Trading Academy

The lowest price a seller is currently willing to accept.

A rule-based test of a strategy on historical market data.

The highest price a buyer is currently willing to pay.

A move beyond a defined range, level, or structure boundary. A breakout is not confirmed simply because price briefly crosses a line.

A visual summary of an instrument’s open, high, low, and close during one time period.

A predictable mental shortcut that can distort how a trader reads information or makes decisions.

Multiple independent pieces of evidence supporting the same trade idea. More signals are useful only when they add distinct information.

The degree to which two assets tend to move together. Correlated positions can quietly concentrate risk.

The decline from an account or strategy’s previous peak to a later low.

The average amount a strategy is expected to win or lose per trade across a sufficiently large sample.

The amount of capital or directional risk affected by a market, asset, sector, or shared factor.

A three-candle price imbalance used by some trading methodologies to mark an area price may later revisit. It is a framework, not a guarantee.

Testing fixed strategy rules on new, unseen market data, usually in simulation or with tightly controlled risk.

The observable condition that proves the original trade idea no longer applies.

Borrowed buying power that magnifies both gains and losses relative to the trader’s capital.

An instruction to buy at or below a chosen price, or sell at or above one. Execution is not guaranteed.

How readily an asset can be bought or sold without causing a large price change.

Capital set aside as collateral to open and maintain a leveraged position.

An instruction to trade immediately at the best available price. The final fill can differ from the displayed quote.

The market’s prevailing condition, such as trending, ranging, high-volatility, or low-volatility.

The largest unrealized loss a trade experienced between entry and exit.

The largest unrealized gain a trade reached between entry and exit.

A zone defined by some trading methodologies around a prior candle or consolidation believed to precede displacement. Definitions vary, so rules must be explicit.

The number of units, shares, or contracts in a trade, ideally calculated from account risk and stop distance.

A temporary move against the current directional swing or trend.

A trade result expressed relative to its initial risk. A gain twice the initial risk is +2R; a full planned loss is −1R.

The planned downside compared with the planned upside. It does not measure the probability of either outcome.

The difference between the expected execution price and the price at which an order is actually filled.

The difference between the current bid and ask prices; it is one component of trading cost.

An order intended to exit when price reaches a defined level. Fast markets can produce a fill beyond that level.

Areas where buying or selling previously affected price. They are zones of interest, not guaranteed barriers.

A local peak or trough formed when price reverses relative to nearby candles.

A structured record of trade plans, execution, results, screenshots, mistakes, and lessons.

A sustained directional structure often described through sequences of higher or lower swing points.

The magnitude and speed of price movement over a period of time.

The quantity of an asset or contracts traded during a period. Its meaning depends on the venue and data source.

The percentage of trades that are profitable. It must be considered alongside average win, average loss, and costs.