Forex Definitions
What measurement is used for the price of an exchange rate?
PIPS (Points in Percentage)
What kind of candle forms when the market opens & closes at the same price?
Doji Candle (+)
What market pattern is erratic and has no clear direction?
Choppy Market
What kind of trader holds a trade for multiple hours/days?
Swing Trader
What trend is a chart pattern that has 2 or more Higher Lows and Higher Highs?
An Uptrend
What do you call your account balance plus the floating profit/loss of open positions?
Equity
What forms when one candle completely overtakes the previous candle?
Engulfing Bar Pattern
What happens when the price finally breaks a trend and the beginning of a new trend starts?
Retest (Breakout)
What type of trader is in & out of the market quickly making profits?
Scalper
Which trend is a chart pattern that has 2 or more Lower Highs & Lower Lows?
A Downtrend
What do you use to manage some money to control a larger amount of money?
Leverage
What kind of candle has a long tail with a small body? (Tail can be upper or lower)
Pinbar Candle (Ex: Shooting Star, Evening Star)
What type of market is trading between a defined high and low, moving sideways within those two boundaries?
Ranging Market (Consolidation)
What is a system of rules you follow to avoid trading mistakes and maintain a good risk/reward ratio?
Trading Plan
Which way are you Going when you SELL with the intention of the price to drop?
Going Short
What helps you bail out of a trade if it goes against your judgement and past a certain amount you are willing to risk?
Stop Loss
What shows the open, high, low, & close of a chosen time frame?
A Candle
What market pattern is made of 2 or more price points that are moving in a continuous (up or down) direction?
Trending Market
What technique do you use when you try to predict a price point moving to another price point?
Technical Analysis
Which way are you Going when you BUY with the intention of the price increasing?
Going Long
What do you call a previous high in the market at which the price had difficulties to break above?
Resistance Levels
Which price action occurs when a price has reached a support/resistance level and the following 3 candles are rejecting and hints at a reversal? `-_
Red Yellow Green
What is happening when a chart trend has deviated from the pattern of the Relative Strength Index (RSI)?
Divergence
How do you determine the number of pips you’re willing to use to potentially gain more pips?
Risk Reward Ratio (RRR)
What do you call 2 or more technical indicators that are implying the same potential change in the market?
Confluences