Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
A bear flag is a continuation pattern where price pauses in a tight, slightly upward channel after a sharp drop — it looks like a brief rest
A bull flag is a continuation pattern where a stock pauses in a tight, slightly downward channel after a sharp move higher — it's called a f
A dead cat bounce is a brief, temporary recovery in a stock that has been in a steep decline — appearing to reverse but quickly resuming the
A doji is a candlestick where the opening and closing prices are nearly identical, creating a very small body with wicks extending above and
A bullish reversal pattern formed by two consecutive troughs at roughly the same price level, creating a "W" shape on the chart. It signals
A double top is a bearish reversal pattern that forms when price advances to a high, pulls back, then rallies again to approximately the sam
A single-candle reversal pattern with a small body near the top of the candle and a long lower wick — at least twice the body length. It sig
A head and shoulders pattern is a classic reversal formation with three peaks — a higher middle peak (the head) flanked by two lower peaks (
A near-vertical price acceleration where a stock or asset moves sharply higher (or lower) in a short period, its trajectory curving steeply
A pin bar (also called a hammer, shooting star, or rejection candle depending on direction) is a single candlestick with a long wick and sma
