Zen Dictionary

A candle whose high is higher than the highs of the candles immediately before and after it.

A candle whose low is lower than the lows of the candles immediately before and after it.

A swing high that prints above the previous swing high.

A swing low that forms above the previous swing low.

A swing high that forms below the previous swing high.

A swing low that prints below the previous swing low.

A market structure made of successive higher highs and higher lows.

A market structure made of successive lower highs and lower lows.

A phase where price oscillates between a roughly horizontal ceiling and floor without making progress.

Price closing decisively beyond a level that had been holding it, such as a range high or resistance.

Price pushes beyond a level, fails to hold, and closes back inside the prior range.

After a breakout, price returns to the broken level and holds it from the other side.

A price area where buying has repeatedly been strong enough to stop a decline.

A price area where selling has repeatedly been strong enough to stop an advance.

A band of price where a sharp sell-off originated, implying unfilled sell orders remain there.

A band of price where a sharp rally began, implying unfilled buy orders remain there.

Each candle summarises one time period with four prices: open, high, low and close.

A candle whose open and close are almost identical, leaving a very small body.

A candle with a small body near the top and a long lower wick, appearing after a decline.

A two-candle pattern where a green body fully covers the previous red body.

A two-candle pattern where a red body fully covers the previous green body.

A candle with a small body and one wick far longer than the other.

An instruction to buy or sell immediately at the best price currently available.

An instruction to buy or sell only at a specified price or better.

A resting order that closes a position once price reaches a level that proves the idea wrong.

A resting order that closes a position at a predefined favourable price.

The distance from entry to target divided by the distance from entry to stop.

Choosing quantity so that the distance to your stop equals a fixed amount of account risk.

Borrowed exposure that lets a position be larger than the margin backing it.

The collateral reserved from your balance to keep a leveraged position open.

The price at which losses consume your margin and the exchange force-closes the position.

An order flagged so it can only shrink or close an existing position, never open or increase one.

A position that profits when price rises.

A position that profits when price falls.

A periodic payment exchanged directly between long and short holders to keep the perpetual price tethered to spot.

The total value of derivative contracts currently open and not yet closed.

Last price is the most recent trade on that contract; mark price is a smoothed fair value derived from an index of spot markets.

Entering a new trade quickly after a loss, driven by the urge to win the money back.

Fear of missing out — entering because price is already moving, not because a level was reached.

Taking more trades than your plan calls for, often out of boredom or a need to be active.

The decline from an equity peak to the following trough, usually shown as a percentage.

The share of closed trades that finished profitable, expressed as a percentage.

Gross profit divided by gross loss across a set of closed trades.

The average amount you can expect to win or lose per trade, given your win rate and your average win and loss.