Reference

Glossary

374 terms in the course — from a candle to profit factor, in plain words. Run into an unfamiliar term — look it up here.

#1 A B C D E F G H I J K L M N O P Q R S T U V W Z

#

"I did not enter" list: A log of market moves you decided not to enter. A week later you can see how many of those trades would have turned into losses — the fear of missing out evaporates.
%D line: The smoothed signal line of the Stochastic oscillator. Moves slower than %K; their crossover in the extreme zones gives a reversal signal.
%K line: The main, fast line of the Stochastic oscillator. Shows where price sits relative to the range over the chosen period.

1

1.2 progression: A careful catch-up scheme: after a loss the next trade's size is multiplied by just 1.2. A moderate step gives a safety margin without much risk to the deposit.
1.2 progression (ladder): An approach where the next trade's size is multiplied by 1.2 after a loss and divided by 1.2 after a win. Soft growth instead of geometric — the deposit survives up to 16 losses in a row.

A

Account blowup: Losing a large part or all of the trading account, usually through a chain of emotional decisions. The emotional hit of a blowup warps thinking more than a streak of losses.
Accumulation: A period when large players gradually and quietly build positions in a sideways range. Forms after a decline and precedes a powerful rise.
Actual value: The real value of an economic figure published when the news comes out. A strong gap between actual and forecast usually causes a sharp price move.
Adrenaline: A stress hormone that, under tense trading, gives you false energy and turns off self-control. Under its influence a trader takes risks they would never take when calm.
ADX: ADX (Average Directional Index) — an indicator of trend strength without regard to direction. Swings between 0 and 100: below 20 — a flat; above 25 — a steady trend.
Aggregation: Combining several candles from a lower timeframe into one candle of a higher timeframe by the OHLC rule. For example, ten one-minute candles fold into a single ten-minute candle.
Algorithmic trading: Trading where decisions are made by a predefined algorithm: entry conditions, trade amount, and risk limits are fixed in code rather than decided on the fly. The opposite of manual trading "by feel".
Alligator: Bill Williams' indicator made of three moving averages — the "jaw", "teeth", and "lips". Intertwined lines mean a flat market ("the alligator sleeps"); fanning out means a trend has started in the direction of the opening. Helps tell trend from range.
American session: The trading period 13:00–22:00 UTC (New York, Chicago). Peak volatility, the most important US data is released, strong impulse moves.
Analysis paralysis: A state where an excess of indicators, signals, and opinions blocks the decision: the trader endlessly seeks the perfect confirmation and misses setups. The cure is simplifying the strategy and using a strict entry checklist.
Anchoring: A bias where the first number you see becomes the "anchor" for the assessments that follow. For example, the morning price makes the current one feel "cheap", though it is just another reference point.
Anti-martingale: A capital management approach that increases the trade size after every win and resets to the base after any loss. Profit scales up, risk stays capped.
Ascending channel: A channel whose two boundaries slope up at the same angle — a bullish trend. Buys are looked for on a touch of the lower boundary, sells — only on a break downward.
Ascending triangle: A triangle with a horizontal upper boundary and a rising lower one. Buyers become increasingly aggressive — the expected breakout is up. Considered bullish.
Asian session: The trading period 00:00–09:00 UTC (Tokyo, Sydney, Hong Kong). Low volatility and narrow ranges — a calm window suited to learning and drilling strategies.
Asset: What you trade: a currency pair, an OTC instrument, and others. Each asset gets its own trade, and you forecast its price.
ATM (At the Money): ATM (At the Money) — a rare situation where the price at expiration exactly equals the opening price of the trade. Most brokers then return the trade amount with neither profit nor loss.
ATR: ATR (Average True Range) — a volatility indicator. Computes the average candle range over a chosen period. Does not show direction, only the size of moves; helps cut out "dead" market periods.
Awesome Oscillator: Awesome Oscillator (AO) — Bill Williams' histogram showing the difference between two moving averages (5 and 34) built on candle midpoints. Zero-line crossings and bar color changes are its basic momentum-direction signals.

B

Backtesting: Backtesting — checking a strategy on historical chart data before risking real money. The chart is replayed and metrics are computed over at least 100 trades.
Band squeeze: Squeeze — a strong narrowing of the Bollinger Bands. Usually a precursor to a big move, so trades are best skipped at these moments.
Bar: A way to show price for a period as a vertical line with two ticks: open on the left, close on the right. Contains the same OHLC data as a candle.
Base amount: The starting trade size, usually 1–2% of the deposit. The point the trade size returns to after a loss in anti-martingale or after a win in a soft progression.
Base trade: The starting trade size to which sizing returns after a catch-up streak ends. Usually 1–2% of the deposit.
Bearish candle: A red candle formed when price closed below the open. A sign that sellers had the upper hand during that period.
Bearish trend: A sustained price move down: each successive high and low is lower than the previous one. In a bearish trend the priority is sell trades.
Binary option: A financial instrument where you forecast the direction of an asset's price over a fixed time. There are only two outcomes: the forecast is right — you take a profit; the forecast is wrong — you lose the trade amount.
Bollinger Bands: Bollinger Bands — a volatility indicator made of three lines: a middle one (SMA with a period of 20) and two boundaries at a distance of 2 standard deviations. The channel widens as volatility rises and narrows as it falls.
Bounce: Price turning around after touching a level: it meets buyer or seller pressure and goes back. Each bounce confirms the strength of the level.
Break-even: The point where wins and losses balance each other and the account stays as it was. The minimum Win Rate for break-even depends on the payout: at 85% payout — around 54%.
Breakout: Price moving past a level or range boundary and settling beyond it. Unlike a false breakout, it starts a new move.
Breakout strategy: An approach where the entry happens the moment a significant level or pattern boundary is broken — in the direction of the breakout. The main risk is false breakouts, so entries are often confirmed by a candle closing beyond the level or by a retest.
Broker: The intermediary company you trade through: it provides quotes, executes trades, and credits payouts. In binary options the broker (for example, Pocket Option) is the counterparty to every trade you open.
Bullish and bearish trend: Bullish — a market dominated by buyers with rising price; bearish — dominated by sellers with falling price. Synonyms for uptrend and downtrend.
Bullish candle: A green candle formed when price closed above the open. A sign that buyers were stronger during that period.
Bullish trend: A sustained price move up: each successive high and low is higher than the previous one. In a bullish trend the priority is buy trades.
Buyers (bulls): Market participants playing for price to rise. When they are stronger than sellers, price moves up and bullish candles form.

