unconventional monetary policy where the central bank buys assets to inject liquidity.

Reducing the central bank's balance sheet by selling assets. Opposite of QE. Tends to reduce liquidity.

QM: an advanced reversal pattern with a specific HH/HL/LH structure. More complex than classic H&S.

The second currency in a Forex pair (e.g., USD in EUR/USD). The price indicates how much the base costs.

A controversial algorithmic practice that sends a huge quantity of rapidly canceled orders to slow down competitors.

Expresses a trade's result in units of risk. +2R = a gain of 2 times the initial risk.

A series of progressive moving averages forming a rainbow effect, used to identify mature trends.

A theory that price movements are random and unpredictable, contrary to the principles of technical analysis.

The difference between the high and low of a period. Also used to describe a sideways market.

A chart where each bar represents a fixed price range, regardless of the time elapsed.

A sudden increase in volatility after a period of tight range, often signaling the start of the real move.

Trading within a sideways channel: buying at support, selling at resistance.

The central bank's official announcement on the change or maintenance of the reference interest rate.

ROC: the percentage change in price relative to N periods ago. Measures momentum.

A strategy with a different number of bought and sold options at the same strike, to modulate risk and cost.

Nominal interest rate minus inflation. If negative, it stimulates investment and penalizes saving.

Giving too much weight to recent events versus longer history. Leads to chasing exhausted trends.

An average that assigns greater weight to more recent data, the conceptual basis of EMA and adaptive indicators.

Two consecutive quarters of negative GDP. Indicates economic contraction and often a bear stock market.

An Order Block that was penetrated and then reclaimed. Increases the probability of the level as a zone.

Net gain divided by max drawdown. Indicates the strategy's recovery capacity.

A sideways consolidation between two horizontal levels. Can be continuation or reversal.

An Order Block reduced to 50% of the candle body for a more precise entry with a tighter stop.

A phase where economic growth and inflation pick up after a period of recession or deflation.

Automatic identification of the current market regime (trending, sideways, high/low volatility).

Avoiding closing positions at a loss for fear of regretting being wrong, aggravating losses.

An entity that oversees and regulates financial markets: SEC, CONSOB, ESMA, CFTC.

A zone formed by prolonged rejection wicks indicating where institutions defend the price.

A strategy that enters based on marked rejection wicks coinciding with key support/resistance levels.

An RSI variant that compares the current price with that of N periods ago rather than the previous period.

Comparing the performance of an asset relative to the market or a benchmark. Not the RSI.

RVI: based on the principle that in uptrends prices close high and in downtrends they close low.

A chart based on price movement (box size) rather than time. Filters noise.

When the broker cannot execute the order at the requested price and offers a new price. Common during news.

A level where selling pressure exceeds buying pressure, blocking the price rise.

A zone where multiple resistance levels converge (Fibonacci, Pivot, OB). High probability of reaction.

A former resistance becomes support after price breaks through it. Key S/R flip concept.

Monthly data on US retail sales. An indicator of consumer and economic health.

A temporary move against the main trend. Often measured with Fibonacci levels.

A deliberate increase of a currency's value by the central bank, the opposite of devaluation.

Opening impulsive trades to immediately recover losses. Leads to greater losses.

A chart configuration signaling the probable end of a trend and the start of an opposite one.

A strategy betting on the return of price toward its average after an excessive extension.

Seeking trend reversals at key technical levels with confirmation patterns. High R:R but low win rate.

Consolidation of outstanding shares to increase the price per share. Often a signal of weakness.

An ascending wedge with converging lines. A bearish reversal pattern or continuation in an uptrend.

The total percentage risk that a trader allows themselves to allocate across all simultaneously open positions.

A tool that automatically calculates the correct position size based on risk, stop loss, and capital.

Distributing exposure across uncorrelated assets to reduce the impact of a single adverse event.

The set of techniques to protect capital: stop loss, position sizing, R:R, diversification.

The mathematical probability of losing the entire capital given a certain win rate, R/R, and average size used.

An allocation strategy that weights positions based on risk rather than capital, to balance the portfolio.

