Page 97 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

Exponential moving average
A moving average calculated by exponentially weighted input.
Fibonacci numbers
The series of numbers that are derived by adding the two previous numbers to obtain the next
number. That number added to the previous number results in the next number. The series of
numbers produces ratios used extensively by Elliot wave advocates, 38 percent, 50 percent, and
62 percent.
Filling the Gap
A gap becomes filled when prices move back into the black area of trading. Candlestick
terminology describes this as “closing the window”.
Gap
A price void where the trading range between one time period does not overlap with a price
trading of the next time period.
Golden cross
A bullish signal created by the short-term moving averages crossing above the long-term moving
averages.
High-wave
A group of candlesticks with long upper and/or lower shadows. This grouping of formations
foretells a market turn.
Implied volatility
A measure for the market to forecast future volatility.
Inside session
This is a trading session where the high and the low of a trading period remains within the high
and the low of the previous trading session.
Intra-day
Trading periods that begin and end within a one-day time frame.
Islands A formation created at the end of a trend where prices gap away from the current trend,
trade for two or more days at those levels, and then gap back in the opposite direction. This
leaves an island of trading at the end of the trend. Commonly known as island reversals. Strong
reversal indicator.
Locals
Floor traders that make their living by trading a particular entity.
Lower shadows
The trading range below the body of a candle.
Momentum
Related to the velocity of a price move. The most recent close is compared to a specific number
of closes in a specific time frame.
Morning attack
A Japanese definition for a large buy or sell order on the opening that is designed to significantly
move the market.
Moving Average Convergence-Divergence oscillator (MACD)
A combination of three exponentially smoothed moving averages.

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