Part 4 Terminology Glossary Flashcards
OIO
An abbreviation for “outside/inside/outside,” referring to a price bar with a higher high, lower low, and higher close than the previous bar.
OO
An abbreviation for “outside/outside,” referring to a price bar with a higher high and lower low than the previous bar.
Opening Reversal
A change in market direction that occurs shortly after the opening of a trading session.
Outside Bar
A price bar with a higher high and lower low than the previous bar, indicating increased volatility.
Outside Down Bar
An outside bar where the close is lower than the previous bar’s close.
Outside Up Bar
An outside bar where the close is higher than the previous bar’s close.
Overshoot
A temporary price movement that extends beyond a significant level of support or resistance.
Pause Bar
A price bar indicating a temporary pause or consolidation in price movement.
Perfect Trade
A trade that meets all predefined criteria and results in maximum profit.
Price Action
The movement of security prices depicted on a chart, without the use of indicators or other analytical tools.
Pip
The smallest price movement in a currency pair in forex trading, typically representing one basis point.
Probably
Indicates a high likelihood of a particular outcome based on market analysis.
Probability
The likelihood of a particular outcome occurring based on historical data or market analysis.
Pullback
A temporary reversal in the direction of price movement within a larger trend.
Pullback Bar
The specific bar that marks the beginning of a pullback in price movement.
Reversal
A change in the direction of a market or price movement.
Reversal Bar
A price bar that signals a potential change in the direction of the market.
Reward
The potential profit from a successful trade.
Risk
The potential loss from an unsuccessful trade.
Risk On
A market sentiment where investors are willing to take on higher levels of risk, often resulting in increased buying activity in riskier assets.
Risk Off
A market sentiment where investors are averse to taking on risk, often resulting in selling activity in riskier assets.
Risky
A trading strategy or position that has a higher-than-average level of potential risk.
Scalp
A short-term trading strategy that aims to profit from small price movements.
Scalper
A trader who employs scalping strategies to profit from small price movements.
Scalper’s Profit
The profit earned by a scalper from executing short-term trades.
Scratch
A trade that results in neither profit nor loss.
Second Entry
A secondary opportunity to enter a trade after missing the initial entry point.
Second Moving Average Gap Bar Setup
A trading setup that involves using a moving average and price gap to identify potential trade entries.
Second Signal
A secondary trading signal confirming the validity of a trade setup.
Sell The Close Bear Trend
A bearish trend where traders tend to sell at or near the closing price of bars.
