Trading

What is bullish?

Bullish is when you are going to buy.

What is bearish?

Bearish is when you are about to sell.

What does a green candlestick indicate?

A green candlestick means buyers won.

What does a red candlestick indicate?

A red candlestick means sellers won.

What does a long candlestick signify?

A long candlestick indicates strong buying or selling.

What does a small candlestick indicate?

A small candlestick shows indecision among traders.

What is support in trading?

Support is a price level where a stock often stops falling because buyers step in.

What is resistance in trading?

Resistance is a price level where a stock often stops rising because sellers step in.

What is an uptrend?

An uptrend is characterized by higher highs and higher lows.

What is a downtrend?

A downtrend is characterized by lower highs and lower lows.

What is a liquidity sweep?

A liquidity sweep occurs when the market triggers many stop losses and then reverses direction.

What is a Fair Value Gap (FVG)?

A Fair Value Gap is a gap left in price action due to a fast price move.

Why wait for the first FVG after a liquidity sweep?

The first FVG after a liquidity sweep is part of the setup being tested in your trading strategy.

What is market structure?

Market structure refers to the prevailing direction of the market: up, down, or sideways.

What is the purpose of a stop loss?

A stop loss is a predetermined exit point to minimize loss in case a trade is wrong.

Why should traders plan their take profit?

Good traders plan their exit first to ensure a favorable risk-to-reward ratio.

What is risk management?

Risk management involves determining how much capital to risk on a trade, generally advising against risking all funds on one trade.