AAA
The highest bond rating. Bonds with AAA ratings are considered safe and have a low risk of default.
AB=CD Pattern
A 4-point harmonic structure that resembles the ABC correction. It consists of the segments AB, BC and CD. The segment AB is retraced by BC. The retracement is between 0.382 and 0.886. The segment CD is equal to AB. The projection of BC is usually the reciprocal of the C retracement. The BC projection defines the Potential Reversal Zone.
ADP Non-Farm Employment Change
An economic indicator published monthly, usually two days before the NFP Report by Automatic Data Processing, Inc. It estimates the change in the US non-farm private sector employment excluding the government sector.
AED
The alphabetic code which represents the national currency of the United Arab Emirates; the UAE Dirham. “AE” is the country’s code, and “D” stands for “Dirham”. The denomination of the UAE Dirham is 100 fils.
ALL
The alphabetic code which represents the national currency of Albania; the Lek. “AL” is the country’s code, and “L” stands for "Lek". The denomination of Lek is 100 qindarka.
ANG
The alphabetic code which represents the national currency of Curaçao and Sint Maarten (Dutch part); the Netherlands Antillean Guilder. “AN” is the countries’ code, and “G” stands for “Guilder”. The denomination of the Netherlands Antillean Guilder is 100 cents.
Abandoned Baby
A three-candlestick reversal pattern. It consists of a long black body at the end of a downtrend with a Doji that gaps lower and is then followed by a long white body that opens above the Doji’s high. The occurrence of the pattern in a downtrend signals a bullish reversal.
Absolute Advantage
An economics concept in which one party has a direct advantage in efficiency in producing/providing a specific good or service over another party.
Absolute Breadth Index
Developed by Norman G. Fosback. A technical analysis market indicator which calculates the absolute value of the difference between the number of rising issues (i.e., stocks) and the number of declining issues.
Absolute Drawdown
The difference between the initial deposit and the lowest point the equity reached.
Accelerator Oscillator (AC)
"A technical analysis indicator developed by Dr Bill Williams. It measures the acceleration/deceleration of the current momentum. Before a price reversal, there is a change in momentum preceded by a deceleration of the current momentum until it comes to zero and starts accelerating in the opposite direction. It is calculated as follows: AC = AO-SMA (AO, 5)
A Buy signal is generated when AC is above zero and two green bars follow a red bar. If AC is below zero, then three green bars are required. Similarly, a Sell signal is generated when AC is below zero and two red bars follow a green bar. If AC is above zero, then 3 red bars are required."
Account History
Information of all trade operations performed on the MT4 platform.
Accumulation Swing Index
Developed by Welles Wilder. A technical analysis indicator representing the cumulative total of the Swing Index.
Accumulation/Distribution
"Developed by Marc Chaikin. A technical analysis indicator that uses Volume to assess price trends.
When a financial instrument is rising it indicates accumulation. When a financial instrument is declining it indicates distribution. Volume is added/subtracted to a cumulative total based on the relationship of the Close price and the range between High and Low.
The closer the Close price is to the High price, the more Volume is added. The closer the Close price is to the Low price the more volume is subtracted. If the Close price is in the midpoint of High and Low, then nothing takes place.
The Accumulation/Distribution is based on the premise that the more Volume accompanies a trend, the “healthier” it is."
Actionary Waves
According to Elliott Wave Theory, these are waves that trend in the same direction as the wave of one larger degree.
Active Investing
An investing strategy employed by fund managers aiming to outperform an index or market in order to generate profits.
Active Management
See Active Investing.
Ad Hoc
A phrase of Latin origin that is used in modern English to mean 'for this purpose' or 'specifically for this.'
Adaptive Moving Average
Developed by Perry Kaufman in 1998. A moving average calculation method to address volatility and the corresponding spiky price movements.
Address
String of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key.
Advance Block
A three-candlestick bearish reversal pattern consisting of three consecutive white candlesticks each opening below the previous Close and closing above it. The first two candles are long white bodies with very small or no shadows, whereas the third candle displays signs of weakness either as a smaller body or longer shadows. It signifies the inability of the buyers as they may be running out of steam.
