Forex trading glossary

A subfield of finance that attempts to explain traders’/investors’ decision making in the financial markets. It combines theories of Psychology and Finance. It is in contrast to Efficient Market Hypothesis.

See BYN.

See BZD.

A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a decline or near a support area. The candle has a long white body and very small or non-existent lower shadow, that is, Shaven Bottom. It reveals the determination of the bulls to push prices higher.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the top of an uptrend or near a resistance area. The candle has a long white body and very small or non-existent upper shadow, that is, Shaven Top. It reveals the determination of the bears to push prices lower.

See BMD.

The price at which a trader is prepared to sell a financial instrument.

A decentralized digital currency used for peer-to-peer transactions. It was introduced in 2009 by a programmer using the name Satoshi Nakamoto. The number of bitcoins in circulation will not exceed 21 million.

See VEF.

See BOB.

A technical indicator developed by John Bollinger. The upper band is drawn 2 standard deviations above a simple moving average and the lower band 2 standard deviations below the simple moving average. Bollinger Bands measure volatility and display price extremes.

A debt instrument, where the issuer borrows money from the buyer, with the obligation to repay the principal and predefined interest at the maturity date.

The annual interest divided by the value the bond was purchased.

See BAM.

See BWP.

A significant low on the price chart where buying pressure overcomes selling pressure.

A five-candle bearish reversal formation. The first candle is a long white body trading in the direction of the uptrend, showing the bulls’ strength. The second candle is white, and of a regular size gapping above-reaffirming the upward move. The third and fourth candles are white bodies of regular size, higher than the previous close. Finally, a long black body is formed that closes in the gap created by the first two candlesticks.

A five-candle bullish reversal formation. The first candle is a long black body trading in the direction of the decline, showing off the bears’ strength. The second candle is black, and of a regular size gapping below-reaffirming the downward move. The third and fourth candles are black bodies of regular size, closing lower than the previous close. Finally, a long white body is formed that closes in the gap created by the first two candlesticks.

The beginning of an upward/downward movement after a sideways price pattern. Breakaway gaps do not usually get filled, especially when accompanied by heavy volume.

Brent is considered one of the major benchmarks for crude oil pricing globally. It contains 0.37% Sulphur and has an API gravity of 38.06.

In 1944, representatives from 44 allied nations met in the town of Bretton Woods, New Hampshire USA, to discuss monetary policies in order to rebuild the international economic system. The delegates agreed to tie their currencies to gold and the US Dollar and maintain an exchange rate within a parity band of 1%.

A bearish pattern, it can also be called a megaphone or expanding triangle. Its Trendlines diverge, as opposed to all other triangles which converge.

An intermediary between the traders and the liquidity providers. It facilitates in the execution of clients’ orders.

See BND.

Number of building approvals. Released monthly by the Australian Bureau of Statistics.

The number of housing building permits approved in the previous month. Released monthly by the Census Bureau.

See BGN.

A trader whose outlook on the market or a specific financial instrument is positive. A trader who expects prices to rise.

The close of the candlestick is higher than the open price, revealing positive sentiment.

When the prices of certain financial instruments or markets are rising.

A short-lived breakout above a top, triggering a buy entry. After the false breakout, prices switch direction.

The belief that the market or a specific financial instrument will rise.

Certain price formations that signal the end of a downtrend and the beginning of an uptrend.

A technical analysis oscillator developed by Alexander Elder. It is the difference between the highest price of a period under study and a 13-period exponential moving average. A sell signal is triggered when the Bulls Power index is above zero and falling while a trend indicator (i.e. moving average) is pointing downwards.

Germany’s Central Bank.

See BIF.

A unit of measurement for agricultural commodities.

A Monthly report outlining the relative level of current business conditions and expectations for the next 6 months.

A monthly report excluding January. It’s a survey of the business outlook in the next 12 months.

A survey providing an early indicator of levels of activity in the New Zealand manufacturing sector. Also known as Performance of Manufacturing Index. Released monthly by Business NZ.

A pending order to buy at a predefined price lower than the market price in anticipation that the market will eventually rise.

An order to carry out a transaction at, or lower than, a specified price, the word 'limit' referring to the specified price.

To place an order to own a financial instrument.

A pending order to buy at a predefined price higher than the market price, in anticipation that the market will continue to rise.

A sideways market.

A monthly report that measures unemployment in the United Kingdom. Released by the United Kingdom's Office of National Statistics (ONS).

Funds in an account that are available for withdrawal or investment.

It is the process of reconciling purchases and sales of various financial instruments.

Part of the MT4 Trading Platform that allows traders to receive live incoming prices, open and manage orders, perform technical analysis, write, backtest and optimize trading robots, and develop indicators and scripts.

When a position is closed, the transaction has been completed – whether the position was long or short, or whether it was profitable or incurred losses.

Otherwise known as closing price, this is the final rate that a security is traded at on a specific day, candle or timeframe.

The final price at the end of a period (i.e. timeframe).

An asset offered by the borrower to the lender to secure the loan.

See COP.

An amount the trader is charged by the broker for facilitating a trade.

*The US Commodity Futures Trading Commission was created in 1974 with the aim of fostering open, transparent, competitive, and financially sound markets. By working to avoid systemic risk, the Commission aims to protect market users and their funds, consumers and the public from fraud, manipulation and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act (CEA).

*Source U.S. Commodity Futures Trading Commission

A natural resource or agricultural product. There are two broad types - hard commodities and soft commodities. Hard commodities include for example crude oil, gold, silver and iron ore. Soft commodities include for example wheat, rice, soybean and corn.

A country’s currency that is highly correlated with the price of a specific commodity.

A technical analysis oscillator developed by Donald Lambert. It compares the current typical price ([High + Low + Close] / 3) with a simple moving average over a selected period of time usually 14 or 20. The oscillator values are normalized by using a divisor based on mean deviation. The majority of the values (about 70%) fluctuate between -100 and +100. Buying opportunities are suggested above +100 and selling opportunities below -100 while the same levels may be considered as overbought and oversold by others.

It is a leading market for trading metals. Part of CME Group.

See KMF.

A Japanese candlestick pattern signaling a bearish reversal.

It forms at the top of an uptrend or near a resistance area.

It consists of four candlesticks.

The first two long black bodies confirm the strength of the downward movement. Third black candle is smaller. It gaps lower, recording a new low but also produces a relatively long upper shadow extending into the body of the previous Marubozu. The last session is a long black candle that completely (including shadows) engulfs the previous candlestick range thus recording a new low.

