Forex Glossary

A Japanese candlestick pattern signaling a reversal. It consists of three candles. In a downtrend, a long black candle is followed by a Doji that gaps lower. A third candle, with a long white body gaps above the Doji’s high.

The lowest point a trader’s balance reaches below the Initial Deposit.

History of performed trades on a specific account on the MT5 platform.

A technical Indicator developed by Mark Chaikin.  When the close price is above the mid-point of the daily range, then a positive number is returned implying buying pressure (accumulation).  Similarly, when the close price is below the mid-point of the range, then a negative number is returned implying a selling pressure (distribution). The daily volume is multiplied by the above number to determine the weight of the price in the calculation of the indicator.

Calculation: [ (close – low) – (high – close) x volume] / (high – low)

In Elliott Wave Theory, there are waves that move in the direction of the trend of one larger degree.

A technical Indicator developed by Perry Kaufman to account for market volatility.

A Japanese candlestick bullish reversal pattern. Also known as Three White Soldiers.  It consists of three long white candles with short or non-existent shadows. Each open is below the previous close.  Each close is above the previous close.

A Japanese candlestick bullish reversal pattern. Also known as Three White Soldiers.  It consists of three long white candles with short or non-existent shadows. Each open is below the previous close.  Each close is above the previous close.

Advance Directional Movement Index. It’s a technical indicator designed by Welles Wilder to determine the presence of price trend. A reading above 25 indicates the presence of a trend.  Buy/Sell signals are provided by the crossing of +DI and -DI.

UAE Dirham. The currency of the United Arab Emirates. It is subdivided into 100 fils.

An Affiliate is a member of the corresponding FXTM Partners' program, who directs online traffic to FXTM and benefits from the trading of his referrals in accordance with the Hybrid Affiliate commission plan.

See AFN

Afghani.  The currency of Afghanistan.  It is subdivided into 100 pul.

When a bank or financial body is exposed to forex contracts from a single customer.

See DZD.

Step by step programming instructions on how to carry out trading orders in electronic financial markets.   Discipline and emotion- free trades are the advantages of this type of trading.

Lek. The currency of Albania. It is subdivided into 100 qindarka.

A technical Indicator designed by Dr. Bill Williams. It consists of 3 moving average lines: The Alligator’s Jaw (blue line) is a 13-period Smoothed Moving Average shifted into the future, by 8 bars. The Alligator’s Teeth (red line) is an 8-period Smoothed Moving Average shifted into the future by 5 bars. The Alligator’s Lips (green line) is a 5-period Smoothed Moving Average shifted into the future by 3 barA technical Indicator designed by Dr. Bill Williams. It consists of 3 moving average lines: The Alligator’s Jaw (blue line) is a 13-period Smoothed Moving Average shifted into the future, by 8 bars.  The Alligator’s Teeth (red line) is an 8-period Smoothed Moving Average shifted into the future by 5 bars.  The Alligator’s Lips (green line) is a 5-period Smoothed Moving Average shifted into the future by 3 bars.

Armenian Dram. The currency of Armenia. It is subdivided into 100 luma.

A technical analysis tool developed by Dr. Alan Andrews.  It is drawn by selecting 3 major consecutive tops and bottoms. The result is a line study of 3 parallel lines acting just like support and resistance.

Netherlands Antillean Guilder.  The currency of Curaçao and Sint Maarten (Dutch part). It is subdivided into 100 cents.

Kwanza. The currency of Angola.  It is subdivided into 100 centimos.

The simultaneous buying and selling of a financial instrument in different markets to take advantage of different pricing.

See ARS.

See AMD

Argentine Peso. The currency of Argentina. It is subdivided into 100 centavos.

See AWG

A technical analysis price pattern, where price action is contained within two upward sloping parallel lines. The basic line is drawn through the bottoms, whereas the return line is drawn through the tops.

An upward sloping line connecting two or more bottoms.

Trading activity between 11:00 pm (GMT+2) and 08:00 am (GMT+2).

The price at which a trader accepts to buy a financial instrument.

An item/resource of value.

Refers to portfolio diversification among stocks, bonds, commodities, cash and other asset classes.

The Average True Range is an indicator developed by Welles Wilder to measure volatility.

Wilder believed that high ATR readings occur at bottoms after a strong downtrend characterized by “panic” sell-off. Low ATR readings are usually found at tops and during periods of consolidation.

Trend reversals are usually accompanied by high ATR values, whereas sideways movements or weak trends are accompanied by low values.

The True Range is the greatest of the following:

• The difference between the current period’s high and low
• The absolute value of the difference between the previous period’s close and current period’s high
• The absolute value of the difference between the previous period’s close and current period’s low

The Average True Range is the moving average of the true range values.

Australian Dollar.  The currency of Australia, Christmas Island, the Cocos (Keeling) Islands, Kiribati, Nauru, Norfolk Island and Tuvalu. It is subdivided into 100 cents.

Australian Dollar.

An MT4 chart setting, that when enabled, it sifts automatically to the left to display the new incoming price (I.e. candlestick).

A computer program that submits orders to electronic exchanges based on a set of pre-defined instructions.

See ADX.

A change in the labour pay excluding the farming sector.  A change in the labour pay excluding the farming sector.  Released monthly by the Bureau of Labor Statistics.ed monthly by the Bureau of Labor Statistics.

See ATR.

See ATR.

A technical indicator (AO) designed by Dr. Bill Williams.  It’s the difference between a 5-period simple moving average and a 34-period simple moving average, applied to bar’s mid-point prices (H-L)/ 2. 
Buying opportunities arise when the AO crosses above the zero line. Similarly, sell opportunities arise when AO crosses below the zero line.

Aruban Florin.  The currency of Aruba. It is subdivided into 100 cents.

See AZN.

Azerbaijanian Manat.  The currency of Azerbaijan.  It is subdivided into 100 qepik.

A feature of trading platforms that allow the testing of expert advisors on historical data. The results help traders and developers to assess the performance of their strategies.

See BSD.

See BHD.

See THB.

The amount of money in the account, excluding credit and the floating profit of currently open orders.

See PAB.

Convertible Mark. The currency of Bosnia and Herzegovina. It is subdivided into 100 fenings (or phenigs).

See. BDT.

Average outstanding loans provided to Japanese residents and businesses by domestic banks. Released monthly by the Bank of Japan.

A Bank of Central Banks, based in Basel Switzerland. It facilitates collaboration among its members and serves Central Banks in their pursuit for global monetary and financial stability.

The rate at which a country's central bank lends money to its domestic banks.

The major US Banks are examined under a number of conditions such as global recession and high unemployment, to assess whether they will be able to lend to households and businesses under three scenarios: severely adverse, adverse, and baseline. Released by the Federal Reserve.

The western technique for price charting, comprising of a vertical line representing the price range of a certain period. The highest point represents the high price and the lowest point on the vertical line represents the low price. A tick to the left represents the opening price whereas a tick to the right represents the closing price.

The current bar’s closing price is lower than that of the previous bar.

The current bar’s closing price is higher than that of the previous bar.

See BBD.

Unit of volume used contract sizes for Brent, Crude Oil and other petroleum products. One barrel is equal to 42 US gallons

The first currency in a pair is called the base currency. For example, in USD/JPY pair, USD is the base currency.

The interest rate that a Central Bank will charge for lending to commercial banks.

One percent of one percent. Usually used for changes in Interest Rates where references are less than one percent. 1bp = 0.0001.

Previous month’s approved mortgages by the members of the British Bankers’ Association. Released monthly.

Barbados Dollar. The currency of Barbados. It is subdivided into 100 cents.

Taka. The currency of Bangladesh. It is subdivided into 100 poisha.

A trader whose outlook on the market or a specific financial instrument is negative. A trader who expects prices to fall.

The close of the candlestick is lower than the open price, revealing negative sentiment.

When the prices of certain financial instruments, or markets are declining.

A short-lived breakout below a bottom triggering a sell entry. After the false breakout, prices switch direction.

The belief that the market or specific financial instrument will fall.

Certain price formations that signal the end of an uptrend and the beginning of a downtrend.

The negative outlook towards a financial instrument or market.

A technical analysis oscillator developed by Alexander Elder. It is the difference between the lowest price of a period and 13-period exponential moving average. A buy signal is triggered when the Bears Power index is below zero and rising while a trend indicator (i.e. moving average) is pointing upwards.

A subfield of finance that attempts to explain traders’/investors’ decision making in the financial markets. It combines theories of Psychology and Finance. It is in contrast to Efficient Market Hypothesis.

see BYN.

seeVZD

A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a decline or near a support area. The candle has a long white body and very small or non-existent lower shadow, that is, Shaven Bottom. It reveals the determination of the bulls to push prices higher.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the top of an uptrend or near a resistance area. The candle has a long white body and very small or non-existent upper shadow, that is, Shaven Top. It reveals the determination of the bears to push prices lower.

See BMD

Bulgarian Lev. The currency of Bulgaria. It is subdivided into 100 stotinki.

Bahraini Dinar. The currency of Bahrain. It is subdivided into 1000 fils.

The price at which a trader is prepared to sell a financial instrument.

Burundi Franc. The currency of Burundi.

See Bank of International Settlements.

A decentralized digital currency used for peer-to-peer transactions. It was introduced in 2009 by a programmer using the name Satoshi Nakamoto. The number of bitcoins in circulation will not exceed 21 million.

Bermudian Dollar. The currency of Bermuda. It is subdivided into 100 cents.

Brunei Dollar. The currency of Brunei Darussalam. It is subdivided into 100 cents (or sen).

Boliviano. The currency of Bolivia (Plurinational State of). It is subdivided into 100 cents (or centavos).

See VEF.

See BOB

A technical indicator developed by John Bollinger. The upper band is drawn 2 standard deviations above a simple moving average and the lower band 2 standard deviations below the simple moving average. Bollinger Bands measure volatility and display price extreme 

A debt instrument, where the issuer borrows money from the buyer, with the obligation to repay the principal and predefined interest at the maturity date.

A debt instrument, where the issuer borrows money from the buyer, with the obligation to repay the principal and predefined interest at the maturity date.

A debt instrument, where the issuer borrows money from the buyer, with the obligation to repay the principal and predefined interest at the maturity date.

The annual interest divided by the value the bond was purchased.

See BAM.

See BWP

A significant low on the price chart where buying pressure overcomes selling pressure.

A five-candle bearish reversal formation. The first candle is a long white body trading in the direction of the uptrend, showing the bulls’ strength. The second candle is white, and of a regular size gapping above-reaffirming the upward move. The third and fourth candles are white bodies of regular size, higher than the previous close. Finally, a long black body is formed that closes in the gap created by the first two candlesticks.