The return on a risk-free investment. Typically short-term US T-Bonds (3 months).

A market phase where investors flee to safe assets: yen, gold, T-bonds rise.

A market phase where investors are willing to take risk: stocks and crypto rise.

The ratio between potential risk and expected gain. An R:R of 1:2 means risking 1 to gain 2.

Verifying that a strategy maintains similar results with small parameter variations, an index of solidity.

Return on Equity: net income divided by net worth. Measures efficiency in using capital.

The gain or loss generated by rolling (rollover) an expiring futures contract into a subsequent one.

Returns calculated over rolling time windows to evaluate a strategy's consistency over time.

In Forex, the cost or gain of holding a position overnight, based on the interest rate differential.

Rotating capital between assets or sectors based on relative strength and the phase of the economic cycle.

A bullish reversal pattern shaped like a saucer. Indicates gradual and slow accumulation.

A bearish reversal pattern shaped like a dome. Represents slow institutional distribution.

Relative Strength Index: a 0-100 oscillator measuring price strength and speed. > 70 OB, < 30 OS.

A scam where project creators disappear with investors' funds. Common in altcoins.

The mathematical probability of losing all capital. Must be kept mathematically close to 0%.

Relative Volume: compares current volume with the historical average for the same time. > 1 = anomalous.

Standard & Poor's 500: index of the 500 largest US publicly traded companies. The main benchmark.

An asset that maintains or increases its value during crises: gold, yen, Swiss franc, US T-bonds.

The number of trades used to evaluate a strategy. At least 100 trades are needed for reliable data.

Market risk arising from the imposition of international economic sanctions on a country or sector.

The smallest unit of Bitcoin: 0.00000001 BTC. Named after Satoshi Nakamoto, creator of Bitcoin.

A strategy of progressively accumulating small amounts of Bitcoin (satoshis) over time, similar to DCA.

Opening a position in multiple tranches rather than all at once. Reduces timing risk.

Closing the position in multiple tranches. Allows realizing part of the profit while maintaining exposure.

An ultra-fast strategy with operations from seconds to a few minutes to capture micro-movements.

Combines MACD and stochastic to identify trend cycles with less lag than classic MACD.

A tool to filter assets based on technical or fundamental criteria. Finds opportunities quickly.

Exploiting recurring seasonal patterns: 'Sell in May', Santa rally, January effect in the market.

Recurring seasonal patterns in markets (e.g., 'Sell in May'). Useful as a filter for strategies.

An additional issuance of shares by an already-public company to raise further capital.

An ETF that replicates the performance of a single economic sector, useful for sector rotation strategies.

The movement of money between sectors based on the phase of the economic cycle.

A long-term trend (decades) that spans normal economic cycles. E.g., technology, demographics.

The 12-24 words to recover a crypto wallet. Equivalent to the master password. Store offline.

Attributing successes to one's own skill and losses to external factors or bad luck.

A temporary bearish move to collect sell stops before reversing upward.

A hybrid style where the algorithm generates signals but the trader manually decides whether to execute them.

Studying how a strategy's results vary as its main parameters change.

The general mood of the market, bullish or bearish. Measurable through indicators like VIX or COT report.

Software that analyzes news and social media to measure the aggregate market sentiment on an asset.

The three main trading sessions: Asia (Tokyo), Europe (London), North America (New York).

The high and low formed during a specific trading session, often liquidity targets.

The date on which a financial transaction is formally completed and settled between parties.

The official closing price used to calculate margins and liquidations on futures contracts.

A system of financial intermediation operating outside traditional banking regulation.

A scalability technique that divides a blockchain into multiple parallel segments to increase throughput.

A 5-point harmonic pattern (0-X-A-B-C). Reversal typically at 50% of XC. Unique structure.

Measures risk-adjusted return. SR > 1 is good, > 2 is excellent. The higher, the better.

Like the Inverted Hammer but in an uptrend. Bearish signal: buyers failed to maintain gains.

Selling an asset short expecting the price to fall to buy it back cheaper.

The percentage of a stock's shares sold short. High short interest = potential squeeze.