Advance/Decline Line
A market breadth indicator that calculates the difference between the stocks that advanced, and the stocks that declined. It then adds it to the cumulative total:
Advance/Decline Line = Previous Advance/Decline Line + (Advancing - Declining Issues)
Advance/Decline Ratio
A technical analysis tool that displays the market’s breadth. It is calculated as the number of stocks that advanced in price, divided by the number of stocks that declined.
Advancing-Declining Issues
A market momentum indicator signifying the difference between advancing and declining stocks on the New York Stock Exchange.
Affiliate
A marketer who promotes marketriseswift to their online network and earns financial incentives for their referrals.
Afghani (AFN)
The alphabetic code which represents the national currency of Afghanistan; the Afghani. “AF” is the country’s code, and “N” stands for "Afghani". The denomination of Afghani is 100 pul.
Aggregate Risk
The total amount of exposure a financial institution has to a certain negative outcome such as a single trader/investor’s exposure to forex.
Airdrop
When a project distributes free digital assets to its users.
Algerian Dinar (DZD)
The alphabetic code which represents the national currency of Algeria; the Algerian Dinar. “DZ” is the country’s code, and “D” stands for “Dinar”. The denomination of the Algerian Dinar is 100 centimes.
Algorithmic Trading
A set of detailed rules, programmed into computer software to carry out Buy and Sell orders and manage open positions based on precise rules considering price, time and volume. The advantages are speed and discipline.
All-Time-High (ATH)
The highest price reached during a specific time period.
All-Time-Low (ATL)
The lowest price reached during a specific time period.
Allan Hull Moving Average
Developed by Allan Hull in an attempt to reduce the lagging factor of the moving averages while maintaining price smoothness.
The formula calculates two weighted moving averages with “n” periods and “n/2” periods, respectively. Then it calculates the difference:
2 * WMA(n/2) - WMA(n)
The final step computes the weighted moving average of the difference using a period equal to √n.
Alligator
Developed by Dr Bill Williams in 1995. A technical analysis indicator that combines three moving averages.
The blue line which is a 13-period Smoothed Moving Average shifted into the future by 8 bars, is called the “Alligator’s Jaw”.
The red line which is an 8-period Smoothed Moving Average and shifts into the future by 5 bars is called the “Alligator’s Teeth”.
The green line represents the “Alligator’s Lips” and has a 5-period Smoothed Moving Average, which shifts into the future by 3 bars. During a trend, the three lines are open whereas during a sideways move they are intertwined.
Alpha
It's a measure of how much better or worse an investment performs against the market or a benchmark (i.e., S&P 500).
Altcoin
Other cryptocurrencies besides Bitcoin.
Andrews’ Pitchfork (Bearish)
A technical analysis line study developed by Dr Alan Andrews. The Pitchfork is drawn by selecting three consecutive points on the chart. The first point is a major top (A), the second point is a major bottom (B) whereas the third point is major top (C).
The first line (Median Line) is drawn from point A passing through the middle of the line connecting points B and C. The second and third lines (Upper Parallel Line and Lower Parallel Line) are drawn parallel to the Median Line, starting from points B and C respectively.
Dr Andrews believed that 80% of the time the price returned to the Median Line. The Upper and Lower Parallel Lines act as support and resistance areas.
Andrews’ Pitchfork (Bullish)
A technical analysis line study developed by Dr Alan Andrews. The Pitchfork is drawn by selecting three consecutive points on the chart. The first point is a major bottom (A), the second point is a major top (B) whereas the third point is a major bottom (C).
The first line (Median Line) is drawn from point A passing through the middle of the line connecting points B and C. The second and third lines (Upper Parallel Line and Lower Parallel Line) are drawn parallel to the Median Line, starting from points B and C respectively.
The first line (Median Line) is drawn from point A passing through the middle of the line connecting points B and C. The second and third lines (Upper Parallel Line and Lower Parallel Line) are drawn parallel to the Median Line, starting from points B and C respectively.
