Plain-language concepts
Trader's Glossary
This trading glossary explains each term, shows where it matters in a trading workflow and states the limits of the concept.
B
BacktestBacktesting evaluates trading rules on historical data. Learn which metrics matter, what overfitting is, and why strong historical results do not guarantee future performance.BreakoutA breakout is the price moving beyond the boundary of a level or range. Why it is followed by a rapid movement, where false breakouts come from, and how they are filtered.
D
F
I
Indicator histogramAn indicator histogram displays values as bars. Learn why changes in the bars matter more than their sign, how they can reveal fading momentum, and what their limitations are.Indicator lagIndicator lag is a delayed reaction caused by calculations based on past candles. Learn how the lookback period affects lag and what leading indicators sacrifice for speed.Indicator repaintingRepainting is changing the indicator's signals retroactively. Why such a tool looks perfect on historical data, how to check it, and how it differs from lag.Indicator periodAn indicator period is the number of candles used in its calculation. Learn how short and long periods differ, where standard values come from, and how to avoid overfitting settings to historical data.
J
M
Moving Average CrossoverA fast and slow moving average crossover is a classic trading signal. Learn what golden and death crosses are, why crossovers struggle in sideways markets, and which filters may help.Market noiseMarket noise consists of small, chaotic price fluctuations without a meaningful underlying move. Learn why it is difficult to identify in real time and how to reduce its impact on trades.Moving averageA moving average smooths the price over a period and shows the trend direction. How SMA differs from EMA, what it provides, and why it always lags behind the market.
O
OscillatorAn oscillator is an indicator that moves within a range and measures the speed or strength of price movement. Learn how to read one, where it works, and where it commonly produces misleading signals.OverboughtAn oscillator becomes overbought when it enters its upper zone after a rapid rise. This reflects strong momentum, not an automatic signal to sell.OversoldAn oscillator becomes oversold when it enters its lower zone after a rapid decline. This reflects strong selling pressure, not proof that a bottom has formed.
R
RiskTrading risk is the predetermined potential loss on a trade. Learn how to calculate and manage it, and why risk across a series of trades matters more than any single outcome.Resistance levelResistance is the zone where sellers stopped the price from rising. How to mark it, why a breakout often turns out to be false, and what happens to the level after a breakout.
S
Stop LossA stop loss closes the position at a specified price and limits the loss. Where to place it according to the meaning of the trade, how to calculate the position size from it.Support levelSupport is the area where buyers stopped the price from falling. Why it is a zone rather than a line, how its role changes after a breakout, and where to place a stop.Sideways MarketA sideways market moves within a horizontal range without a clear trend. Learn why trend indicators struggle in this regime, which tools may work better, and how to identify a breakout.
T
Trading VolumeTrading volume is the amount of an asset traded over a given period. It helps assess participation behind a move and whether a breakout has meaningful support.TimeframeA timeframe is the period represented by one candlestick on a chart. Learn how chart scale changes the market picture, why multiple timeframes matter, and how to choose a sustainable trading pace.Take ProfitTake profit closes a position at the target price. How to choose a target on the chart, why compare it with the stop, and what partial profit-taking provides.Trading signalA trading signal is a chart event that meets predefined system rules for considering a trade. Learn what a complete signal includes and how it differs from an external recommendation.TrendA trend is sustained price movement defined by rising or falling highs and lows. Learn how to read trend structure, identify where it breaks, and account for timeframe.