An explosive bullish move that forces short sellers to cover their positions, amplifying the rally.

Selling a call and a put at the same strike. Gains from low volatility. Theoretically unlimited risk.

Sell-side Imbalance Buy-side Inefficiency: an FVG created in a bearish move, acts as a bullish magnet.

A specific ICT setup: FVG created during the Killzone with structure confluence. High-probability setup.

A measure of the asymmetry of the return distribution. Positive skew = higher probability of large gains.

A penalty imposed on Proof of Stake validators who behave incorrectly or maliciously.

The difference between the expected price and the actual execution price. More common with market orders and low liquidity.

Simple Moving Average: the arithmetic mean of closing prices over a given period.

An investment strategy that weights an index according to factors alternative to market capitalization.

A self-executing program on a blockchain that activates automatically when conditions are met.

Institutional operators (banks, hedge funds) that move the market. Opposite of the retail trader.

A methodology studying the behavior of institutional operators to anticipate market movements.

A scenario where the central bank manages to slow inflation without causing an economic recession.

A stop loss managed manually by the trader based on market conditions, not placed as a fixed order.

Measures a company's ability to meet its long-term debts with its own resources.

Like Sharpe but considers only negative volatility (downside risk). More relevant than Sharpe.

A bond issued directly by a national government, generally considered low risk.

A crisis in which a government can no longer refinance its debt on sustainable terms.

A rapid price increase based on unrealistic expectations rather than fundamentals. Destined to burst.

Diagonal lines dividing a movement into fractions (1/3, 1/2, 2/3) to identify dynamic support.

The separation of a corporate division into an independent and separately listed company.

A candle with a small body and similar wicks above and below. Indicates market indecision.

A candle with anomalous volume and range that 'sponsors' the subsequent movement, often the origin of an OB.

The illegal practice of placing large orders with the intention of canceling them before execution, to manipulate price.

The market where currencies are traded for immediate delivery, the most liquid segment of Forex.

The current market price for immediate delivery (typically T+2 in traditional Forex).

The difference between Bid and Ask. It's the implicit cost of each operation. Lower = more liquid market.

Compression of Bollinger Bands inside the Keltner Channel. Anticipates explosive moves.

Sell-side Liquidity: a pool of sell stops below lows. Target of institutional bearish moves.

A cryptocurrency whose value is pegged to a stable asset like the US dollar (USDT, USDC).

A combination of high inflation and low economic growth. The worst scenario for central banks.

A sequence of short impulses and pauses forming a step-like structure in an orderly trend.

Locking crypto in a Proof of Stake protocol to validate transactions and receive periodic rewards.

A statistical measure of the dispersion of returns around the mean. A proxy for volatility.

Volatility bands based on the standard error of a linear regression of price.

Exploiting statistical inefficiencies between correlated assets. The basis of hedge fund quantitative strategies.

A preference for maintaining an unchanged position even when market conditions have changed.

A central bank currency intervention that doesn't alter the domestic money supply, offset by other operations.

An oscillator comparing the close with the High-Low range over a period. %K and %D between 0 and 100.

StochRSI: applies the stochastic formula to RSI. More sensitive and faster than classic RSI.

Ownership share of a fraction of a publicly traded company's capital.

A formal plan announced by a company to repurchase its own shares on the open market over time.

An automatic suspension of trading on an index after an extreme intraday percentage decline.

Dividing existing shares into multiples. Doesn't change total value but reduces the price per share.

An automatic order that closes a position at a loss at a predefined level to limit losses.

A market practice where price is pushed toward zones dense with stop losses before reversing.

Simultaneous buying or selling of OTM calls and puts at different strikes, to bet on volatility or stability.

The exercise price of an option. The price at which you can buy (call) or sell (put) the underlying.

The prevailing direction suggested by market structure on high timeframes, before descending to entry.

A complex financial instrument combining traditional assets and derivatives to create a customized payoff.

A valuation method that estimates a company's value by summing the value of each of its divisions separately.

A trend-following indicator based on ATR that changes color based on trend direction.

A price area where there's strong institutional supply. Price is often rejected from these zones.

