This is a Smart Money Concept (SMC) technical analysis term that signals a potential trend reversal or a shift in underlying market momentum.
What is a Change of Character (CHoCH).
What type of order is used to close your trade for a profit once a certain price level is reached?
What is a Take Profit order.
This is a specific price zone on a chart where institutional investors and "smart money" (such as banks and hedge funds) are likely to have pending orders, making the market prone to a strong reaction, reversal, or continuation.
What is A POI (Point of Interest).
This is the movement of a security's price plotted over time on a chart.
What is Price Action.
This is a three-candle price-action pattern that shows a temporary market imbalance caused by a fast, aggressive move in price.
What is Fair Value Gap (FVG).
This is a technical signal that suggests a potential trend reversal. It happens when the price breaks a significant swing high or swing low against the direction of the prevailing market trend.
What is a Market Structure Shift (MSS).
This is a fundamental risk management metric that compares the potential loss of a trade against its expected profit.
What is Risk to Reward ratio or R/R.
In trading, this is the specific price level where a trade results in zero profit and zero loss, meaning the total revenue or exit value exactly covers the initial entry cost plus all transaction expenses.
What is the break-even point (BEP).
This is the net financial outcome of a trade, strategy, or account, showing whether you have gained money (a profit) or lost money (a loss).
What is the P&L which stands for Profit and Loss.
In trading, this is a standardized unit or quantity of a financial instrument bought or sold in a single transaction, which controls your risk, margin, and potential profit or loss.
What is a lot size.
This is a core price action and Smart Money Concepts (SMC) signal that confirms the continuation of an existing market trend.
What is Break of Structure (BOS).
What is a price zone called on a trading chart that represents an area where large institutional traders (such as banks and hedge funds) placed significant buy or sell orders before a strong, impulsive move in the market?
What is an Order Block.
This refers to a cluster of pending sell orders and stop-loss orders resting below key price lows on a financial chart.
What is Sell-side liquidity (SSL).
In trading, this is a temporary trough or low point on a price chart where a downward price move stops, stalls, and reverses upward because buyers step in to overcome sellers.
What is a Swing Low.
This refers to a cluster of resting buy orders—typically stop-loss orders from short sellers and buy-stop breakout entries—located above current market price levels, such as swing highs, resistance zones, or equal highs.
What is Buy-side liquidity (BSL).
This is the pattern of swing highs and swing lows that price action creates over time to show who controls the market and where the trend is heading.
What is Market Structure.
What type of order is placed to limit the loss on a trade or investment?
What is a Stop Loss.
These are core concepts in technical analysis that represent price levels where a market's movement tends to pause, stall, or reverse due to a shift in the balance between buyers and sellers
What is Support and Resistance.
In trading, this refers to a chart interval that is shorter than your primary or higher timeframe, commonly including 1-minute, 5-minute, 15-minute, and 1-hour charts.
What is lower timeframe (LTF).
This forms when the price of an asset drops to roughly the same level two or more times and bounces back up, creating a horizontal or nearly flat support zone on a chart
What is Equal lows (EQL).
This occurs when an asset's price hits the same or nearly the same price level two or more times and fails to break higher, forming a flat ceiling on a chart.
What is Equal Highs (EQH).
This occurs when buying or sell orders significantly outnumber the other, creating a sudden, aggressive price move that leaves behind an unparsed or "gapped" price range on a chart.
What is Imbalance.
What is the smallest standard unit of measurement for a price movement in foreign exchange (Forex) trading. It represents a tiny change in the exchange rate of a currency pair.
What is a price interest point (commonly known as a pip).
This is a temporary price peak in a market where an upward move stalls, loses momentum, and reverses downward.
What is a Swing High.
This refers to a chart period that covers a longer span of price action—typically the 4-hour (4H), daily, weekly, or monthly charts
What is a higher time frame (HTF).