Trading Terminologies

If you're into trading, whether as retail traders or on the other end of the spectrum, you're likely to be familiar with most of the key terms that traders use. However, some trading terms used in the context of the screener may not be aligned with what you're accustomed to.

Thus, we have prepared this short list of trading terminologies you'd commonly see in this doc.

Bearish

Bearish is a bias in which the anticipated movement of the market is leaning towards a decrease in prices (downtrend).

Bounce

In trading, a bounce refers to a sharp upward movement of a stock's price after it hits a support level (can be a moving average or trendline).

Bullish

Bullish is a bias in which the anticipated movement of the market is leaning towards an increase in prices (uptrend).

Confluence

In trading, it refers to the combination of one or more trading technique to increase the chances of winning the trade.

Divergence

Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator (RSI). It warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.

Exponential Moving Average (EMA)

These are moving averages that are adjusted to give greater weight and reacts more significantly to the most recent price data.

Momentum

This is a setup wherein we want to take advantage of stroing coins about to break out or is already breaking out.

Moving Average (MA)

It is a technical analysis indicator that shows the average price of a coin over a specified period of time.

Pullback

This refers to a technical signal indicating a temporary dip in price, but from which a rebound can be expected.

Reversal

This occurs when the prevailing trend exhausts itself, and the price starts moving in the opposite direction.

Risk-to-Reward Ratio (RR)

Defined as the amount you can lose compared to the amount of possible gain from a single trade.

Sweeps

A sweep is when a candle goes lower than the previous low but closes higher than swing low.

Swing High

A swing high refers to a high that is higher than the two candles to the left and right of it.

Swing Low

A swing low refers to a low that is lower than the two candles to the left and right of it.