Dr Andrews believed that 80% of the time the price returned to the Median Line. The Upper and Lower Parallel Lines act as support and resistance areas.
Annual Report
A document prepared by most public companies to inform shareholders and other interested parties about their business activities and financial performance during the past year.
Appreciation
The increase in the price of a financial instrument over a period of time.
Arbitrage
The simultaneous purchase and sale of a financial instrument at different exchanges to profit from pricing imperfections. For example, buying a share of ABC at $10 and at the same time selling a share of ABC at $15 on a different exchange.
Argentine Peso (ARS)
The alphabetic code which represents the national currency of Argentina; the Argentinian Peso. “AR” is the country’s code, and “S” stands for “Peso”. The denomination of the Argentinian Peso is 100 centavos.
Arithmetic Scale
A price scale with equidistant price intervals.
Armenian Dram (AMD)
The alphabetic code which represents the national currency code of Armenia; the Armenian Dram. “AM” is the country’s code, and “D” stands for “Dram”. The denomination of the Armenian Dram is 100 luma.
Arms Index
Developed by Richard W. Arms, Jr. A technical analysis indicator that reveals the ratio of the rising or declining stocks and their corresponding volume.
It’s calculated as the quotient of the rising stocks divided by the number of declining stocks to determine the Advance/Decline Ratio. Then, the Upside/Downside Ratio is calculated as the quotient of the volume of the rising stocks by the volume of the declining stocks.
The final step is to divide the Advance/Decline Ratio by the Upside/Downside Ratio. The Arms Index is considered bullish when below 1.0 and bearish above 1.0. Also known as TRIN or MKDS.
Arnaud Legoux Moving Average
Developed by Arnaud Legoux in 2009. A moving average calculation method to address both the smoothness and the time lag simultaneously.
Aroon Index
Developed by Tushar Chande. A technical analysis indicator used to determine a change in the direction of a financial instrument and measure the strength of the trend during a trending market. It consists of two lines: the Aroon Up and the Aroon Down.
The calculation of Aroon Up is:
n - (periods since highest high in "n+1" periods) * 100 / n.Similarly, Aroon Down is calculated as:
n - (periods since lowest low in "n+1 periods) * 100 /n.
The Aroon indicator is interpreted as follows: when Aroon Up is between 70 and 100 an uptrend is signaled. Similarly, a reading between 0 and 30 for the Aroon Down, indicates a downtrend. When the two lines move parallel to each other, then a consolidation may follow.
A breakout of the consolidation is expected when the two lines cross over or move to an extreme level like 0 and 100. Anticipation of trending markets is signaled by the crossover of the two lines. When the Aroon Up crosses above the Aroon Down then an uptrend is likely to follow. On the other hand, when the Aroon Down crosses below the Aroon Up, then a downtrend is expected.
Aruban Florin (AWG)
The alphabetic code which represents the national currency of Aruba; the Aruban Florin. “AW” is the country’s code, and “G” stands for “Florin”. The denomination of the Aruban Florin is 100 cents.
Ascending Trend Channel
A technical analysis line study which is drawn by plotting the uptrend line (Basic Uptrend Line) connecting the first two bottoms and then drawing a parallel line (Channel or Return Line) passing through the first top.
According to the theory, the price will find support at the basic line and resistance at the return line. Breaking below the basic uptrend line is a sign of trend reversal whereas breaking above the channel line indicates acceleration of the existing trend.
Ascending Trendline
A straight line drawn diagonally to the right connecting at least two successively higher bottoms.
Ascending Triangle
A triangle consisting of two trendlines meeting at a point known as apex. A flat line on the top and a rising line at the bottom. It signifies the buyers’ strength and is typically followed by an upside breakout.
Asian Session
Forex market trading hours (not official) spanning between 11:00 pm (GMT) and 8:00 am (GMT).
Ask
The price to buy a financial instrument.
Asset
Tangible or intangible items that may produce future economic benefit.
Asset Allocation
The diversification of an investment portfolio among different asset classes such as equities, bonds, and cash, based on one’s risk tolerance and time horizon.
