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Glossary

Short definitions. If a word grows a sales pitch somewhere else, come back to the sentence here, then open the lesson.

A B C D E F G H I J K L M N O P R S T V W

A

ADX: Average directional index. A measure of how directional recent price has been. It does not say which direction. Plus DI and minus DI carry the direction.; Open this topic
Ascending triangle: A flat high and a rising series of lows. Traders often read it as bullish. The shape is not the trade. A close through the flat high, under a rule you wrote beforehand, is the usual trigger, and it can fail.; Open this topic
Ask: The lowest price a seller is currently willing to accept. Also called the offer. You generally buy at the ask.; Open this topic
ATR: Average true range. Wilder's smooth of true range, usually over 14 periods. It measures width, including gaps. It does not measure direction.; Open this topic
Average loss: The mean result of the losing trades, in R or in money. Pair it with the win rate and the average win. A small average loss is what lets a modest win rate still pay.; Open this topic
Average win: The mean result of the winning trades. A large average win does not rescue a record whose losses are larger and more frequent. Expectancy uses both sides.; Open this topic

B

Backtest: A run of frozen rules on past data. It is a rehearsal, not a forecast. It lies if the test peeks at information you would not have had, or if you rewrote the rules after seeing the score.; Open this topic
Bandwidth: How wide Bollinger Bands are relative to the middle average: upper band minus lower band, divided by the middle. Narrow bandwidth means recent closes clustered. It does not choose a direction.; Open this topic
Bear trap: A push below a level that fails and comes back inside, after sellers have already entered. If the rule sold the push, the failure is a loss the system has to be able to take. It is not a reason to move the stop.; Open this topic
Bearish: Describes a falling close, a downtrend, or a pattern interpreted as favoring lower prices. It is a description, not a promise.; Open this topic
Bid: The highest price a buyer is currently willing to pay. You generally sell at the bid.; Open this topic
Bollinger Bands: A middle simple average, usually 20 closes, with bands a number of population standard deviations away, usually two. They describe scatter, not a ceiling.; Open this topic
Borrow: The share loan behind a short sale. If the shares are hard to borrow, the fee can rise and the lender can recall them. A short is not just a bet on price.; Open this topic
Break-even: An exit at the entry price, before costs. After the spread and any commission, that fill is often a small loss. Moving a stop to the entry before the written rule says so is a new decision, not the one you sized.; Open this topic
Breakout: A move that closes, or otherwise meets your written test, outside a defined area. A wick through the area is not automatically a breakout.; Open this topic
Bull trap: A push above a level that fails and returns inside, after buyers have already entered. The picture looks like a breakout until it does not. If the rule bought the push, the failure is a planned loss, not a cue to widen the stop.; Open this topic
Bullish: Describes a rising close, an uptrend, or a pattern interpreted as favoring higher prices. It is a description, not a promise.; Open this topic

C

Cash at risk: The money you plan to lose if the stop fills. Position size starts here. It is not the full value of the position, and it is optimistic if price gaps through the stop.; Open this topic
Chop: Back-and-forth price that hits stops without paying a trend. Many small losses in chop are the ordinary cost of a trend-following rule, not proof the rule is broken.; Open this topic
Circuit breaker: An exchange pause after a large index move. U.S. equity breakers triggered more than once in March 2020. A pause stops trading. It does not promise a kinder fill when trading resumes.; Open this topic
Close: The last trade of a period. On a candle that is still forming, the close is only the latest trade.; Open this topic
Commission: A fee the broker charges for the trade, separate from the spread and from slippage. An expectancy that leaves it out describes a cheaper market than the one you trade.; Open this topic
Confirmation: A later event you required in advance, often a close beyond a pattern, before you treat a setup as active. It makes entries later. It also makes them definable.; Open this topic
Correlation: How two return series have moved together. A calm-period correlation can jump in a crisis. High correlation does not mean a spread will converge.; Open this topic
Costs: The spread, commission, borrow fee, and slippage you actually pay. Expectancy that ignores them describes a market you do not trade.; Open this topic
Cover: Buying back a short position to close it.; Open this topic
Crossover: A faster average crossing a slower one, or an indicator line crossing its signal. The cross is late by construction, because both lines are averages of the past. Write the lengths and the exit before you use one.; Open this topic
Cup and handle: A rounded decline and recovery, then a smaller drift called the handle. The usual trigger is a close through the rim. The picture is common. The market does not owe you the measured move.; Open this topic

