Part 1 Terminology Glossary Flashcards
Always In
Refers to a market condition where prices predominantly continue to move in one direction without significant retracements.
barbwire
Describes a tight and choppy price movement, typically characterized by narrow range bars.
bar pullback
A retracement in price movement after a previous strong move.
bear flag
A bearish chart pattern characterized by a downward sloping trendline followed by a consolidation phase, resembling a flag.
bear reversal
A change in the direction of a market from bullish to bearish.
bear reversal
A change in the direction of a market from bullish to bearish.
body gap (formerly negative gap)
A price gap that occurs between the close of one bar and the open of the next, typically associated with significant market activity.
blown account
When a trader exhausts their trading capital due to excessive losses or risky trading strategies.
breakout
Occurs when the price moves above or below a significant level of support or resistance.
breakout bar (or bar breakout)
The specific bar that triggers a breakout from a trading range or pattern.
breakout mode
A market condition where price action indicates a potential breakout.
breakout pullback
A retracement following a breakout, often seen as an opportunity to enter a trade in the direction of the breakout.
breakout test
A retest of the breakout level after a breakout occurs, confirming the validity of the breakout.
bull flag
A bullish chart pattern characterized by a temporary consolidation after an upward price movement.
bull reversal
A change in the direction of a market from bearish to bullish.
Buy The Close bull trend
A bullish trend where traders tend to buy at or near the closing price of bars.
buying pressure
Indicates upward pressure on prices caused by increased buying activity.
candle
A visual representation of price movement within a specific time frame, typically shown as a rectangle or “candlestick” shape.
chart type
The format used to display price data, such as line charts, bar charts, or candlestick charts.
climax
A rapid and extreme price movement, often signaling exhaustion of the prevailing trend.
context
The broader market environment or conditions influencing price action.
countertrend
A trading strategy or price movement that goes against the prevailing trend.
countertrend scalp
A short-term trading opportunity that involves taking positions against the prevailing trend.
day trade
A trade opened and closed within the same trading day.