A five-candle bullish reversal formation. The first candle is a long black body trading in the direction of the decline, showing off the bears’ strength. The second candle is black, and of a regular size gapping below-reaffirming the downward move. The third and fourth candles are black bodies of regular size, closing lower than the previous close. Finally, a long white body is formed that closes in the gap created by the first two candlesticks.

The beginning of an upward/downward movement after a sideways price pattern. Breakaway gaps do not usually get filled, especially when accompanied by heavy volume.

Brent is considered one of the major benchmarks for crude oil pricing globally. It contains 0.37% Sulphur and has an API gravity of 38.06.

In 1944, representatives from 44 allied nations met in the town of Bretton Woods, New Hampshire USA, to discuss monetary policies in order to rebuild the international economic system. The delegates agreed to tie their currencies to gold and the US Dollar and maintain an exchange rate within a parity band of 1%.

A bearish pattern, it can also be called a megaphone or expanding triangle. Its Trendlines diverge, as opposed to all other triangles which converge.

An intermediary between the traders and the liquidity providers. It facilitates in the execution of clients’ orders.

See BND

Bahamian Dollar. The currency of The Bahamas. It is subdivided into 100 cents.

Ngultrum. The currency of Bhutan. It is subdivided into 100 chhertum.

Number of building approvals. Released monthly by the Australian Bureau of Statistics.

The number of housing building permits approved in the previous month. Released monthly by the Census Bureau.

see BGN

A trader whose outlook on the market or a specific financial instrument is positive. A trader who expects prices to rise.

The close of the candlestick is higher than the open price, revealing positive sentiment.

When the prices of certain financial instruments or markets are rising.

A short-lived breakout above a top, triggering a buy entry. After the false breakout, prices switch direction.

The belief that the market or a specific financial instrument will rise.

Certain price formations that signal the end of a downtrend and the beginning of an uptrend.

A technical analysis oscillator developed by Alexander Elder. It is the difference between the highest price of a period under study and a 13-period exponential moving average. A sell signal is triggered when the Bulls Power index is above zero and falling while a trend indicator (i.e. moving average) is pointing downwards.

Germany’s Central Bank.

See BIF.

A unit of measurement for agricultural commodities.

A Monthly report outlining the relative level of current business conditions and expectations for the next 6 months.

A monthly report excluding January. It’s a survey of the business outlook in the next 12 months.

A survey providing an early indicator of levels of activity in the New Zealand manufacturing sector. Also known as Performance of Manufacturing Index. Released monthly by Business NZ.

A pending order to buy at a predefined price lower than the market price in anticipation that the market will eventually rise.

An order to carry out a transaction at, or lower than, a specified price, the word 'limit' referring to the specified price.

To place an order to own a financial instrument.

A pending order to buy at a predefined price higher than the market price, in anticipation that the market will continue to rise.

A technical analysis indicator developed by Bill Williams. If the Momentum (Awesome Oscillator) and Acceleration (Accelerator Oscillator) are in sync then there is a very strong trend.

Green Zone : Both AO and AC are green; strong bullish trend.

Red Zone    : Both AO and AC are red; strong bearish trend.

Gray Zone   : Both Oscillators have different colors; in transition.

Price bars are painted to reflect the current zone.

Pula. The currency of Botswana. It is subdivided into 100 thebe.

Belarusian Ruble. The currency of Belarus. It is subdivided into 100 kopeks.

Belize Dollar. The currency of Belize. It subdivided into 100 cents.

Belize Dollar. The currency of Belize. It subdivided into 100 cents.

It is the nickname used for the currency pair of GBPUSD. It is also used to refer to the British pound itself. Communication between Europe and North America was conducted through a transatlantic cable in the Atlantic Ocean.

See CVE.

Canadian Dollar. The currency of Canada. It is subdivided into 100 cents.

Monthly economic report, based on a survey of about 400 purchasing managers in China. A reading above 50 indicates expansion of the manufacturing sector and the economy in general, whereas a reading below 50 indicates contraction.

Released by Markit.

It gives a trader the right to buy a financial instrument at a specific price, before the expiration date.

It is a calculation method that yields 4 resistance and support levels. It is used in pivot point level calculations. It makes use of the High, Low and Close price of the previous day. 
R4 = Close + (High – Low) * 1.1 / 2 
R3 = Close + (High – Low) * 1.1 / 4 
R2 = Close + (High – Low) * 1.1 / 6 
R1 = Close + (High – Low) * 1.1 / 12 
PP = (High + Low + Close) /3 
S1 = Close - (High – Low) * 1.1 / 12 
S2= Close - (High – Low) * 1.1 / 6 
S3 = Close - (High – Low) * 1.1 / 4 
S4 = Close - (High – Low) * 1.1 / 2

See CAD.

A price charting method that originated in Japan in the 18th century. Merchants devised a system to predict future prices based on traders’ emotions. It makes use of all available prices; open, high, low and close. It consists of a rectangle (the body) which is white if the close is higher than the open, or black if the open is higher than the close price. A vertical line runs through the body representing the high at the top and the low price at the bottom.

A price charting method that originated in Japan in the 18th century. Merchants devised a system to predict future prices based on traders’ emotions. It makes use of all available prices; open, high, low and close. It consists of a rectangle (the body) which is white if the close is higher than the open, or black if the open is higher than the close price. A vertical line runs through the body representing the high at the top and the low price at the bottom.

A price charting method that originated in Japan in the 18th century. Merchants devised a system to predict future prices based on traders’ emotions. It makes use of all available prices; open, high, low and close. It consists of a rectangle (the body) which is white if the close is higher than the open, or black if the open is higher than the close price. A vertical line runs through the body representing the high at the top and the low price at the bottom.

A price charting method that originated in Japan in the 18th century. Merchants devised a system to predict future prices based on traders’ emotions. It makes use of all available prices; open, high, low and close. It consists of a rectangle (the body) which is white if the close is higher than the open, or black if the open is higher than the close price. A vertical line runs through the body representing the high at the top and the low price at the bottom.

A price charting method that originated in Japan in the 18th century. Merchants devised a system to predict future prices based on traders’ emotions. It makes use of all available prices; open, high, low and close. It consists of a rectangle (the body) which is white if the close is higher than the open, or black if the open is higher than the close price. A vertical line runs through the body representing the high at the top and the low price at the bottom.

A monthly report that shows the percentage of a country’s resources used by manufacturers, mines and utilities. A high reading is positive for the country’s currency whereas a low reading is negative. Released by the Federal Reserve.

Money used to acquire, improve or upgrade physical assets such as buildings, infrastructure, and equipment.

The appreciation in the value of capital assets.

The result of selling a capital asset at a lower price than the purchased price.

It is a tradeable certificate or permit (financial instrument) that allows the holder to emit 1 ton of CO2.

When an investor borrows at low interest rates so they can buy assets that are likely to produce higher interest rates.

A charge for the storage of physical commodities.

The amount of money going into and out of a business.

A market where delivery takes place immediately (almost) after the trade of financial instruments.

The market interest rate on overnight loans in Australia. Released monthly (except January) by the Reserve Bank of Australia.

A monthly survey that reflects prevailing consumer attitudes, buying intentions and economic activity for the months ahead. Released by the Conference Board Inc. in the US.

See Chicago Board Options Exchange.

See Chicago Board Options Exchange.

See Chicago Board of Trade.

See Commodity Channel Index.

See Certificate of Deposit.

Congolese Franc. The currency of the Democratic Republic of Congo. It is subdivided into 100 centimes.

Congolese Franc. The currency of the Democratic Republic of Congo. It is subdivided into 100 centimes.

See XOF

See XOF.

See XAF.

See XAF

See Contract for Difference.

see XLF

See Commodities Futures Trading Commission.

Swiss Franc. The currency of Switzerland and Liechtenstein. It is subdivided into 100 Rappen.

Chilean Peso. The currency of Chile. It is subdivided into 100 centavos.

See Chicago Mercantile Exchange.

One of the largest exchanges in the world. It is comprised of four exchanges - CME, CBOT, NYMEX and COMEX.

Chinese Yuan Renminbi. The currency of the People’s Republic of China. It is divided into 10 jiao and 100 fen.

See Commodity Exchange.

See BAM.

Colombian Peso. The currency of Colombia.

See NIO.

A US economic indicator used to measure inflation based on measurement of price movements of a representative shopping basket of goods and services, excluding food and energy. A high reading is positive for the country’s currency whereas a low reading is bearish. Released monthly by the Bureau of Labor Statistics.

A US economic indicator used to measure inflation based on measurement of price movements of a representative shopping basket of goods and services, excluding food and energy. A high reading is positive for the country’s currency whereas a low reading is bearish. Released monthly by the Bureau of Labor Statistics.

See Consumer Price Index.

Costa Rican Colon. The currency of Costa Rica. It is subdivided into 100 centimos.

Cuban Convertible Peso. The currency (the other currency is Cuban Peso) of Cuba. It is subdivided into 100 centavos.

Cuban Peso. The currency (the other currency is Peso Convertible) of Cuba. It is subdivided into 100 centavos.

Cape Verde Escudo. The currency of Cape Verde.

Czech Koruna. The currency of Czech Republic.

 See Expert Advisor

 See European Central Bank.

 A broker who uses Electronic Communications Networks (ECNs) to provide its clients with direct access to liquidity providers.

 Monthly survey of consumers’ confidence that indicates the trend of the European economy. A positive reading is good for the Euro.  Released by the European Commission.

 EMH holds that all traders have access to news and information at the same time. As a result, the charts ‘price in' all news and information. Prices fluctuate around intrinsic values and any overbought or oversold movements do not last long enough so one can benefit from them. The EMH assumes that the best strategy is to buy and hold.

 Egyptian Pound.  The currency of Egypt. It is subdivided into 100 piastres and 1000 millimes.

 See EGP.

 Technical Analysis theory developed by Ralph Nelson Elliott.  Financial Markets follow a form of 5 waves. Three impulse waves (1, 3 and 5) in the direction of the trend and two corrective waves (2 and 4) in the opposite direction. One complete cycle is made up of 8 waves.

 See Exponential Moving Average.

 Monthly survey of manufacturers in New York State. Participants are asked to report changes on a variety of economic indicators- from the previous month and six months ahead. A reading above zero is good for the currency where a reading below zero is negative.

 Monthly report of current month’s employment numbers compared to the previous month. An increase of employed people is good for the currency where a decrease is negative.

  Quarterly report that shows the percentage change of the compensation costs (salaries) for the government and private sector. Released by the Bureau of Labor and Statistics.

 A Japanese candlestick pattern signaling a bearish reversal.

It forms at the top of an uptrend or near a resistance area.

It consists of two candlesticks.

 A Japanese candlestick pattern signaling a bullish reversal.

It forms at the bottom of a downtrend or near a support area.

It consists of two candlesticks.

