Part 3 Terminology Glossary

Question 1

Institution

Answer 1

A large financial entity, such as a bank or hedge fund, involved in trading or investing in financial markets.

Question 2

ioi

Answer 2

An abbreviation for “inside/outside inside,” referring to a bar with a higher high and lower low than the previous bar.

Question 2

Ledge

Answer 2

Ledge: A price level where significant buying or selling pressure has accumulated, often leading to a breakout or reversal.

Question 3

Leg

Question 3

Likely

Question 4

Top of Form

Question 5

Long

Answer 5

A trading position that benefits from an increase in price.

Question 6

Lot

Answer 6

A standardised unit of trading volume in financial markets.

Question 6

Lower High

Answer 6

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

Question 7

Lower Low

Answer 7

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

Question 8

Low 1, 2, 3, or 4

Answer 8

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

Question 9

Major Trend Line

Answer 9

A significant line drawn on a price chart connecting major highs or lows, indicating the direction of the prevailing trend.

Question 9

Major Trend Reversal

Answer 9

A significant change in the direction of the prevailing trend.

Question 9

Measuring Gap

Answer 9

Measuring Gap: A price gap used to estimate the potential price target of a subsequent price move.

Question 10

Measured Move in Bear Trend

Answer 10

A projected price movement in a bearish market based on a previous price swing.

Question 10

Measured Move in Bull Trend

Answer 10

A projected price movement in a bullish market based on a previous price swing.

Question 10

Melt-up

Answer 10

A rapid and substantial increase in market prices.

Question 11

Micro

Answer 11

A term used to describe very small or short-term price movements or patterns.

Question 11

Meltdown

Answer 11

A rapid and severe decline in market prices.

Question 12

Micro Measuring Gap

Answer 12

A small price gap used to estimate the potential price target of a subsequent price move within a very short-term timeframe.

Question 12

Micro Double Top

Answer 12

A bearish reversal pattern characterised by two consecutive highs at a very short-term timeframe.

Question 12

Micro Double Bottom

Answer 12

A bullish reversal pattern characterised by two consecutive lows at a very short-term timeframe.

Question 12

Micro Channel

Answer 12

A narrow price channel indicating low volatility and minimal price movement.

Question 13

Micro Trend Line Breakout

Answer 13

The breach of a trend line drawn on a very short-term timeframe, indicating a potential change in price direction.

Question 13

Micro Trend Channel Line

Answer 13

A trend line drawn on a very short-term timeframe to represent the direction of price movement.

Question 13

Micro Trend Channel Line

Answer 13

A trend line drawn on a very short-term timeframe to represent the direction of price movement.

Question 14

Minor Trend Reversal

Answer 14

A small-scale change in the direction of the prevailing trend.

Question 15

Money Stop

Answer 15

A predefined level at which a trader exits a position to limit losses.

Question 16

Moving Average

Answer 16

A statistical calculation used to smooth out price data and identify trends over a specified period.

Question 17

Moving Average Gap Bar (Gap Bar)

Answer 17

A price bar that opens above or below a moving average, indicating a potential change in market sentiment.

Question 18

Negative Gap

Answer 18

A price gap that occurs when the opening price is lower than the previous closing price.

Question 19

News

Answer 19

Information or events that may impact market sentiment or prices.