Bearish
Expecting price to fall.
Example: Gold breaking below support has traders turning bearish.
A–Z
Trading Glossary
Every term we use in analysis and signals, explained in plain English with an example.
B
Bid
The price you can sell at right now.
Example: Bid 2400.10 means selling gets you 2400.10.
BOS (Break of Structure)
Price breaks past a previous swing high or low, confirming the trend continues.
Example: A new high above the last high is a bullish BOS.
Breakout
Price moving decisively out of a level or range.
Example: Gold breaking above 2410 after ranging all morning.
Bullish
Expecting price to rise.
Example: Higher lows forming means buyers are bullish.
C
Candlestick
A bar showing the open, high, low and close for a period.
Example: Each candle on a 15M chart covers 15 minutes.
CHOCH (Change of Character)
The first break against the current trend — an early warning the trend may reverse.
Example: In an uptrend, breaking the last higher low is a CHOCH.
Confirmation
The signal that tells you it is time to enter, not just watch.
Example: Waiting for a bullish engulfing candle at support.
Confluence
Two or more reasons pointing to the same trade.
Example: Support + trend line + London open = confluence.
D
Demand
A price zone where buyers stepped in aggressively before.
Example: Price rallying hard from 2380 marks a demand zone.
E
Equal Highs
Two or more highs at nearly the same price, often hiding stop orders above.
Example: Equal highs at 2405 get swept before a real move.
Equal Lows
Two or more lows at nearly the same price, often hiding stop orders below.
Example: Equal lows at 2390 get taken out then price reverses up.
F
Fair Value Gap (FVG)
An imbalance left by a fast move where price skipped levels; it often gets revisited.
Example: A three-candle gap on the 15M that price returns to fill.
Fakeout
Price breaks a level then immediately reverses back.
Example: Breaking resistance by $2 then dropping below it again.
I
Inducement
An obvious level designed to attract traders in before the real move goes the other way.
Example: A tempting mini-high that gets swept before the drop.
L
Leverage
Borrowed buying power from your broker, expressed as a ratio.
Example: 1:500 lets $100 control $50,000 — powerful and dangerous.
Liquidity
The availability of orders to fill a trade; also refers to pools of stop orders.
Example: Stops sitting under equal lows are liquidity.
Lot Size
How large your position is.
Example: 0.01 lots on gold is roughly $0.10 per pip.
M
Margin
The deposit your broker locks up to keep a position open.
Example: Opening 0.10 lots might tie up $80 of margin.
Market Structure
The pattern of highs and lows that defines the trend.
Example: Higher highs and higher lows = uptrend.
O
Order Block
The last candle before a strong institutional move; often acts as support or resistance later.
Example: Price returning to the last down candle before a rally.
P
Pip
The standard unit of price movement.
Example: On gold, 2400.00 to 2400.10 is one pip.
Pullback
A temporary move against the trend before it continues.
Example: Gold dropping $5 in an uptrend before pushing higher.
R
Rejection
Price tries a level, fails, and snaps back — shown by a long wick.
Example: A long upper wick at resistance is a rejection.
Resistance
A price level where sellers have repeatedly stopped a rise.
Example: Gold failing at 2410 three times.
Retracement
How far price pulls back, usually measured in percentages.
Example: A 50% retracement of the last leg up.
Risk-to-Reward
What you risk compared with what you aim to make.
Example: Risking $10 to make $30 is 1:3.
S
Sessions
The trading windows: Asian, London and New York.
Example: Gold is most volatile in the London–New York overlap.
Spread
The difference between the bid and the ask — your cost to trade.
Example: Bid 2400.10 / ask 2400.40 = a 30-cent spread.
Stop Loss
An automatic exit that caps your loss.
Example: Buying at 2400 with a stop at 2395.
Supply
A price zone where sellers stepped in aggressively before.
Example: A sharp drop from 2415 marks a supply zone.
Support
A price level where buyers have repeatedly stopped a fall.
Example: Gold bouncing from 2380 twice this week.
Swing High
A peak with lower highs either side of it.
Example: The top of the last rally before the pullback.
Swing Low
A trough with higher lows either side of it.
Example: The bottom of the last dip before the bounce.
T
Take Profit
An automatic exit at your target price.
Example: Buying at 2400 with a take profit at 2410.
Trend
The overall direction price is travelling.
Example: A series of higher highs is an uptrend.
V
Volatility
How much and how quickly price moves.
Example: Gold volatility spikes during NFP.
W
Wick
The thin line above or below a candle body showing rejected price.
Example: A long lower wick means sellers were beaten back.