Page 99 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

Retracement
The price movement in the opposite direction of the recent trend.
Reversal session
After a move experiences a new high (or low), the next close is below (or above) the previous
day’s close.
Rickshaw Man
A long-legged Doji where the body, although small, is in the center of the formation.
Selling climax
After a move downwards, prices push sharply lower on heavy volume. If prices move higher from
these levels, a selling climax has occurred.
Selloff
The downward movement of prices.
Shadows
The extreme price movement outside the body of a candle creates the shadows. The lower
shadow extends from the bottom of the body to the low price of the day. The upper shadow
extends from the top of the body to the high price of the day.
Shaven bottom
A candlestick with no lower shadow.
Shaven head
A candlestick with no upper shadow.
Simple moving averages
The smoothing of price data where prices are added together, and then averaged. The term
moving is included due to the fact that as each new day’s information is added to the numbers,
the oldest data is dropped.
Spring
When prices break below a congestion area, and then spring right back above the broken support
area, it has produced a bullish signals.
Star
A small body that gaps away from the previous long body. A star indicates the reduction of force
illustrated by the previous long candle. A star following a long black body is called a raindrop.
Stochastics
An oscillator that measures the relative position of closing prices compared to the trading range
over a specified period of time. %K indicates the fast stochastic, %D indicates the slow stochastic.
Support level
An obvious level where buyers are shown to step in and hold prices above that level.
Tick volume
The number of trades occurring during a specific time interval.
Time filter
A price level that prices have to stay above or below for a specific period of time to confirm that
a technical level has been broken.
Trend
A price’s prevalent directional movement.

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