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

Ledge

Answer 2

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

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

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

Measuring Gap

Answer 9

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

Question 10

Melt-up

Answer 10

A rapid and substantial increase in market prices.

Question 11

Meltdown

Answer 11

A rapid and severe decline in market prices.

Question 12

Micro Channel

Answer 12

A narrow price channel indicating low volatility and minimal 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.

Question 20

Micro Trend Channel Line

Answer 20

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

Question 21

Micro Trend Line Breakout

Answer 21

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

Question 22

Micro Double Bottom

Answer 22

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

Question 23

Micro Double Top

Answer 23

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

Question 24

Micro Measuring Gap

Answer 24

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

Question 25

Micro

Answer 25

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

Question 26

Measured Move in Bull Trend

Answer 26

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

Question 27

Measured Move in Bear Trend

Answer 27

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

Question 28

Major Trend Reversal

Answer 28

A significant change in the direction of the prevailing trend.

Question 29

Major Trend Line

Answer 29

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

Question 30

Lot

Answer 30

A standardised unit of trading volume in financial markets.

Question 31

Leg

Question 32

ioi

Answer 32

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