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Definition of Scalping In trading, scalping is a short-term strategy where a trader aims to make many small profits by quickly buying and selling an asset — sometimes holding it for just seconds or minutes. The goal is to “scalp” tiny price movements, stacking up small wins that, over time, can add up to meaningful gains.

Definition of a Tick Chart A tick chart is a type of financial chart that plots price movement based on a specific number of transactions — or “ticks” — rather than time. Unlike traditional charts that show how a stock or asset performs over minutes, hours, or days, a tick chart updates only when a set number of trades have occurred.

Definition of Order Book An Order Book is a real-time, continuously updated list of buy and sell orders for a particular financial asset—like a stock, cryptocurrency, or commodity—organized by price level. It shows how much demand and supply exist at each price point and helps traders see market activity as it unfolds.

Definition of Volume Profile Volume Profile is a trading tool that shows how much trading activity (volume) occurred at specific price levels over a given period of time. Instead of focusing on when trades happened (like a traditional volume chart does), it focuses on where they happened — revealing price zones where the most buying and selling took place. Think of it as an X-ray of the market. It tells you where traders cared most, not just when they were active.

Definition of a Point and Figure Chart A Point and Figure Chart is a type of financial chart used in technical analysis to track price movements without considering time. Unlike traditional line or candlestick charts that plot prices over specific dates, Point and Figure (P&F) charts focus purely on price changes and trends.

Definition of a Renko Chart A Renko Chart is a type of financial chart developed by the Japanese that focuses exclusively on price movement, not time or volume. Unlike traditional charts that plot data based on set intervals (like daily or hourly), Renko charts use “bricks” to represent a fixed amount of price movement—say $1, $5, or $10 per brick. A new brick is added only when the price moves enough to meet that threshold, effectively filtering out small, insignificant flu

Definition of Heikin-Ashi The term Heikin-Ashi (pronounced “hey-kin ah-shee”) is Japanese for “average bar.” It’s a type of candlestick chart used by traders to smooth out price data and make it easier to spot trends. While a standard candlestick chart shows every little price jump and drop, the Heikin-Ashi method averages out the movement — helping you see the forest instead of getting lost in the trees.

Definition of an OHLC Chart An OHLC chart (which stands for Open, High, Low, Close) is a type of financial chart used to show how the price of an asset—such as a stock, cryptocurrency, or commodity—moved during a specific period of time. Each vertical bar represents one unit of time (like a day), showing four key data points:

Definition of Line Chart A line chart is a type of graph that uses lines to show how a value changes over time. Each point on the chart represents a specific data value—such as a stock price, an index level, or a company’s revenue—plotted along a time axis. When the points are connected, the line shows the trend, making it easy to visualize increases, decreases, or stability in performance.

Definition of Bar Chart A bar chart is a type of graph that uses rectangular bars to represent data. The length or height of each bar corresponds to the value it represents — longer bars mean higher numbers, shorter bars mean lower numbers. In finance, bar charts are commonly used to show things like stock prices, company earnings, revenue growth, or expense comparisons over time.

Definition of a Candlestick Chart A Candlestick Chart is a type of financial chart that shows how an asset’s price moves over a specific time period—whether that’s one minute, one day, or one month. Each “candlestick” represents four key data points...

Definition of Bollinger Bands In simple terms, Bollinger Bands show when a price may be overbought (too high) or oversold (too low) based on how far it moves from its average. In Plain English:Think of Bollinger Bands as a “mood ring” for market prices. When the bands expand outward, the market’s emotions are running hot—there’s higher volatility and larger price swings. When the bands tighten, the market’s taking a breather—lower volatility and smaller price moves.

Definition of RSI (Relative Strength Index) RSI is a momentum indicator used in technical analysis that measures the speed and change of price movements. It ranges from 0 to 100 and helps investors identify whether an asset—like a stock, ETF, or cryptocurrency—is potentially overbought or oversold.

Definition of MACD MACD (pronounced “mack-dee”) stands for Moving Average Convergence Divergence. It’s a popular technical indicator used by traders to analyze stock price trends and momentum. In simple terms, it shows the relationship between two moving averages of a stock’s price — usually the 12-day and 26-day exponential moving averages (EMAs).

Definition of Moving Average A moving average (MA) is a calculation that helps smooth out price data by creating a constantly updated average price over a specific time period. Investors and traders use moving averages to identify trends and potential buy or sell signals by filtering out short-term price noise.

Definition of Fibonacci Retracement A Fibonacci Retracement is a technical analysis tool that helps traders identify potential levels where a stock (or any financial asset) might reverse or “bounce back” after a price move.It’s based on the famous Fibonacci sequence — 0, 1, 1, 2, 3, 5, 8, 13, etc. — where each number is the sum of the two before it.

Definition of a Flag Pattern A Flag Pattern is a chart pattern in technical analysis that signals a short pause in a strong trend — like a pit stop before the market continues racing in the same direction. It looks just like it sounds: a small rectangular “flag” that forms after a sharp “flagpole” move up or down.

Definition of Cup and Handle A Cup and Handle is a chart pattern that signals a potential continuation of an uptrend after a brief period of consolidation. Imagine the price forms a “U” shape — that’s the cup. Then it drifts slightly downward or sideways — that’s the handle. When the handle finishes forming, the price often breaks out above the resistance line, signaling that buyers are back in control. It’s like the market taking a sip of coffee before charging full steam

Definition of Head and Shoulders A Head and Shoulders is a classic chart pattern used in technical analysis to predict a potential reversal in the price of a stock, commodity, or index. The pattern looks—quite literally—like a head with two shoulders...