Part 2 Terminology Glossary Flashcards
double bottom
A bullish reversal pattern characterised by two consecutive lows at approximately the same price level.
double top
A bearish reversal pattern characterized by two consecutive highs at approximately the same price level.
double bottom pullback
A retracement following a double bottom formation, often seen as a buying opportunity.
double top bear flag
A bearish continuation pattern following a double top reversal, resembling a flag.
early shorts
Traders who enter short positions early in anticipation of a bearish move.
double top pullback
A retracement following a double top formation, often seen as a selling opportunity.
entry bar
The bar used to enter a trade based on predefined criteria or trading strategy.
EMA
Exponential Moving Average, a type of moving average that gives more weight to recent price data.
exhaustion gap in bear trend
A price gap that occurs near the end of a downtrend, signaling exhaustion among sellers.
exhaustion gap in bull trend
A price gap that occurs near the end of an uptrend, signaling exhaustion among buyers.
Fade
A trading strategy that involves entering a position opposite to the prevailing trend, expecting a reversal.
Failed Failure
A failed attempt to reverse a price movement, resulting in a continuation of the prevailing trend.
Failure (A Failed Move)
A price movement that fails to sustain momentum and reverses direction.
FALSE
Refers to a deceptive or misleading price signal that may lead traders to take erroneous positions.
Five-Tick-Failure
A failure to breach a price level by a specified number of ticks, often signaling a potential reversal.
Follow-Through
The continuation of a price movement after a breakout or significant event.
Gap Bar
A bar that forms after a price gap occurs.
Follow-Through Bar
A bar that confirms the continuation of a trend or price movement.
Gap
A price gap occurs when there is a noticeable difference between the closing price of one bar and the opening price of the next.
Gap Reversal
A price movement that fills a previous price gap, often leading to a reversal in the direction of the trend.
Higher High
A price bar with a high point higher than the high point of the previous bar.
Higher Low
A price bar with a low point higher than the low point of the previous bar.
high/low 1 or 2
Price bars with either the highest or lowest price within a specified number of bars.
high 1, 2, 3, or 4
Price bars with high points relative to a specified number of previous bars.
