Glossary
Here you can find the definitions of terms you might be unsure about.
B
- Baseline – a central line in an indicator, which consists of several elements. The baseline is usually used as a reference line. Depending on which way other elements are located in relation to the baseline, traders can spot signals for potential trend reversals, as well as entry/exit points.
- Bullish trend – an upward trend in the market, indicating that the price of an asset increases.
- Bearish trend – a downward trend in the market, indicating that the price of an asset decreases.
C
- Candle – a method of displaying information about the price movement of an asset. The candle charts are one of the most popular components of technical analysis, allowing traders to quickly interpret price information from just a few price bars. Each candle is placed along the timeline on the X-axis and displays the results of trading activity for a certain period of time. The main rectangle of the chart element is called the body. It displays the range between the opening and closing price in a certain period of time.
- Close – close value of the current candle.
- Close Time – candle closing time (UNIX time).
- Crossover – the position of several indicators, or elements of the same indicator, where the crossing of which would be referred to as a signal for potential trend reversals, as well as entry/exit points.
D
- Divergence – discrepancy between the graph movement and the direction of the indicator, where the graph and the indicator are moving the opposite direction. It can be a signal for potential reversal of the asset price.
F
- Flat – the situation in the market, where there is no significant price movement of an asset.
- Function – a mathematical calculation or an algorithm, which is used to analyze the market data. The function calculation is included in an overall build of a technical indicator, depending on its purpose.
L
- Lua – a scripting programming language. The language interpreter is a freely distributable, open-source language in the C programming language.
M
- Momentum – in trading terms, it can be considered as the speed and strength of the trend on the market.
- Moving Average – a technical indicator, which is usually used on its own as well as one of the elements in more complex indicators. It represents the averaged asset price movement over a specific period of time.
O
- Open Time – candle opening time (UNIX time).
- Overbought level – a limit, when reached by the indicator, can signal that the asset is overbought, and the upward trend might change its direction to the downward trend.
- Oversold level – a limit, when reached by the indicator, can signal that the asset is oversold, and the downward trend might change its direction to the upward trend.
P
- Period – a timeframe, chosen for technical analysis, which will be taken into calculation.
Q
- QCS (Quadcode Script) – a programming language that allows the creation of custom technical analysis tools. Currently, the language is based on Lua 5.3 and supports most of the Lua language features.
R
- Reversal point – the situation in the market, when the trend might change its direction to the opposite one. For example, a bullish trend can become bearish, and vice versa.
S
- Script – trading indicators and strategies created using a programming language and designed to perform specified actions automatically in the trading terminal. Scripts can perform various functions, such as opening or closing orders, changing parameters of trading instruments, analyzing charts and much more.
- Sideways trend – the situation in the marker, when the price of an asset moves within quite a narrow corridor, not showing any significant fluctuation in either direction.
T
- Trend – the movement of an asset price of various significance. The trend can be upward (bullish), when the price of an asset increases, and downward (bearish), when the price of an asset decreases. There is also a sideways trend
U
- UTC – Coordinated Universal Time format.
V
- Volatility – the ability of the asset price to change swiftly in a short timeframe. The more volatile the asset, the less predictable its price movement will be.
- Volume – the total amount of the asset, bought or sold in the market within a chosen period of time. This characteristic can be referred to as the overall “health” of an asset, and its potential price movement.