C

Candle: A chart element that shows price movement over a single time slice: open, close, high, and low. The candlestick chart is built from these candles.
Candle (Japanese candle): A chart element that shows price movement over one period. It has a body and wicks and immediately tells the story of the fight between buyers and sellers.
Candle body: The rectangular part of a candle between the open and the close. The larger the body, the stronger one side of the market is.
Candle wick (shadow): The thin lines above and below the candle body. They show the period's high and low and reflect the fight between buyers and sellers.
Candlestick pattern: A recurring combination of one or several candles that reflects a shift in the mood between buyers and sellers. Comes in reversal and continuation forms.
Candlestick pattern (formation): A recurring combination of candles on the chart that hints at the market's likely intention — continuation or reversal.
Capital: The money on the trading account — the trader's main tool. Without capital there is no trading, so preserving it matters more than earning on any single day.
Capital preservation: The first principle of risk management: a trader's main job is not to lose money. First protect the deposit, then grow it.
Cascade: A trade-amount management mode in trading bots: after a loss the next trade opens with an increased amount following a set progression; after a win the amount resets to base. Essentially an automated recovery sequence with a mandatory series-length limit.
Cashback: The broker returning a share of losing trades' volume over a period — the percentage depends on account status. A pleasant bonus, but not part of a strategy: never factor it into risk planning.
CCI: CCI (Commodity Channel Index) — an oscillator measuring how far price has deviated from its average. Readings above +100 suggest overbought conditions, below −100 — oversold; the return into the range is often used as a signal.
Central bank: The main financial regulator of a country or zone (the Fed in the US, the ECB in the eurozone). Its interest-rate decisions are the most powerful driver of currency rates.
Close: The price at the end of the candle's period. Comparing close to open determines the candle's color.
Cloud (Kumo): The shaded zone of the Ichimoku indicator between the Senkou Span A and B lines. The main trend filter: price above the cloud — an uptrend, below — a downtrend, inside — a flat.
Cognitive bias: A regular thinking error where the brain decides by a fast emotional template rather than the facts. Works the same way for everyone and does not depend on intelligence.
Compounding: Capital growth where profit stays in the deposit and starts earning on its own. The trade size grows with the balance and the capital accelerates.
Confirmation bias: A bias where the brain sees only the signals supporting a decision already made and ignores the conflicting ones. The antidote — the question "what would prove me wrong?".
Consolidation: A market state where price moves in a narrow range with no clear direction. Essentially the same as a flat; often precedes a strong move.
Continuation pattern: A figure that confirms the strength of the current trend: the dominant side keeps control and the move is likely to continue.
Convergence: Two moving averages converging — drifting toward each other. One of the building blocks of the MACD indicator.
Correction (pullback): A temporary price move against the main trend. A normal breather for the market before the next impulse — not a reversal.
Correlation: A numerical measure of the link between two assets' movements, from −1 to +1. Positive (near +1) — the assets move in sync; negative (near −1) — they move in opposite directions; near 0 — no link.
Counter-trend: An entry against the main direction of movement — betting on a short reversal. In a strong trend counter-trend strategies often produce a string of losses.
Counter-trend strategy: An approach where trades are opened against the current move — betting on a pullback or a reversal. Works better in a sideways market than in a strong trend.
CPI: Consumer Price Index — a measure of inflation. An important news release on which currency pairs make sharp moves.
Crosses: Currency pairs without the US dollar but with two other key currencies (EUR/GBP, EUR/JPY, GBP/JPY, and the like). Liquidity is lower than for majors, moves are sharper — suited to traders with experience.
Currency pair: Two currencies whose price tells how much of one is worth in the other. For example, EUR/USD — how many US dollars one euro costs.

D

Daily loss limit: The maximum amount you can lose in one session. Once it is hit, trading stops until the next day regardless of the market and your emotions. The standard is 5–6% of the deposit.
Daily target: The planned profit for the session. Once it is hit, it is a stop signal to close the terminal — not an excuse to open "one more" trade.
Death cross: A bearish signal: a fast moving average crosses a slow one from above to below. Points to a possible reversal down.
Demand: The market participants' wish to buy an asset. As demand grows, there are more buys and price moves up.
Demo account: A practice account with virtual money. Used to drill knowledge and strategies without risking real funds.
Deposit: The amount of real money on your trading account. Protecting the deposit is the main job of risk management.
Deposit (funding): Transferring funds to your trading balance with the broker — by card, cryptocurrency, or e-wallet. Fund the account only with money you can afford to lose: that is the foundation of calm trading.
Deposit ladder: An approach to growing capital gradually by clear rungs. Moving to the next rung happens only when objective criteria are met: number of profitable sessions, discipline, emotional control.
Deposit rung: One level of the deposit ladder with its own capital and trade size. Moving up is gradual so the psyche keeps up with the growing numbers.
Descending channel: A channel whose two boundaries slope down — a bearish trend. Sells are looked for on a touch of the upper boundary, buys — only on a break upward.
Descending triangle: A triangle with a horizontal lower boundary and a falling upper one. Sellers become increasingly aggressive — the expected breakout is down. Considered bearish.
Diamond: A rare reversal pattern: the swing range first widens, then narrows, outlining a diamond shape. More common at tops after a strong rise; the signal is a break of the diamond's boundary against the previous trend.
Discipline: The ability to follow your plan and rules without exception, never letting emotions change your decisions. Even an average strategy works when the rules are followed strictly.
Distribution: A period when large players gradually sell their positions at the trend's highs. Precedes a move down.
Divergence: A mismatch between the direction of price and the readings of an indicator (for example, RSI): price prints a new extreme but the indicator does not. A signal that the trend is weakening and a reversal is possible.
Diversification: Spreading risk across different independent trades or assets. Opening two strongly correlated pairs is not diversification — it is the same risk, doubled.
Doji: A candle with a very small body — the open and close almost match. Signals a balance of forces and market uncertainty.
Dollar Index: A measure of the US dollar's strength against a basket of major currencies. When the dollar strengthens, pairs like EUR/USD fall while pairs like USD/JPY rise.
Dollar Index (DXY): A measure of the US dollar's strength against a basket of major currencies. EUR/USD behaves like an inverse dollar index: DXY up — EUR/USD down, and vice versa.
Dopamine: The reward hormone the brain releases after a winning trade. It builds an urge to repeat the success and does not distinguish between large and small profits — so it pushes you to risk more.
Dopamine trap: A mechanism where every profit deepens the pull toward new trades and more risk. Profit — euphoria — more risk — mistakes — losses: the profits themselves set up the next loss.
Double bottom: A reversal figure of two lows at roughly the same level — on the chart it looks like a "W". The market twice failed to push the level down. A neckline break up — a buy signal.
Double top: A reversal figure of two peaks at roughly the same level — on the chart it looks like an "M". The market twice failed to break the level and turned around. A neckline break down — a sell signal.
Dovish rhetoric: A soft tone from the central bank: signals of cutting the interest rate or pausing hikes to support the economy. Dovish statements usually weaken the national currency. The opposite of hawkish rhetoric.
Downtrend: A market state where each new high and low is below the previous one. Sellers dominate; price moves down in a zigzag.
Drawdown: A decline in the account balance after a string of losing trades. Sound capital management is what lets you ride out a drawdown calmly.
Drawdown zones: Levels of drawdown depth, each with its own action plan: yellow (−10%) — lower risk and take a break; orange (−20%) — pause until end of day; red (−30%) — stop for 1–2 days.
Dynamic level: A support or resistance level that moves along with price — a moving average, for instance. In a trend, price often pulls back to such a line and continues.

