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 four-point harmonic chart pattern where price makes an initial impulse leg (AB), a corrective pullback (BC), and then a continuation leg (
Trading that occurs after the regular market session closes at 4:00 PM ET, typically available from 4:00 PM to 8:00 PM ET. After-hours volum
The inability to pull the trigger on a trade because of excessive analysis, conflicting signals, or fear of being wrong. The trader keeps ad
An ascending triangle is a bullish chart pattern with a flat upper resistance line and a rising lower trendline — buyers are stepping up at
The ask is the lowest price a seller is currently willing to accept. When you buy with a market order, you pay the ask.
Average loser is your mean loss across all losing trades in a given period — it's the number that tells you whether your losers are staying
Average True Range (ATR) measures how much a stock or market typically moves over a set number of periods — it's a pure volatility reading,
Average winner is the mean profit across all your winning trades — the number you compare against average loser to know whether your strateg
