All Forex Terms

Abandoned Baby

A rare candlestick pattern indicating a potential reversal, characterized by a gap between a doji candlestick and two candles with large bodies in opposite directions.

Bearish Engulfing Pattern

A candlestick pattern signaling a potential bearish reversal, where a small bullish candle is followed by a larger bearish candle that completely engulfs it.

Bullish Belt Hold

A single candlestick pattern indicating a potential bullish reversal, characterized by a long bullish candle that opens lower and closes near its high, with little or no lower shadow.

Bullish Engulfing Pattern

A candlestick pattern signaling a potential bullish reversal, where a small bearish candle is followed by a larger bullish candle that completely engulfs it.

Dark Cloud Cover

A bearish reversal candlestick pattern where a bullish candle is followed by a bearish candle that opens above the previous high but closes below the midpoint of the bullish candle.

Doji

A candlestick pattern where the opening and closing prices are virtually equal, indicating indecision in the market and potential reversal signals.

Dragonfly Doji

A type of doji candlestick with a long lower shadow and little or no upper shadow, suggesting a potential bullish reversal after a downtrend.

Engulfing Pattern

A candlestick pattern where a smaller candle is followed by a larger candle that completely engulfs the previous one, indicating a potential reversal.

Evening Doji Star

A bearish reversal pattern consisting of a bullish candle, followed by a doji that gaps above, and then a bearish candle closing below the midpoint of the first candle.

Evening Star

A bearish reversal pattern comprising a large bullish candle, a small-bodied candle that gaps above, and a large bearish candle closing below the midpoint of the first candle.

Falling Three Methods

A bearish continuation pattern with a long bearish candle, followed by three small bullish candles, and another long bearish candle, indicating a pause before the downtrend continues.

Gravestone Doji

A doji candlestick with a long upper shadow and little or no lower shadow, suggesting a potential bearish reversal after an uptrend.

Hammer

A bullish reversal candlestick pattern with a small body, little or no upper shadow, and a long lower shadow, indicating potential reversal after a downtrend.

Hanging Man

A bearish reversal candlestick pattern similar to the hammer but occurring after an uptrend, indicating potential reversal.

Harami

A two-candle reversal pattern where a long candle is followed by a smaller candle whose body is completely contained within the prior candle’s body, indicating a potential trend reversal.

Harami Cross

Similar to the Harami pattern, but the second candle is a doji (an indecisive candle), which can signal a potential reversal in the prevailing trend.

In Neck

A bearish reversal pattern occurring in an uptrend where a bearish candle closes near the “neck” of the preceding bullish candle, suggesting a possible downward turn.

Inverted Hammer

A candlestick with a small body, little to no lower shadow, and a long upper shadow appearing after a downtrend, potentially indicating a bullish reversal.

Long Candle

A candle with an extended body that signifies strong buying or selling pressure during the period, reflecting significant market momentum.

Long-Legged Doji

A doji candle characterized by a very small body and long upper and lower shadows, reflecting high volatility and market indecision.

Marubozu

A candle with little or no shadows, where the open and close are at or near the high and low, indicating strong, unidirectional momentum.

Morning Star

A bullish reversal pattern comprising three candles: a long bearish candle, a small-bodied candle (or doji) that gaps down, followed by a long bullish candle that closes well into the body of the first candle.

On Neck

A bearish reversal pattern where a candle closes very near the “neck” line of the preceding candle, suggesting a potential reversal after an uptrend.

Piercing Line

A bullish reversal pattern in a downtrend where a bearish candle is followed by a bullish candle that opens lower but closes above the midpoint of the previous candle’s body.

Rising Three Methods

A bullish continuation pattern where a long bullish candle is followed by three small-bodied candles that remain within its range, and then another bullish candle that closes above the first candle’s close.

Shadow

The thin lines (wicks) above and below the body of a candlestick that represent the highest and lowest prices reached during the period.

Shooting Star

A bearish reversal pattern that forms at the top of an uptrend; it features a small body, little or no lower shadow, and a long upper shadow, indicating selling pressure.

Spinning Top

A candle with a small real body and relatively long upper and lower shadows, indicating market indecision between buyers and sellers.

Stick Sandwich

A reversal pattern where a long candle is followed by a small candle that gaps in the direction of the prevailing trend, and then another long candle in the same direction, “sandwiching” the small candle.

Three Black Crows

A bearish reversal pattern consisting of three consecutive long bearish candles with short or no shadows, each opening within the previous candle’s body, indicating strong selling pressure.

Three White Soldiers

A bullish reversal pattern made up of three consecutive long bullish candles with small shadows, each opening within the previous candle’s body, suggesting strong buying pressure.

