Glossary
Trading Vocabulary
Plain-English definitions of every term you'll meet as a new trader. Tap any card for a deeper breakdown.
Trend
The overall direction price is moving.
Read moreUptrend
Higher highs and higher lows — buyers in control.
Read moreDowntrend
Lower highs and lower lows — sellers in control.
Read moreMarket Structure
The pattern price creates with highs and lows.
Read moreHigher High (HH)
Price moves above the previous high.
Read moreHigher Low (HL)
A pullback that stays above the previous low.
Read moreLower High (LH)
Price fails to break the previous high.
Read moreLower Low (LL)
Price breaks below the previous low.
Read moreSupport
Where buyers tend to step in and stop the drop.
Read moreResistance
Where sellers tend to step in and cap the rally.
Read moreLiquidity
Areas where many buy and sell orders are resting.
Read moreBreakout
Price punches through a key level with strength.
Read moreRetest
Price returns to a broken level to confirm it.
Read morePullback
A small move against the trend before it continues.
Read moreConsolidation
Price moves sideways inside a tight range.
Read moreEMA (Exponential Moving Average)
A moving average that reacts quickly to recent price.
Read moreMomentum
The strength and speed of a price move.
Read moreCandlestick
Open, close, high, and low for a time period.
Read moreBullish Candle
Closes higher than it opens — buyers won.
Read moreBearish Candle
Closes lower than it opens — sellers won.
Read moreDoji
Open and close are nearly equal — indecision.
Read moreStop Loss
Auto-closes your trade to limit losses.
Read moreTake Profit
Auto-closes your trade at your target.
Read moreRisk Management
Controlling how much you risk per trade.
Read moreRisk-to-Reward Ratio
What you could lose vs. what you could gain.
Read moreContract
An agreement to buy or sell at a future date.
Read moreTick
The smallest amount a contract can move.
Read morePoint
A larger unit of price made of several ticks.
Read moreMargin
Money required to open and hold a trade.
Read moreDrawdown
How far your account is from its peak.
Read moreWin Rate
Percentage of trades that end profitable.
Read moreTrading Session
A specific period when markets are active.
Read moreNews Event
An announcement that can move price sharply.
Read moreDiscipline
Sticking to your plan when emotions push back.
Read morePatience
Waiting for A+ setups instead of forcing trades.
Read moreFOMO (Fear of Missing Out)
Jumping in late because you fear missing the move.
Read more