A level where demand exceeds supply, blocking the price decline. Tends to bounce.

A contract to exchange financial flows. Can also refer to overnight rollover in Forex.

The overnight rollover rate for long (swap long) and short (swap short) positions.

A strategy that trades the break or bounce of significant swing highs and swing lows.

A significant local high or low used as a reference to identify market structure.

A strategy that captures price movements over days or weeks. Less stress than scalping.

Nickname for USD/CHF or the Swiss Franc. A safe haven par excellence along with gold and the yen.

A triangle with falling highs and rising lows. Neutral pattern: breakout in either direction.

A combination of a bought call and a sold put at the same strike, replicating the exposure of a long position.

A combination of a bought put and a sold call at the same strike, replicating the exposure of a short position.

Following rigid predefined rules without discretion. Reduces emotions but requires solid backtesting.

The risk that the failure of an institution or market propagates to the entire financial system.

Long-term US Treasury Bond (10-30 years). The global benchmark for fixed income and a safe haven.

Specific protection against extreme and rare events (tail risk) that would have catastrophic portfolio impact.

An automatic order that closes a position in profit at a predefined level.

The gradual reduction of asset purchases by the central bank. A signal of restrictive policy.

Selling positions at a loss to tax-offset realized gains in the portfolio.

Studying past price behavior through charts and indicators to predict future movements.

The overlap of multiple independent technical signals at the same price level, increasing reliability.

A temporary 5-10% decline within a broader bullish trend, considered normal and healthy.

A public purchase offer directed at shareholders to buy shares at a preset price, often at a premium.

The relationship between futures prices with different expirations on the same underlying, the basis of contango and backwardation.

A test version of a blockchain used to test updates without risking real funds.

The time decay of an option's value. Each day an option loses value (theta decay).

The loss of an option's value over time, all other variables being equal.

Three consecutive bearish candles with falling closes. Strong bearish signal after an uptrend.

Three consecutive bearish candles with falling closes. Strong bearish signal after an uptrend.

A harmonic pattern of three impulses with symmetric Fibonacci ratios. Signals trend exhaustion.

Three consecutive bullish candles with rising closes. Strong bullish signal after a prolonged downtrend.

Three consecutive bullish candles with rising closes. Strong bullish signal after a downtrend.

The minimum possible price change for an instrument. In futures it's expressed in monetary value.

A chart where each candle represents a fixed number of transactions (ticks) rather than a time interval.

A negative emotional state after losses that leads to irrational decisions. Term borrowed from poker.

The overlap of a key price level with a significant time moment, increasing the probability of reaction.

An ICT model that associates specific times of day with recurring market behaviors.

TSV: measures buying/selling pressure by grouping volume into fixed time segments.

Statistical study of time-ordered data to identify trends, seasonality, and cycles.

The period of time spent in drawdown before equity returns to the previous all-time high.

The component of the option price beyond intrinsic value. Decreases as expiration approaches.

Money available today is worth more than the same amount in the future. The basis of all financial calculations.

The time interval of each candle: 1M, 5M, 15M, 1H, 4H, Daily, Weekly, Monthly.

Alignment of the technical signal across multiple different timeframes, increasing the probability of success.

Treasury Inflation-Protected Securities: US bonds whose face value adjusts with inflation.

The study of a token's economics: supply, distribution, utility, and incentives within its ecosystem.

Analysis starting from high timeframes for bias and descending to low timeframes for entry timing.

The standard deviation of the difference between a strategy's returns and its reference benchmark.

The difference between a country's exports and imports. Surplus or deficit influences the currency.

A rule that limits the maximum number of daily trades to prevent emotional overtrading.

Mental tiredness from prolonged market exposure, leading to worse decisions over time.

A document defining entry, exit, risk management rules, and criteria for each trade.

A web platform for chart analysis and social trading. The most used in the world by retail traders.

A stop loss that automatically moves in the direction of the trade to protect profits.

The prevailing direction of price: bullish (uptrend), bearish (downtrend), sideways.

A strategy seeking entries during pauses in a consolidated trend to capture its continuation.