D

Dark-cloud cover: After an advance, a bearish candle that opens above the prior close and closes below the midpoint of the prior bullish body, without engulfing that body.; Open this topic
Day trade: A position opened and closed in the same session. What counts as one depends on the product and the broker's agreement. Under the old U.S. pattern-day-trader test, four or more of them in five business days could change the margin rules on the account.; Open this topic
Descending triangle: A flat low and a falling series of highs. Often read as bearish. If you require confirmation, use a close through the flat side. A wick through it is not the same event.; Open this topic
Directional movement: Wilder's plus DM and minus DM. Plus DM is an upward step that beats the downward step. Minus DM is the reverse. They feed plus DI and minus DI. ADX is built from their difference and has no direction of its own.; Open this topic
Disposition effect: The tendency, documented by Shefrin and Statman, to sell winners too quickly and hold losers too long.; Open this topic
Divergence: A disagreement you defined in advance between price and an indicator, such as a new price high without a new high in RSI. It is a prompt, not an order.; Open this topic
Doji: A candle whose open and close are nearly equal. The period ended in a draw. It is not automatically a reversal.; Open this topic
Donchian channel: The highest high and the lowest low over a lookback. A break of that channel is a classic trend-following entry. The turtles used versions of it.; Open this topic
Double bottom: Two lows at a similar price with a rally between them. The mirror of a double top. The usual confirmation is a close through the peak between the lows.; Open this topic
Double top: Two peaks at a similar price with a valley between them. The usual confirmation is a close through the valley. A double bottom is the mirror.; Open this topic
Dragonfly doji: A doji with the open and close near the high and a long lower shadow. The period sold off and came back. That is a description of one bar, not a buy order.; Open this topic
Drawdown: The drop from a peak in the account, or in the R curve, to a later trough, before a new peak. A positive expectancy can still spend a long time underwater. Size for that, not for the average trade.; Open this topic

E

Edge: Positive expectancy after costs, on the trades your frozen rules actually take. A named pattern is not an edge until that test is passed.; Open this topic
EMA: Exponential moving average. A moving average that weights newer closes more heavily, usually with multiplier 2 divided by N plus 1.; Open this topic
Engulfing: A candle whose real body covers the prior real body, after a move in the opposite direction. Shadows do not have to be covered.; Open this topic
Evening star: After an advance: a long bullish candle, a small body above it, then a bearish candle closing well into the first body. The mirror of the morning star. Gaps between the bodies are scarce in 24-hour markets, so do not demand a gap the session cannot print.; Open this topic
Expectancy: The average result per trade: win rate times average win, minus loss rate times average loss. Compute it in R or in money, and do it after costs if you want the truth.; Open this topic

F

Failed break: A push through a level that returns inside. If your rule bought the push, the failure is a loss the system must be able to take. It is not a reason to move the stop.; Open this topic
False break: A move through a level that fails and returns inside. If your rule bought the poke, this is a loss the system must be able to take.; Open this topic
Fibonacci retracement: The ratios 38.2 percent and 61.8 percent, plus the habit of drawing 50 percent, between a swing high and a swing low. Fifty percent is not a Fibonacci ratio. A different swing moves every line. Price is not required to stop on one.; Open this topic
Fill: The actual trade that completed your order. It can differ from the price you clicked.; Open this topic
Fixed fractional sizing: Risking the same fraction of current equity on each trade. After a loss the next position is smaller. After a gain it is larger. The fraction is your choice. Full Kelly is not a setting to copy.; Open this topic
Flag: A sharp move, the pole, followed by a small counter-trend drift. A pennant is the same idea with a tiny triangle. Continuation is not guaranteed.; Open this topic
Flat: Having no position. A legitimate state, and the right one when the rule says not to trade.; Open this topic
Float: Shares that can actually trade, roughly shares outstanding minus closely held or restricted stock. Short interest can exceed the estimated float because the same shares can be lent more than once.; Open this topic

G

Gap: A jump in price that skips the levels in between on the venue you trade. Stops cannot fill inside a gap that never traded.; Open this topic
Gravestone doji: A doji with the open and close near the low and a long upper shadow. The period rallied and gave the gain back. It is not, by itself, a sell.; Open this topic