Tweezer Bottom

A bullish reversal pattern identified by two or more candles with matching lows, indicating a level of support and a potential reversal from a downtrend to an uptrend.

Tweezer Top

A bearish reversal pattern characterized by two or more candles with matching highs, suggesting a level of resistance and a possible reversal from an uptrend to a downtrend.

Central Banks

Institutions that manage a country’s currency, money supply, and interest rates. They play a key role in implementing monetary policy, ensuring financial stability, and acting as lenders of last resort.

Bank of Canada (BoC)

The central bank of Canada, responsible for formulating monetary policy, issuing currency, and promoting financial stability.

Bank of England (BoE)

The central bank of the United Kingdom, responsible for maintaining monetary stability and overseeing the financial system.

Bank of International Settlement (BIS)

An international financial institution that serves as a bank for central banks, fostering international monetary and financial cooperation.

Bank of Japan (BoJ)

The central bank of Japan, responsible for issuing currency, implementing monetary policy, and ensuring financial system stability.

Central Bank

A national institution that manages a country's currency, money supply, and interest rates, often overseeing monetary policy and financial stability.

Deutsche Bundesbank

The central bank of Germany, responsible for monetary policy and maintaining financial stability within the country.

European Central Bank (ECB)

The central bank for the eurozone, responsible for managing the euro and formulating monetary policy for member countries.

Federal Open Market Committee (FOMC)

A branch of the Federal Reserve responsible for overseeing open market operations and setting monetary policy in the United States.

Federal Reserve

The central banking system of the United States, responsible for implementing monetary policy, regulating banks, and maintaining financial stability.

Monetary Policy Committee (MPC)

A committee within a central bank responsible for setting interest rates and directing monetary policy to achieve economic objectives.

Norges Bank

The central bank of Norway, responsible for monetary policy, issuing currency, and managing the country's foreign exchange reserves.

Old Lady

A colloquial term for the Bank of England, derived from the nickname "Old Lady of Threadneedle Street."

People’s Bank of China (PBOC)

The central bank of the People's Republic of China, responsible for implementing monetary policy and regulating financial institutions.

Reserve Bank of Australia (RBA)

The central bank of Australia, responsible for monetary policy, issuing currency, and maintaining financial system stability.

Reserve Bank of New Zealand (RBNZ)

The central bank of New Zealand, responsible for formulating monetary policy, ensuring financial stability, and managing the nation’s currency.

Sveriges Riksbank

Sweden’s central bank and the world’s oldest, tasked with maintaining price stability, managing the Swedish krona, and implementing monetary policy.

Swiss National Bank (SNB)

Switzerland’s central bank, which sets monetary policy, oversees financial stability, and manages the Swiss franc.

Chart Patterns

Visual configurations formed by price movements on charts that technical analysts use to predict future market direction. Examples include head and shoulders, triangles, and flags.

Ascending Channel

A chart pattern formed by two parallel upward-sloping trendlines, indicating a bullish trend with higher highs and higher lows.

Ascending Trend Line

A straight line drawn upward connecting successive higher lows, indicating an uptrend in price movements.

Ascending Triangle

A bullish continuation pattern characterized by a horizontal resistance line and an upward-sloping support line, indicating potential breakout to the upside.

Bear Flag

A bearish continuation pattern following a sharp decline, characterized by a brief upward consolidation before the downtrend resumes.

Broadening Formation

A chart pattern characterized by diverging trendlines, indicating increasing volatility and potential reversal.

Bull Flag

A bullish continuation pattern following a sharp rise, characterized by a brief downward consolidation before the uptrend resumes.

Continuation Diamond

A rare chart pattern that resembles a diamond shape, indicating a continuation of the prevailing trend after a brief consolidation.

Continuation Pattern

Chart patterns that suggest a temporary consolidation before the prevailing trend resumes, helping traders identify potential entry points.

Cup and Handle

A bullish continuation chart pattern that resembles a cup followed by a small dip (the handle) before a potential upward breakout.

Descending Channel

A technical pattern where prices are confined within two parallel, downward-sloping lines, indicating a trend of lower highs and lower lows.

Descending Trend Line

A line drawn below price action connecting lower highs, often used to signal a downtrend or resistance in technical analysis.

Descending Triangle

A bearish continuation pattern formed by a horizontal support line and a descending resistance line, suggesting potential breakdown when support fails.

Diamond

A chart pattern that forms a diamond-like shape, often indicating a reversal; its appearance signals potential changes in the current trend direction.

Double Bottom

A bullish reversal pattern characterized by two distinct lows at approximately the same level, suggesting support and a possible shift to an uptrend.

