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 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 bearish technical signal that occurs when a shorter-term moving average crosses below a longer-term moving average — most commonly when th
Delta is an options Greek that measures how much an option's price is expected to change when the underlying stock moves $1 — a call with a
Diamond hands is internet trading slang for holding a position through severe volatility and losses without selling — originally used to pra
A dip buy is entering a long position after price has pulled back from a recent high — the goal is getting a better entry price in a stock t
Trading discipline is the consistent application of your predefined rules — entries, stops, targets, position sizing, maximum daily loss — r
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
Dovish describes a monetary policy stance that favors keeping interest rates low, accommodating economic growth, or signaling tolerance for
A drawdown is the peak-to-trough decline in account equity — it measures how far you've fallen from your high-water mark, either from a sing