H

Hammer: After a decline, a small real body near the high and a lower shadow at least about twice the body. The same shape after an advance is a hanging man.; Open this topic
Hanging man: A small real body near the high and a long lower shadow, after an advance. The same shape after a decline is a hammer. Location is the whole difference. Many traders wait for the next close before they treat it as active.; Open this topic
Harami: A small real body that sits inside the prior real body. The name refers to containment. It marks a pause in that window. It does not reverse the prior trend by contract.; Open this topic
Head and shoulders: Three peaks, the middle one highest, with a neckline through the reaction lows. The inverse pattern is a bottom. The measured move is a planning ruler, not a debt the market owes.; Open this topic
Heat: How much you lose if your open ideas hit their stops together. Related ideas should be counted as overlapping, not as independent.; Open this topic
Higher high: A swing peak above the prior swing peak. Together with a higher low, it is the usual definition of an uptrend. It is a sequence you can mark, not a feeling about the news.; Open this topic
Higher low: A swing trough above the prior swing trough. In an uptrend, pullbacks should keep making these. A lower low breaks that sequence.; Open this topic
Histogram: In the usual MACD, the MACD line minus the signal line. A positive bar means the line is above its signal. It is another smoothing of the same spread, not a separate piece of evidence.; Open this topic

I

In-sample: The past you used to invent or tune the rule. A strong in-sample result is the minimum hurdle. It is also the place overfitting hides.; Open this topic
Inside bar: A candle whose high and low both sit inside the prior candle's high and low. The period was narrower than the one before it. That is a pause in the range, not a direction.; Open this topic
Intraday margin: Equity a margin account must keep against exposure during the session, which can differ from the overnight requirement. In the United States, FINRA Regulatory Notice 26-10 replaced the pattern-day-trader trade count with this kind of standard, effective 4 June 2026, with a phase-in allowed until 20 October 2027. Your broker's number can be stricter than the rule, and it can still be the old test during the phase-in.; Open this topic
Invalidation: The price or the event that proves the idea wrong. Write it before the entry, and put the stop there or closer. If you cannot name it, you do not have a trade. You have a hope.; Open this topic
Inverse head and shoulders: Three troughs, the middle one the lowest, with a neckline through the reaction highs. The measured move is the depth of the head, projected from the break. Use it to judge reward against the stop. Do not treat it as a debt the market owes.; Open this topic
Inverted hammer: After a decline, a small body near the low and a long upper shadow. The same shape after an advance is a shooting star. The upper shadow shows the period traded well above the close and gave much of that back.; Open this topic

J

Journal: The record of what the rule said, what you risked, and the result in R. It is part of the system. A note about how the trade felt is optional. The R is not.; Open this topic

K

Kelly fraction: A formula for bet size given a known edge and known payoff. Full Kelly assumes you know the odds. In markets you do not, so it is a warning against overbetting, not a setting to copy.; Open this topic
Kill switch: The condition, written before you need it, that stops the system. A loss of a set number of R, a rule you cannot follow, or a market that no longer matches the test. Deciding this during the drawdown is how the switch never gets pulled.; Open this topic

L

Lag: How late an average is, because it still contains older prices. A shorter length lags less and whipsaws more. You can move that tradeoff. You cannot delete it.; Open this topic
Leverage: Exposure larger than the cash posted. Gains and losses both scale up. A gap can take more than the cash in the account. The 2015 Swiss franc move is the plain example.; Open this topic
Limit order: An order to trade at your price or better. It may not fill.; Open this topic
Liquidation: A forced close, usually because losses used up the margin. It is not a stop you chose. The fill is whatever the book offers at that moment, which can be far from the last price you saw.; Open this topic
Liquidity: How easily size can trade without moving the price. Displayed quotes can vanish. Liquidity in a crisis is not the liquidity of last Tuesday.; Open this topic
Long: A position that gains if price rises.; Open this topic
Lookahead bias: Using a fact that was not known at the decision. A rule that 'buys the open' but checks the day's high has peeked. So has an indicator recalculated with later bars. The test will look wiser than you can be in real time.; Open this topic
Lower high: A swing peak below the prior swing peak. With a lower low, that sequence is the usual definition of a downtrend.; Open this topic
Lower low: A swing trough below the prior swing trough. It continues a downtrend. In an uptrend, one lower low is the break in the sequence, not a dip you are required to buy.; Open this topic