 It’s a Technical Analysis indicator formed by two simple moving averages.  One of them is shifted upward and the other one downward by a fixed percentage.  The percentage is analogous to market volatility.  The two shifted moving averages define the upper and lower bands of the envelope. Buy signals are generated when prices reach the lower band whereas sell signals are generated when prices reach the upper band.

 It’s a technical tool to draw a channel (uptrend or downtrend).

 It’s a price charting technique developed by Richard W. Arms Jr. It shows the relationship between price and volume. The top of the diagram shows the high price for the period. Similarly, the bottom of the diagram shows the low price for the period.  The width of the diagram reflects the volume for the same period.

 Nakfa. The currency of Eritrea. It is subdivided into 100 cents

 Ethiopian Birr. The currency of Ethiopia. It is subdivided into 100 santims.

 See ETB.

 Euro. The currency of the eurozone. It is subdivided into 100 cents.

See EUR.

 The ECB was established in 1998, located in Frankfurt (Germany), to manage the euro, keep prices stable and conduct EU economic & monetary policy. Its main aim is to keep prices stable, thereby supporting economic growth and job creation.

 The European Union member states that adopted euro as their currency.

 The European Union member states that adopted euro as their currency.

 A Japanese candlestick pattern signaling a bearish reversal.

 A Japanese candlestick pattern signaling a bearish reversal.

A long white candlestick forms in the direction of the prevailing trend, signifying that the upward movement is still in force. Next session gaps above, forming a small candle that acts as an obstacle to further rise.  A long black candle drives the market lower, well into the long white candle’s body and more specifically, below its mid-point-Indicating a bearish reversal.

 A type of Order execution available on MT5. Orders placed on the MT5 are sent to an exchange (i.e. liquidity provider) to be executed at current market offers.

 The rate at which one currency can be exchanged for another.

 When a trade is carried out and completed.

They appear at the end of a trend (either uptrend or downtrend) after the identification of the breakaway and measuring (or runaway) gaps. It signals that the prevailing trend may be coming to an end.



It’s an annualized report that measures sales and prices of existing single-family homes in the US overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country.

 It’s an automated set of detailed programming instructions on how to open, modify and close trading positions without human intervention.

 EMA takes into account all available prices in its calculation and assigns more weight to the most recent prices.

EMA = (Price current – EMA previous) * multiplier + EMA previous

Where multiplier = 2/Periods + 1

 This refers to the amount invested in a security and exposed to market risk.

 This refers to the amount invested in a security and exposed to market risk.

 A monthly survey showing orders for immediate or future delivery, placed with manufacturers. It provides an indication of future business trends. Released by the Census Bureau.





 The current price at which an asset could be sold on the open market.

 See FKP.

 A Japanese candlestick continuation pattern. During a downtrend, a long black body is followed by three small candlesticks, formed between the previous candle’s range - triggering a pause in the market. The resumption of the downtrend is signaled by the presence of the fifth candle which is a long black body.

 See Federal Reserve.

 Report submitted semiannually to Congress containing discussions of "the conduct of monetary policy and economic developments and prospects for the future”, along with testimony from the Federal Reserve Board Chair.

 The Fed’s publication about current economic conditions and prospects across the 12 Federal Reserve Districts: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.

Released eight times per year by the Federal Reserve.

 The Fed’s publication about current economic conditions and prospects across the 12 Federal Reserve Districts: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.

Released eight times per year by the Federal Reserve.

 See FOMC Statement.

 See FOMC.



It is the central bank of the United States. It was established in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserves’ responsibilities:

• Monetary Policy
• Bank and financial institution regulation and supervision
• Financial System stability and containment of the financial markets systemic risks
• Financial services to the U.S. government, U.S. financial institutions and foreign official institutions.

 See Federal Reserve.



 A technical Analysis tool used to draw a channel with diagonal Fibonacci retracements. In an uptrend, draw the channel (or return) line by connecting at least two tops. Consequently, draw the basic up trendline through the widest swing (bottom), parallel to the channel line. In a downtrend, draw the channel line by connecting at least two bottoms. Consequently, draw the basic down trendline trough the widest swing (top), parallel to the channel line. Fibonacci retracements equal to 61.8%, 100%, 161.8% and 261.8% of the channel width, are drawn as potential retracement levels. During an uptrend, prices will find support at the diagonal Fibonacci retracements, once they break out below the channel. On the other hand, in the course of a downtrend, prices will find resistance at the diagonal Fibonacci levels, once they break out above the channel.

 It is a technical analysis tool that is drawn between three points on the price chart. The first point signifies the beginning of wave 1, the second point the end of wave 1 and the third wave the end of wave 2. The tool, displays three lines at 61.8%, 100% and 161.8% the length of wave 1(i.e. the distance between the first and the second point). These lengths (i.e. expansions) are drawn starting from the end of wave 2 (i.e. third point). The theory holds that at these levels, (i.e. expansions) significant changes may be expected, for example, the end wave 3.

 It is a technical analysis tool that is drawn between two major points - top and bottom. In an uptrend, it is drawn from bottom to top, displaying three lines at 38.2%, 50% and 61.8% (i.e. the vertical distance from top to bottom). The lines serve as potential support levels. In a downtrend it is drawn from top to bottom, displaying three lines at 0.382, 0.50 and 0.618 (i.e. the vertical distance from bottom to top). The lines serve as potential resistance levels.

 They are attributed to Leonardo Fibonacci, an Italian Mathematician. Each number in the sequence is composed by the sum of the two previous numbers. The sequence is: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 etc.

 It is a technical analysis tool attached from bottom to top in a rising market and from top to bottom in a declining market. The horizontal lines show the Fibonacci Retracement levels (ratios): 0.236, 0.382 and 0.618. The levels serve as potential support and resistance. The ratios are derived by dividing any number in the sequence by:

• the next one, 55/89=0.618
• the number two places to the right, 55/144=0.382
• the number three places to the right, 55/233= 0.236

 It is a technical Analysis tool that is comprised of vertical lines spaced at Fibonacci intervals: 1, 2, 3, 5, 8, 13, 21, 34, 55, etc. The tool is placed on two points on the price chart to define the time interval unit. The theory holds that significant price changes are expected at the vertical lines, that is, time intervals.

 See FJD.

 The completion of an order.

 When an investor has a very specific price they want to carry out a transaction at, they place a Fill or Kill order – this means that if the order is not filled at the desired price, it is terminated, or killed.

 In the MT5 order window, a trader may set the order’s Fill Policy:

• Fill or Kill
• Immediate or Cancel
• Return



 Applying Oscillator overbought and oversold levels in candlesticks analysis, premature patterns are ignored (i.e. filtered out) hence increasing the success probability of the candlestick patterns.

 A monthly report that measures the average change in price of a basket of consumer goods and services in Eurozone, compared to the same period the previous year. A high reading implies inflation and is positive for the euro whereas a low reading is negative for the euro. Released by Eurostat.

 Annualized change of the Gross Domestic Product (GDP), the economic output of a country.

It measures:

• personal consumption
• business investment
• Government spending
• net exports

It reveals whether an economy is expanding or contracting.





Falkland Islands Pound. The currency of the Falkland Islands(Malvinas). It is subdivided into 100 pence.

 Continuation price pattern composed of a parallelogram with slanting sides against the trend and preceded by an almost straight-line move called a flagpole. The flagpole and the breakout of the parallelogram are accompanied by heavy volume.

The flag pattern causes a brief pause in the market that lasts less than 3 weeks.

 Precedes the parallelogram part of the flag pattern. It’s an almost straight-line move (accompanied by heavy volume) called a flagpole. Projecting the flagpole at the breakout point, a price target may be calculated.

 An a-b-c correction against the prevailing trend. It follows a 3-3-5 wave pattern.



 It is responsible for conducting the nations (USA) monetary policy.

 The FOMC (Federal Open Market Committee) Chair presents the current economic/monetary projections and provides additional context for the FOMC's policy decisions during a press briefing. It’s scheduled four times per year.





 Scheduled four times per year. During the conference the FOMC Statement is read and the Fed’s Chair answers press questions regarding the monetary policy. High market volatility is usually expected.

 After each regular meeting, the FOMC issues a statement that summarizes the Committee's economic outlook and the policy decision at that meeting.

 It’s a technical oscillator that measures the momentum of rallies and declines. It was developed by Alexander Elder. It makes use of the:

• Difference between the close of the current price and that of the previous session.
• Extent of the difference.
• Volume of the current session.

A positive difference shows that the bulls are in control. A negative difference shows that the bears are in control.

Force Index = Volume Today x (Close Today – Close Yesterday)

 It’s a technical oscillator that measures the momentum of rallies and declines. It was developed by Alexander Elder. It makes use of the:

• Difference between the close of the current price and that of the previous session.
• Extent of the difference.
• Volume of the current session.

A positive difference shows that the bulls are in control. A negative difference shows that the bears are in control.

Force Index = Volume Today x (Close Today – Close Yesterday)



 See Forex.

 Foreign exchange, or Forex for short, is the “place” where currencies are traded. In the forex market, currencies are traded in pairs. When a trader buys a currency, he or she is selling another currency at the same time. Currency trading is the exchange of one type of currency for another. The forex market has no physical location or central exchange as it is a global, decentralized market and trades 24 hours a day, 5 days a week.

 A digital chart that plots the price movements of currency pairs, to help investors make informed trading decisions.

 A trading strategy based on the notion that if you buy and sell (or sell and buy) a currency within a very short time frame, you are more likely to make a profit than you would with large price movements.



 A specific group of currencies which form a weighted average that can act as a measure to value an obligation.

 The current exchange rate that a currency pair can be bought or sold at.



 See HUF.

 Trend-following indicator developed by John Ehlers. It’s based on the Exponential Moving Average formula. The smoothing factor calculations are based on the current fractal dimension of the price series. Reactions to price changes are faster, while during consolidation periods it remains flat.

 Developed by Bill Williams. Up fractals are used to identify tops, where down fractals are used to identify bottoms. Up fractals are comprised of 5 bars (minimum) where the highest high is preceded by two lower highs and is followed by two lower highs. Down fractals are comprised of 5 bars (minimum) where the lowest low is preceded by two higher lows and is followed by two higher lows.

 A Japanese candlestick pattern signaling a bullish reversal. At the end of a downtrend, volatility tightens as the market is forming a prolonged bottoming pattern. Short bodies substitute the long black bodies and lower lows form the first part of this rounding bottom or frypan, that mark the lowest level of the bottom. The second part of the bottoming pattern is characterized by higher lows but the range of the bodies remain short- in sync with the low volatility. Finally, a break- out above the pattern with a gap, is necessary to complete the pattern.

 A reversal pattern, similar to double top and double bottom, found in point & figure charts. It is characterized by a move in the congestion area of the pattern and a following move in the opposite direction.

