Glossary

Here is a list of commonly used trading concepts, indicators, chart pattens and types, terms, phrases in TradingView that are useful to remember.

A

  • Accumulation/Distribution (A/D) Line: Measures money flow into/out of an asset.
  • ADX (Average Directional Index): Assesses trend strength.
  • After-Hours Trading: Buying and selling of securities outside regular trading hours.
  • Arbitrage: Buying and selling the same asset in different markets for profit.
  • Ascending Triangle: Bullish chart pattern with rising support and horizontal resistance.
  • Ask Price: Lowest price a seller is willing to accept.
  • Asset: Any tradable financial product, like stocks, commodities, or cryptocurrencies.
  • Average True Range (ATR): Volatility indicator calculating average range over time.

B

  • Backtesting: Testing a trading strategy on historical data.
  • Balance Sheet: Financial statement showing a company’s assets, liabilities, and equity.
  • Bar Chart: Visual display of open, high, low, and close prices.
  • Bear Market: Market with prolonged price declines.
  • Bitcoin: The first decentralized cryptocurrency, using blockchain.
  • Bollinger Bands: Indicator using volatility bands around a moving average.
  • Bracket Order: Combines stop-loss and take-profit orders.
  • Breakout Trade: A setup where entry is made when price moves beyond a key support or resistance level, often indicating a potential new trend.

C

  • Candlestick Chart: Visual of open, high, low, and close prices.
  • CFD (Contract for Difference): Allows speculation on price without ownership.
  • CME (Chicago Mercantile Exchange): Major futures and options exchange.
  • Coinbase: U.S. cryptocurrency exchange.
  • Commodity: Basic goods traded on exchanges.
  • Correlation Coefficient: Measures the strength and direction of a relationship between assets.
  • Cup and Handle: Bullish continuation pattern indicating breakout potential.

D

  • Day Trading: Trading strategy involving buying and selling within a single day.
  • Debt-to-Equity Ratio (D/E): Financial metric showing company leverage.
  • Derivative: Financial contract based on the value of an underlying asset.
  • Divergence: Indicator moving opposite price direction, signaling potential reversal.
  • DogeCoin: Cryptocurrency with a strong online community.
  • Double Bottom: Bullish reversal pattern.
  • Downtrend: Sustained downward price movement.
  • Dividend: Portion of earnings distributed to shareholders.
  • Dividend Yield: Dividend as a percentage of share price.

E

  • Earnings Report: Quarterly performance summary.
  • Earnings Before Interest and Taxes (EBIT): Operating income before interest and taxes.
  • Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Profitability measure excluding certain expenses.
  • Earnings Per Share (EPS): Company profit per share.
  • EBITA: Earnings before interest, taxes, and amortization.
  • EMA (Exponential Moving Average): Moving average with emphasis on recent prices.
  • Enterprise Value (EV): Total value of a company, including equity and debt.
  • ETF (Exchange-Traded Fund): Security tracking a specific market index or commodity.
  • Equity: Ownership interest in a company.
  • Economic Calendar: Schedule of major financial events affecting markets.

F

  • Fibonacci Retracement: Tool to identify potential support and resistance levels.
  • Fill or Kill (FOK): Order requiring immediate execution or cancellation.
  • FAANG Stocks: Leading tech stocks—Facebook, Apple, Amazon, Netflix, Google.
  • Fiat Money: Government-issued currency without intrinsic value.
  • FOMO (Fear of Missing Out): Emotion-driven trading to avoid missing gains.
  • Forex (Foreign Exchange): Market for currency trading.
  • Futures Contract: Agreement to buy or sell an asset at a future date.

G

  • Golden Cross: Bullish sign when a short-term moving average crosses a long-term one.
  • Good ‘Til Cancelled (GTC): Order remains active until executed/canceled.
  • Gross Profit: Revenue minus cost of goods sold.
  • Gross Profit Margin: Gross profit as a percentage of revenue.
  • Grayscale: Digital asset management company.

H

  • Hammer: Bullish reversal candlestick pattern.
  • Hard Fork: Major cryptocurrency protocol change.
  • Head and Shoulders: Reversal pattern signaling trend change.
  • Hedge: Investment made to reduce risk.
  • Hedge Fund: Private investment fund with varied strategies for high returns.