In Technical Analysis, price is considered the most reliable indicator. Chart patterns are filtered by indicators and confirmed by price. For example, price makes a new high in a buy setup or a new low in a sell setup.

See CDF.

The CPI is a measure of the change in the cost of a fixed basket of products and services. Released monthly by the US Bureau of Labor Statistics.

A US report that indicates the number of individuals on unemployment benefits. A high reading is negative for the US Dollar, whereas a low reading is positive. Released monthly by the US Department of Labor.

The month at which a futures contract expires.

It is a financial derivative where traders have the opportunity to trade assets without owning them. The buyer and the seller enter into a contact where the seller agrees to pay the buyer the difference between the entry and the exit price provided the difference is positive. If the difference is negative, then the buyer pays the seller.

The principle of contrarian trading assumes that when the larger majority of the traders agree on the direction of the market then they are usually wrong. A true contrarian will trade in the opposite direction.

A crude estimate of Expert Advisor’s backtesting.

See BAM.

See NIO.

A US economic indicator used to measure inflation based on measurement of price movements of a representative shopping basket of goods and services, excluding food and energy. A high reading is positive for the country’s currency whereas a low reading is bearish. Released monthly by the Bureau of Labor Statistics.

A US Monthly report that measures the change in the overall value of initial orders for manufactured goods except transportation items. Released by the Census Bureau.

Economic report, released monthly, that measures the average amount of money consumers spend on durable goods, consumer products, and services excluding food and energy. A high reading is seen as bullish for the country’s currency whereas a low reading is bearish. Released by the Bureau of Economic Analysis, Department of Commerce.

Change in the total retail sales excluding automobiles. Released monthly by the US Census Bureau.

A temporary interruption of the prevailing trend in the opposite direction.

In Elliott Wave Theory, a corrective wave is a wave against the trend. Waves 2, 4 and a-b-c are considered corrective.

The average cost of a “basket” of products and services.

See CRC.

Refers to quote currency. The second currency in a pair.

See Meeting Lines (Bullish), Meeting Lines (Bearish).

The interest rate as a percentage of the face value paid on a fixed income security -for example, bonds.

A buy order of a financial instrument to close an existing short position. Also known as short covering.

The exchange rate between two currencies that do not involve the US Dollar.

Unrefined petroleum found in liquid form and composed mostly of hydrocarbons, organic compounds and small amounts of metal.

A weekly report that measures the change in Crude Oil stocks (i.e. barrels). It includes domestic and Customs-cleared foreign crude oil stocks held at refineries, in pipelines, in lease tanks and in transit to refineries.

Released by the Energy Information Administration.

Digital currency in which encryption is used to regulate the generation of units of currency. It operates independently of the traditional banking system. Bitcoin, Ethereum and Litecoin are the most popular cryptocurrencies.

See CUP.

A means of exchange in the form of paper, metal or digital money.

When a currency increases in value against another.

A contract that specifies the price that a currency can be bought or sold at, or on a set future date. Future contracts are often used by investors to hedge against risk.

The pair formed by two different currencies which are traded in a forex transaction. For example: EUR/USD.

Currency policy to fix a country’s currency exchange rate to that of another currency.

The sum of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid). A current account surplus is positive for the country’s currency whereas a low balance is viewed as negative.

See Cyprus Securities and Exchange Commission.

A technical analysis tool that draws vertical lines at equal intervals on the price chart to forecast future cycles.

Cycle Theory is based on the following principles:

• Summation – Price movement is the sum of all active cycles
• Harmonicity – Neighboring (cycle) waves are related by the number 2 (i.e. double or half)
• Synchronicity – Cycle waves of different lengths have the tendency to bottom at the same time
• Proportionality – Cycles with longer time spans (periods) should have proportionally higher amplitudes
• Variation – states that the previous principles are just tendencies as opposed to hard rules
• Nominality – A set of harmonically related cycles affect all markets

The independent public supervisory authority responsible for the supervision of the investment services market and transactions in transferable securities; carried out in the Republic of Cyprus.

See CZK.

+DI (plus Directional Indicator) is paired with -DI (minus Directional Indicator) to generate buy/sell signals in the context of the Average Directional Movement Index (ADX). A crossing of +DI above -DI generates a buy signal. A crossing of +DI below -DI generates a sell signal.

Trading based on the trader’s experience and intuition, to decide whether to take a trade or not, under the current market conditions.

Usually at the end of a trend, prices move in the direction of the prevailing trend where the oscillator moves in the opposite direction.

See DJF.

See STD.

A Japanese candlestick formation that has equal (or almost equal) opening and closing price. It signals indecision.

A Japanese candlestick pattern. In a downward movement, a Doji gaps below a long black candle but fails to move substantially lower as it closes where it opened. It has possible bullish implications.

See DOP.

A technical analysis tool developed by Richard Donchian. It plots the highest high and lowest low of the last n candlesticks. It is used to measure volatility and identify support and resistance levels.

See VND.

A technical analysis reversal price pattern. After an established downtrend, the last bottom fails to move lower than the previous bottom and prices rise above the last top.

The use of two moving averages to generate trading signals. A buy signal is generated when the shorter moving average crosses above the longer moving average. A sell signal is generated when the shorter moving average crosses below the longer moving average.

A technical Indicator developed by Patrick Mulloy in an attempt to produce less lag than the traditional moving average calculations and hence more sensitive to market changes.

Calculation:   DEMA(n) = ( 2 * EMA(n)) - (EMA(EMA(n)) )

A technical analysis reversal price pattern. After an established uptrend, the last top fails to exceed the previous top and prices fall below the last bottom.

It refers to the tone of language that policy makers use when referring to inflation. For example, a dovish statement implies that no drastic measures may be taken to raise interest rates.

A stock market index composed of 30 stocks of large American companies. It’s based on Charles Dow’s 1884 stock market average composed of nine railroad and two manufacturing companies. The index grew to include 30 stocks by the year 1928. It is used to gauge stock market activity and the country’s economic health.

Charles Dow’s idea of market behavior as published in a series of editorials in the Wall Street Journal during the early 1900’s.

Basic principles:

• The averages discount everything
• The market has three trends
• Major trends have three phases
• The averages must confirm each other
• Volume must confirm the trend
• A trend is assumed to be in effect until it gives definite signals that it has reversed

A Japanese candlestick pattern signaling a bearish continuation.