 The impact economic, political and environmental events have on prices in financial markets (interest rate announcements, unemployment rate, elections, etc.)

 See Futures Contract .



 A group of 20 countries represented at the highest level by heads of state/government and at the ministerial level by ministers of finance and central banks governors.

They meet to discuss global and economic issues.

The group consists of the following countries: Argentina, Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, United Kingdom, United States of America, The European Union (represented by the European Council).











 A technical analysis tool developed by W. D. Gann.  To draw an ascending Gann Line, attach the tool at a major bottom and drag the mouse to a higher bottom.

The resultant ascending trendline is drawn at an angle of 45 degrees.

To draw a descending Gann Line, attach the tool at a major top and drag the mouse to a lower top.

The resultant descending trendline is drawn at an angle of 45 degrees.

On the Gann Line, there are three control points. By moving the first and the last points the slope and the length of the line may change. By moving the middle point, the line may be moved without changing its slope and length.

According to Gann’s theory, prices:

• above the ascending 45 degrees line indicates a strong upwards movement. 
• below the ascending line implies a possible change in trend direction.
• below the descending 45 degrees line indicate a strong downwards movement.
• above the descending line implies a possible change in trend direction.
• on the 45 degrees line shows a market in balance i.e. one unit of price corresponds to one unit of time.

 A technical analysis tool developed by W. D. Gann.  To draw an ascending Gann Line, attach the tool at a major bottom and drag the mouse to a higher bottom.

The resultant ascending trendline is drawn at an angle of 45 degrees.

To draw a descending Gann Line, attach the tool at a major top and drag the mouse to a lower top.

The resultant descending trendline is drawn at an angle of 45 degrees.

On the Gann Line, there are three control points. By moving the first and the last points the slope and the length of the line may change. By moving the middle point, the line may be moved without changing its slope and length.

According to Gann’s theory, prices:

• above the ascending 45 degrees line indicates a strong upwards movement. 
• below the ascending line implies a possible change in trend direction.
• below the descending 45 degrees line indicate a strong downwards movement.
• above the descending line implies a possible change in trend direction.
• on the 45 degrees line shows a market in balance i.e. one unit of price corresponds to one unit of 

 A technical analysis tool developed by W. D. Gann.  To draw an ascending Gann Line, attach the tool at a major bottom and drag the mouse to a higher bottom.

The resultant ascending trendline is drawn at an angle of 45 degrees.

To draw a descending Gann Line, attach the tool at a major top and drag the mouse to a lower top.

The resultant descending trendline is drawn at an angle of 45 degrees.

On the Gann Line, there are three control points. By moving the first and the last points the slope and the length of the line may change. By moving the middle point, the line may be moved without changing its slope and length.

According to Gann’s theory, prices:

• above the ascending 45 degrees line indicates a strong upwards movement. 
• below the ascending line implies a possible change in trend direction.
• below the descending 45 degrees line indicate a strong downwards movement.
• above the descending line implies a possible change in trend direction.
• on the 45 degrees line shows a market in balance i.e. one unit of price corresponds to one unit of 

 Unused area on the price chart between two candlesticks. It may occur at Monday’s open or during high impact or unexpected news.



 It’s a technical analysis oscillator developed by Bill Williams.  It consists of two histograms, above and below zero. The histogram above the zero line shoes the difference between the teeth (red line) and the jaw (blue line) of the Alligator. The histogram below the zero line show the difference between the lips (green line) and the teeth (red line) of the Alligator. A histogram bar is colored green when the value is greater than the previous bar’s value and in red color when the value is less than the previous bar’s value.

The Gator Oscillator  helps to understand what the  Alligator does:

1. Sleeps - Both bars are red
2. Eats – Both bars are green
3. Awakes –  After sleeping, one bar is green and one bar is red
4. Fills out – After eating, one of the bars is red

 It’s a technical analysis oscillator developed by Bill Williams.  It consists of two histograms, above and below zero. The histogram above the zero line shoes the difference between the teeth (red line) and the jaw (blue line) of the Alligator. The histogram below the zero line show the difference between the lips (green line) and the teeth (red line) of the Alligator. A histogram bar is colored green when the value is greater than the previous bar’s value and in red color when the value is less than the previous bar’s value.

The Gator Oscillator  helps to understand what the  Alligator does:

1. Sleeps - Both bars are red
2. Eats – Both bars are green
3. Awakes –  After sleeping, one bar is green and one bar is red
4. Fills out – After eating, one of the bars is red

It’s a technical analysis oscillator developed by Bill Williams.  It consists of two histograms, above and below zero. The histogram above the zero line shoes the difference between the teeth (red line) and the jaw (blue line) of the Alligator. The histogram below the zero line show the difference between the lips (green line) and the teeth (red line) of the Alligator. A histogram bar is colored green when the value is greater than the previous bar’s value and in red color when the value is less than the previous bar’s value.

The Gator Oscillator  helps to understand what the  Alligator does:

1. Sleeps - Both bars are red
2. Eats – Both bars are green
3. Awakes –  After sleeping, one bar is green and one bar is red
4. Fills out – After eating, one of the bars is red

 Pound Sterling. The currency of United Kingdom of Great Britain and Northern Ireland, Guernsey, Isle of Man, Jersey. It is subdivided into 100 pence.

 Gross domestic product (GDP) is the total value of goods and services a country produces in a one year period. GDP is calculated annually but it can also be calculated quarterly. A GDP Economic report that shows the annualized change in total value of goods and services produced in a country and is an indicator of a country’s economic health.

 Lari. The currency of Georgia.  It is subdivided into 100 tetri.

A strategy optimization method that reduces the amount of time needed, by dropping unsuccessful parameter combinations.

 A strategy optimization method that reduces the amount of time needed, by dropping unsuccessful parameter combinations.

 Survey of senior purchasing managers in the manufacturing industry looking at business conditions using a number of economic variables (i.e. manufacturing, services, construction and whole economy). Managers are asked to state whether business conditions have improved, remained the same or deteriorated, compared to the precious month.  A reading above 50.0 is good for the currency. Released monthly by Markit.

 Survey of senior purchasing managers in the manufacturing industry looking at business conditions using a number of economic variables (i.e. manufacturing, services, construction and whole economy). Managers are asked to state whether business conditions have improved, remained the same or deteriorated, compared to the precious month.  A reading above 50.0 is good for the currency. Released monthly by Markit.

 Survey of senior purchasing managers in the services industry looking at business conditions using a number of economic variables (i.e. manufacturing, services, construction and whole economy). Managers are asked to state whether business conditions have improved, remained the same or deteriorated, compared to the precious month.  A reading above 50.0 is good for the currency. Released monthly by Markit.

 Survey of senior purchasing managers in the services industry looking at business conditions using a number of economic variables (i.e. manufacturing, services, construction and whole economy). Managers are asked to state whether business conditions have improved, remained the same or deteriorated, compared to the precious month.  A reading above 50.0 is good for the currency. Released monthly by Markit.

 Monthly survey looking at the current economic conditions and future outlook for the next 6 months. Released monthly by the Ifo Institute for Economic Research.

 Monthly survey looking at the current economic conditions and future outlook for the next 6 months. Released monthly by the Ifo Institute for Economic Research.

 It measures the change in the cost of a fixed basket of products and services in Germany. Released monthly by Destatis.

 It measures the change in the cost of a fixed basket of products and services in Germany. Released monthly by Destatis.



 Economic report that shows the change in the value of retail sales. A positive reading is good for the currency. Released monthly by Destatis.

 A survey about the economic outlook for the next 6 months. A positive reading is good for the currency. Released monthly by ZEW.



 See GYD.

 See GYD.

 Testing report parameter. Geometric mean of a trade (as opposed to arithmetic mean) shows by how many times the capital changed after each trade on average. The percentage of capital change is shown in parenthesis. A positive number implies a profitable system whereas a negative number, shows  a system that resulted in a loss on average after each trade.



 See GIP.

 See GIP.









 To buy a financial instrument with the expectation that it will rise in price.





 See XAU.

 See GTC.

 Economic report that shows the difference in value between imported and exported goods.  A positive number (i.e. more exports than imports) is good for the currency. Released monthly.

 See HTG.

 A Japanese candlestick formation that has an equal (or almost equal) opening and closing price. The Gravestone Doji only has a long upper shadow.  It has possible bearish implications when at the top of an uptrend or near a resistance 



 See GDP.

 The monetary sum of all unprofitable trades.

 The monetary sum of all profitable trades.

 A pending order that remains in effect until it is executed or cancelled by the trader.

 Quetzal. The currency of Guatemala.   It is subdivided into 100 cents.

See PYG.

 Guyana Dollar. The currency of Guyana. It is subdivided into 100 cents.

History of performed trades on a specific account on the MT4 platform.

See ISK.

A technical indicator rather than a complete system that is used to identify with “one look” at the chart, the direction of the market, entries (buy and sell) and support and resistance levels. It consists of 5 lines:

A Japanese candlestick pattern signaling a bearish reversal. While the market is in an uptrend or near a resistance area, the presence of a long black body signals an alert for traders. The second candle is a long black candle that opens at or near the first candles’ close. Both the second and third candles close lower than the previous candle’s close.

Rupiah. The currency of Indonesia. It is subdivided into 100 sen.

New Israeli Sheqel. The currency of Israel. It is subdivided into 100 agora.

See International Monetary Fund.

In Elliott Wave Theory, these waves move in the direction of the wave of one larger degree. For example, in a complete cycle (8 waves), impulse waves 1, 2 and 3 move in the direction of the wave of one larger degree. Also, the corrective waves a and c move in the direction of the wave of one larger degree.

A Japanese Candlestick pattern signaling bearish continuation. In the course of a downtrend a small white candle opens below the low of the prior long black body and closes just above the prior close.

A Japanese Candlestick pattern signaling bullish continuation. In the course of an uptrend a small black candle opens above the high of the prior long white body and closes just below the prior close.

See INR.

Technical tools based on inductive statistics and mathematical formulas, which use price data, volume and open interest in order to identify future price trends.

Foreign Exchange Rate quoted for 1 unit of the foreign currency. Foreign currency represents the base currency where the domestic currency corresponds to the quote currency. For example if in Europe, the exchange rate between the euro and the dollar would be USDEUR.

A sustained increase in the price of goods and services that reduces the purchasing power of money.

Indian Rupee. The currency of India. It is subdivided into 100 paise

In bar charting, an inside day is defined as a bar with lower high and higher low compared to the previous bar. It suggests a pause in the market.

The interest rate charged on short-term loans between banks.

The cost of borrowing money, usually expressed as a percentage and calculated on an annualised basis.

