Part 2 Terminology Glossary

Question 1

double bottom

Answer 1

A bullish reversal pattern characterised by two consecutive lows at approximately the same price level.

Question 2

double bottom bull flag

Answer 2

A bullish continuation pattern following a double bottom reversal, resembling a flag.

Question 2

double top

Answer 2

A bearish reversal pattern characterized by two consecutive highs at approximately the same price level.

Question 3

double bottom pullback

Answer 3

A retracement following a double bottom formation, often seen as a buying opportunity.

Question 4

double top bear flag

Answer 4

A bearish continuation pattern following a double top reversal, resembling a flag.

Question 5

early shorts

Answer 5

Traders who enter short positions early in anticipation of a bearish move.

Question 6

early longs

Answer 6

Traders who enter long positions early in anticipation of a bullish move.

Question 6

double top pullback

Answer 6

A retracement following a double top formation, often seen as a selling opportunity.

Question 7

entry bar

Answer 7

The bar used to enter a trade based on predefined criteria or trading strategy.

Question 8

EMA

Answer 8

Exponential Moving Average, a type of moving average that gives more weight to recent price data.

Question 9

exhaustion gap in bear trend

Answer 9

A price gap that occurs near the end of a downtrend, signaling exhaustion among sellers.

Question 10

exhaustion gap in bull trend

Answer 10

A price gap that occurs near the end of an uptrend, signaling exhaustion among buyers.

Question 11

Fade

Answer 11

A trading strategy that involves entering a position opposite to the prevailing trend, expecting a reversal.

Question 12

Failed Failure

Answer 12

A failed attempt to reverse a price movement, resulting in a continuation of the prevailing trend.

Question 13

Failure (A Failed Move)

Answer 13

A price movement that fails to sustain momentum and reverses direction.

Question 14

FALSE

Answer 14

Refers to a deceptive or misleading price signal that may lead traders to take erroneous positions.

Question 15

Flat

Answer 15

A market condition where prices exhibit minimal or no trend, typically characterized by sideways movement.

Question 15

Five-Tick-Failure

Answer 15

A failure to breach a price level by a specified number of ticks, often signaling a potential reversal.

Question 16

Follow-Through

Answer 16

The continuation of a price movement after a breakout or significant event.

Question 17

Gap Bar

Answer 17

A bar that forms after a price gap occurs.

Question 18

Follow-Through Bar

Answer 18

A bar that confirms the continuation of a trend or price movement.

Question 19

HFT

Answer 19

Trading conducted by computer algorithms at high speeds to capitalize on small price discrepancies.

Question 19

Gap

Answer 19

A price gap occurs when there is a noticeable difference between the closing price of one bar and the opening price of the next.

Question 20

Gap Reversal

Answer 20

A price movement that fills a previous price gap, often leading to a reversal in the direction of the trend.

Question 21

Higher High

Answer 21

A price bar with a high point higher than the high point of the previous bar.

Question 22

Higher Low

Answer 22

A price bar with a low point higher than the low point of the previous bar.

Question 23

High-Frequency Trading (HFT)

Question 23

Higher Time Frame (HTF)

Answer 23

A longer-term perspective on price action, typically referring to charts with longer time intervals.

Question 23

high/low 1 or 2

Answer 23

Price bars with either the highest or lowest price within a specified number of bars.

Question 24

high 1, 2, 3, or 4

Answer 24

Price bars with high points relative to a specified number of previous bars.

Question 25

ii

Answer 25

A pattern or structure formed by two consecutive bars.

Question 26

iii

Answer 26

A pattern or structure formed by three consecutive bars.

Question 27

Inside Bar

Answer 27

A price bar with a high point lower than the high of the previous bar and a low point higher than the low of the previous bar, indicating consolidation.