Trading Dictionary

139+ Trading Terms Explained

Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.

D
Dead Cat Bounce
Price Action & Patterns

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

Death Cross
Technical Analysis

A bearish technical signal that occurs when a shorter-term moving average crosses below a longer-term moving average — most commonly when th

Delta
Options & Derivatives

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
Trader Slang

Diamond hands is internet trading slang for holding a position through severe volatility and losses without selling — originally used to pra

Dip Buy
Trader Slang

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

Discipline
Trading Psychology

Trading discipline is the consistent application of your predefined rules — entries, stops, targets, position sizing, maximum daily loss — r

Doji
Price Action & Patterns

A doji is a candlestick where the opening and closing prices are nearly identical, creating a very small body with wicks extending above and

Double Bottom
Price Action & Patterns

A bullish reversal pattern formed by two consecutive troughs at roughly the same price level, creating a "W" shape on the chart. It signals

Double Top
Price Action & Patterns

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
Macro & News

Dovish describes a monetary policy stance that favors keeping interest rates low, accommodating economic growth, or signaling tolerance for

Drawdown
Risk & Money Management

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