E

ECB: The European Central Bank — responsible for the monetary policy of the eurozone. Its meetings and rate decisions directly move euro pairs, above all EUR/USD.
Economic calendar: A schedule of important economic news releases. A trader checks it before the session because a single release can move price sharply.
EMA: Exponential Moving Average — an average price line that reacts more strongly to recent candles. Used as a dynamic level and a trend benchmark.
Emotional cycle: A repeating destructive spiral: loss — anger — revenge on the market — impulsive trades — more losses — tilt. Most beginners cycle through it again and again.
Endowment effect: A bias where the trader clings to their trade idea simply because they have already adopted it — even when the facts say otherwise. After a loss, they repeat the entry: "I was right, the market was late".
Engulfing: A strong reversal two-candle pattern: the second candle fully covers the body of the first. Indicates an aggressive grab of initiative by the opposite side.
Entry checklist: A list of several strategy conditions that all must line up before a trade is opened. If the situation does not pass the checklist — the trade is not opened.
Entry point: The moment and price at which you open a trade. A good entry point comes from chart analysis, not from a random pick.
Euphoria: A state of excessive confidence after a streak of profits, triggered by a dopamine surge. The trader starts ignoring the plan, raising risk, and seeing "great signals" where there are none. More dangerous than a loss.
EUR/USD: The euro vs. US dollar currency pair — the most liquid and popular Forex pair. Often used as the main example in training.
EUR/USD pair: The euro vs. US dollar exchange rate — the most liquid and most traded currency pair in the world. It accounts for about 25–30% of total Forex volume. The main pair for learning and first trades.
European session: The trading period 07:00–16:00 UTC (London, Frankfurt, Paris). High activity, the main daily trends form here — the best conditions for trading.
Evening Star: A three-candle reversal pattern at the top of an upward move: a strong bullish candle, a small indecision candle, and a strong bearish one closing below the midpoint of the first. The mirror of the Morning Star — a reversal-down signal.
Exchange-traded asset: An asset whose quotes come from real exchange flows (regular Forex EUR/USD, GBP/USD, and so on). Traded only on weekdays during the hours of the world sessions; reacts cleanly to news.
Exotics: Currency pairs where the dollar pairs with an emerging-market currency (USD/TRY, USD/ZAR, USD/MXN). Low liquidity, wide spreads, sharp spikes — not suitable for beginners.
Expiration: The moment a trade closes automatically and its outcome is settled. You set the expiration time yourself when opening the trade — from 5 seconds to several hours; you cannot close a trade early.
Exponential risk growth: The runaway increase of trade size in martingale: by the 6th step it is 51x the starting amount, by the 9th — tens of thousands are required. A long losing streak wipes out the deposit.

F

Falling wedge: A wedge whose two boundaries both slope down and converge. Despite the falling look — a bullish figure: the expected breakout is up.
False breakout: A brief move of price beyond a level after which it quickly comes back. Often a stop-hunt rather than the start of a real move.
False signal: An indicator signal that fails to play out: price goes the opposite way to what the indicator pointed at. Most often appears in a flat or when an indicator is used outside its market regime.
Fear: An emotion that, on losses, switches the brain into survival mode: the logical centers shut down, anxiety appears, and you want to fix everything fast at any cost. The stronger the fear, the worse the decisions.
Fed: The Federal Reserve System — the central bank of the US. Its interest-rate decisions strongly affect the dollar's rate and every pair tied to it.
Fed meeting: The US Federal Reserve System's meeting on rates. One of the events with the strongest market impact — trading is paused inside the meeting's window.
Fibonacci extension: Fibonacci levels beyond the original move (127.2%, 161.8%, 261.8%) used as targets for the trend's continuation.
Fibonacci levels: A set of horizontal levels computed as percentages of a chosen price move. The main retracement values are 38.2%, 50%, 61.8%; extensions — 127.2%, 161.8%. Often act as support and resistance.
Fixed amount: An approach where the trade size is set in money and does not change as the deposit grows or falls. Ignores drawdown; requires manual recalculation.
Fixed percent: An approach where the trade size is computed as a percent of the current deposit. Slows you down during drawdown and speeds you up during growth on its own — the professional standard.
Fixed risk: A property of a binary option: you know exactly how much you can lose before the trade is even opened. There are no hidden losses and no debt beyond the trade amount.
Flag: A trend-continuation pattern: after a strong impulse, price pulls back in a small parallel channel sloped against the trend. Then the move resumes in the original direction.
Flat: Sideways market movement without a clear trend — price oscillates inside a tight range. In this mode counter-trend strategies and level bounces work better.
Flat (sideways): A period of sideways price movement where buyers and sellers are roughly equal in strength. Price travels back and forth between support and resistance.
Flat sizing: Trading the same amount on every trade. Protects the deposit, but with a 80–90% payout and a 50/50 win rate it statistically drifts into a small loss.
FOMC: Federal Open Market Committee — the US Fed body that decides on the interest rate. Its meetings cause strong dollar moves.
FOMO: FOMO (Fear Of Missing Out) — the emotion that pushes you to enter a trade chasing a sharp move. Often leads to losing entries, especially after news.
Forecast: Your assumption about where price is going next — up or down. Made from chart analysis, not at random.
Forex: The global currency exchange market. Currency pairs are traded there; for binary options it is the classic, logically simple market.
Fractals: Bill Williams' indicator marking local extremes: an up fractal is a candle with the highest high among two neighbors on each side; a down fractal is the mirror image. Used as reference levels and breakout points.
Fundamental analysis: Analysis of economic events and figures that influence price movement: central bank decisions, statistics, news. Explains why the market moves, while technical analysis pins down the entry moment.

G

Gambler's fallacy: A bias where it seems that after a streak of one outcome, the chance of the other rises: "5 losses — the next one is bound to be a win". Each trade is independent; the market has no memory.
Gap: A break on the chart between one candle's close and the next candle's open — the price "jumped" a level with no trading on it. On Forex, gaps most often appear after weekends and major news; on OTC assets they are almost nonexistent.
GDP: GDP (Gross Domestic Product) — a measure of how fast a country's economy is growing or shrinking. Released quarterly; affects long-term trends.
Golden cross: A bullish signal: a fast moving average crosses a slow one from below to above. Points to a possible reversal up, stronger on higher timeframes.
Golden ratio: The Fibonacci 61.8% level — the most popular pullback level. Most pullbacks in a trending market end right there.
Greed: Any deviation from the plan in the "more" direction where the justification comes from emotion, not the strategy. Shows up quietly: "one more trade", "I'll raise the size since it's working" — and eats the day's profit.

