Part 5 Terminology Glossary

Question 1

Selling Pressure

Answer 1

Indicates downward pressure on prices caused by increased selling activity.

Question 2

Setup

Answer 2

A predefined condition or criteria used to identify potential trade opportunities.

Question 3

Shaved Body

Answer 3

A price bar with a very small body relative to its high and low, indicating indecision or equilibrium between buyers and sellers.

Question 4

Short

Answer 4

A trading position that benefits from a decrease in price.

Question 5

Signal Bar

Answer 5

A price bar that triggers a trading signal based on predefined criteria or trading strategy.

Question 6

Smaller Time Frame (STF)

Answer 6

A shorter-term perspective on price action, typically referring to charts with shorter time intervals.

Question 7

Small Pullback Bear Trend

Answer 7

A minor retracement in a bearish trend, often seen as a selling opportunity.

Question 8

Small Pullback Bull Trend

Answer 8

A minor retracement in a bullish trend, often seen as a buying opportunity.

Question 9

Smart Traders

Answer 9

Experienced and knowledgeable traders who make informed trading decisions based on market analysis and risk management.

Question 10

Spike and Channel

Answer 10

A price pattern characterised by a sharp spike followed by a period of consolidation within a channel.

Question 11

Stair

Answer 11

A price pattern characterised by a series of steps or stages in price movement.

Question 12

STF

Answer 12

Abbreviation for “smaller time frame.”

Question 13

Strong Bulls and Bears

Answer 13

Market participants who exert significant influence on price movement due to their large trading positions or market dominance.

Question 14

Success

Answer 14

The achievement of desired trading outcomes or profitability.

Question 15

Surprise Bar

Answer 15

A price bar that catches traders off guard due to its unexpected size or direction.

Question 16

Swing

Answer 16

A price movement from one extreme to another within a trading range or trend.

Question 17

Swing High/Low

Answer 17

The highest/lowest point reached by price movement within a specified period.

Question 18

Swing Low

Answer 18

The lowest point reached by price movement within a specified period, often used as a reference point for analysis or trade setups.

Question 19

Swing Trade

Answer 19

A trading strategy that aims to profit from short- to medium-term price swings within a trend.

Question 20

Swing Point

Answer 20

A significant high or low in price movement, often used as reference points for analysis or trade setups.

Question 21

Test

Answer 21

A price movement that tests a significant level of support or resistance.

Question 22

Three Pushes

Answer 22

A price pattern characterised by three consecutive attempts to breach a significant level of support or resistance.

Question 23

Tick

Answer 23

The smallest possible price movement in a financial market.

Question 24

Tight Channel

Answer 24

A price channel characterised by narrow fluctuations in price movement.

Question 25

Tight Trading Range

Answer 25

A narrow range of price movement within a trading session or period.

Question 26

Time Frame

Answer 26

The duration or interval used to display price data on a chart.

Question 27

Tradable

Answer 27

A price movement or pattern that offers potential trading opportunities.

Question 28

Trader’s Equation

Answer 28

The balance between potential reward and risk in a trade, often expressed as a ratio.

Question 29

Swing High

Answer 29

The highest point reached by price movement within a specified period.

Question 30

Shrinking Stairs

Answer 30

A pattern characterised by a series of lower highs and lower lows, indicating a gradual decline in prices.