Asset Class
A financial asset class is a collection or group of investment “vehicles” also known as financial instruments that share similar characteristics, behavior, purchase and redemption processes, and, of course, the corresponding governing regulations.
In general, there are three to five asset classes:
• Equities/Stocks
• Bonds/Fixed-income securities
• Money market and cash equivalents
• Real estate
• Derivatives
Asset Management
A financial service that handles the client's portfolio with the aim of increasing its value for a fee.
Assets Under Management (AUM)
The total market value of assets being managed on behalf of clients.
Asymmetric Encryption
A technique that uses a public key to encrypt a message and the corresponding private key to decrypt it. The two keys are distinct but mathematically related. Also known as public-key encryption.
Augmented Reality
Abbreviated as AR, it is an interactive 3D technology that combines a view of real life elements with computer-generated elements in real time. The augmented view is made possible through the use of AR goggles or a smartphone camera.
Aussie
A nickname used to describe the Australian Dollar, also known as AUD.
Australian Dollar (AUD)
The alphabetic code which represents the official currency of Australia, Christmas Island, the Cocos (Keeling) Islands, Kiribati, Nauru, Norfolk Island and Tuvalu; the Australian Dollar. “AU” is the country’s code, and “D” stands for “Dollar”. The denomination of the Australian Dollar is 100 cents.
Auto-Scroll
An MT4 icon/command on the Chart’s Toolbar that automatically shifts the chart to the left when a new candle begins to form.
Autocopy
Autocopy is an innovative feature offered by marketriseswift that allows you to mirror the trading activity of other traders. All you have to do is select a trader of your choice and simply have their trading activity and results mirrored in your own account.
Automated Trading System
A predefined set of detailed rules coded into a computer program on how to enter and exit the market. Orders are submitted automatically from a computer/device to electronic exchanges.
Avatar
A graphical representation of an individual, in a digital world such as a social media platform, internet, forum or the metaverse. An avatar can be in 2D or 3D form, depending on the platform.
Average Directional Index
Developed by Welles Wilder. A technical analysis indicator used to identify trending markets. A reading above 25 indicates a trending market, and a reading below 25 indicates a non-trending market.
Average Directional Movement Index (ADX)
Developed by Welles Wilder. A technical analysis indicator to determine the presence of price trends. It consists of three lines: ADX, +DI and -DI.
An ADX reading above 25 signifies a trending market. The direction of the trend is indicated by the crossing of the +Di and the -DI. When +DI crosses above the -DI the trend is up, and a Buy signal is generated. When +DI crosses below the -DI the trend is down, and a Sell signal is in place.
Average Hourly Earnings
The average amount of money, a private employee makes per hour in the U.S, excluding the farming sector. This report is released monthly by the Bureau of Labor Statistics.
Average True Range (ATR)
A technical analysis indicator developed by Welles Wilder. It is a 14-period Moving Average of the True Ranges.
The True Range is calculated as the greatest distance between: Current High to Current Low, Previous Close to Current High, and Previous Close to Current Low.
Average True Range measures volatility. Wilder perceived a high reading of the ATR as characteristic of bottoms after a sell-off. Similarly, low readings of ATR are characteristics of sideways movements either at tops or bottoms.
Averaging Down
A strategy where traders buy more shares as the market moves against them in order to lower their average cost.
Awesome Oscillator
Designed by Dr Bill Williams, the Awesome Oscillator (AO) is a technical indicator that aims to determine whether bullish or bearish forces are dominating the market.
This is calculated by finding the difference between a 5 and a 34-period simple moving average that is applied to the bar’s mid-point prices (H-L) / 2.
When the AO moves above the zero lines, buying opportunities appear, and when the AO moves below the zero lines then sell opportunities appear accordingly.
Azerbaijanian Manat (AZN)
The alphabetic code which represents the national currency of Azerbaijan; the Azerbaijanian Manat. “AZ” is the country’s code, and “N” stands for “Manat”. The denomination of the Azerbaijanian Manat is 100 qepik.