A technical analysis methodology that examines the correlations between four major asset classes: stocks, bonds, commodities, and currencies. For example, Stock Market and Treasury Bonds are positively correlated. Whereas Interest Rates are negatively correlated to both markets. Commodities and Bonds usually move in opposite directions. The US Dollar and Gold are also negatively correlated.

In Time Cycles analysis, Intermediate Cycles last from several weeks to several months. Identification of Intermediate Cycles may be performed by measuring the time interval between the cycle’s troughs (lows) on the X-axis of the price chart.

In Dow Theory, an Intermediate Trend is a correction of the Major Trend. It usually lasts 3 weeks to 3 months.



*The International Monetary Fund, or IMF, promotes international financial stability and monetary cooperation. It also facilitates international trade, promotes employment, sustainable economic growth, and helps to reduce global poverty. The IMF is governed by and accountable to its 189 member countries.

Usually, opening and closing a position within the day.

A Technical Analysis chart pattern signaling a bullish reversal. It consists of three bottoms and their corresponding tops. The lowest bottom is known as the Head, where the bottom to the left is known as the Left Shoulder and the bottom to the right is known as the Right Shoulder. The line connecting the two tops is known as the neckline. A prerequisite of any reversal is the existence of a trend, a downtrend in this case. In the course of a downtrend, as defined by consecutive lower tops and lower bottoms, the presence of a higher bottom warns for a potential reversal. A decisive break of the neckline signals the end of the prevailing downtrend and the beginning of an uptrend.

A Japanese candlestick pattern signaling a bullish reversal. An Inverted Hammer formed at the end of a downtrend or at a support area has bullish reversal implications. Traders enter the market with long positions but eventually the sellers’ pressure overcomes buyers’ pressure and the candlestick closes at the lower area of the inverted hammer. The small body and the absence of a lower shadow reveals the weakness of the bears who are unable to maintain the downward move. The body of the Inverted Hammer is 2-3 times shorter than the upper shadow.

Iraqi Dinar. The currency of Iraq. It is subdivided into 1000 fils

See IRR.

See IQD.

Iranian Rial. The currency of the Islamic Republic of Iran. It is subdivided into 100 dinar

Iceland Krona. The currency of Iceland

Near the end of an uptrend, a final gap known as exhaustion gap will appear on the price chart to alert the end of the trend and the beginning of a brief, narrow sideways movement. A breakaway gap to the downside this time, will end the sideways movement and signal a trend reversal. The price pattern, isolated by the two gaps, is known as Island Reversal.

A monthly survey where purchasing managers are asked to rate business activity in the manufacturing sector and more specifically, on production, employment, new orders, prices, supplier deliveries and inventories. A reading above 50 is bullish for the US Dollar, while a reading below 50 is bearish. Released monthly by the Institute of Supply Management

ISM Non-manufacturing Index based on surveys of non-manufacturing firms' within 60 industry sectors. It helps investors to get better insights into current market conditions. When this index is increasing, the stock markets are generally going up due to potentially increased corporate profits. The index is a composite of four indicators, including seasonally adjusted business activity, employment, supplier deliveries and new orders received. A rule of thumb in terms of interpreting the data is- a reading above 50 percent means the non-manufacturing sector of the economy is expanding and below 50 percent means that it is contracting.

See JMD.

This is the theory that if the stock market ends higher in January, the rest of the year will also end higher. Conversely, if January ends on a low note, stock prices will be lower for the end of the year. According to Yale Hirsch: “As January goes, so goes the rest of the year.”

A charting method that has gained a lot of popularity recently, because the charts are more visually appealing than bar charts that reflect the same information. They are also generally easier to read and interpret. The chart makes it easier to see the relationship between the open and close and the high and low of price movements. They also give a more accurate depiction of market sentiment.

There are two types of Candlestick; the first Candle has a white or hollow body which indicates that the market is moving upwards, as there is more buying than selling interest. As the Close price is higher than the Open price, the white candlestick depicts the positive sentiment in the market and the fact that bulls are in control. The longer the body is, the stronger the buying interest.

A filled (black) body which indicates that the market is moving downwards indicates that there is more selling than buying interest. As the Close price is lower than the Open price, the black candlestick depicts the negative sentiment in the market and the fact that bears are in control. The longer the body is, the stronger the selling interest.

The lines above and below the body of the candlestick are called “Shadows” or “Wicks”. The upper shadow reveals the price levels above the body that have been tested but eventually rejected. Similarly, the lower shadow reveals the price levels below the body that have been tested but eventually rejected.

Jamaican Dollar. The currency of Jamaica. It is subdivided into 100 cents.

Jamaican Dollar. The currency of Jamaica. It is subdivided into 100 cents.

Jordanian Dinar. The currency of Jordan. It is subdivided into 10 dirham, 100 qirsh or 1000 fulus.

Number of job openings that need to be filled within 30 days. These include full-time, part-time, permanent, short-term and seasonal openings. Released monthly by the Bureau of Labour Statistics.

See JOD.

Yen. The currency of Japan.

One of the popular cycles in Time Cycle Analysis. Clement Juglar supported that a cycle of approximately 9 years, is presented in many areas of economic activities.

See Kondratieff-Cycle.

A price charting technique independent of time.  It is plotted as a series of connected vertical lines.  The thickness and direction of the lines, reflect the price action:

• An uptrend is displayed as series of thick vertical lines
• A downtrend is displayed as series of thin vertical lines

A buy signal is generated when price moves above the most recent high whereas a sell signal is in place when it moves below the last low.

A technical analysis indicator developed by Chester Keltner.  The upper band is drawn twice the value of the average true range (ATR) calculated over 10 periods above a 20-period exponential moving average of typical prices. The lower band is drawn the same distance below the exponential moving average. A positive signal is generated when price closes above the upper band.  Similarly, a close below the lower band indicates a negative signal.

See KES.

Kenyan Shilling.  The currency of Kenya.  It is subdivided into 100 cents.

Som.  The currency of Kyrgyzstan.  It is subdivided into 100 tyiyn.

Riel.  The currency of Cambodia.  It is subdivided into 10 kak or 100 sen.

A Japanese candlestick pattern signaling a bearish reversal. During the course of an uptrend, a long black candle gaps below the previous white Marubozu and then declines lower closing at the low of the session, demonstrating strong bearish power.

A Japanese candlestick pattern signaling a bullish reversal. In the course of a decline, a long white candle gaps above the previous black Marubozu and rallies higher, closing at the high of the session, demonstrating strong bullish power.

See PGK.

See LAK.

One of the popular cycles in Time Cycle Analysis.  Discovered by Joseph Kitchin.  He supported that a 40-month cycle was present in the stock markets.

It is the nickname of the New Zealand Dollar (NZD).  Flightless bird and national symbol of New Zealand.

Comoro Franc.  The currency of the Comoros.  It is subdivided into 100 centimes.

One of the longer cycles in Time Cycle Analysis.  Discovered by the Russian Economist Nikolai D. Kondratieff.  He supported that a cycle of approximately 54 years is present in prices and many areas of economic activities. Also, known as K Wave.

North Korean Won. The currency of the Democratic People’s Republic of Korea. It is subdivided into 100 chon.

Won.  The currency of the Republic of Korea.

See HRK.

See KWD.

See AOA.

Kuwaiti Dinar.  The currency of Kuwait.  It is subdivided into 1000 fils.

See MMK.

Cayman Islands Dollar.  The currency of the Cayman Islands.  It is subdivided into 100 cents.

Tenge.  The currency of Kazakhstan.  It is subdivided into 100 tiin

It shows the hourly costs of maintaining employees.

The percentage of population (eligible to work) that is either looking for a job or already has a job.

A quarterly report that measures the real gross domestic product per hour worked.  Released by Statistics Canada.

A technical indicator that triggers buy and sell signals with a lag.

Lao Kip.  The Currency of the Lao People’s Democratic Republic.  It is subdivided into 100 att.

See LAK.

In the financial markets, latency refers to time units (usually milliseconds) required for a trade order to be sent and executed by the broker’s server.

A Japanese candlestick pattern signaling bullish reversal.  During the course of a downward move, three long black candles- each opening and closing lower than the previous one, re-establishes the decline. Even though the fourth candle gaps below the previous body, it attempts to extend into the previous candle’s body, as shown by the relatively long upper shadow, but eventually retreats making a new low. It then forms a small black body. The last candle is a long white body that opens above the previous body- signaling a reversal.

A Japanese candlestick pattern signaling bearish reversal.  During the course of an upward move, three long white candles- each opening and closing higher than the previous one, re-establishes the rally. Even though the fourth candle gaps above the previous body, it attempts to extend into the previous candle’s body, as shown by the relatively long lower shadow, but eventually retreats making a new high. It then forms a small white body. The last candle is a long black body that opens below the previous body- signaling a reversal.

Lebanese Pound.  The currency of Lebanon.  It is subdivided into 100 piasters.

A monthly report that shows the performance of the Japanese Economy.  Released monthly by the Cabinet Office (Japan).

A technical indicator showing signs of possible change of direction, before the actual price changes direction. An indicator in the overbought area implies that prices may rebound, while in the oversold area it implies that prices may bounce back. Similarly, positive divergence between the price and the indicator implies price may change to the upside, while a negative divergence may hint for a reversal to the downside. Volume is another class of indicators that forecast price action. During an uptrend, volume should increase as buying pressures increases.  If volume doesn’t follow through then it hints for a reversal.  In a downtrend, volume should be heavier as selling pressure increases. If heavy selling pressure is not accompanied by increased volume then it hints that the downtrend is coming to an end and that a reversal is imminent.

See LBP.

See All.

See HNL.

Leverage is offered by brokers to maximize traders' buying power by giving them the ability to deposit a small amount of funds and trade larger volumes. Leverage is expressed as a ratio form, so if it is 1:100 for example, a trader's buying power is magnified 100 times. Leverage provides opportunities for multiplied profits but at the same time one may have multiplied losses as well.

See LRD.

See LYD.

An order to execute a trade at a specific price or a better one.

The specific price referred to in limit order.

A price chart that uses only the closing price for each period. A line connects all closing prices on the chart.  Extra information such as open, high and low prices are sacrificed for simplicity.

A Technical Analysis tool used for trend identification for a set of prices under a period of study. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.

It consists of three lines:

1. Linear Regression Trendline
2. Upper Channel Line
3. Lower Channel Line

The Linear Regression Trendline, is an equilibrium line that is, a straight line run through a set of prices using the statistical technique of best fit (or least squares) for a period under study.  The Upper and Lower Lines are parallel to and equidistant from the Trendline.  The distance between either Line and the Trendline, represents the maximum close price deviation from the Regression Trendline.

A technical analysis indicator. It is a moving average that assigns more weight to more recent prices.  As a result, it is more sensitive to price changes compared to the Simple Moving Average.

The volume available in the market for a specific currency pair.

