AI-Powered Explanations

Trading Indicator Glossary

Learn indicators and patterns the right way. AI-powered explanations with practical examples, common mistakes, and pro tips.

IndicatorRSI

Relative Strength Index (RSI)

A momentum oscillator that measures the speed and magnitude of price movements on a scale from 0 to 100.

RSIrelative strength indexoverbought

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IndicatorMACD

Moving Average Convergence Divergence (MACD)

A trend-following momentum indicator that shows the relationship between two moving averages of price.

MACDmoving average convergence divergenceMACD crossover

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IndicatorVWAP

Volume Weighted Average Price (VWAP)

The average price weighted by volume, showing the true average price paid by traders throughout the session.

VWAPvolume weighted average priceintraday trading

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IndicatorBB

Bollinger Bands

A volatility indicator consisting of a middle band (SMA) and two outer bands set at standard deviations above and below.

Bollinger Bandsvolatility indicatorBollinger squeeze

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IndicatorMA

Moving Averages (SMA & EMA)

Trend-following indicators that smooth price data to show the average price over a specific period.

moving averageSMAEMA

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IndicatorStoch

Stochastic Oscillator

A momentum indicator comparing the closing price to the range of prices over a specific period.

stochastic oscillatorstochastic RSIoverbought

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IndicatorFib

Fibonacci Retracements

Horizontal lines indicating potential support and resistance levels based on the Fibonacci sequence.

Fibonacci retracementFibonacci levelsgolden ratio

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IndicatorATR

Average True Range (ATR)

A volatility indicator that measures the average range of price movement over a specified period.

ATRaverage true rangevolatility indicator

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IndicatorVolume

Volume Analysis

The number of shares/contracts traded, used to confirm price movements and identify potential reversals.

volume analysistrading volumevolume confirmation

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PatternS/R

Support & Resistance

Price levels where buying interest (support) or selling pressure (resistance) has historically been strong.

support and resistancesupport levelresistance level

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PatternH&S

Head and Shoulders Pattern

A reversal pattern consisting of three peaks, with the middle peak (head) being the highest.

head and shouldersreversal patterninverse head and shoulders

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PatternDouble Top/Bottom

Double Top & Double Bottom

Reversal patterns where price tests a level twice and fails to break through.

double topdouble bottomreversal pattern

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PatternFlags

Bull Flag & Bear Flag

Continuation patterns that appear as a brief consolidation against the trend before continuation.

bull flagbear flagflag pattern

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PatternBreakout

Breakout Trading

A trading strategy based on price moving beyond defined support or resistance levels with momentum.

breakout tradingbreakout strategysupport breakout

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