An indicator signaling when a trend is losing strength by measuring the slowdown in momentum.

A strategy that follows the dominant trend direction to capture large movements.

Measures trend strength based on the deviation of price from a simple moving average.

The break of a consolidated trendline, often the first technical signal of a possible trend change.

A line connecting a series of rising lows (uptrend) or falling highs (downtrend).

Excess return over the risk-free rate divided by Beta, instead of standard deviation.

Exploiting inefficiencies between three currency pairs: EUR/USD, USD/JPY, EUR/JPY for risk-free profit.

A bullish reversal pattern with three lows at the same level. More reliable than the double bottom.

Three consecutive inside bars, a signal of extreme volatility compression before a strong breakout.

A bearish reversal pattern with three highs at the same level. Very strong resistance zone.

Triple EMA: shows the percentage change of a triple EMA. Filters short cycles and noise.

The opening price at NY midnight (00:00 ET). The basis for calculating daily premium/discount.

TSI: a double-smoothed momentum indicator. Identifies trends and reversal signals with less lag.

An Elliott wave that fails to exceed the high of the third wave, a signal of trend weakness.

A reversal setup that exploits the failure of a 20-day breakout, inspired by the Turtle Trading Strategy.

Total Value Locked: the total assets deposited in a DeFi protocol. An indicator of popularity.

Two candles with identical lows near support. Signals bullish reversal.

Two candles with identical highs near resistance. Signals bearish reversal.

A situation where a country has both a public budget deficit and a current account deficit simultaneously.

A Fed policy that sells short-term securities and buys long-term securities to lower long-term rates.

(High + Low + Close) / 3. Represents the typical price of a period, used in CCI and VWAP.

Measures drawdown stress by weighting the depth and duration of losses, not just volatility.

Combines three timeframes (7, 14, 28) to reduce false signals. Developed by Larry Williams.

The asset on which a derivative is based: the underlying security of an option or future.

An asset whose market price is below its estimated intrinsic value. A potential opportunity.

A financial institution that manages the process of issuing new securities, such as in an IPO.

The percentage of the labor force actively seeking employment. A key data point for the Fed.

An advanced ICT setup: an FVG above/below an Order Block with perfect confluence. Very rare and reliable.

The profit or loss of an still-open position. Becomes 'realized' only at closing.

An Order Block that price has not yet tested, considered high probability for future reaction.

A sequence of higher highs and higher lows. The technical definition of a bullish trend.

A rapid V-shaped reversal without consolidation. Difficult to trade but a very powerful move.

An area with little previous trading activity where price moves quickly. Low Volume Node.

A node that verifies transactions in a Proof of Stake network, receiving rewards for the service.

The Volume Profile zone where 70% of trading occurs. Between VAH (High) and VAL (Low).

VaR: a statistical estimate of the maximum expected loss with a given confidence level over a period.

An investment strategy based on buying assets undervalued relative to their intrinsic value.

Shares that appear undervalued relative to fundamentals. Favored in high-rate phases.

The sensitivity of an option's price to changes in implied volatility.

The frequency with which a unit of money is spent in a given period. Low velocity indicates a weak economy.

Buying and selling options of the same type and expiration but at different strikes. Limited risk and profit.

An advanced oscillator that reduces noise by combining multiple levels of exponential smoothing.

The gradual unlock calendar of tokens allocated to a crypto project's team and investors.

Volatility Index: measures the implied volatility expected on the S&P 500. Called the 'fear index'. > 30 = panic.

The amplitude of an asset's price swings. High volatility = more opportunities and more risk.

Reducing size in high-volatility periods to maintain the same effective dollar risk.

The tendency of high volatility to be followed by high volatility. The basis of GARCH models.

A phase of progressive volatility reduction before an explosive price expansion.

The current volatility context of the market (low, medium, high) used to adapt strategy parameters.

The difference in implied volatility between options with different strikes on the same underlying and expiration.

A smile-shaped pattern in the implied volatility of options, higher at the extremes than at the center.

A stop loss calculated dynamically based on current ATR rather than a fixed value in pips or percentage.

The number of units of an asset traded in a period. Confirms the strength of price movements.