It forms during a downtrend.

It consists of three candlesticks. The first and second are long black candles with a gap in between them. The third is a white candle that opens in the real body of the previous candle and closes above the gap, filling it completely.

A Japanese candlestick pattern signaling a bearish continuation.

It forms during a downtrend.

It consists of three candlesticks. The first and second are black candles with a gap in between them. The third is a white candle that opens in the real body of the previous candle and closes within the gap without filling it completely.

A Technical Analysis tool where prices are trending downwards between two parallel lines. The basic trendline is drawn by connecting the tops of the price action and the channel (or return line) which is parallel to it. Channels act as support and resistance levels. The basic trendline (resistance) may be used for opening sell positions in the direction of the downtrend. The channel (or return) line may serve as target for closing a short position.

A Japanese candlestick that has a long lower shadow, while the opening is equal to the closing price near the high.

When the value of an investment drops, the length between its peak and its low is called the drawdown.

A Japanese candlestick pattern signaling a bearish reversal.

It forms at the top of an uptrend or near a resistance area.

It consists of multiple candlesticks.

At the end of an uptrend volatility tightens as the market is forming a topping pattern. Short bodies substitute the long white bodies. Finally, a long black candle breaks below the pattern with a gap to complete the pattern.

Consumer products such as house appliances, devices and equipment that usually last more than 3 years.

A US Monthly economic report, that measures the change of factory orders for durable goods. Released by the Census Bureau.

A Japanese candlestick pattern signaling a bullish reversal.

It forms at the bottom of a downtrend or near a support area.

It consists of two candlesticks.

It’s a technical tool to draw a channel (uptrend or downtrend).

See ETB.

A Japanese candlestick pattern signaling a bearish reversal.

A Japanese candlestick pattern signaling a bearish reversal.

A long white candlestick forms in the direction of the prevailing trend, signifying that the upward movement is still in force. Next session gaps above, forming a small candle that acts as an obstacle to further rise.  A long black candle drives the market lower, well into the long white candle’s body and more specifically, below its mid-point-Indicating a bearish reversal.

A type of Order execution available on MT5. Orders placed on the MT5 are sent to an exchange (i.e. liquidity provider) to be executed at current market offers.

It’s an annualized report that measures sales and prices of existing single-family homes in the US overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country.

EMA takes into account all available prices in its calculation and assigns more weight to the most recent prices.

EMA = (Price _current – EMA _previous) * multiplier + EMA _previous

Where multiplier = 2/Periods + 1

In the MT5 order window, a trader may set the order’s Fill Policy:

• Fill or Kill
• Immediate or Cancel
• Return

The price at which an order has been completed.

When an investor has a very specific price they want to carry out a transaction at, they place a Fill or Kill order – this means that if the order is not filled at the desired price, it is terminated, or killed.

Applying Oscillator overbought and oversold levels in candlesticks analysis, premature patterns are ignored (i.e. filtered out) hence increasing the success probability of the candlestick patterns.

A monthly report that measures the average change in price of a basket of consumer goods and services in Eurozone, compared to the same period the previous year. A high reading implies inflation and is positive for the euro whereas a low reading is negative for the euro. Released by Eurostat.

Annualized change of the Gross Domestic Product (GDP), the economic output of a country.

It measures:

• personal consumption
• business investment
• Government spending
• net exports

It reveals whether an economy is expanding or contracting.

An economic indicator gauging economic health, based on year-to-date private and public investments Released monthly (except February) by the National Burau of Statistics (China).

Continuation price pattern composed of a parallelogram with slanting sides against the trend and preceded by an almost straight-line move called a flagpole. The flagpole and the breakout of the parallelogram are accompanied by heavy volume.

The flag pattern causes a brief pause in the market that lasts less than 3 weeks.

Precedes the parallelogram part of the flag pattern. It’s an almost straight-line move (accompanied by heavy volume) called a flagpole. Projecting the flagpole at the breakout point, a price target may be calculated.

An a-b-c correction against the prevailing trend. It follows a 3-3-5 wave pattern.

When an exchange rate is not fixed, but adjusts depending on the supply and demand for a particular currency relative to other currencies.

It’s a technical oscillator that measures the momentum of rallies and declines. It was developed by Alexander Elder. It makes use of the:

• Difference between the close of the current price and that of the previous session.
• Extent of the difference.
• Volume of the current session.

A positive difference shows that the bulls are in control. A negative difference shows that the bears are in control.

Force Index = Volume Today x (Close Today – Close Yesterday)

When enabled, all indicators and objects will be in the background whereas the price chart will be in the foreground.

See Forex.

Foreign exchange, or Forex for short, is the “place” where currencies are traded. In the forex market, currencies are traded in pairs. When a trader buys a currency, he or she is selling another currency at the same time. Currency trading is the exchange of one type of currency for another. The forex market has no physical location or central exchange as it is a global, decentralized market and trades 24 hours a day, 5 days a week.

A digital chart that plots the price movements of currency pairs, to help investors make informed trading decisions.

A trading strategy based on the notion that if you buy and sell (or sell and buy) a currency within a very short time frame, you are more likely to make a profit than you would with large price movements.

A system which gives out signals to traders to help them decide whether a specific time is suitable to buy or sell a currency pair.

A specific group of currencies which form a weighted average that can act as a measure to value an obligation.

The current exchange rate that a currency pair can be bought or sold at.

This refers to automated trading software which is designed to help determine whether to buy or sell a currency pair, at a given time.

See HUF.

Trend-following indicator developed by John Ehlers. It’s based on the Exponential Moving Average formula. The smoothing factor calculations are based on the current fractal dimension of the price series. Reactions to price changes are faster, while during consolidation periods it remains flat.

Developed by Bill Williams. Up fractals are used to identify tops, where down fractals are used to identify bottoms. Up fractals are comprised of 5 bars (minimum) where the highest high is preceded by two lower highs and is followed by two lower highs. Down fractals are comprised of 5 bars (minimum) where the lowest low is preceded by two higher lows and is followed by two higher lows.

A Japanese candlestick pattern signaling a bullish reversal. At the end of a downtrend, volatility tightens as the market is forming a prolonged bottoming pattern. Short bodies substitute the long black bodies and lower lows form the first part of this rounding bottom or frypan, that mark the lowest level of the bottom. The second part of the bottoming pattern is characterized by higher lows but the range of the bodies remain short- in sync with the low volatility. Finally, a break- out above the pattern with a gap, is necessary to complete the pattern.

