Part 4 Terminology Glossary

Question 1

OIO

Answer 1

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

Question 2

OO

Answer 2

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

Question 3

Opening Reversal

Answer 3

A change in market direction that occurs shortly after the opening of a trading session.

Question 4

Outside Bar

Answer 4

A price bar with a higher high and lower low than the previous bar, indicating increased volatility.

Question 5

Outside Down Bar

Answer 5

An outside bar where the close is lower than the previous bar’s close.

Question 6

Outside Up Bar

Answer 6

An outside bar where the close is higher than the previous bar’s close.

Question 7

Overshoot

Answer 7

A temporary price movement that extends beyond a significant level of support or resistance.

Question 8

Pause Bar

Answer 8

A price bar indicating a temporary pause or consolidation in price movement.

Question 9

Perfect Trade

Answer 9

A trade that meets all predefined criteria and results in maximum profit.

Question 10

Price Action

Answer 10

The movement of security prices depicted on a chart, without the use of indicators or other analytical tools.

Question 10

Pip

Answer 10

The smallest price movement in a currency pair in forex trading, typically representing one basis point.

Question 11

Probably

Answer 11

Indicates a high likelihood of a particular outcome based on market analysis.

Question 12

Probability

Answer 12

The likelihood of a particular outcome occurring based on historical data or market analysis.

Question 13

Pullback

Answer 13

A temporary reversal in the direction of price movement within a larger trend.

Question 14

Pullback Bar

Answer 14

The specific bar that marks the beginning of a pullback in price movement.

Question 15

Reversal

Answer 15

A change in the direction of a market or price movement.

Question 16

Reversal Bar

Answer 16

A price bar that signals a potential change in the direction of the market.

Question 17

Reward

Answer 17

The potential profit from a successful trade.

Question 18

Risk

Answer 18

The potential loss from an unsuccessful trade.

Question 19

Risk On

Answer 19

A market sentiment where investors are willing to take on higher levels of risk, often resulting in increased buying activity in riskier assets.

Question 20

Risk Off

Answer 20

A market sentiment where investors are averse to taking on risk, often resulting in selling activity in riskier assets.

Question 21

Risky

Answer 21

A trading strategy or position that has a higher-than-average level of potential risk.

Question 22

Scalp

Answer 22

A short-term trading strategy that aims to profit from small price movements.

Question 23

Scalper

Answer 23

A trader who employs scalping strategies to profit from small price movements.

Question 24

Scalper’s Profit

Answer 24

The profit earned by a scalper from executing short-term trades.

Question 25

Scratch

Answer 25

A trade that results in neither profit nor loss.

Question 26

Second Entry

Answer 26

A secondary opportunity to enter a trade after missing the initial entry point.

Question 26

Second Moving Average Gap Bar Setup

Answer 26

A trading setup that involves using a moving average and price gap to identify potential trade entries.

Question 27

Second Signal

Answer 27

A secondary trading signal confirming the validity of a trade setup.

Question 28

Sell The Close Bear Trend

Answer 28

A bearish trend where traders tend to sell at or near the closing price of bars.