H

Hammer: A reversal candle with a long lower wick (at least twice the body) and a small body at the top. Appears after a fall — a signal of a reversal up: buyers absorbed the supply.
Hanging Man: A candle with a small body on top and a long lower shadow appearing after a rise. Its shape matches the Hammer, but the context is opposite: at the top of a trend it warns of a possible reversal down and requires confirmation by the next candle.
Harami: A two-candle pattern: a small candle sits entirely inside the body of the larger previous one. "Harami" means "pregnant" in Japanese. A signal that the current move is slowing and a reversal is possible.
Hard stop on a losing streak: A rule to stop after 2–3 losses in a row. A losing streak is a signal that the market is not readable or that emotions are interfering with the analysis. Close the terminal and take a break.
Hawkish rhetoric: A tough tone from central bank officials: hints at raising the interest rate and fighting inflation. Hawkish statements usually strengthen the national currency — the market prices in the rate hike in advance.
Head and shoulders: A reversal figure of three peaks: a left shoulder, the head (the highest), and a right shoulder roughly at the level of the left one. A break of the neckline down — a signal that a downtrend is starting.
Heikin Ashi: A chart type with smoothed candles based on averaged values. Filters out market noise and makes the trend visually obvious. Its prices are calculated, not market-real, and candlestick patterns cannot be read off it.
High: The highest price the candle reached during the period. On the chart it is the top of the upper wick.
High-impact news: Economic releases or central bank decisions that can cause a sharp 30–100 pip move on major pairs in minutes. Marked in the calendar with three stars or a red flag.
Higher and lower timeframe: A higher timeframe (for example, H1) gives a clean overall picture and the trend; a lower timeframe (for example, M1) gives detail and precise entry points but more noise.
Higher high (HH): HH (Higher High) — a new peak above the previous one. A sign of an uptrend: buyers keep setting fresh price records.
Higher low (HL): HL (Higher Low) — a trough that stopped above the previous one. A sign of an uptrend: sellers cannot push price below the prior low.
Higher timeframe: A larger period (for example, H1, H4): used to identify the global trend and key levels. Higher-timeframe signals are more reliable — minor swings average out.
Histogram: Bars under the chart showing the difference between an indicator line and its signal line (in MACD). Rising bars — the trend is accelerating; shrinking ones — it is weakening.
Horizontal channel: A channel with horizontal boundaries — a flat. Price moves between support and resistance, offering counter-trend bounces in both directions.

I

Ichimoku: Ichimoku Kinko Hyo — a Japanese all-in-one indicator made of five lines and a shaded cloud. Lets you size up the trend and its strength at a glance. Standard settings: 9, 26, 52.
Impact: The importance level of an event in the economic calendar — how strongly it can rock the market. Marked with stars: three stars (high) call for a mandatory pause in trading.
Impulse: A strong directional price move along the trend — large candles in one direction. It is the trend's main phase, where trend-following traders make their money.
Impulse entry: Opening a trade without a signal and without running the checklist — "by feel" or on emotion. The most common cause of losses for a beginner.
Indicator: A calculation overlaid on the chart that gives extra signal confirmation. Examples: RSI, MACD, moving averages.
Indicator period: The number of candles used to compute an indicator. For example, RSI's period of 14 means the calculation uses the last 14 candles. A smaller period gives more signals and more noise; a larger one — a smoother but lagging line.
Inflation: A rise in the general price level in the economy. High inflation pushes the central bank to raise the interest rate, which directly affects the currency's rate.
Inside Bar: A candle that fits entirely within the previous candle's range — its high is lower and its low is higher. It shows volatility compression; a breakout of the mother candle's boundaries often sets the direction of the next move.
Interest rate: The central bank's rate that sets the price of money in the economy. Changing it is one of the strongest factors in currency rates and can shape a trend for weeks ahead.
Intraday: Day trading: all trades are opened and closed within a single trading day, with nothing carried into the next.
Inverse head and shoulders: The mirror version of the head and shoulders, formed at the bottom of a downtrend from three lows. A break of the neckline up — a signal of a reversal to growth.
ITM (In the Money): ITM (In the Money) — the state of a trade whose forecast proved correct: by expiration the price moved in the direction you chose. An ITM trade closes in profit with the payout percentage credited.

J

Japanese candles: The most popular chart type. Each candle shows four prices for its period: open, high, low, and close. Provides the maximum information for technical analysis.

K

Kelly criterion: A formula for the optimal share of capital per trade, derived from win rate and payout percentage. Full Kelly is too aggressive for live trading — in practice traders use a fraction of it (a quarter or a half) to smooth out drawdowns.
Kijun-sen: The base line in Ichimoku — the midpoint of the high and low over the last 26 candles. Acts as a dynamic medium-term support and resistance.

L

Large players (smart money): Banks, funds, and institutional participants with large capital. Their actions — accumulation and distribution — move the market visibly.
Level: A noticeable price on the chart where movement often pauses or reverses. Support and resistance are the main kinds of levels.
Level bounce: An entry strategy at the moment price tests a key level and turns away from it. The entry signal — a confirming candle in the direction of the bounce.
Level breakout: The moment price passes through a level with a confident impulse and the level stops holding it. A real breakout is usually followed by a move in the breakout's direction.
Level trading: An approach where trades are opened at pre-marked support and resistance levels: on a bounce off the level or on its breakout. Its foundation is marking levels on the higher timeframe and confirming with the price's reaction.
Level wick / spike: A brief poke of price beyond a level that mass-triggers stops, after which price returns. A subtype of a false breakout.
Leverage: Borrowed funds that on other markets let you trade with more than your own capital and amplify both profit and loss. Not used in binary options.
Limit order: An order to buy or sell at a preset price. It triggers only when the market reaches that price.
Line chart: A minimalist chart type: a single line built from closing prices only. Cuts the detail and shows the market's clean direction — handy for assessing the trend.
Liquidity: Clusters of orders (stop-losses and limit orders) at specific price zones. It is the market's fuel: price moves toward areas where many orders are stacked.
Liquidity grab: A price move toward a cluster of orders so that large players can fill their positions on the triggered stops. After the grab, price often reverses.
Liquidity pool: A large cluster of stop-losses and orders behind obvious levels — highs, lows, round numbers. Price often reaches for such zones.
Liquidity provider: A market participant (a large bank or fund) that supplies quotes and matching orders. The platform pulls data for its charts from liquidity providers.
Locking in profit: Withdrawing part or all of the earned money from the trading account. This money is shielded from future losses and turns into a real financial result, not a number in the terminal.
Long: A trade betting on a rise in price — a buy. In binary options — a forecast that price will be higher at expiration.
Long expiration: A trade time of 15 minutes and longer. Fewer trades but higher quality: fewer false signals and less stress. Suited to clear trends and trading the news.
Long run: A large sample of trades (100 and more) where a strategy's real behavior shows up. On a short sample the result is random; over the long run your real level of trading becomes visible.
Losing streak: Three or more losing trades in a row inside one session. A signal that the market is not readable or that you are emotionally off form. Requires an immediate pause.
Low: The lowest price the candle reached during the period. On the chart it is the bottom of the lower wick.
Lower high (LH): LH (Lower High) — a peak below the previous one. A sign of a downtrend: every pullback up runs out before the previous high.
Lower low (LL): LL (Lower Low) — a trough below the previous one. A sign of a downtrend: every wave down reaches deeper.
Lower timeframe: A smaller period (for example, M1, M5): used to find the precise entry. Alone it gives a lot of noise — work it in tandem with a higher one.