A reversal pattern, similar to double top and double bottom, found in point & figure charts. It is characterized by a move in the congestion area of the pattern and a following move in the opposite direction.

The impact economic, political and environmental events have on prices in financial markets (interest rate announcements, unemployment rate, elections, etc.)

See Futures Contract.

An agreement between two parties - a buyer and a seller- where the seller agrees to sell an asset to the buyer at a predetermined price, date, quantity and quality.

See GYD.

See GIP.

See XAU.

See GTC.

See HTG.

See GDP.

See PYG.

See GNF.

See GYD.

A Japanese candlestick pattern signaling a bullish reversal. Just like Harami, a small candlestick body- (Doji in this case) follows a candlestick of a long black body. The bearish decline is running out of steam as shown by the presence of the Doji, which signals uncertainty as it is contained by the previous long body. The weakness of the bearish market to push prices lower and the presence of the pattern at the end of a decline, signals possible bullish implications.

In Time Cycles, the principle of Harmonicity states that two neighboring cycles are related by a small whole number- usually the number 2. For example, if a 20-day cycle exists then the shorter cycle will be a 10-day cycle where the longer one will be a 40-day cycle.

It refers to the tone of language that policy makers use when referring to inflation. For example, a hawkish statement implies that drastic measures may be taken to raise interest rates.

A Technical Analysis price pattern signaling a bearish reversal. It consists of three tops and two bottoms. The highest top is known as the Head where the top to the left is known as the Left Shoulder and the top to the right is known as the Right Shoulder. The line connecting the two bottoms is known as the neckline. A prerequisite of any reversal is the existence of a trend, an uptrend in this case. In the course of an uptrend, as defined by consecutive higher tops and higher bottoms, the presence of a lower top warns for a potential reversal. A decisive break of the neckline signals the end of the prevailing uptrend and the beginning of a downtrend. If volume is available, then heavy volume should accompany the breakout below the neckline.

Investors use hedging to protect themselves by reducing the risk that may be caused by adverse market movements. Hedging means making two opposing investments, minimizing the losses which could be incurred by price fluctuations.

Investment funds that invest in a wide range of assets to reduce risk.

It is a price charting technique that filters out noise.

It uses modified open, high, low and close prices:

• haClose = (Open + High + Low + Close) / 4
• haOpen = (Previous haOpen + Previous haClose) /2
• haHigh = Max(High, haOpen, haClose)
• haLow = Min(Low, haOpen, haClose)

Heiken Ashi makes trend identification, retracements and reversals easier:

• Uptrend is identified as a series of white bodies.
• Strong Uptrend is defined as a series of long white bodies with and no lower shadows.
• Downtrend is identified as a series of black bodies.
• Strong Downtrend is defined as a series of long black bodies and no upper shadows.
• Weak trends are defined by the presence of smaller bodies.
• Retracement is defined by the presence of smaller bodies and the presence of upper and/or lower shadows.
• Reversal is defined by the presence of a Doji or color change.

Automated trading, placing a big number of trades on high volumes and speed.

The highest price that a financial instrument is traded during a specific timeframe.

Historical Data is used in charts, backtesting and Expert Advisors’ Optimization. They are stored in the History Center of the client terminal. Historical Data may be modified in the following ways:

• Import
• Export
• Add
• Delete
• Change

A Japanese candlestick pattern signaling a bullish reversal.

It forms at the bottom of a downtrend or near a support area.

It consists of two black candlesticks.

The decline continues to record lower prices as reflected by the presence of a long black candle. Next session is characterized by a smaller black body that is completely engulfed by the previous long black body, signaling weakness, setting the stage for a bullish reversal.

See HKD.

A method used in Point and Figure charts to calculate price targets. It applies to both 1-box and 3-box reversal charts. In horizontal count, the width of the congestion pattern determines the price target.

The annualized number (monthly x 12) of residential “housing units” on which construction has begun in the previous month. Released monthly by the Census Bureau.

Foreign Exchange Rate quoted for 1 unit of the foreign currency. Foreign currency represents the base currency where the domestic currency corresponds to the quote currency. For example if in Europe, the exchange rate between the euro and the dollar would be USDEUR.

A sustained increase in the price of goods and services that reduces the purchasing power of money.

In bar charting, an inside day is defined as a bar with lower high and higher low compared to the previous bar. It suggests a pause in the market.

The interest rate charged on short-term loans between banks.

The cost of borrowing money, usually expressed as a percentage and calculated on an annualised basis.

A technical analysis methodology that examines the correlations between four major asset classes: stocks, bonds, commodities, and currencies. For example, Stock Market and Treasury Bonds are positively correlated. Whereas Interest Rates are negatively correlated to both markets. Commodities and Bonds usually move in opposite directions. The US Dollar and Gold are also negatively correlated.

In Time Cycles analysis, Intermediate Cycles last from several weeks to several months. Identification of Intermediate Cycles may be performed by measuring the time interval between the cycle’s troughs (lows) on the X-axis of the price chart.

In Dow Theory, an Intermediate Trend is a correction of the Major Trend. It usually lasts 3 weeks to 3 months.

It runs through the price action, connecting internal tops and bottoms rather than extreme lows (uptrend line) or extreme highs (downtrend line).

*The International Monetary Fund, or IMF, promotes international financial stability and monetary cooperation. It also facilitates international trade, promotes employment, sustainable economic growth, and helps to reduce global poverty. The IMF is governed by and accountable to its 189 member countries.

*International Monetary Fund

Usually, opening and closing a position within the day.

A Technical Analysis chart pattern signaling a bullish reversal. It consists of three bottoms and their corresponding tops. The lowest bottom is known as the Head, where the bottom to the left is known as the Left Shoulder and the bottom to the right is known as the Right Shoulder. The line connecting the two tops is known as the neckline. A prerequisite of any reversal is the existence of a trend, a downtrend in this case. In the course of a downtrend, as defined by consecutive lower tops and lower bottoms, the presence of a higher bottom warns for a potential reversal. A decisive break of the neckline signals the end of the prevailing downtrend and the beginning of an uptrend.

A Japanese candlestick pattern signaling a bullish reversal. An Inverted Hammer formed at the end of a downtrend or at a support area has bullish reversal implications. Traders enter the market with long positions but eventually the sellers’ pressure overcomes buyers’ pressure and the candlestick closes at the lower area of the inverted hammer. The small body and the absence of a lower shadow reveals the weakness of the bears who are unable to maintain the downward move. The body of the Inverted Hammer is 2-3 times shorter than the upper shadow.

