Part 6 Terminology Glossary

Question 1

Trading Range

Answer 1

The range of price movement within which a security trades during a specific period.

Question 2

Trailing a Stop

Answer 2

Adjusting a stop-loss order to lock in profits as a trade moves in the desired direction.

Question 3

Trapped in a Trade

Answer 3

A situation where a trader is unable to exit a position due to adverse price movement.

Question 4

Trend Channel Line

Answer 4

A line drawn on a price chart to represent the direction of a trend.

Question 5

Trend Channel Line Overshoot

Answer 5

A temporary deviation beyond a trend channel line, often followed by a reversal back within the channel.

Question 6

Trend Channel Line Undershoot

Answer 6

A temporary deviation below a trend channel line, often followed by a reversal back within the channel.

Question 7

Trend from the Open

Answer 7

A market condition where the prevailing trend is established early in the trading session.

Question 8

Trending Closes

Answer 8

A series of closing prices that consistently move in the same direction, indicating a trend.

Question 9

Trending Highs or Lows

Answer 9

Successive high or low points in price movement that indicate a trend.

Question 10

Trending Trading Ranges

Answer 10

Consolidation patterns that occur within the context of a prevailing trend.

Question 11

Trend Line

Answer 11

A line drawn on a price chart to connect consecutive highs or lows, indicating the direction of a trend.

Question 12

Trend Reversal

Answer 12

A change in the direction of a prevailing trend.

Question 13

20 Moving Average Gap Bars

Answer 13

A trading setup that involves using a 20-period moving average and price gaps to identify potential trade entries.

Question 14

Undershoot

Answer 14

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

Question 15

Unlikely

Answer 15

Indicates a low probability of a particular outcome based on market analysis.

Question 16

Vacuum

Answer 16

A price gap that occurs with little to no trading activity, often representing a lack of liquidity.

Question 17

Usually

Answer 17

Indicates a typical or common occurrence based on historical data or market behaviour.

Question 18

Wedge

Answer 18

A chart pattern characterised by converging trendlines, indicating a potential reversal or continuation.

Question 19

Wedge Flag

Answer 19

A variation of the wedge pattern combined with a flag pattern, indicating a potential continuation of the trend.

Question 20

Wedge Reversal

Answer 20

A wedge pattern that signals a potential reversal in the prevailing trend.

Question 21

With Trend

Answer 21

Refers to trading or price movements that align with the prevailing trend.

Question 22

Trending Swings

Answer 22

Oscillations in price movement that occur within the context of a prevailing trend.

Question 23

Trend Bar

Answer 23

A price bar that indicates a continuation or change in the prevailing trend.

Question 24

Trend

Answer 24

The general direction in which prices are moving over a given period.

Question 25

Trapped out of a Trade

Answer 25

A situation where a trader misses an opportunity to enter a position due to adverse price movement.

Question 26

Trap

Answer 26

A deceptive price movement or pattern designed to lure traders into taking positions that are likely to result in losses.