A decentralized digital currency used for peer-to-peer transactions.  84 million litecoins are scheduled to be put into circulation.

Sri Lanka Rupee. The currency of Sri Lanka. It is divided into 100 cents.

Price charts that use log scales show equal distances for similar percentage change.  For example, the distance on the chart for a price move from 1.5000 to 3.0000 will be the same as a move from 5.0000 to 10.0000 as they both represent the same (100% change) percentage change.

A Japanese candlestick pattern signaling a bearish reversal.  It forms at the end of an uptrend or a resistance area.  It consists of a long black body and small shadows.

A Japanese candlestick pattern signaling indecision.  It has long upper and lower shadows.  The open price and the close price are equal.

Taking a long position on a currency means that you buy it. In a currency pair, you buy the first of the two currencies – the base currency.

A Japanese candlestick pattern signaling a bullish reversal.  It forms at the end of a downtrend or a support area.  It consists of a long white body and small shadows.

A lot is a standardized quantity of the instrument you are trading. In forex, one lot is 100,000 units of a particular currency.

See LSL.

The lowest price that a financial instrument is traded during a specific timeframe.

Liberian Dollar.  The currency of Liberia.  It is subdivided into 100 cents.

Loti.  The currency of Lesotho.  It subdivided into 100 lisente

28 day trading cycle. The theory holds that human behavior changes during different phases of the moon.  Also a 28-day or 20-day (working days) cycle exists in the stock markets. 

Libyan Dinar.  The currency of Libya. It subdivided into 1000 dirham.

Moroccan Dirham. The currency of Morocco. It is subdivided into 100 santimat.

See MGA.

See MWK.

See MYR.

This refers to the amount of money needed in your account to maintain an open position

This is a notification which alerts you that you need to deposit more money in your trading account, to ensure that there is  sufficient margin to keep existing positions open.

It is the ratio of Equity to Margin used for your open positions and indicated as a percentage.  It indicates the “health” of your account.

The value an open position would be if it were closed at the current market rate.

An application store where traders can buy trading indicators, expert advisors, scripts and other applications.

See Depth of Market.

The order will be filled at the next available price.

A Japanese candlestick of a long body with very small (or non-existent) upper and lower shadows. The color of the body may be either black or white.

Moldovan Leu.  The currency of the Republic of Moldova.  It is subdivided into 100 bani.

Malagasy Ariary.  The currency of Madagascar.  It is subdivided into 5 Iraimbilanja.

Denar.  The currency of the Former Yugoslav Republic of Macedonia.  It is subdivided into 100 denis.

Kyat.  The currency of Myanmar.   It is subdivided into 100 pya.

Tugrik.  The currency of Mongolia.  It is subdivided into 100 mongo.

Pataca.  The currency of Macao.  It is subdivided into 100 avos. 

Ouguiya.  The currency of Mauritania.  It is subdivided into 5 khoums.

Mauritius Rupee.  The currency of Mauritius.  It is subdivided into 100 cents.

Rufiyaa.  The currency of the Maldives.  It is subdivided into 100 laari.

Malawi Kwacha.  The currency of Malawi.  It is subdivided into 100 tambala.

Mexican Peso.  The currency of Mexico.  It is subdivided into 100 centavos.

Malaysian Ringgit.  The currency of Malaysia.  It is subdivided into 100 sen.

Mozambique Metical.  The currency of Mozambique.  It is subdivided into 100 centavos.

Namibia Dollar.  The currency of Namibia.  It is subdivided into 100 cents.

*Designated by the CFTC as a registered futures association, NFA strives every day to safeguard the integrity of the derivatives markets, protect investors and ensure Members meet their regulatory responsibilities.

High impact, monthly report presenting the change of US employed people, excluding the farming and the government sector. Released, usually, the first Friday of the month by the Bureau of Labor Statistics.

Naira. The currency of Nigeria.  It is subdivided into 100 kobo.

Cordoba Oro.  The currency of Nicaragua.  It is subdivided into 100 centavos.

Norwegian Krone.  The currency of Norway and Bouvet Island.  It is subdivided into 100 ore.

Nepalese Rupee.  The currency of Nepal.  It is subdivided into paisa.

See On Balance Volume.

Rial Omani.  The currency of Oman.  It is subdivided into 1000 baisa.

Organization of Petroleum Exporting Countries. OPEC’s mission is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry. The twelve-member states are: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

The initial price at the beginning of a trading period (i.e. timeframe).

See Over the Counter.

When the market drops too far oscillators will reflect that decline with extreme low readings below the middle/equilibrium line, hence identifying oversold conditions.  An oscillator at extreme low conditions can be an alert for a reversal. Oscillators usually give false signals in the beginning of a trend as they move too fast in the oversold area.

See TOP.

Balboa. The currency of Panama. It is subdivided into 100 centésimos.

See PKR.

See XPD.

Parabolic Stop and Reverse is a technical indicator developed by Welles Wilder. It is based on the premise that a strong trend will continue to increase in strength and hence it will follow a parabolic arc. During an uptrend a SAR point starts far from the price and as the price accelerates upwards the SAR points (below the price in an uptrend and above the price during a downtrend) close the gap. When the SAR point reaches the price the long position is closed and a short is opened. It is a system that is always in the market either as long or short. The points (SAR) serve as trailing stop loss and trailing take profit. It works well during trending markets but it produces many false signals during sideways markets.

See MOP.

See Personal Consumption Expenditures.

Sol. The currency of Peru. It is subdivided into 100 centimos.

A Continuation price pattern composed of a small symmetrical triangle, preceded by an almost straight-line move called a flagpole. The breakout of the pennant should be accompanied by heavy volume where available. The measuring implication is equal to the length of the pole. The pennant pattern causes a brief pause in the market that lasts less than 3 weeks.

A monthly report that measures the total expenditure by individuals. A high reading is seen as positive for the US Dollar. Released by the Bureau of Economic Analysis, Department of Commerce.

See Personal Consumption Expenditures.



See UYU.

Kina. The currency of Papua New Guinea. It is subdivided into 100 toea.

See PHP.

Philippine Peso. The currency of the Philippines. It is subdivided into 100 centimos.

During the course of a decline, a long white candlestick exceeds the midpoint of the previous long black candle. The white candle opens below the previous close or low. It is a bullish reversal pattern.

A point in price, or pip for short, is the measure of change in a currency pair in the forex market. The acronym can also stand for a “percentage in point” and “price interest point”. It is a standardized unit and is the smallest unit of measurement by which a currency quote can change. Most currency pairs are measured to five decimal places. For pairs like EURUSD, a pip corresponds to the fourth decimal digit [EURUSD 1.06712]. Yen-based currency pairs like USDJPY are the exception, and are measured to three decimal places and the pip corresponds to the second decimal digit (USDJPY 114.612).

Pakistan Rupee. The currency of Pakistan. It is subdivided into 100 paisa.

Zloty. The currency of Poland. It is subdivided into 100 groszy.

See ISM Manufacturing PMI.

A monthly report showing the monthly change in price of finished goods and services charged by producers. It provides an indication of consumer inflation. A high reading is seen as positive for the US Dollar whereas a low reading is perceived as bearish. Released by the Bureau of Labor Statistics.

Guarani. The currency of Paraguay.

See QAR.

Identifies investment potential by studying unquantifiable factors that affect the market movement, such as traders’ sentiment, Psychology and behavior.  Technical Analysis is a form of Qualitative Analysis, as many concepts and theories such as Elliott Wave Theory, Dow Theory and Cycle Theory study the behavior of the market participants.

Identifies investment potential by applying mathematical and statistical models.  Technical analysis is a form of quantitative analysis, as indicators and technical tools are based on mathematical and statistical models.

Monetary policy to stimulate economic growth and lift the economy out of stagnation. Central Banks increase money supply in the market by “printing money”, lowering interest rates and making money available to consumers to spend and businesses to invest.

See GTQ.

It’s the price that a financial instrument may be bought (Ask price) or sold (Bid price).

The second currency of a currency pair is called the Quote currency. In EUR/USD for example, USD is the quote currency.

Upward price movement after a period of sideways movement or decline.

See ZAR.

Claims that price changes are serially independent and as such they are random and unpredictable.

When price action is confined between a support and a resistance level.  Also known as a sideways market, flat market or trendless market.

See Exchange Rate.

See ROC.

See roc.

Also known as body, it is the rectangular area between the open and the close price on a Japanese Candlestick. If the close is higher than the open price then the color is white; signifying positive sentiment. Conversely, if the open is higher than the close price, the color is black; suggesting negative sentiment.

A contraction in economic activity.  A period of two consecutive quarters of declining Gross Domestic Product (GDP).

The ratio of gained profit to maximum drawdown.

A continuation price pattern, when prices are trading in a confined area between two parallel flat lines.  It is also known as range or consolidation. Even though it is expected to break out in the direction of the prevailing trend, it is not unusual to break out in the opposite direction.  If volume information is available, it may hint in the break out direction well before it happens, as price movement tends to be higher or heavier in the direction of the breakout. Breakout of the range should also be accompanied by heavy volume to be considered valid.  Measuring implications are calculated as the width of the range.

A market governed by legislative rules and regulations which are in place to protect investors.

The highest percentage drop of Equity.

See RSI.

A technical indicator based on the premise that during an uptrend, the closing price is usually higher than the open price.  Conversely, during a downtrend, the closing price is usually lower than the open price.  The calculation formula is:

RVI = (Close – Open) / (High – Low)

For further smoothing, a 10-period Simple Moving Average may be applied on the resulting RVI.  Furthermore, a 4-period Signal Line may be constructed by applying a Symmetrical Weighted Moving Average on RVI.

A potential buy signal is triggered when there is a positive divergence between the oscillator and price, especially when RVI is in extreme oversold territory.  Conversely, a potential sell signal is in place when there is a negative divergence and RVI is in extreme overbought territory.

A price charting method.  A price move is registered as a “brick” in the direction of the trend, as long as the move is equal to the box size, i.e.  the minimum amount.  There are two types of bricks - white and black.  A reversal to the downside takes place when a black box emerges after a series of white bricks.  Conversely, a reversal to the upside takes place when a white brick is registered after a series of black bricks.  The concept of box size helps to smooth out “noise” as price movements less than the box size are not registered.

When a broker is not able to fill a trader’s order at the specific price due to an unusually rapid price movement. The broker would then quote the next best available price, seeking the trader’s confirmation to fill the order.

A strong currency that Central Banks and other Financial Institutions hold as part of their currency reserves.

A price level usually defined as a previous top, where selling pressure overcomes buying pressure.  As a result, prices may find it difficult to break above.

An individual investor who trades the markets for his own benefit rather on behalf of an organization.  Usually individual investors invest smaller amounts in contrast to institutional investors.