See IRR.

See IQD.

Near the end of an uptrend, a final gap known as exhaustion gap will appear on the price chart to alert the end of the trend and the beginning of a brief, narrow sideways movement. A breakaway gap to the downside this time, will end the sideways movement and signal a trend reversal. The price pattern, isolated by the two gaps, is known as Island Reversal.

This is the theory that if the stock market ends higher in January, the rest of the year will also end higher. Conversely, if January ends on a low note, stock prices will be lower for the end of the year. According to Yale Hirsch: “As January goes, so goes the rest of the year.”

A charting method that has gained a lot of popularity recently, because the charts are more visually appealing than bar charts that reflect the same information. They are also generally easier to read and interpret. The chart makes it easier to see the relationship between the open and close and the high and low of price movements. They also give a more accurate depiction of market sentiment.

There are two types of Candlestick; the first Candle has a white or hollow body which indicates that the market is moving upwards, as there is more buying than selling interest. As the Close price is higher than the Open price, the white candlestick depicts the positive sentiment in the market and the fact that bulls are in control. The longer the body is, the stronger the buying interest.

A filled (black) body which indicates that the market is moving downwards indicates that there is more selling than buying interest. As the Close price is lower than the Open price, the black candlestick depicts the negative sentiment in the market and the fact that bears are in control. The longer the body is, the stronger the selling interest.

The lines above and below the body of the candlestick are called “Shadows” or “Wicks”. The upper shadow reveals the price levels above the body that have been tested but eventually rejected. Similarly, the lower shadow reveals the price levels below the body that have been tested but eventually rejected.

See JOD.

One of the popular cycles in Time Cycle Analysis. Clement Juglar supported that a cycle of approximately 9 years, is presented in many areas of economic activities.

See KES.

A Japanese candlestick pattern signaling a bearish reversal. During the course of an uptrend, a long black candle gaps below the previous white Marubozu and then declines lower closing at the low of the session, demonstrating strong bearish power.

See PGK.

See LAK.

See HRK.

See KWD.

See AOA.

See MMK.

See LRD.

See LYD.

A Technical Analysis tool used for trend identification for a set of prices under a period of study. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.

It consists of three lines:

1. Linear Regression Trendline
2. Upper Channel Line
3. Lower Channel Line

The Linear Regression Trendline, is an equilibrium line that is, a straight line run through a set of prices using the statistical technique of best fit (or least squares) for a period under study.  The Upper and Lower Lines are parallel to and equidistant from the Trendline.  The distance between either Line and the Trendline, represents the maximum close price deviation from the Regression Trendline.

A Japanese candlestick pattern signaling a bearish reversal.  It forms at the end of an uptrend or a resistance area.  It consists of a long black body and small shadows.

A Japanese candlestick pattern signaling a bullish reversal.  It forms at the end of a downtrend or a support area.  It consists of a long white body and small shadows.

See LSL.

A technical indicator developed by Donald Dorsey.  It measures the difference between High and Low prices in order to identify reversals. Trading signals are triggered when a “reversal bulge” is identified.  That is, a reading above 27.0 and then a decline of the indicator below 26.5.

A buy signal occurs during a downtrend and a “reversal bulge” in place.

A sell signal occurs during an uptrend and a “reversal bulge” in place.

A Japanese candlestick pattern signaling a bearish reversal.  At the end of an uptrend, a long white candlestick and a smaller white candle that follows, share the same closing price. Even though the second candle opens lower than the previous close, it doesn’t manage to move lower and eventually it closes at the same price as the previous session.  This is indicative of a possible top. Since the market failed to record a new high, a resistance may have been formed and a possible reversal may be in place.

A Japanese candlestick pattern signaling a bullish reversal.  At the end of a decline, a long black candlestick and a smaller black candle that follows, share the same closing price. Even though the second candle opens higher than the previous close, it doesn’t manage to follow through and eventually it closes at the same price as the previous session.  This is indicative of a possible bottom. Since the market failed to record a new low, a support may have been formed and a possible reversal may be in place.

See MUR.

A market breadth indicator.  It was developed by Sherman and Marian McClellan.  It is the difference of a 19-period EMA and a 39-period EMA of advancing minus declining issues in the New York Stock Exchange.

A reading above 100 implies extreme overbought conditions whereas a reading below -100 signals extreme oversold conditions.   A buy signal is triggered when the oscillator falls in the area between -70 and -100 and then turns up.  Similarly, a sell signal is generated when the oscillator rallies in the area between 70 and 100 and then turns down.

The midpoint of a period’s price activity.  It is calculated as:

(High + Low) / 2

A Japanese candlestick pattern signaling a bullish reversal.  During the course of the uptrend, the presence of a long white candlestick confirms the strength of the prevailing direction of the market. While the sentiment is clearly positive, the next session gaps even higher, creating an open window.  Eventually the session closes lower but at the same level as the previous session’s close.

A Japanese candlestick pattern signaling a bullish reversal.  During the course of the downtrend, the presence of a long black candlestick confirms the strength of the prevailing direction of the market. While the sentiment is clearly negative, the next session gaps even lower, creating an open window.  Eventually the session closes much higher but at the same level as the previous session’s close.

See MXN.

A micro lot is equal to 10,000 units of the base currency in a currency pair.

Historical data modelling for backtesting Expert Advisors.  There are three available methods:

• Open Prices only (fastest method to analyze the bar just completed)
• Control Points (the nearest less timeframe is used)
• Every tick (based on all available least timeframes)

See MDL.

It measures the difference between the current price and the price n periods ago of a financial instrument. If the difference is above the 100-line and rising then it is presumed that the uptrend is accelerating.  If the difference is below the 100-line and falling then the downtrend is accelerating. If the difference is above the 100-line and falling then the uptrend is decelerating.  Similarly, if the difference is below the 100-line and rising then the downtrend is decelerating. Momentum follows the general oscillator analysis:

• A crossing of the oscillator above the 100-line triggers a buy signal.
• A crossing of the oscillator below the 100-line triggers a sell signal.
• Divergence between the oscillator and price gives early signals of a reversal.
• Overbought/Oversold levels are not easily spotted on the Momentum Oscillator since it is unbounded. Hence, visual inspection is used instead, to identify extreme readings above and below the 100-line.

It is a momentum oscillator developed by Gene Quong and Avrum Soudack.