M

MACD: Usually the 12-period exponential average minus the 26-period exponential average. A 9-period average of that line is the signal. The lengths are a convention.; Open this topic
Margin: Cash the broker requires against a leveraged position. The number depends on the product, the country, and the broker, and it changes. Meeting a margin call is not the same thing as having a stop that will fill.; Open this topic
Market order: An order to trade now at the best available price. In a thin book it can fill far from the last price you saw.; Open this topic
Marubozu: A candle with little or no shadow. The period opened near one extreme and closed near the other.; Open this topic
Mean reversion: A style that bets a stretch away from an average will relax. It needs a hard invalidation, because adding to a loser feels logical and can be fatal.; Open this topic
Measured move: A projected distance, often the height of a pattern applied from the break. Use it to judge reward against the stop. Do not treat it as a target price is required to reach.; Open this topic
Minus DI: Wilder's minus directional indicator. It carries the downward part of directional movement. If minus DI is above plus DI, the recent directional steps leaned down. ADX does not say this. Minus DI does.; Open this topic
Morning star: After a decline: a long bearish candle, a small body gapped below it, then a bullish candle closing well into the first body. The evening star is the mirror. Gaps are scarce in 24-hour markets.; Open this topic
Moving average: The average of the last N closes. A simple average weights each close equally. An exponential average weights the newer close more, usually with the multiplier 2 divided by N plus 1. Both follow price. Both are late at turns.; Open this topic

N

Neckline: In a head and shoulders pattern, the line joining the reaction lows between the peaks, or the reaction highs in the inverse pattern.; Open this topic
Noise: Movement smaller or more random than the swing your rule is built to catch. A stop inside the noise is hit by ordinary bars. ATR is one way to see that width. It is still a choice where you place the stop.; Open this topic
Notional: Price times the number of units. The full value of the position. It is not the cash at risk. A tight stop on a large notional becomes a large loss if the stop does not fill.; Open this topic

O

On-balance volume: Joseph Granville's running total. Add the bar's volume when the close rises. Subtract it when the close falls. The starting level is arbitrary, so people watch the slope and disagreements with price. On spot foreign exchange, confirm that the volume is real volume and not a tick count.; Open this topic
Open: The first trade of a period.; Open this topic
Out-of-sample: Data you did not use to design or tune the rule. A result that appears only on the in-sample window describes the past you already studied. It is not yet evidence about the next window.; Open this topic
Outside bar: A candle whose high is above the prior high and whose low is below the prior low. The period traded through both sides of the previous range. The close says where it settled. It does not assign the next bar a direction.; Open this topic
Overbought: A label traders stick on a high RSI or stochastic, often above 70 or 80. The indicator is only saying recent gains dominated recent losses, or that the close is near the top of its box. In a trend that can last. It is not an order to sell.; Open this topic
Overfitting: Tuning rules until they describe the past you studied, including its accidents. The fit is not a forecast.; Open this topic
Oversold: The mirror label, often below 30 on RSI or 20 on stochastic. Losses have dominated, or the close is near the bottom of the recent range. That can persist in a decline. It is not an order to buy.; Open this topic