M

MACD: MACD (Moving Average Convergence Divergence) — an indicator built on the difference between two moving averages with different periods. Consists of the MACD line, a signal line, and a histogram. Standard settings: 12, 26, 9.
Major pair: The most liquid and popular currency pairs — for example, EUR/USD, GBP/USD, USD/JPY. These pairs are moved the most by high-impact news.
Majors: The most liquid currency pairs where one currency is the US dollar (EUR/USD, GBP/USD, USD/JPY, and others). Minimal spreads and predictable behavior — the best choice for a beginner.
Margin call: On other markets — the broker's demand to top up the account urgently, or the forced closing of a position due to insufficient collateral. Impossible in binary options.
Margin requirements: On other markets — the sum you must keep on the account as collateral against an open position. Binary options do not have them: you risk only the trade amount.
Market making: Maintaining quotes and a flow of matching orders so an asset can always be bought or sold. On OTC, the platform itself acts as the market maker when forming the price.
Market noise: Small, chaotic price moves unrelated to the main motion. On lower timeframes there is more noise, and it generates false signals.
Market phases: The repeating cycle of market states: accumulation, growth, distribution, decline. The cycle never ends — only its scale and speed change.
Market structure: The sequence of highs and lows on a chart. It is what defines the type of trend — up, down, or sideways.
Martingale: A capital management strategy where the next trade's size is increased after every loss (usually by 2.2x) and the first profit covers the whole losing streak. Dangerous because of the exponential growth in size.
Marubozu: A candle with a long body and virtually no shadows: open and close match the extremes. It shows one side controlled the market for the whole candle — a strong signal of continuation in the direction of the body.
Masaniello: A capital-management method that spreads an allocated sum across a series of N trades with a target number of wins. Each trade's amount is recalculated after every result — based on remaining trades, target wins, and the payout percentage.
Mathematical expectation: The averaged result of a strategy over a long stretch. A positive expectation means that, given many trades, the approach makes money.
Medium expiration: A trade time of 5–15 minutes. The optimum balance between speed and accuracy, less market noise. A universal option for most strategies.
Momentum: An indicator of the speed of price movement: it compares the current price with the price N candles ago. A rising value means the move is accelerating; a falling value while price direction holds means the impulse is fading and a reversal is possible.
Money management: Managing trade size and capital: the size is computed by rules, not "by feel". Risk above 2% per trade is no longer money management — it is gambling.
Morning routine: A fixed sequence of steps before the session: state check, news, pair scan, day plan, pause. Switches the trader into working mode and cuts out impulsive entries.
Morning Star: A three-candle reversal pattern at the bottom of a downward move: a strong bearish candle, a small indecision candle, and a strong bullish one closing above the midpoint of the first. Signals a possible reversal upward.
Moving average: A line built as the average price over a chosen period (for example, the last 20 candles). Smooths the noise on the chart and shows the current direction. The longer the period, the smoother the line.
Multi-timeframe analysis: An approach where a trade decision is made by checking several timeframes at once: the higher one sets the direction, the middle — the entry zone, the lower — the precise point. The trade is opened only when all three agree.
Multiplier: The number by which the next trade's size grows in a progression. In martingale it is around 2.2; in a soft progression — 1.1–1.2.

N

Neckline: The line connecting the intermediate lows (or highs) of a reversal figure — the head and shoulders, the double top. Its break confirms the figure and gives an entry signal.
Negative correlation: A relationship where two pairs move in opposite directions (for example, EUR/USD and USD/JPY). Buying one and selling the other is essentially the same trade taken twice.
News strategy: Trading the moves caused by major economic releases. It takes experience: in the first seconds after publication the spread widens and the price moves in jerks, so even a correct direction call can close at a loss because of noise.
NFP: Non-Farm Payrolls — the US monthly report on non-agricultural employment. One of the strongest news events: causes sharp moves, usually released at 12:30 UTC.
Night flat: A period of minimal activity (around 22:00–00:00 UTC): Europe and the US have closed, Asia has not yet opened. Price drifts without direction, the spread widens — not worth trading.

O

OHLC: OHLC (Open, High, Low, Close) — the four key prices for a period: open, high, low, and close. Bars and candles are built from them.
Open: The price at the start of the candle's period — the point where movement began.
Order: An instruction to buy or sell an asset under specific conditions. Price movement is the sum of many orders combined.
Oscillator: An indicator that swings inside a bounded range (for example, 0–100) and shows not the direction but the strength of price movement. Helps spot overbought and oversold conditions.
OTC: OTC (Over The Counter) — assets traded inside the platform rather than on an open exchange. Available 24/7, including weekends.
OTC asset: Over The Counter — an off-exchange asset. The price is built on the platform from historical data via liquidity providers using its own algorithm. The key feature is 24/7 availability, including nights, weekends, and holidays.
OTM (Out of the Money): OTM (Out of the Money) — the state of a trade whose forecast did not work out: by expiration the price moved against the chosen direction. An OTM trade closes at a loss of the trade amount.
Overbought: A state where price has risen too fast and too far — the move is "overheated" upward. On oscillators this is the zone above 70 (RSI) or above 80 (Stochastic). Indicates an increased chance of a pullback down.
Overnight range: The tight corridor in which price moved during the calm Asian session. A breakout of its boundaries on the London open often produces a strong directional move.
Oversold: A state where price has fallen too fast and too far — the move is "overheated" downward. On oscillators this is the zone below 30 (RSI) or below 20 (Stochastic). Indicates an increased chance of a bounce up.
Overtrading: Trading too frequently and chaotically with no plan or limits. Leads to losses even with a good strategy — simply because you cannot wait.