It combines both price and volume.  It measures the strength of money flowing in and flowing out of a financial instrument over a period.

There are two general interpretations:

• Overbought/Oversold: A reading above 80 is considered Overbought and a market top may be in place.  A reading below 20 is considered oversold and a market bottom may be imminent.
• Divergence between the oscillator and price hints at reversals.

A Japanese candlestick pattern signaling a bullish reversal.  A long black candlestick forms in the direction of the prevailing trend, signifying that the decline is still in force. Next session gaps below, forming a small candle, in this case a Doji that acts as an obstacle to further decline.  A long white candle drives the market higher, well into the long black candle’s body and more specifically above its mid-point, indicating a bullish reversal.

A Japanese candlestick pattern signaling a bullish reversal.  A long black candlestick forms in the direction of the prevailing trend, signifying that the decline is still in force. The next session gaps below, forming a small candle that acts as an obstacle to further decline.  A long white candle drives the market higher, well into the long black candle’s body and more specifically, above its mid-point - Indicating a bullish reversal.

See MAD.

In Elliott Wave theory, a complete cycle has two phases, Motive and Corrective.

The Motive phase consists of the waves 1, 2, 3, 4 and 5. The Motive wave moves in the direction of the wave of one larger degree.

A trend following indicator. It is a series of averages of sequential data subsets.  It may be used as a curving trend line that follows the price action.  Buy signals are seen when prices cross above the moving average whereas sell signals are in place when prices cross below the moving average.  There are many moving average calculation methods:

• Simple
• Exponential
• Time Series
• Linearly Weighted
• Triangular
• Centered
• Variable
• Adaptive
• Volume Adjusted

The major difference between the calculation methods is the weight attached to the most recent prices.

See MACD.

A technical oscillator that plots the difference between MACD and the Signal Line.

Extremely high readings warn for overbought conditions whereas extremely low readings warn for oversold conditions. A crossing above the zero line signals uptrend confirmation while a crossing below the zero line signals downtrend confirmation

See MZN.

See ANG.

See NYSE.

See NZD.

See BTN.

See NFP.

See KPW.

See NOK.

A financial derivative where the buyer has the right to buy/sell an asset by the expiration date. More specifically, Call Options are contracts that give the owner the right (not the obligation) to buy an asset in the future (before or at the expiration date) at an agreed price. Investors buy Call Options when they believe that the value of the underlying asset will increase above the strike price. Similarly, Put Options are contracts that give the owner the right (not the obligation) to sell an asset in the future (before or at the expiration date) at an agreed price. Investors buy Put Options when they believe that the value of the underlying asset will decrease below the strike price.

Here are some examples of different types of Options:

• Call
• Put
• American Style
• European Style
• Exchange Treaded Options
• Over the Counter Options
• Option Type by Expiration
• Option Type by Underlying Security
• Employee Stock Option
• Cash Settled Options
• Exotic Options

Oscillator Analysis:

• Confirms the trend
• Determines overextended markets (Overbought/Oversold)
• Spots divergence between the oscillator and price

The traditional way of trading forex was ‘over the counter’, meaning traders made forex transactions over the telephone or on electronic devices.

See Personal Consumption Expenditures.

See CUC.

See UYU.

See PHP.

During the course of a decline, a long white candlestick exceeds the midpoint of the previous long black candle. The white candle opens below the previous close or low. It is a bullish reversal pattern.

A point in price, or pip for short, is the measure of change in a currency pair in the forex market. The acronym can also stand for a “percentage in point” and “price interest point”. It is a standardized unit and is the smallest unit of measurement by which a currency quote can change. Most currency pairs are measured to five decimal places. For pairs like EURUSD, a pip corresponds to the fourth decimal digit [EURUSD 1.06712]. Yen-based currency pairs like USDJPY are the exception, and are measured to three decimal places and the pip corresponds to the second decimal digit (USDJPY 114.612).

Pivot Points are popular technical tools used by traders to identify price direction and get a feel for market sentiment. There are five calculation methods:

• Standard
• Fibonacci
• Camarilla
• Woodie’s
• De Mark’s

The Standard pivot point calculation method, also known as the Classic or Floor method, uses the previous period’s high, low and close price to calculate the current period’s direction/sentiment, as well as future support and resistance levels.

Just like the Standard method, the Fibonacci method uses the previous candlestick’s high, low and close price to determine the current period’s direction. Future support and resistance levels are estimated by employing Fibonacci ratios 0.382, 0.618 and 1.00.

Unlike all other pivot point methods, DeMark’s method uses the relationship between the previous period’s close and open prices, to determine which of the 3 formulas to use, when calculating support and resistance. The main Pivot Point is not part of the DeMark method.

Camarilla Pivot Points provide a “road map” for both range and break-out traders, looking for potential turning points in the market. The emphasis is focused on the third support and resistance levels as potential reversals. Also, the fourth support and resistance levels play a key role in accelerating markets in both upward and downward directions.

Woodie’s method is another variation of pivot points. The main pivot point represents the deciding factor of the market’s sentiment and its future direction.

The corresponding support and resistance levels provide take profit opportunities and possible turning points.

Unlike other pivot point methods, Woodie’s use the current period’s open price when calculating the main pivot point. Just like the other methods, the daily timeframe is the preferred timeframe for calculations.

See XPT.

It is the smallest increment of an exchange rate.

Price charts that display supply and demand. Demand is represented as a column of X’s and supply as a column of O’s. They ignore time and volume. Each box (i.e. X or O) represents a predefined price movement called the box size. Price movement less than the box size is ignored, thus noise is not recorded. A reversal, i.e. a column of X’s, is created after a column of O’s, when there is a price movement to the upside equal to the number of boxes - known as the reversal size. Conversely A reversal, i.e. a column of O’s, is created after a column of X’s, when there is a price movement to the downside- equal to the number of boxes - known as the reversal size. Point and figure charts are named after their box and reversal size, for example 1 x 3.

A long or short trade taken by a trader.

See GBP.

See PPI.

The ratio between gross profits and gross losses.

Closing a position to take a profit.

The number of profitable trades.

See BWP.

See ISM Manufacturing PMI.

See GTQ.

The second currency of a currency pair is called the Quote currency. In EUR/USD for example, USD is the quote currency.

A price level usually defined as a previous top, where selling pressure overcomes buying pressure.  As a result, prices may find it difficult to break above.

See correction.

See OMR.

See KHR.