An economic report presenting the US total retail sales as well as the percentage change of the last month.  It is based on a survey of about 5000 retail firms. It shows demand in consumer goods which constitutes about 70% of the GDP.  Released, monthly by the US Census Bureau.

See correction

A channel consisting of two parallel lines; the basic trendline and the return or channel line.  In an uptrend the return line is drawn by joining the tops of the channel whereas in a downtrend, the return line is drawn by joining the bottoms of the channel.  The return line serves as a profit-taking indicator for short-term traders.

A turning point in the price chart.

A price formation that signifies the end of a trend in one direction and the beginning of a new trend in the opposite direction.  The most popular reversal pattern is “Head and Shoulders”.

It is the ratio of potential profits to potential losses.  For example, if a trade suffers a 50 pip loss, then the expected return may be 150 pips, if 3:1 reward-to-risk is used.

See OMR.

See KHR.

A Japanese Candlestick bullish continuation pattern.  In the course of an uptrend, a long white body is followed by three small candlesticks formed between the previous candle’s range- triggering a pause in the market. The resumption of the uptrend is signaled by the presence of the fifth candle which is a long white body.

The potential of a negative outcome such as underperforming, failing to achieve investment/trading goals or losing money.

The amount of risk a trader is willing to take.

Refers to the level of tolerance of uncertainty.  Traders with risk aversion prefer lower returns with known risks (usually low risk) over higher returns with unknown/uncertain risks (usually high risk).

It refers to the controls applied to mitigate trading risk, for example:

• Stop Loss
• Position Size
• Reward-to-Risk Ratio

It is a technical oscillator that measures the rate of ascent or descent in the price of a financial instrument.  It measures the difference between the current price and the price n periods ago (Close Recent – Close nperiods ago). If the difference is above the zero-line and rising then it is presumed that the uptrend is accelerating.  If the difference is below the zero-line and falling, the downtrend is accelerating. If the difference is above the zero-line and falling, the uptrend is decelerating.  Similarly, if the difference is below the zero-line and rising, the downtrend is decelerating. ROC follows the general oscillator analysis:

• A crossing of the oscillator above the zero-line triggers a buy signal.
• A crossing of the oscillator below the zero-line triggers a sell signal.
• Divergence between the oscillator and price gives early signals of a reversal.
• Overbought/Oversold levels are not easily spotted on the ROC Oscillator since it is unbounded. Hence, visual inspection is used to identify extreme readings above and below the zero-line.

In forex, the rollover rate is the interest rate that traders pay or earn when they hold (rollover) a position open overnight.

In forex, the rollover rate is the interest rate that traders pay or earn when they hold (rollover) a position open overnight.

See RON.

Romanian Leu.  The currency of Romania.  It is subdivided into 100 bani.

Refers to the total amount of funds involved in opening andclosing a position.

Serbian Dinar.  The currency of Serbia.  It is subdivided into 100 paras.

Relative Strength Index.  A popular technical indicator developed by Welles Wilder.  It addresses erratic price movements in the markets by smoothing prices using the following formula:

RSI = 100 - (100 / (1+ (Average of n up closes / average of n down closes)))

The default value is 14 but 9 may also be used.  RSI is bounded between 0 and 100.  When the oscillator moves above 70 it is considered overbought and a reversal warning is indicated.  If there is a negative divergence between the price and the RSI, then a potential sell indication is in place.  When the oscillator moves below 30 it is considered oversold and hence a reversal alert is indicated.  If there is a positive divergence between the price and the RSI, a possible buy indication may be in place.

Russian Ruble.  The currency of the Russian Federation.  It is subdivided into 100 kopeks. 

See MVR

A gap that follows a breakaway gap.  It usually forms in the middle of a trend and hence is also known as measuring gap.

See IDR.

See RUB.

See RWF.

Rwanda Franc.  The currency of Rwanda.

A financial instrument or asset where the risk of it losing its value is relatively low.

See SHP.

Saudi Riyal. The currency of Saudi Arabia. It is subdivided into 100 halalas.

See SAR.

Solomon Islands Dollar. The currency of the Solomon Islands. It is subdivided into 100 cents.

A trading strategy that benefits from small price movements.

Seychelles Rupee. The currency of the Seychelles. It is subdivided into 100 cents.


Sudanese Pound. The currency of the Sudan. It is subdivided into 100 piasters.

Swedish Krona. The currency of Sweden. It is subdivided into 100 ore.

A pending order to sell at a predefined price higher than the market price in anticipation that the market will eventually decline.

A pending order to sell at a predefined price lower than the market price, in anticipation that the market will continue to decline.

A pending order that combines the Sell Stop and Sell Limit Orders. It allows a trader to specify a price lower than the current price that when reached, a Sell Limit ordered is placed at a higher price level.

Substantial sale of a financial instrument with rapidly declining prices. It is usually characterised by panic amongst traders.

The investors’ expectations about the direction of a financial instrument or market.

Japanese candlestick bearish continuation pattern. During the course of a downtrend, the appearance of a long white candlestick is common, as a correction is part of the prevailing trend. The Next candlestick is a long black body opening at the same price level as the opening of the previous white candlestick but eventually closing lower, signaling the continuation of the downtrend.

Japanese candlestick bullish continuation pattern. During the course of an uptrend, the appearance of a long black candlestick is common, as a correction is part of the prevailing trend. The next candlestick is a long white body opening at the same price level as the opening of the previous black candlestick, signaling the continuation of the uptrend.

See RSD

The transfer of ownership of a financial instrument to a buyer.

See SCR

Singapore Dollar. The currency of Singapore. It is subdivided into 100 cents.

The vertical line than extends above and below the body/real body of a Japanese candlestick. It defines the range between the high and the low price for the specific period.

The vertical line than extends above and below the body/real body of a Japanese candlestick. It defines the range between the high and the low price for the specific period.

Japanese candlestick bearish pattern. A Shooting Star formed at the end of an uptrend or at a resistance area has bearish reversal implications. Traders enter the market with long positions but eventually the sellers’ pressure overcomes buyers’ pressure and the candlestick closes at the lower area of the Shooting Star. The small body and the long upper shadow reveals the weakness of the bulls, who are unable to maintain the upward move.

The sale of a financial instrument to be bought later at a lower price.

Saint Helena Pound. The currency of Saint Helena, Ascension and Tristan da Cunha. It is subdivided into 100 pence.

Japanese candlestick bearish continuation pattern. During a downtrend, a black candlestick is followed by two white candles that gap down-their high price is lower than the black candle’s low price. The two white candles open at about the same price and have a similar body size.

Japanese candlestick bullish continuation pattern. During an uptrend, a white candlestick gaps above the previous white candle thus creating a rising window. The third white candle opens near the preceding open, creating a bullish continuation pattern.

The 9-period Simple Moving Average of the Moving Average Convergence/Divergence (MACD). It may also refer to a moving average of any other oscillator.

See XAG

A trend following indicator. It also known as arithmetic moving average. It is calculated by adding the closing (other prices may also be used like open, high low, typical, median etc.) price of a number of candlesticks (equal to the time period of the moving average) and then dividing this number by the total number of prices. The result is known as the average. The oldest price is then dropped (i.e. discarded from the calculation) and the same formula is applied to the next prices. Therefore, it becomes the moving average.

See SGD

This is when a trader executes an order at a price which is very different to the price they expected the trade to be executed at. This usually happens during periods of high volatility, when traders use market orders and stop loss orders.

Leone. The currency of Sierra Leone. It is subdivided into 100 cents.

A currency that is sensitive to political and economic events and thus fluctuates greatly and is generally unstable.

See PEN.

See SBD

See KGS.

See SOS.

See TJS.

Somali Shilling. The currency of Somalia. It is subdivided into 100 senti.

See SSP

A trader in financial markets who aims to gain from anticipated future market moves.

A sudden upward or downward movement in price that happens in a short time period.

A sudden upward or downward movement in price that happens in a short time period.

The current market price of a financial instrument.

The difference between the Ask and Bid price of a currency pair.

Surinam Dollar. The currency of Surinam. It is subdivided into 100 cents.

See LKR.

South Sudanese Pound. The currency of South Sudan. It is subdivided into 100 piasters.

It is a statistical term denoted by the Greek letter (sigma). It is calculated by the following steps:

• Calculate the mean for a population of n prices (i.e. close)
• Subtract each price from the mean and then square the result
• Sum all squared differences and then divide by the population n
• Take the square root of the above

Or

• Square root of the sum of the squared difference from each closing price to the mean and then dividing by the population (i.e. number of prices).

Standard Deviation formula:

• 68% of the values (prices) will fall within the range of 1 standard deviation of the mean
• 95% of the values (prices) will fall within the range of 2 standard deviations of the mean
• 99.7% of the values (prices) will fall within the range of 3 standard deviations of the mean

A Technical Analysis tool based on the Linear Regression Trendine and the specified number of Standard Deviations. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.

It consists of three lines:

1. Linear Regression Trendline
2. Upper Channel Line
3. Lower Channel Line

• 68% of the prices will fall within the range of 1 standard deviation of the Linear Regression Trendline
• 95% of the prices will fall within the range of 2 standard deviation2 of the Linear Regression Trendline
• 99.7% of the prices will fall within the range of 3 standard deviations of the Linear Regression Trendline

Prices trading above or below the Channel Lines hint for a reversal.

100 000 units of the base currency.

Dobra. The currency of Sao Tome and Principe. It is subdivided into 100 centimos.

Japanese Candlestick bullish pattern. During a downward movement, this three-line pattern consists of two long black candles and a white candle in the middle. The two black candles close at the same price level, while the white candle extends higher than the previous black body.

It is a momentum oscillator developed by George Lane. It determines where the price closed relative to a specific price range over a chosen time period. It is based on the premise that prices tend to close near the upper end of the candlestick during upward price movements whereas they tend to close near the lower end of the candlestick during downward movements. It consists of two lines; %K and %D.

%K=(Current Close-Lowest Low)/(Highest High-Lowest Low) x 100

Current Close – represents the latest closing price

Lowest Low – represents the lowest price for a specific time period

Highest High – represents the highest price for a specific period

Specific Period – is by default 5

Range – is the difference of Highest High – Lowest Low

The %D is a 3 (default value) period Simple Moving Average of %K.

The formula for %D is:

%D = SMA (%K,3)

This is known as fast stochastics.

By taking an additional 3-period Simple Moving Average of %D and %K, slow stochastics are calculated:

%K = SMA(%K,3)

%D = SMA(%D,3)

The Stochastic Oscillator ranges between 0 and 100.

A reading of 0 means that the latest closing prices is equal to the lowest price of the price range over the chosen time period. A reading of 100 means that the latest closing price is equal to the highest price recorded for the price range over the chosen time period.

