Trading Glossary

Measures trend strength regardless of direction

Measures market volatility by decomposing price range

Japan's central bank decisions impact yen, carry trades, and global markets.

Price envelope showing volatility around a moving average

When price moves outside a defined support or resistance level with increased volume.

A chart type displaying the open, high, low, and close prices for each time period as a 'candle' shape.

A strategy of borrowing in a low-interest-rate currency to invest in a higher-yielding asset.

Measures deviation of price from statistical mean

Survey measuring how optimistic consumers feel about the economy.

The total money spent by households on goods and services, comprising about 70% of US GDP.

Monthly inflation data that directly impacts Fed policy and interest rates.

When price moves in the opposite direction of a technical indicator, suggesting a potential reversal.

Company announcements about cash payments to shareholders.

A monetary policy stance favoring lower interest rates to support economic growth.

A company's profit divided by the number of outstanding shares, showing profitability per share.

Quarterly company financial results that can move individual stocks 10%+ in minutes.

European Central Bank rate decisions impact global markets and EUR/USD.

An increase in the production of goods and services in an economy over time.

When the Fed Chair speaks, markets listen. Words can move billions.

The interest rate at which banks lend reserves to each other overnight, set by the Federal Reserve.

A tool using horizontal lines at key Fibonacci ratios to identify potential support and resistance levels.

Federal Reserve interest rate decisions that move all markets simultaneously.

The anxiety that arises from believing others are profiting from an opportunity you're missing.

The global marketplace for trading national currencies against one another.

A company's or central bank's public statements about expected future performance or policy direction.

The total monetary value of all goods and services produced within a country's borders in a specific period.

Quarterly measure of economic growth. Two negative quarters = recession.

A monetary policy stance favoring higher interest rates to control inflation.

Monthly data on new home construction activity.

The rate at which the general level of prices for goods and services rises over time.

The cost of borrowing money, expressed as a percentage of the principal loan amount.

Monthly employment data that can swing markets in seconds at 8:30 AM.

How easily an asset can be bought or sold without significantly affecting its price.

The total market value of a company's outstanding shares, calculated by multiplying share price by shares outstanding.

Shows relationship between two moving averages of price

Cumulative volume indicator based on price direction

Business surveys that predict economic direction before official data.

Determining how many shares or contracts to trade based on risk tolerance and account size.

A significant decline in economic activity lasting more than a few months.

Measures speed and magnitude of price changes on a 0-100 scale

Monthly consumer spending data—the heartbeat of the US economy.

The total income generated by a company from its business activities before any expenses are deducted.

A comparison of the potential profit of a trade to its potential loss.

Average of closing prices over a specified period

Compares closing price to price range over a period

When companies divide shares to lower the price per share.

An order to sell a security when it reaches a certain price, designed to limit potential losses.

Price levels where buying or selling pressure is expected to be strong enough to prevent further movement.

Monthly import/export data showing US trade with the world.

The general direction in which a market or asset's price is moving over time.

The percentage of the labor force that is jobless and actively seeking employment.

The total number of shares or contracts traded during a specific period.

Average price weighted by volume, popular with institutions