P

Paper trading: Writing down hypothetical fills without sending an order. It can rehearse whether you follow the rule. It cannot rehearse a missed fill, a quote that moves as you click, or the feeling of a loss that is actually yours.; Open this topic
Pattern day trader: The old U.S. equity margin label under FINRA Rule 4210: four or more day trades in five business days, when those day trades were more than 6 percent of the account's trades in that window, with a $25,000 minimum equity. Regulatory Notice 26-10 replaced that test, effective 4 June 2026. Firms may phase in the replacement until 20 October 2027. Read the agreement on the account. Do not trade from memory of the old floor.; Open this topic
Pennant: A sharp move, then a small symmetrical triangle instead of a drifting channel. Same idea as a flag. A break in the direction of the pole is the usual hope, not a guarantee.; Open this topic
Percent B: Bollinger's %b. It says where the close sits between the bands. About 1 is the upper band and about 0 is the lower band. Above 1, the close is outside the upper band. Location is not a signal.; Open this topic
Percent D: A short simple average of stochastic percent K, often three periods. A cross of K and D is a trigger only if you wrote it down as one, with a stop that does not depend on the cross.; Open this topic
Percent K: The raw stochastic: 100 times (close minus the lowest low) divided by (highest high minus lowest low) over the lookback, often 14 bars. A close at the high of that box prints 100. A close at the low prints 0.; Open this topic
Piercing pattern: After a decline, a bullish candle that opens below the prior close and closes above the midpoint of the prior body, but not above the prior open.; Open this topic
Pip: A standard step in a foreign-exchange quote. For most pairs it is 0.0001. For pairs quoted in two decimals, such as dollar-yen, it is 0.01. A tenth of a pip is a pipette. A pip measures the quote. It does not measure whether the trade was a good idea.; Open this topic
Plus DI: Wilder's plus directional indicator. It carries the upward part of directional movement. Compare it with minus DI for direction. Do not ask ADX which way the market leaned.; Open this topic
Population standard deviation: The square root of the average squared distance from the mean, dividing by N, not by N minus 1. John Bollinger's bands use this version. Dividing by N minus 1 draws a slightly wider cousin and should not be quoted as his bands.; Open this topic
Position size: The number of units. Cash at risk divided by the distance from entry to stop. A wider stop means fewer units if the cash stays fixed. The desk does this arithmetic. It does not decide whether the trade is worth taking.; Open this topic
Profit factor: Gross profits divided by gross losses. A number barely above 1 has little room for worse fills.; Open this topic
Pullback: A move against the prevailing trend that has not broken the trend's swing structure. Buying a pullback still needs a trigger and a stop. If the structure breaks, the dip was not a pullback.; Open this topic

R

R multiple: The result of a trade divided by the amount you planned to risk. Plus 2R made twice the planned risk. Minus 2R lost twice the plan, often because of a gap or a moved stop.; Open this topic
Range: Price oscillating without a sequence of higher highs and higher lows, or the reverse. Trend rules bleed here by taking many small losses. Breakout rules bleed here by buying pushes that fail.; Open this topic
Real body: The thick part of a candle, from open to close. Engulfing patterns compare bodies, not the full high-to-low range.; Open this topic
Resistance: An area where rallies have stalled before. Draw a zone, not a sacred tick. Also called supply.; Open this topic
Retest: Price coming back to a level it recently left. Traders watch whether the old boundary holds. A return to the level is a description of the path. It is not proof the level will hold the next time.; Open this topic
Revenge trading: A new trade taken to win back a loss, rather than because the written rule fired. The journal shows it as a position you cannot explain from the plan.; Open this topic
Reward-to-risk: Planned gain divided by planned loss on one trade. It is not expectancy. A large ratio with a low win rate can still lose.; Open this topic
Risk of ruin: The chance that losses take the account, or your willingness to follow the rule, below a floor you cannot continue from. Smaller risk per trade lowers it. It does not go to zero, and a formula that assumes you know the odds overstates the comfort.; Open this topic
RSI: Relative strength index. Wilder's ratio of average gain to average loss, scaled from 0 to 100. The usual length is 14. A reading above 70 is not an order to sell.; Open this topic

S

Sample size: How many trades the test, or the journal, actually contains. An expectancy from a dozen trades is an anecdote. A few hundred is still not a promise. It is less likely to be one lucky path.; Open this topic
Shadow: The thin wick of a candle. The upper shadow runs from the body to the high. The lower shadow runs from the body to the low. Also called a wick.; Open this topic
Shooting star: After an advance, a small body near the low and a long upper shadow. The same shape after a decline is an inverted hammer. The shadow shows a rejection of higher prices in that period. The next period is not required to continue the rejection.; Open this topic
Short: A position that gains if price falls. On a stock, the loss is not naturally capped if price rises and you have no exit.; Open this topic
Short interest: The open short position, reported on a lag. It is not the same as the volume of short sales on a single day. It can exceed the estimated float because shares can be lent more than once.; Open this topic
Short squeeze: A rise that forces short sellers to buy, which can push the price higher still. It is a mechanical feedback loop, not a moral story. The January 2021 move in GameStop is the usual public example.; Open this topic
Signal line: In the usual MACD, a 9-period exponential average of the MACD line. When the MACD line crosses it, the spread between the 12- and 26-period averages has changed relative to its own recent average. That is the whole event. It lags.; Open this topic
Slippage: The difference between the price you expected and the fill you got.; Open this topic
SMA: Simple moving average. The sum of the last N closes divided by N. Every close in the window counts equally. It lags turns by construction.; Open this topic
Spinning top: A candle with a small body and shadows on both sides. The period fought and settled near where it started.; Open this topic
Spread: The ask minus the bid. Crossing it is a cost.; Open this topic
Stochastic: George Lane's measure of where the close sits inside the recent high-low range. Percent K is the raw location. Percent D averages K. A high reading means the close is near the top of the box. In a trend, closes can stay there.; Open this topic
Stop: The price or the event that ends the idea, written before the entry. A stop-market order is one way to express it, and the trigger is not the fill. Moving the stop farther away after you are in changes the risk you already sized.; Open this topic
Stop-limit order: After a trigger, a limit order is sent. You might avoid a terrible price and you might also remain in the position.; Open this topic
Stop-market order: After a trigger, a market order is sent. The trigger is not the fill.; Open this topic
Support: An area where declines have stalled before. Draw a zone. Also called demand. Old resistance sometimes acts as support after a break, and sometimes does not.; Open this topic
Survivorship bias: Judging a method on the names that still exist, or the traders who still publish, and forgetting the ones that disappeared.; Open this topic
Swing: A high or a low you have marked as a turning point. Which bars count is a choice. Change the swing and every Fibonacci level and every measured move drawn from it moves too.; Open this topic
Symmetrical triangle: A falling upper line and a rising lower line. The shape does not contain a direction. A close through one boundary is the usual trigger, and the other boundary is a reasonable place to be wrong.; Open this topic