I

  • Ichimoku Cloud: Indicator showing support, resistance, trend, and momentum.
  • Income Statement: Financial document showing revenue, expenses, and profit.
  • Index Fund: Fund tracking a market index.
  • Inflation: Price increase reducing purchasing power.
  • In the Money (ITM): Option with intrinsic value.

J

  • Japanese Candlestick: Traditional chart style for price movement analysis.
  • Junk Bond: High-risk, high-yield bond.

K

  • Kagi Chart: Chart style showing price reversals.
  • Keltner Channel: Volatility-based indicator.
  • Kraken: Cryptocurrency exchange.
  • KYC (Know Your Customer): Compliance process to verify customers’ identities.

L

  • Lagging Indicator: Follows price movements for trend confirmation.
  • Limit Order: Sets a buy/sell price for trade execution.
  • LIBOR (London Interbank Offered Rate): Benchmark interest rate.
  • Liquidity: Ease of buying/selling an asset without price impact.
  • London Inter-Bank Offered Rate (LIBOR): Benchmark rate for interbank loans.

M

  • MACD (Moving Average Convergence Divergence): Indicator showing the relationship between two moving averages.
  • Margin: Borrowed funds to increase position size.
  • Market Cap: Total value of a company’s outstanding shares.
  • Money Market Account: Interest-bearing account for low-risk investments.

N

  • Net Asset Value (NAV): Value of an entity’s assets minus liabilities.
  • Net Income (NI): Company’s profit after expenses.
  • Nikkei: Major Japanese stock index.
  • NYSE (New York Stock Exchange): Large global stock exchange.

O

  • OBV (On-Balance Volume): Volume-based indicator for buying/selling pressure.
  • Open Interest: Total outstanding contracts in futures/options.
  • Operating Income: Profit from core business operations.
  • Option Trading: Contracts granting rights to buy/sell assets at a specific price.
  • Over-The-Counter (OTC): Securities traded outside exchanges.

P

  • Parabolic SAR: Trend-following indicator marking reversals.
  • Pine Script: TradingView’s custom language for indicators and strategies.
  • Pullback Trade: A strategy that enters on a temporary retracement within an ongoing trend, capitalizing on the trend’s continuation.
  • Put Option: Option granting the right to sell at a specific price.

Q

  • Quantitative Easing: Central bank policy to increase money supply.
  • Quote Currency: Second currency in a currency pair.

R

  • Relative Strength Index (RSI): Momentum oscillator for overbought/oversold levels.
  • Resistance: Price level where selling pressure may halt price rise.
  • Retracement: Temporary trend reversal.
  • Range-Bound Trade: Trading within a defined range, capitalizing on price bouncing between established support and resistance levels.
  • Reversal Trade: A setup for entering a trade when an existing trend shows signs of reversing, often at overbought or oversold levels with indicators confirming reversal signals.

S

  • S&P 500: Index of 500 leading U.S. companies.
  • Scalping: Short-term trading for quick profits.
  • Short Selling: Selling borrowed shares with the intent to buy back lower.
  • Smart Contract: Blockchain-based self-executing contract.
  • Stop-Limit Order: Combines stop and limit orders for price control.

T

  • Take-Profit Order: Closes a position once reaching target profit.
  • Tick: Minimum movement of a trading instrument’s price.
  • Token: Digital asset representing value in decentralized finance (DeFi).

U

  • Uniswap: Decentralized exchange on Ethereum.
  • Uptrend: Price increase marked by higher highs and higher lows.

V

  • Volatility: Measure of price fluctuations.
  • VWAP (Volume Weighted Average Price): Volume-weighted average price indicating market trends.

W

  • Wedge Pattern: Converging trendlines signaling potential breakout.
  • Whale: Investor with significant capital capable of impacting the market.
  • Williams %R: Measures overbought/oversold conditions.

X

  • XBT: Ticker for Bitcoin on some exchanges.
  • X-Axis: Horizontal axis on a chart representing time.

Y

  • Yield: Return on investment expressed as a percentage.
  • Year-To-Date (YTD): Performance measure from the start of the year.

Z

  • Zig Zag Indicator: Highlights trend changes by filtering small price movements.