Forex Glossary

Category: Forex Technical Analysis

Category: Forex Technical Analysis

  • Average Directional Movement Index (ADX) →

    A technical indicator that gauges the momentum or strength of a prevailing trend regardless of its direction.

  • Average True Range (ATR) →

    A technical indicate that measures the volatility of a currency pair or any trading instruments.

  • Basis →

    Difference between the cash price and futures price.

  • Basis Convergence →

    The movement of the basis towards zero as the expiration of a futures contract nears.

  • Bearish Divergence →

    A technical analysis where new price tops are getting higher as a certain technical indicator top is dipping, indicating weakness of the uptrend.

  • Bollinger Band →

    A technical indicator that measures volatility.

  • Broadening Formation →

    A chart pattern formation that some traders use as indication of a potential trend reversal.

  • Bullish Divergence →

    A technical analysis where new price bottoms are getting lower as a certain technical indicator bottom is rising indicating weakness in the downtrend.

  • Business Inventories →

    A fundamental indicator of the value of unsold goods produced by retailers, wholesalers and manufacturers.

  • Candlestick Chart →

    A type of chart consisting of blocks with vertical lines that resemble the look of candlesticks.

  • Consumer Confidence →

    A measure of the overall ambiance surrounding the financial conditions within an economy.

  • Consumer Price Index (CPI) →

    A measure of the average price level of a basket of goods and services purchased by the consumers.

  • Darvas Box →

    A technical indicator developed by Nicholas Darvas to identify breakouts.

  • Death Cross →

    A technical and charting analysis term that refers to when a short-term Moving Average crosses under a long-term Moving Average.

  • Descending Triangle →

    A chart pattern formation that some traders use as indication of a downtrend continuation.

  • Directional Movement Indicator (DMI) →

    A technical indicator developed by J. Welles Wilder for identifying whether a trend exists.

  • Double Bottom →

    A chart pattern formation that may indicate possible bullish future price movements.

  • Double Top →

    A chart pattern formation that may indicate bearish future price movements

  • Durable Goods Order →

    A fundamental economic indicator that measures the strength of manufacturing.

  • Eco Watcher Survey →

    Short for Economic Watchers Survey, a Japanese confidence indicator that gauges the sentiment of businesses at the street level.

  • Employment Cost Index (ECI) →

    A economic indicator of the U.S. that measures the growth rate and inflation of labor cost.

  • Engulfing Pattern →

    A candlestick pattern that suggests strength of a current candlestick that has a larger body than a previous.

  • Fibonacci Retracement →

    A technical analysis term that refers to the levels a correction may hit before returning to the direction of the major price movement.

Forex Trading Terms (Alphabetical)