P

Pair correlation: A numerical measure of how synchronously two currency pairs move: from +1 (fully in the same direction) to −1 (fully opposite). Around 0 means no connection.
Parabolic SAR: Parabolic SAR (Stop and Reverse) — a trend indicator drawn as dots above or below price: dots under the candles mean an upward move, above them — a downward one. The dots flipping to the other side signals a possible trend change.
Pattern: A recurring figure of one or several candles that signals a possible change or continuation of price movement. Not a guarantee but a probable signal that needs context to confirm.
Pattern in trading: A recurring regularity in a trader's actions or results — for example, the time of day you trade better or the kinds of events after which you tend to err. The journal helps surface them.
Pause: A conscious stop in trading after a losing streak or in tilt. A closed terminal does not lose money — the pause often turns out to be the most profitable action of a bad day.
Payout: The share of the trade amount you receive on top of your stake when the forecast is right — up to 92%. The platform shows the payout in advance, before you open the trade.
Pennant: A trend-continuation pattern: after a strong impulse, price compresses into a small converging triangle. Then the trend resumes in the original direction.
Pin bar: A candle with a small body and one long wick — the market sharply went one way and came back. Used as a reversal signal at a channel border or a level.
Pip: The smallest unit of price change for a currency pair. Movement is measured in pips: for example, EUR/USD's daily range is around 60–120 pips.
Pivot Points: Support and resistance levels calculated by formula from the previous period's high, low, and close. Unlike hand-drawn levels they are objective — identical for every trader.
PMI: PMI (Purchasing Managers Index) — a gauge of business activity in the economy. Released monthly, carries medium impact.
Pole: The strong impulse move before a flag or pennant. The pole's length estimates the target: after the figure breaks, price usually travels a distance equal to the pole.
Position size: The trade size, computed so the loss never exceeds the set risk percent. The size obeys the risk, not the other way around.
Positive correlation: A relationship where two pairs move in the same direction (for example, EUR/USD and GBP/USD). Buying both at once is not two separate trades but doubled risk in one direction.
Pre-session ritual: A fixed sequence of 5–10 steps before every trading session: check your state, scan the market, write down the limits, calculate the trade size. Switches the brain into working mode.
Pre-trade checklist: A list of check questions the trader answers "yes" to before every entry. Even one "no" — the trade is skipped. Cuts out impulsive entries.
Previous value: The third column of the economic calendar next to the forecast and the actual: the indicator's value for the prior period. The market reacts not to the number itself but to how it compares with the forecast and the previous value — and to revisions of past data.
Profit Factor: Profit Factor — the ratio of all earned money to all lost money over a period. Above 1 — the strategy is in the green; below 1 — still in the red. Computed over at least 100 trades.
Profit target: A preset profit amount at which a partial withdrawal is triggered. For example, +50% of the starting deposit or a fixed figure.
Progression: Any approach that changes the trade size by a fixed step based on the outcome of the previous trade. Without a hard streak-length limit, any progression eventually destroys the deposit.
Psychological gap between rungs: The effect where $0.50 and $5 trades carry mathematically identical risk but feel psychologically different. The brain sees absolute numbers, not percents — so the move up is taken smoothly.
Pullback: A temporary price move against the main trend before it continues. On the Fibonacci grid a pullback often ends at 38.2%, 50%, or 61.8%.

Q

Quote: The current market price of an asset. Quotes change constantly under supply and demand.

R

Range: The price corridor between support and resistance inside which price travels during a flat or accumulation phase.
Real account: An account where you trade your own money: every profit and loss changes your actual balance. Switch to it only after stable results on a demo account and with risk-management rules already in place.
Recovery after a blowup: A structured return to trading in three stages after a large loss: pause, review, return on the minimum base. The aim is to restore decision stability — not to win the money back quickly.
Recovery attempt: Raising the next trade's size after a loss in order to win the loss back. Acceptable only as a careful scheme with a hard limit on streak length; without a limit — a path to a blowup.
Recovery Factor: Net profit divided by the maximum drawdown over the period. It shows how well the result justifies the risk endured: a value above 3 is considered a sign of a robust strategy.
Red flags: Signs that you must stop trading immediately: trading on emotion, the urge for revenge, breaking the plan, inability to stop despite fatigue and losses.
Reduced base: A trade size half the usual at which a trader returns after a losing streak or a blown account. Helps rebuild trust in yourself without risk.
Reinvestment: Leaving earned profit in the deposit so the next trades use the larger amount. Speeds up compounding, but without a withdrawal point the profit stays on paper only.
Replay: A TradingView feature for stepping through the chart one candle at a time. Used in backtesting to make decisions based only on the visible history, with no peeking ahead.
Reset to base: An immediate return to the base trade size. In anti-martingale it happens right after any loss; in a progression — when the streak limit is reached.
Resistance: A level where price turns down. Sellers actively post sell orders here.
Resistance level: A horizontal price zone where large supply is concentrated. Sellers do not let price go above it and turn it back down on each touch — the market's "ceiling".
Retail Sales: The monthly change in a country's retail trade volume. It shows the strength of consumer demand; a release far above or below the forecast moves the currency and sits in the economic calendar as high-importance news.
Retail traders: Private market participants trading small size, including beginners. Often end up being the "liquidity" for large players.
Retest: Price coming back to a level that has already been broken or tested — checking whether it holds its new role. Often gives a more reliable entry than the breakout itself.
Revenge urge: The drive to take back from the market at any cost after a loss. Under this impulse a trader increases sizes and enters without a signal — usually deepening the loss.
Reversal: A change of trend direction to the opposite. Important to tell from a pullback: a reversal changes the structure of highs and lows; a pullback does not.
Reversal candle: A candle with a specific shape (for example, a pin bar or an engulfing) that points to a possible direction change. Used as confirmation of an indicator signal.
Reversal pattern: A figure that signals the current trend is weakening and direction may change. It only carries weight at the end of a trend or at a key level.
Rising wedge: A wedge whose two boundaries both slope up and converge. Despite the rising look — a bearish figure: the expected breakout is down.
Risk management: The rules for handling risk: how much to risk per trade, when to stop, how to protect the deposit. Baseline protection — risk 1–2% of the deposit per trade.
Risk per trade: The percent of the deposit you are willing to lose on a single trade. The professional standard is 1–2% of the current balance. This rule keeps capital safe through any streak of losses.
Risk/Reward: Risk/Reward (R:R) — the ratio of possible loss to possible profit on one trade. In binary options it is fixed: the risk is 100% of the trade amount, the reward is the payout percent. At an 85% payout, R:R is 1 : 0.85.
Risk/reward ratio: A comparison of the possible loss and the potential profit on a trade. With a 1:2 or 1:3 ratio you stay in the green even with a 50% win rate.
ROI: ROI (Return on Investment) — net profit divided by the amount invested, as a percentage. For example, a $200 deposit and $30 profit in a month is a 15% ROI. It lets you compare the performance of strategies and periods.
Round level: A "clean" price like 1.0500, 1.0800, 1.1000. Such marks act as strong psychological levels — price often bounces off them or breaks through with momentum.
RSI: Relative Strength Index — an indicator that gauges the strength of price movement. A mismatch between it and price reveals a divergence — a sign that the trend is weakening.
RSI divergence: A mismatch between price and the RSI indicator: price prints a new high (or low), the RSI does not. An early signal that the trend is losing strength and a reversal is possible.