It refers to the controls applied to mitigate trading risk, for example:

• Stop Loss
• Position Size
• Reward-to-Risk Ratio

In forex, the rollover rate is the interest rate that traders pay or earn when they hold (rollover) a position open overnight.

See RON.

Refers to the total amount of funds involved in opening and closing a position.

See MVR.

See IDR.

See RUB.

See RWF.

The 9-period Simple Moving Average of the Moving Average Convergence/Divergence (MACD). It may also refer to a moving average of any other oscillator.

See XAG.

A trend following indicator. It also known as arithmetic moving average. It is calculated by adding the closing (other prices may also be used like open, high low, typical, median etc.) price of a number of candlesticks (equal to the time period of the moving average) and then dividing this number by the total number of prices. The result is known as the average. The oldest price is then dropped (i.e. discarded from the calculation) and the same formula is applied to the next prices. Therefore, it becomes the moving average.

Simple Moving Average = [Price(n) + Price(n-1) + Price(n-2) + … + Price(1)] / n

Where n is the period of the moving average.

See SGD.

This is when a trader executes an order at a price which is very different to the price they expected the trade to be executed at. This usually happens during periods of high volatility, when traders use market orders and stop loss orders.

A currency that is sensitive to political and economic events and thus fluctuates greatly and is generally unstable.

See PEN.

See SBD.

See KGS.

See SOS.

See TJS.

See SSP.

A trader in financial markets who aims to gain from anticipated future market moves.

A sudden upward or downward movement in price that happens in a short time period.

The current market price of a financial instrument.

The difference between the Ask and Bid price of a currency pair.

See LKR.

It is a statistical term denoted by the Greek letter (sigma). It is calculated by the following steps:

• Calculate the mean for a population of n prices (i.e. close)
• Subtract each price from the mean and then square the result
• Sum all squared differences and then divide by the population n
• Take the square root of the above

Or

• Square root of the sum of the squared difference from each closing price to the mean and then dividing by the population (i.e. number of prices).

Standard Deviation formula:

• 68% of the values (prices) will fall within the range of 1 standard deviation of the mean
• 95% of the values (prices) will fall within the range of 2 standard deviations of the mean
• 99.7% of the values (prices) will fall within the range of 3 standard deviations of the mean

A Technical Analysis tool based on the Linear Regression Trendine and the specified number of Standard Deviations. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.

It consists of three lines:

1. Linear Regression Trendline
2. Upper Channel Line
3. Lower Channel Line

• 68% of the prices will fall within the range of 1 standard deviation of the Linear Regression Trendline
• 95% of the prices will fall within the range of 2 standard deviation2 of the Linear Regression Trendline
• 99.7% of the prices will fall within the range of 3 standard deviations of the Linear Regression Trendline

Prices trading above or below the Channel Lines hint for a reversal.

100 000 units of the base currency.

Japanese Candlestick bullish pattern. During a downward movement, this three-line pattern consists of two long black candles and a white candle in the middle. The two black candles close at the same price level, while the white candle extends higher than the previous black body.

It is a momentum oscillator developed by George Lane. It determines where the price closed relative to a specific price range over a chosen time period. It is based on the premise that prices tend to close near the upper end of the candlestick during upward price movements whereas they tend to close near the lower end of the candlestick during downward movements. It consists of two lines; %K and %D.

%K=(Current Close-Lowest Low)/(Highest High-Lowest Low) x 100

Current Close – represents the latest closing price

Lowest Low – represents the lowest price for a specific time period

Highest High – represents the highest price for a specific period

Specific Period – is by default 5

Range – is the difference of Highest High – Lowest Low

The %D is a 3 (default value) period Simple Moving Average of %K.

The formula for %D is:

%D = SMA (%K,3)

This is known as fast stochastics.

By taking an additional 3-period Simple Moving Average of %D and %K, slow stochastics are calculated:

%K = SMA(%K,3)

%D = SMA(%D,3)

The Stochastic Oscillator ranges between 0 and 100.

A reading of 0 means that the latest closing prices is equal to the lowest price of the price range over the chosen time period. A reading of 100 means that the latest closing price is equal to the highest price recorded for the price range over the chosen time period.

Also, a reading above 80 is considered to be an indication that the market has reached extreme overbought levels, whereas a reading below 20 means that the market has declined to extreme oversold levels.

The Stochastic Oscillators follows the general rules of oscillator analysis:

• Signals are generated by the crossover between the %K and the %D line.
• A buy signal is generated when %K crosses above the %D line at the oversold area below 20 and then %D rises above the 20-line.
• A sell signal is generated when %K crosses below the %D line at the overbought area above 80 and then %D falls below the 80-line.
• Divergence between price and Stochastics especially at the oversold and overbought areas hints for a potential turning point in the market.

An order placed to close a position when a certain price is reached. These orders are placed to limit loss on a position.

See SDG.

A price level usually defined as a previous bottom, where buying pressure overcomes selling pressure. As a result, prices may find it difficult to break below.

See SRD.

After the swap-free period expires, the account will be charged with the Swap Free Fee for every night it remains open.

A swap in forex refers to the interest that you either earn or pay for a trade that you keep open overnight. There are two types of swaps: Swap long (used for keeping long positions open overnight) and Swap short (used for keeping short positions open overnight). They are expressed in pips per lot, and vary depending on the financial instrument you’re trading.

See SEK.

A trading strategy that aims to make potential profits by taking advantage of a financial instrument’s change in price direction.

See CHF.

It is the nickname used for the Swiss Franc and USDCHF.

See SYP.

The risk associated with an event that can trigger substantial uncertainty and loss of confidence in the financial markets, financial system or even the whole economy.

During the course of an uptrend, the recording of a higher high followed by a lower close (lower than the previous close) suggests a reversal. The wide range of the day (bar or candlestick) and the accompanied heavy volume define the strength of the reversal. Also, known as buying climax.

A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a downtrend or near a support area. In the course of a decline a long black candle reaffirms the negative sentiment in the market. The following three candles are of small real bodies, displaying indecision. The last candlestick is a long white body, signaling a reversal.

In the course of a rally a long white candle reaffirms the positive sentiment in the market. The following three candles are of small real bodies, displaying indecision. The last candlestick is a long black body, signaling a reversal.

The difference between a country’s exports and imports. More exports than imports result in a trade surplus. If there are more imports than exports, it results in a trade deficit.

In Time Cycles, a trading cycle is 4 weeks long. It consists of the alpha (2 weeks) and beta (2 weeks) cycles.