Also, a reading above 80 is considered to be an indication that the market has reached extreme overbought levels, whereas a reading below 20 means that the market has declined to extreme oversold levels.

The Stochastic Oscillators follows the general rules of oscillator analysis:

• Signals are generated by the crossover between the %K and the %D line.
• A buy signal is generated when %K crosses above the %D line at the oversold area below 20 and then %D rises above the 20-line.
• A sell signal is generated when %K crosses below the %D line at the overbought area above 80 and then %D falls below the 80-line.
• Divergence between price and Stochastics especially at the oversold and overbought areas hints for a potential turning point in the market.

It is a momentum oscillator developed by George Lane. It determines where the price closed relative to a specific price range over a chosen time period. It is based on the premise that prices tend to close near the upper end of the candlestick during upward price movements whereas they tend to close near the lower end of the candlestick during downward movements. It consists of two lines; %K and %D.

%K=(Current Close-Lowest Low)/(Highest High-Lowest Low) x 100

Current Close – represents the latest closing price

Lowest Low – represents the lowest price for a specific time period

Highest High – represents the highest price for a specific period

Specific Period – is by default 5

Range – is the difference of Highest High – Lowest Low

The %D is a 3 (default value) period Simple Moving Average of %K.

The formula for %D is:

%D = SMA (%K,3)

This is known as fast stochastics.

By taking an additional 3-period Simple Moving Average of %D and %K, slow stochastics are calculated:

%K = SMA(%K,3)

%D = SMA(%D,3)

The Stochastic Oscillator ranges between 0 and 100.

A reading of 0 means that the latest closing prices is equal to the lowest price of the price range over the chosen time period. A reading of 100 means that the latest closing price is equal to the highest price recorded for the price range over the chosen time period.

Also, a reading above 80 is considered to be an indication that the market has reached extreme overbought levels, whereas a reading below 20 means that the market has declined to extreme oversold levels.

The Stochastic Oscillators follows the general rules of oscillator analysis:

• Signals are generated by the crossover between the %K and the %D line.
• A buy signal is generated when %K crosses above the %D line at the oversold area below 20 and then %D rises above the 20-line.
• A sell signal is generated when %K crosses below the %D line at the overbought area above 80 and then %D falls below the 80-line.
• Divergence between price and Stochastics especially at the oversold and overbought areas hints for a potential turning point in the market.

An order placed to close a position when a certain price is reached. These orders are placed to limit loss on a position.

See SDG.

A price level usually defined as a previous bottom, where buying pressure overcomes selling pressure. As a result, prices may find it difficult to break below.

See SRD.

El Salvador Colon. The currency of El Salvador. It is subdivided into 100 centavos.

After the swap-free period expires, the account will be charged with the Swap Free Fee for every night it remains open.

A swap in forex refers to the interest that you either earn or pay for a trade that you keep open overnight. There are two types of swaps: Swap long (used for keeping long positions open overnight) and Swap short (used for keeping short positions open overnight). They are expressed in pips per lot, and vary depending on the financial instrument you’re trading.

See SEK.

A trading strategy that aims to make potential profits by taking advantage of a financial instrument’s change in price direction.

See CHF

It is the nickname used for the Swiss Franc and USDCHF.

Syrian Pound. The currency of the Syrian Arab Republic. It is subdivided into 100 piasters.

See SYP.

The risk associated with an event that can trigger substantial uncertainty and loss of confidence in the financial markets, financial system or even the whole economy.

Lilangeni. The currency of Swaziland. It is subdivided into 100 cents.

See BDT.

An order placed to close a position so as to lock profits once it hits a specific price.

An order placed to close a position once it hits a specific price.

See WST.

See TZS.

The study of market action mainly through price charts for the purpose of identifying future price trends in early stages.

Technical Analysis has received some criticism throughout the years:

Technical Analysis is based on 3 premises:

See Indicator.

See KZT.

One of the lines of Ichimoku Kinko Hyo. It is a 9-period moving average of the mid-prices; (Highest High + Lowest Low)/2 for the last 9 periods. It provides signals when combined with Kijun-sen.

A trendline that joins only two tops or bottoms.

Baht. The currency of Thailand. It is subdivided into 100 satang.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the end of a rally or near a resistance area. At the top of the uptrend the presence of three consecutive long black candlesticks signifies the end of the upward move and the beginning of a new move in the opposite direction. Each Marubozu opens above the previous close and concludes below it. The lower shadows are very small if present - thus demonstrating the strength of the decline.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the end of an uptrend or near a resistance area. A small candlestick body of either color follows a candlestick of a long white body. The color of the small candlestick is not important. The two candles form a Harami pattern. The bullish rally is running out of steam as shown by the presence of the small candle, which signals uncertainty as it is contained by the previous long body. The weakness of the market to move higher and the presence of the pattern at the end of a rally, signals possible bearish implications. The long black body that follows, extending below the second candle’s close, confirms the bearish reversal.

A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a downtrend or near a support area. A small candlestick body of either color follows a candlestick of a long black body. The color of the small candlestick is not important. The two candles form a Harami pattern. The bearish decline is running out of steam as shown by the presence of the small candle, which signals uncertainty as it is contained by the previous long body. The weakness of the market to move lower and the presence of the pattern at the end of a decline, signals possible bullish implications. The long white body that follows, extending above the second candle, confirms the bullish reversal.



A Japanese candlestick pattern signaling a bullish continuation. During an uptrend, three consecutive long white candlesticks (i.e. Three White Soldiers) signify the strength of the upside momentum. The fourth candlestick, a long black body, opens above the third candle’s close and closes below the first candle’s open in the opposite direction.



A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a downtrend or near a support area. Just like an Engulfing Pattern, a long white candlestick is formed at the end of a downtrend preceded by a small black candlestick. The body of the small black candlestick is completely engulfed by the body of the long white candlestick. The bearish pressure of the prevailing downward move, is overcome by the buyers entering the market aggressively at the end of the decline-forming a long white candlestick with bullish implications. Additionally, the presence of the long white candle at the third session which closes higher than the second candle, confirms the bullish reversal.





During trading hours Bid/Ask prices change as new incoming prices are received. A tick represents any single incoming price quote.

There are 4 major categories:

It is applied to the breaking of trendlines, support and resistance. Sometimes a close is needed above or below the line or 2 closes or 2 days or a Friday close to name just few popular filters.





Somoni. The currency of Tajikistan. It is subdivided into 100 diram.

Turkmenistan New Manat. The currency of Turkmenistan. It is subdivided into 100 tennesi.

Tunisian Dinar. The currency of Tunisia. It is subdivided into 1000 milim.



In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.









See AED.

Hryvnia. The currency of Ukraine. It is subdivided into 100 kopiyky.

See UGX.

The percentage of the labour force that during the last month that had no work but made specific efforts to find employment. Released monthly by the Bureau of Labor Statistics.

Japanese Candlestick bullish pattern. A long black candle forms in the direction of the downtrend. The next candle is a hammer that opened higher and tested lower prices levels but eventually rejected as shown by the long lower shadow. The third candle is a small white body formed below the hammer’s body showing signals that the market is not willing to move lower.

Japanese candlestick bullish continuation pattern. In an uptrend, two long white candles with a rising window in between are followed by a long black candle that fills the window (i.e. gap).

Japanese candlestick bearish pattern. During the course of an uptrend a long white body is followed by a shorter black body that gaps higher. A black candle that follows, opens at or above the previous open. It then pushes the market lower, well into the long white candle’s body and more specifically, below the close of the second body but above the close of the first candlestick.

Japanese candlestick bullish continuation pattern. During an upward rally, a long white candle is followed by a second long white body that gaps higher in the direction of the prevailing trend. A third candle, black this time, closes (but does not fill) within the gap.

See USD.

US Dollar. The currency of the United States of America, American Samoa, Bonaire, Sint Eustatius and Saba, the British Indian Ocean Territory, Equador, El, Salvador, Guam, Haiti, the Marshall Islands, Federated States of Micronesia, the Northern Mariana Islands, Palau, Panama, Puerto Rico, Timor-Leste, the Turks and Caicos Islands, United States Minor Outlying, British Virgin Islands, U.S. Virgin Islands. It is subdivided into 100 cents.

Peso Uruguayo. The currency of Uruguay. It is subdivided into 100 centesimos.

See UZS.

Uzbekistan Sum. The currency of Uzbekistan. It is subdivided into 100 tiyin.

The date that the transaction actually takes place.

See VUV.

Bolivar.  The currency of the Bolivarian Republic of Venezuela.

See VPS.

Dong. The currency of Vietnam.

The amount of a specific financial instrument which has exchanged hands during a trading day.

A server that runs 24/7 without any downtime due to internet connectivity, electricity cutoffs or hardware faults.  Ideal for automated trading (expert advisors).

Vatu.  The currency of Vatu. 

Price action in one of the three market directions: up, down or sideways.

See Elliott Wave Theory.

A continuation price pattern.  It consists of two converging trendlines that intersect at a point called the apex. Wedges usually slant in the opposite direction from the prevailing trend.  Hence, a falling wedge appears during an uptrend whereas a rising wedge appears during a downtrend.

See Linearly Weighted Moving Average.

See WTI.

Sudden price movements in the opposite direction, usually leading to false or bad signals. For example, while the price is rallying upwards suddenly it swings direction and follows a downward path until it bounces up again.  It is a characteristic of volatile markets.

A technical indicator developed by Larry Williams. It is used to identify extreme price movements i.e. overbought and oversold levels. It uses an upside-down scale. Readings from 0 to -20 imply overbought levels whereas readings between 80 and 100 imply oversold levels.  The %R indicator often anticipates reversals as it forms a top and turns down before the underlying financial instrument does and similarly, it forms a bottom and turns up before the price does. To calculate %R, take the difference between the Highest High of the last n periods and the current closing price - this is the dividend.  Furthermore, take the difference between the Highest High of the last n periods and the Lowest Low of the last n periods - this is the divisor. Finally multiply the quotient by -100.

See KRW.

Tala. The currency of Samoa. It is subdivided into 100 sense.

West Texas Intermediate: WTI is considered one of the major benchmarks for crude oil pricing globally.  It has a low Sulphur content (sweet) and it has a relatively low density (light).  Hence, it is also known as Texas Light Sweet .  It is listed in the New York Mercantile Exchange's oil futures.

CFA Franc BEAC. The currency of Cameroon, The Central African Republic, Chad, The Congo, Equatorial Guinea and Gabon.

Silver

Gold

East Caribbean Dollar.  The currency of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines.  It is subdivided into 100 cents.

Palladium.

CFP Franc.  The currency of French Polynesia, New Caledonia, Wallis and Futuna.

Platinum.









See CNY.



Rand.  The currency of South Africa.  It is subdivided into 100 cents.