Macro Trading

In contrast to Micro Trading (which is industry specific), Macro Trading is taking advantage of changes within a large sector.  Traders utilizing this strategy will study Macro factors to analyze and predict the future performance of a specific sector.  They use...

Hyperwave

A theory that is used as a way to describe a blowing bubble.  It is made up of specified signals at specified times which may predict future movements with varying accuracy.  Essentially, at certain times the price won’t go above a certain range, and at others,...

Day Trading

The buying and selling of financial instruments (derivatives, forex, commodities, etc) in an attempt to make a profit the same day.  While all trading is done with the aim of making a profit, what sets day traders apart is they rarely hold a position overnight (or...

Pennant Chart Pattern

A continuation chart pattern seen when a security shows large upward or downward motion followed by a brief consolidation period before continuing to move in the same direction.  The pattern looks like a small symmetrical triangle (referred to as the...

Market Sentiment

Also called “investor sentiment,” market sentiment is the overall attitude of investors in a security or in the market as a whole.  It is the crowd psychology of investors, buyers, and sellers demonstrated through price movement.  The market shows bullish...

Lot Size

Common in spot forex trading, lot sizes are the amount of units required to make a trade.  Within forex trading, the lot sizes are typically 100, 1,000, 10,000, or 100,000.  Recently, non-standard lot sizes (or “odd lots”) have also become available to...

Lot

The standardized number of units of a stock or asset that are being traded.  For example, in forex trading (where trading in standardized amounts is common), the lot is the number of currency units you will buy or sell.  If the unit is not in a standard lot size, it...

Ichimoku Cloud

A collection of technical indicators that takes multiple averages and plotting them on a chart.  This displays support and resistance levels in addition to momentum and trend direction.  These figures when plotted form a “cloud,” which is used to predict...

Liquidation Level

A security feature designed to protect traders and dealers from significant losses beyond a defined point.  When a traders account funding reaches the liquidation level, any positions previously held by the trader will be automatically closed...

Head and Shoulders Chart Pattern

A fairly reliable bullish-to-bearish trading pattern.  It is formed by three peaks, with the outer two peaks close in height and the middle peak the highest.  It is generally taken as a trend reversal pattern.  After a long bullish trend, the prices rise to a peak and...