Some of the most popular orders are:

• Instant Execution
• Market Order
• Buy Stop
• Sell Stop
• Buy Limit
• Sell Limit
• Buy Stop Limit
• Sell Stop Limit

See Trading System.

Trading software (i.e. MT4, MT5) is provided by the broker for traders to place, manage and close positions electronically. The platform provides account management, live market prices, news feeds and charting tools.

It is characterized by equal tops and bottoms. It is also known as sideways or trendless market. It is a state of the market where supply and demand are in equilibrium.

The trading hours of the foreign exchange market are divided into 4 broad categories:

• European (8:00am – 5:00pm)
• American (1:00pm – 10:00pm)
• Australian (10:00pm – 7:00am)
• Tokyo (1:00am – 9:00pm)

See Trading System.

There are many different styles of trading to suit a trader’s profile, knowledge and time:

• Day Trading
• Buy-and-Hold
• Scalping
• Mechanical Trading
• Automated Trading
• Discretionary Trading
• Copy Trading
• Position Trading
• Trend Following
• Range-bound Trading
• Break-out Trading
• News Trading

A detailed plan on how to trade the financial markets. It is a step-by-step set of instructions on when to enter the market, when to exit with minimal loss once the market goes against you and when to book profits.

A stop loss order that is applied on profitable positions to lock in profits. It follows the market price at a distance equal to a predetermined number of points. It is set on the Client Terminal as opposed to the Stop Loss order that is set on the Server.

The direction of successive tops and bottoms:

• Uptrend – Successive higher tops and higher bottoms
• Downtrend - Successive lower tops and lower bottoms
• Trendless (Range, Sideways) – Equal tops and equal bottoms

Trends fall under three categories:

• Major
• Intermediate
• Near term trends

Trend has three directions:

• Up
• Down
• Sideways

Trading in the direction of the established trend.

A very important concept in Technical Analysis. It is a straight line connecting successively higher bottoms during an uptrend or successively lower tops during a downtrend. Trendlines are used to open long positions during an uptrend and short positions during a downtrend. On the other hand, violation of the trendline is an early warning for a reversal.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the end of an uptrend or near a resistance area. During a prolonged rally, a formation of three consecutive Doji candlesticks, signals that the uptrend may be coming to an end. Second Doji gaps above the first and the third candles.

A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a downtrend or near a support area. During a prolonged decline, a formation of three consecutive Doji candles, signals that the downward move may be coming to an end. Second Doji gaps below the first and the third candlesticks.

A continuation pattern comprised of two converging sides with at least 4 reversal points (2 tops and 2 bottoms). The opening (height) of the triangle is called the base whereas the intersection of the two sides is called the apex. Three popular types of triangles are:

• Symmetrical (coil) – Two converging sides. Upper trendline is descending whereas the lower trendline is ascending
• Ascending – The upper side is flat whereas the lower side is ascending
• Descending – The lower side is flat whereas the upper side is descending

Volume is usually heavier on the breakout side hence giving hints to which side to expect the breakout. Two measuring techniques are available for triangle breakouts:

• Height projection – Project the height at the breakout point to estimate the minimum target
• Parallel line – Draw a parallel line from the top of the base to the triangle side. The minimum target is estimated at the parallel line with an approximate time forecast the intersection of the 2 triangle sides (apex).

See TTD.

During the course of a downtrend the presence of three bottoms at about the same level and the breaking of the corresponding two tops, signal a reversal. Heavy volume (if available) confirms the reversal.

A trading method with 3 moving averages: a short-term, medium-term and long-term. A buy signal is triggered in a downtrend when the short moving average crosses above both the medium and the long moving average and in turn, the medium moving average crosses above the long moving average. A sell signal is triggered in an uptrend when the short moving average crosses above both the medium and long moving average and in turn, the medium moving average crosses above the long moving average. Popular triple crossover systems are 4-9-18 and 5-10-20.

During the course of an uptrend the presence of three tops at about the same level and the breaking of the corresponding two bottoms, signal a reversal. Heavy volume (if available) confirms the reversal.

The area below the market price where buying interest overcomes selling pressure. Also, known as bottom or support.

See MNT.

See TND.

See TRY.

See TMT.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the end of a rally or near a resistance area. As the market continues to trade in the direction of the established uptrend, registering higher highs the next session is bearish, pushing prices lower. The matching highs indicate that a possible top may be in place and a reversal may be imminent.

A Japanese candlestick pattern signaling a bullish reversal. It forms at the end of a decline or near a support area. The market trades in the direction of the established decline forming a long black candle, registering lower lows. The next session registers a matching low and eventually forms a bullish candlestick hence, pushing prices higher. The matching lows indicate a possible reversal may be imminent.

A Japanese candlestick pattern signaling a bearish reversal. It forms at the end of an uptrend or near a resistance area. In the course of an uptrend, the presence of a long white candlestick reaffirms the bullish sentiment. The second candle is a relatively small candle that gaps higher than the previous high but closes lower than its own open price forming a black candle. The third candle is a long black body that opens within the body of the small black candlestick, fills the gap and closes in the body of the long white candlestick, hence signaling a potential bearish reversal.

The average of the high, low and closing price of a trading period:

(High+Low+Close)/3

See UGX.

The percentage of the labour force that during the last month that had no work but made specific efforts to find employment. Released monthly by the Bureau of Labor Statistics.

Japanese Candlestick bullish pattern. A long black candle forms in the direction of the downtrend. The next candle is a hammer that opened higher and tested lower prices levels but eventually rejected as shown by the long lower shadow. The third candle is a small white body formed below the hammer’s body showing signals that the market is not willing to move lower.

Japanese candlestick bullish continuation pattern. In an uptrend, two long white candles with a rising window in between are followed by a long black candle that fills the window (i.e. gap).

Japanese candlestick bearish pattern. During the course of an uptrend a long white body is followed by a shorter black body that gaps higher. A black candle that follows, opens at or above the previous open. It then pushes the market lower, well into the long white candle’s body and more specifically, below the close of the second body but above the close of the first candlestick.

Japanese candlestick bullish continuation pattern. During an upward rally, a long white candle is followed by a second long white body that gaps higher in the direction of the prevailing trend. A third candle, black this time, closes (but does not fill) within the gap.

See UZS.

See VUV.

See VPS.

See Linearly Weighted Moving Average.

See WTI.

See KRW.

See CNY.

See ZMW.

See ZWL.