A histogram below the price chart showing the volume traded in each period.

An extreme volume peak that often marks the exhaustion of a movement and anticipates a reversal.

The percentage difference between a fast and slow moving average of volume, to measure its acceleration.

Distribution of volume by price level. Identifies POC, Value Area, and low-volume zones.

An anomalous volume peak. Often indicates significant events: news, manipulation, or reversal.

A MACD variant that weights calculations based on volume rather than just closing price.

VZO: an oscillator that classifies volume based on price direction to measure net pressure.

Two lines (+VI and -VI) that identify the start and end of trends based on directional movement.

A Virtual Private Server dedicated to keeping Expert Advisors and scripts running 24/7 without depending on the local PC.

Volume Weighted Average Price: volume-weighted average price. Institutional intraday reference.

Using VWAP as a bias level. Long above, short below. Entry on VWAP retests.

A methodology that optimizes on one window and validates on the next, progressively moving through time.

A derivative instrument similar to an option but issued directly by the company, often with longer expirations.

Selling an asset at a loss and then immediately buying it back. Relevant for tax implications.

The third era of the internet based on blockchain, decentralization, and direct user ownership.

A pattern formed by two converging lines inclined in the same direction. Often a reversal pattern.

A candle representing an entire week of trading, useful for medium-to-long-term bias.

A typical weekly pattern (e.g., Wednesday reversal) used to anticipate the trading week's structure.

The range formed during the entire trading week, a key reference for weekly bias.

(High + Low + Close*2) / 4. More weight on close than on the period's extreme values.

A holder with large amounts of crypto. Their moves can significantly move prices.

A false signal causing rapid entry and exit at a loss. Common in sideways markets.

A technical document describing the goals, technology, and economics of a crypto project before launch.

The thin lines above and below a candle's body. They represent the extreme prices of the period.

A violent price rejection visible through a long shadow, often coinciding with a key level.

A -100/0 oscillator measuring overbought (-20) and oversold (-80). Similar to stochastic.

A system of three moving averages by Bill Williams (Jaw 13, Teeth 8, Lips 5) to identify trends and sideways markets.

The percentage of winning trades out of the total. Alone it's not enough: needs balance with R:R.

The ratio between the number of winning trades and the number of losing trades in a given period.

A 5-wave pattern that identifies the target price and reversal timing with a projected line.

A pivot point variant that weights the recent closing price more heavily than classic pivots.

Preventive planning of actions to take in the most unfavorable market scenario possible.

A version of an asset on a different blockchain. WBTC = Bitcoin as an ERC-20 on Ethereum.

An approach studying the 4 phases of the market cycle (accumulation, markup, distribution, markdown).

A false breakout below support in a Wyckoff accumulation phase, followed by a strong rally.

A false breakout above resistance in a Wyckoff distribution phase, followed by a strong decline.

The pair representing the price of gold (XAU) expressed in US dollars. Very traded as a safe haven.

The sudden and massive closing of carry trade positions financed in yen, causing strong JPY rallies.

The return of a bond. Yield and bond price move inversely.

The behavior of investors who take excessive risks to obtain higher returns in low-rate contexts.

A curve showing the yields of bonds with different maturities. Inversion signals recession.

When short-term rates exceed long-term rates, historically one of the most reliable recession signals.

Optimizing DeFi yields by moving liquidity between different protocols. High complexity and risk.

The difference between yields of different bonds. An inverted 10Y-2Y spread signals potential recession.

Measures how many standard deviations a value is from the mean. Used to identify statistical price extremes.

The tendency to better remember incomplete or open trades, causing anxiety and compulsive chart checking.

A collar strategy where the premium received from the sold call exactly offsets the cost of the bought put.

A bond that pays no periodic coupons, sold at a discount to the nominal repayment value.

ZIRP: a policy of near-zero rates to stimulate lending and investment during economic crises.

In certain markets (futures, forex), one trader's gain corresponds to another's loss.

Connects significant pivots filtering movements below a user-defined percentage threshold.

A significant price area (vs. a precise level). Zones are more reliable than exact lines.