T

Three black crows: Three long bearish candles, each opening inside the prior body and closing lower. The bullish mirror is three white soldiers. Three closes in a row describe that window. They do not owe you a fourth.; Open this topic
Three white soldiers: Three long bullish candles, each opening inside the prior body and closing higher. The window showed persistent buying. Persistence is not a contract for the next bar.; Open this topic
Tick: The smallest price step the venue allows. A stop cannot sit between ticks. The same word is also used for a single trade. Read which meaning the sentence is using before you treat a tick count as volume.; Open this topic
Time frame: The length of time each candle summarizes. A doji on a one-minute chart and a doji on a daily chart share a shape and not a decision. Write which frame the rule uses.; Open this topic
Trading halt: A pause in a single name, often after a sharp move or before news. You cannot exit while it lasts. The first trades afterward can print far from the last price. A stop does not fill during the halt.; Open this topic
Trend: In swing structure, an uptrend is higher highs and higher lows. A downtrend is lower highs and lower lows. It is a sequence, not a feeling.; Open this topic
Trend following: A style that tries to stay with a move already in progress and to cut the attempts that fail. The typical pain is many small losses while the market chops, then fewer larger wins when a move runs. It is not a method with almost no losses.; Open this topic
Triangle: Two boundaries that converge. Name which kind, write the close that counts as a break, and place the stop before that break. The geometry does not decide the outcome.; Open this topic
True range: The greatest of high minus low, the absolute gap from high to the prior close, and the absolute gap from low to the prior close.; Open this topic
Typical price: Usually the high, the low, and the close, divided by three. Session VWAP multiplies typical price by volume and divides by total volume. It summarizes the bar. It does not forecast the next one.; Open this topic

V

VIX: The CBOE Volatility Index. A price, derived from S&P 500 options, for near-term implied volatility. It is not a fear thermometer with moral meaning. It is an options price.; Open this topic
Volatility: How much price moves, regardless of direction. A quiet trend and a violent trend do not deserve the same stop distance.; Open this topic
Volume: Shares or contracts traded. On many retail foreign-exchange platforms the figure is a tick count from that venue, not global volume.; Open this topic
VWAP: Volume-weighted average price. The running sum of typical price times volume, divided by the running sum of volume, usually reset each session.; Open this topic

W

Wedge: Two converging boundaries that both slope the same way. A rising wedge is commonly read as bearish and a falling wedge as bullish. The reading is a hypothesis.; Open this topic
Whipsaw: A signal that reverses and stops you out, often more than once. Common when an average or a breakout rule meets chop. It is a cost of the rule, visible in the journal as a string of small losses.; Open this topic
Wick: The thin line from the real body out to the high or the low. Also called a shadow. A long wick means the period reached that price and did not close there. It is part of the bar, not a signal.; Open this topic
Win rate: Winning trades divided by all trades. It is not the score. A high win rate with a few very large losses has negative expectancy. Compute the expectancy, in R, after costs.; Open this topic