Part 1 Terminology Glossary

Question 1

Always In

Answer 1

Refers to a market condition where prices predominantly continue to move in one direction without significant retracements.

Question 2

barbwire

Answer 2

Describes a tight and choppy price movement, typically characterized by narrow range bars.

Question 3

bar pullback

Answer 3

A retracement in price movement after a previous strong move.

Question 4

bear flag

Answer 4

A bearish chart pattern characterized by a downward sloping trendline followed by a consolidation phase, resembling a flag.

Question 5

bear reversal

Answer 5

A change in the direction of a market from bullish to bearish.

Question 6

bear reversal

Answer 6

A change in the direction of a market from bullish to bearish.

Question 7

body gap (formerly negative gap)

Answer 7

A price gap that occurs between the close of one bar and the open of the next, typically associated with significant market activity.

Question 8

blown account

Answer 8

When a trader exhausts their trading capital due to excessive losses or risky trading strategies.

Question 9

breakout

Answer 9

Occurs when the price moves above or below a significant level of support or resistance.

Question 10

breakout bar (or bar breakout)

Answer 10

The specific bar that triggers a breakout from a trading range or pattern.

Question 10

breakout mode

Answer 10

A market condition where price action indicates a potential breakout.

Question 10

breakout pullback

Answer 10

A retracement following a breakout, often seen as an opportunity to enter a trade in the direction of the breakout.

Question 10

breakout test

Answer 10

A retest of the breakout level after a breakout occurs, confirming the validity of the breakout.

Question 10

bull flag

Answer 10

A bullish chart pattern characterized by a temporary consolidation after an upward price movement.

Question 11

bull reversal

Answer 11

A change in the direction of a market from bearish to bullish.

Question 11

Buy The Close bull trend

Answer 11

A bullish trend where traders tend to buy at or near the closing price of bars.

Question 12

buying pressure

Answer 12

Indicates upward pressure on prices caused by increased buying activity.

Question 13

candle

Answer 13

A visual representation of price movement within a specific time frame, typically shown as a rectangle or “candlestick” shape.

Question 14

chart type

Answer 14

The format used to display price data, such as line charts, bar charts, or candlestick charts.

Question 15

climax

Answer 15

A rapid and extreme price movement, often signaling exhaustion of the prevailing trend.

Question 16

context

Answer 16

The broader market environment or conditions influencing price action.

Question 17

countertrend

Answer 17

A trading strategy or price movement that goes against the prevailing trend.

Question 18

countertrend scalp

Answer 18

A short-term trading opportunity that involves taking positions against the prevailing trend.

Question 19

day trade

Answer 19

A trade opened and closed within the same trading day.

Question 21

directional probability

Answer 21

The likelihood of price movement in a particular direction based on market analysis.

Question 22

doji

Answer 22

A candlestick pattern characterized by a small body and wicks of equal length, indicating indecision in the market.

Question 23

dominant feature

Answer 23

The most significant aspect or characteristic of a price chart or pattern.