S

Scaling: Increasing the trade size and the deposit as skill grows. Safe scaling moves in proportion with the deposit and only after the move-up criteria are met.
Scalping: A trading style with very short trades on lower timeframes — many fast entries, each chasing a small move.
Self-control: The skill of reacting equally calmly to both profits and losses, never letting emotions change your actions. An even emotional state is the mark of a skilled trader.
Sellers (bears): Market participants playing for price to fall. When they are stronger than buyers, price moves down and bearish candles form.
Senkou Span: The two Ichimoku lines (Senkou Span A and B) between which the cloud is plotted. When A is above B the cloud is green (bullish); when A is below B it is red (bearish).
Session overlap: Hours when two regions trade at once (for example, Europe and America, 13:00–16:00 UTC). The most participants and money, pronounced trends — the "golden hours" for primary trades.
Session stop-loss: The rule to stop trading for the day after a certain number of losses in a row (usually 2–3). Protects you from continuing on a bad day.
Setup: A chart situation described in advance in your strategy — when it appears, you can take a trade.
Shooting Star: A reversal candle with a long upper wick (at least twice the body) and a small body at the bottom. Appears after a rise — a signal of a reversal down: sellers knocked price back.
Short: A trade betting on a fall in price — a sell. In binary options — a forecast that price will be lower at expiration.
Short expiration: A trade time of 1–5 minutes. Provides more signals and fast trades but is heavily exposed to market noise and demands high focus.
Sideways: The same as a flat — price moving inside a horizontal corridor with no pronounced trend. Conditions suited to range-bounce strategies.
Sideways (flat): A market state with no clear direction: price moves in a tight horizontal range. In a flat, signals fail more often and trading is harder.
Signal: Confirmation from analysis that entry conditions have lined up. Without a signal, an entry becomes a coin flip.
Signal candle: A candle that confirms the setup and gives permission to enter. The entry is usually taken at the open of the next candle.
Signal line: A smoothed indicator line (for example, an EMA(9) of the MACD line) that reacts with a lag. Its main purpose is to provide crossover signals with the main indicator line.
Skip day: A conscious decision not to open any trades during the session because of fatigue, emotions, news, or an unsuitable market. Part of discipline, not weakness.
Slippage: An order filling at a price slightly off the expected one because the market is moving fast. Slippage is more noticeable during low-liquidity hours.
SMA: SMA (Simple Moving Average) — the plain arithmetic mean of price over a period. The smoothest and most stable type of moving average, but reacts to price with a lag.
Social trading: The ability to see other traders' deals on the platform and copy them automatically (copy trading). Useful for watching experienced participants, but it does not replace your own risk management: someone else's losing streak becomes yours.
Spectra Charts: The charting platform of the PoSignals ecosystem: candlestick charts with a catalog of indicators and a builder for trading bots whose signal logic can be assembled with the help of neural networks. Works alongside Pocket Option.
Spinning Top: A candle with a small body in the middle and shadows on both sides — buyers and sellers fought, but nobody won. A sign of market indecision: after a series of spinning tops a trend often slows down or reverses.
Spread: The difference between the buy price and the sell price of an asset. It is a hidden cost: the wider the spread, the more it eats into profit. During low-activity hours and at night the spread can widen several times over.
Squeeze: A Bollinger Bands state where the channel is as narrow as it gets: volatility drops, the market is "gathering strength". A squeeze is almost always followed by a sharp move in one direction.
Standard deviation: A statistical measure of how price scatters around its mean. In Bollinger Bands the channel boundaries sit 2 standard deviations from the middle line — about 95% of candles fall inside the channel.
Stochastic: Stochastic Oscillator — an indicator of the current price's position relative to the price range over a period. Swings between 0 and 100, shows overbought (above 80) and oversold (below 20) conditions. Reacts faster than RSI.
Stop order (stop): A protective order that closes a trade when price moves against you. Caps the loss. Placed beyond a level with a small buffer — so a random poke does not knock it out too early.
Stop-loss: A preset level at which a trade is closed to cap the loss. Clusters of stop-losses at obvious levels form liquidity zones.
Strategy: A set of clear rules: which setup to wait for, when to enter, how much to risk, what expiration to pick. Replaces trading at random.
Streak length limit: A preset maximum number of progression steps (for example, 4 for anti-martingale, 10 for a 1.2 progression). When reached, the trade size resets to the base. Without a limit, any progression eventually destroys the deposit.
Sunk cost effect: A cognitive bias: money and time already spent push you to "see through" a losing approach — abandoning the investment feels wasteful. In trading it shows up as chasing losses after a losing streak and refusing to admit the chosen strategy doesn't work.
SuperTrend: An ATR-based trend indicator: the line below price means an upward move, above price — a downward one. The line jumping to the other side of price is used as a direction-change signal. Easy to read, but produces false flips in a flat market.
Supply: The market participants' readiness to sell an asset. When supply outweighs demand, sells dominate and price moves down.
Support: A level where price regularly bounces up. Buyers' orders pile up here.
Support level: A horizontal price zone where large demand is concentrated. Buyers do not let price go below it and push it back up on each touch — the market's "floor".
Swing: A trading style that holds trades longer than a day — the trader catches larger moves on higher timeframes.
Swing trading: A trading style aimed at capturing one full price swing — from the reversal point until the impulse fades. Trades are held longer than in intraday trading; in binary options this maps to long expirations.
Symmetrical triangle: A triangle whose two boundaries converge at an angle to one another. The direction of the breakout cannot be predicted in advance — wait for the actual move beyond a boundary.