Double Top

A bearish reversal pattern characterized by two consecutive peaks of similar height, separated by a trough, suggesting a potential reversal from an uptrend to a downtrend.

Falling Wedge

A bullish reversal pattern identified by converging trendlines sloping downward, indicating that the downtrend may be nearing exhaustion and a reversal to the upside is possible.

Flag

A continuation pattern that forms after a strong price movement, featuring a small rectangular consolidation that typically slopes against the prevailing trend before the price resumes its original direction.

Head and Shoulders

A reversal pattern consisting of three peaks—where the middle peak (head) is higher than the two surrounding peaks (shoulders)—indicating a potential reversal from a bullish to a bearish trend.

Horizontal Channel

A range-bound pattern where prices move sideways between parallel horizontal support and resistance levels, reflecting market indecision.

Inverse Head and Shoulders

A bullish reversal pattern that is the inverse of the head and shoulders, where a low trough (head) is flanked by two higher troughs (shoulders), suggesting a potential reversal from a downtrend to an uptrend.

Pennants

A continuation pattern that forms following a sharp price movement, characterized by small symmetrical triangles with converging trendlines, usually indicating that the prevailing trend will resume.

Rectangle

A consolidation pattern where price oscillates between horizontal support and resistance levels, forming a rectangular shape before eventually breaking out in the direction of the prior trend.

Rising Wedge

A bearish reversal pattern marked by converging trendlines that slope upward, typically indicating that the upward momentum is weakening and a reversal to the downside may occur.

Symmetrical Triangle

A consolidation pattern with converging trendlines where the highs and lows are narrowing, reflecting indecision in the market and often preceding a breakout in either direction.

Trend Channel

A pattern created by drawing parallel lines along the highs and lows of a trend, indicating that price is moving within a defined channel, which can serve as support and resistance.

Trend Line

A straight line drawn along successive highs or lows to illustrate the direction of price movement, used to identify support, resistance, and trend direction.

Triple Bottom

A bullish reversal pattern in which price tests a support level three times before breaking upward, indicating a strong level of support and a potential trend reversal.

Triple Top

A bearish reversal pattern where price tests a resistance level three times before breaking downward, suggesting that the resistance is strong and a reversal from an uptrend may occur.

Wedge

A pattern defined by converging trendlines that slope either upward (rising wedge) or downward (falling wedge); rising wedges typically signal a bearish reversal while falling wedges are generally bullish.

Commodities

Raw materials or primary agricultural products (such as oil, gold, or wheat) that can be bought, sold, or exchanged and are often used as inputs in the production of other goods.

Backwardation

A market condition where the futures price of a commodity is lower than the expected future spot price, often due to current supply shortages.

Brent Crude Oil

A major grade of crude oil extracted from the North Sea, used as a global benchmark for oil pricing.

Commodity

A basic raw material or primary agricultural product that is interchangeable with other goods of the same type and is traded on various markets.

Copper

An industrial metal commodity widely used in electrical wiring, plumbing, and manufacturing.

Corn

An agricultural commodity used for food, animal feed, and ethanol production, widely traded on commodity exchanges.

Crack Spread

The price difference between crude oil and its refined products (like gasoline and distillates), used to estimate refining margins.

Crush Spread

The difference between the price of soybeans and the combined prices of soybean meal and soybean oil, used to gauge processing profitability.

Gold

A precious metal commodity that serves as a store of value and hedge against economic uncertainty and inflation.

Lithium

A commodity critical for battery production, particularly in electric vehicles and portable electronics.

Natural Gas

A fossil fuel used primarily for heating, electricity generation, and industrial applications, traded as a commodity.

Oil

Typically referring to crude oil, a key energy commodity that serves as a benchmark for energy markets worldwide.

Silver

A precious metal commodity with both industrial uses (in electronics, solar panels, etc.) and investment appeal similar to gold.

Soybean

An agricultural commodity used to produce soybean oil and soybean meal, with significant roles in food production and animal feed.

Uranium

A commodity used as fuel in nuclear reactors, critical for energy production in the nuclear power industry.

West Texas Intermediate (WTI)

A grade of crude oil used as a benchmark for oil pricing in North America, known for its light, sweet characteristics.

Wheat

A cereal grain that is a staple food commodity globally, traded on commodity exchanges and influenced by factors like weather, supply, and demand.

Common Trading Terms

A collection of frequently used words and phrases in the financial markets, covering a wide range of concepts from order types to market sentiment.

Currency Trading

The buying and selling of currencies in the forex market, aimed at profiting from fluctuations in exchange rates.