Trading glossary
Plain-English definitions for the words you meet on chart tools, EA reports and prop-firm rule pages. 18 terms so far.
AllTrend & moving averages 13Oscillators & momentum 1Volatility & ranges 2Price action & SMC 1Supply, demand & key levels 1
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- Higher timeframe biasTrend & moving averagesHigher timeframe bias is the trend direction read from a longer chart, used to filter which trades a trader will take on a shorter entry chart.
- Hull moving averageTrend & moving averagesThe Hull moving average is a fast-turning moving average that layers weighted averages to cut lag, used on MT5 as a single trend line to read direction and trade pullbacks.
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- MACDOscillators & momentumMACD (Moving Average Convergence Divergence) is an MT5 momentum oscillator that compares a fast and a slow EMA to show when price momentum is turning.
- Moving averageTrend & moving averagesA moving average is a line plotted from the average price over a set number of past candles, used to smooth price action and show the direction of the trend.
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- Sideways marketTrend & moving averagesA sideways market is a price phase where price repeats between a fairly flat top and bottom instead of trending, so traders fade the edges or wait for a breakout.
- Simple moving averageTrend & moving averagesA simple moving average (SMA) is the average closing price of the last N candles on an MT5 chart, plotted as one line to show trend direction and pullback levels.
- SupertrendTrend & moving averagesSupertrend is a single ATR-based line plotted on price that flips above or below it to show trend direction and acts as a trailing stop.
- SupportSupply, demand & key levelsSupport is a price area where a downtrend has repeatedly stalled and turned higher, giving traders a reference zone for buy entries, stop-loss placement, and gauging selling strength.
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- Trend channelTrend & moving averagesA trend channel is a pair of parallel trendlines drawn along a market's swing highs and swing lows, marking the rough zone where price has been moving.
- Trend filterTrend & moving averagesA trend filter is a rule that only allows trade signals matching the direction of a chosen moving average, trend line or trend channel.
- Trend lineTrend & moving averagesA trend line is a straight line drawn across two or more swing highs or swing lows to show the general direction of price and mark areas where price has reacted before.