T

Technical analysis: Studying the chart, candles, and levels to forecast price movement. The trader's main tool when looking for a trade entry.
Tenkan-sen: The conversion line in Ichimoku — the midpoint of the high and low over the last 9 candles. The indicator's fastest line, reacts to short-term moves.
The 5-second rule: A technique against FOMO: between "saw the move" and "hit the button" you wait 5 seconds. Most impulsive entries melt away in that time.
The 50/50 rule: The baseline approach to handling profit: when the target is hit, withdraw half of the profit and leave the other half in the deposit for growth.
The 80/20 success formula: The rule that 80% of a trader's results come from psychology — emotional control and discipline — and only 20% from the strategy and technique themselves.
Three black crows: A continuation pattern of three bearish candles in a row with large bodies, stepping down. A signal of continued decline — sellers are aggressively pressing the market.
Three white soldiers: A continuation pattern of three bullish candles in a row with large bodies, stepping up. A signal of continued growth — buyers are in full control.
Tick: A change in price by the smallest possible amount. A sequence of ticks builds every candle on every timeframe.
Tilt: A state of emotional loss of control where fear, anger, or the urge for revenge pushes out rational thinking. In tilt every next trade is worse than the previous one. The right move is a pause, not more trading.
Time management: An approach to managing session time: when to analyze the market, when to wait for the signal, when to enter, and when to pause. The right entry time matters more than the number of trades.
Timeframe: The period one candle on the chart spans: M1 — one minute, M5 — five minutes, H1 — one hour. A smaller timeframe shows more detail; a larger one — the overall picture.
Timeframe hierarchy: The "top-down" analysis principle: the higher timeframe sets the direction, the lower one — the precise entry moment. The higher one shows the "where", the lower one — the "when".
Touch: The moment when price reaches a level and reacts to it. The more touches a level survives, the stronger it is — but the higher the chance of an eventual breakout too.
Tournament: A trader competition on the platform: participants trade on a separate tournament balance, and the prize pool is shared among the leaderboard. A safe way to drill a strategy under competitive pressure without risking your main deposit.
Trade: A single trading operation: you pick an asset, direction, amount, and time, then wait for the outcome. In binary options, the trade closes automatically at expiration.
Trade amount: The money you risk in a single trade. In binary options this is also your maximum possible loss — you cannot lose more.
Trade journal: A log of every trade with its parameters, reason for entry, outcome, and emotional state. The basis for reviewing mistakes and improving the strategy.
Trade review: A structured analysis of a closed trade against a checklist: market context, reason for entry, the trade's path, missed signal, lesson. Done right after closing, for both wins and losses.
Trade size: The amount risked on a single trade. By the rules — 1–2% of the current deposit, computed from the balance rather than "by feel".
Trader's journal: A regular log of every trade with detailed analysis: asset, direction, amount, time, reason for entry, outcome, and conclusions. A personal database that turns experience into strategy.
Trading: Trading financial assets to make a profit based on a forecast of price moving up or down. It is a skill built on analysis, discipline, and risk management — not guesswork.
Trading bot: A program that analyzes the chart by predefined rules and issues signals or opens trades without the trader's involvement. A bot removes emotions and fatigue, but its rules and risk management are still set by a human.
Trading channel: Two parallel lines between which price moves. The upper line is dynamic resistance, the lower one — dynamic support. Confirmed by at least four touches of the boundaries.
Trading plan: The trader's written rules: goal, risk management, entry conditions, psychology, journaling. Eliminates random and emotional trades.
Trading psychology: The ability to manage your emotions, thinking, and behavior under market uncertainty. It is what decides whether you follow your plan or give in to an impulse.
Trading session: A period of heightened market activity tied to the working hours of major financial centers. Price moves at the start of sessions tend to be the most meaningful.
TradingView: A popular charting and indicator service. Used for market analysis and for backtesting strategies via the history-replay feature.
Trend: The overall direction of price over a chosen period. It shows which side of the market currently holds the strength, and exists on every timeframe.
Trend filter: A rule or indicator that defines the market's overall direction and cuts off trades against it. For example, if price is above a moving average, take buys only.
Trend strategy: An approach where trades are opened only in the direction of the current trend: upward from pullbacks in an uptrend, downward in a downtrend. It relies on trend continuation being statistically more likely than reversal.
Triangle: A compression figure of two converging lines: price moves in an ever-narrowing corridor. Compression is usually followed by a sharp breakout in one direction.
Triple Bottom: The mirror of the Triple Top: the price bounces three times off the same support level. Confirmation is the break of resistance drawn through the highs between the troughs, after which growth is expected.
Triple Top: A reversal pattern: the price hits the same resistance level three times and fails to break it. It is confirmed by a break of the support line drawn through the lows between the peaks — after that a move down is expected.
True range: The range of a single candle from low to high, accounting for gaps. The averaged true range over a period is the ATR indicator itself.
Turbo options: Binary options with very short expiration — usually 30 or 60 seconds. On such an interval technical analysis works weakly; movement is driven by random noise.

U

Unemployment rate: The share of unemployed people in a country's labor force — one of the key gauges of economic health. Published monthly alongside NFP (for the US) and capable of causing sharp moves in currency pairs involving the national currency.
Unrealistic expectations: Inflated goals like "I'll double the deposit in a week". Such goals force the trader into inappropriate risk. An experienced trader's realistic target is 5–15% per month.
Uptrend: A market state where each new high and low is above the previous one. Buyers dominate; price moves up in a zigzag.

V

Verification (KYC): KYC (Know Your Customer) — confirming your identity with documents at the broker's request. Usually required before the first withdrawal; completing it in advance means your profit won't get stuck waiting.
Volatility: The amplitude of price swings. High volatility means sharp, large moves; low volatility — a calm, sluggish market, as in a flat.
Volume: The number of trades or their size over a period. A volume spike at a level shows that large participants are trading actively there.
Volume histogram: A row of bars under the price chart: each bar shows the volume for its candle. The taller the bar, the more participants entered the market during that period.

W

Wedge: A figure of two converging lines that both slope in the same direction — up or down. Usually behaves as a reversal pattern: the breakout happens against the wedge's slope.
Weekly loss limit: The maximum loss across five trading days. Once it is hit, trading stops until the next week for review and recovery. The standard is 10–15% of the deposit.
Wick: The thin line above or below a candle showing its high or low for the period. When drawing a Fibonacci grid, take the extremes of the wicks, not the candle bodies.
Wick (shadow): The thin lines above and below the candle body. They show the period's high and low. A long wick means price travelled far but came back.
Wick / spike: A brief, sharp poke of price beyond a level with a quick return — another name for a false breakout. The spike triggers the stop orders of traders trading the level.
Williams %R: Larry Williams' oscillator showing where the current price sits within the period's range. Readings from 0 to −20 mark the overbought zone, from −80 to −100 — oversold. Similar to the Stochastic but reacts faster.
Win Rate: Win Rate (the percent of winning trades) — the share of trades closed in profit out of the total. With an 80–90% payout, you need a win rate of 53–55% just to break even on flat sizing.
Winning it back: An attempt to recover a loss immediately by raising the size or entering without a signal. A textbook mistake: instead of returning the loss it usually deepens it.
Winning streak: Several profitable trades in a row. No less dangerous than a losing streak: it breeds euphoria and the urge to raise the trade amount beyond the rules. A disciplined trader slows down after a long streak of wins instead of speeding up.
Withdrawal: Transferring profit from the trading account to your card or wallet. Regularly withdrawing part of the profit is a discipline habit: it locks in results and protects what you earned from the temptation to raise risk.
WMA: WMA (Weighted Moving Average) — a moving average with linear weights: the last candle matters most. The most reactive of the three types, more often used in scalping.

Z

Zero line: The horizontal 0 mark in an indicator pane. The MACD line crossing the zero line from below upward is a strong bullish signal; crossing from above downward — a bearish one.
ZigZag: An indicator connecting significant highs and lows with a broken line, discarding minor fluctuations. It gives no signals by itself — it is used to mark market structure, waves, and patterns. The last leg repaints until the move is confirmed.