Words we will not let stay fuzzy

The yield difference between the 10-year and 2-year U.S. Treasury notes — the most widely cited gauge of yield curve shape and recession risk.

A rare three-candle reversal: a trend candle, then a Doji that gaps away from it on both sides, then a reversal candle — the Doji is completely isolated.

The simplest harmonic structure — a four-point zigzag where BC is a Fibonacci retracement of AB and CD equals AB in length and time.

The coupon interest earned on a bond since the last payment date, owed by the buyer to the seller when a bond is purchased between coupon dates.

A period where informed buyers are quietly building positions without driving price significantly higher — a potential precursor to an uptrend.

Running total of volume adjusted for where the close falls within each bar's range; divergence with price highlights accumulation or distribution.

Stock trading that occurs after the official 4:00 PM ET close. Lower liquidity and wider spreads; major news like earnings often hits here.

Farm-produced goods traded on futures exchanges — grains (corn, wheat, soybeans), oilseeds, and livestock — with prices driven by weather and seasonal crop cycles.

An order that must fill completely or not at all, but unlike FOK it can wait for a full match.

Exercise style: American options can be exercised any time before expiry (most single-stock options); European options only at expiry (most cash-settled index options like SPX).

The inability to pull the trigger on a valid setup because you keep analysing, adding indicators, and waiting for more confirmation.

Fixating on an arbitrary reference price — like your entry or an old high — and letting it distort your current trading decisions.

Converting a return or volatility measured over a shorter period, such as a day, into an equivalent yearly figure so that different instruments and timeframes can be compared.

Trend-detection indicator showing how recently the n-period high and low were set; near-100 Aroon Up signals a strong uptrend.

A coiling pattern with a flat upper resistance line and rising lower trendline, typically resolving in a bullish breakout.

The lowest price a seller is willing to accept right now. You buy at the ask.

Anything with economic value that can be owned, traded, or used to generate returns — stocks, bonds, currencies, commodities, crypto.

How you divide your portfolio across asset classes — stocks, bonds, cash, alternatives — to balance risk and return.

The process by which an option seller is required to fulfil their obligation — delivering or buying the underlying — when the buyer exercises.

A trade or strategy where the potential reward significantly outweighs the potential loss — the core of every high-quality setup.

An option whose strike price equals (or is very close to) the current spot price of the underlying.

Non-directional trend-strength gauge (0–100); readings above 25 indicate a trending market, below 20 suggest a range.

Volatility measure averaging the greatest of: current high–low, current high–prior close, or current low–prior close over n periods (default 14).

A stop-loss level set at a multiple of the Average True Range to account for normal market volatility and avoid premature stop-outs.

Bill Williams momentum oscillator measuring the difference between 5- and 34-period SMA of midpoints; histogram colour changes signal momentum shifts.

Any futures contract month beyond the front month; typically less liquid and used for hedging or spread strategies.

Running a fixed set of trading rules over historical data to see how they would have performed — a test of the rules, not a forecast of future returns.

A futures market where near-term contracts trade at a premium to deferred contracts, generating positive roll yield and signalling near-term supply tightness.

Someone stuck holding a position that has collapsed in value, usually because they didn't cut the loss when the thesis broke.

A chart showing each period's open, high, low, and close as a vertical bar with left and right tick marks.

Industrial metals — copper, aluminum, zinc, nickel, lead, tin — that trade primarily on the LME and are closely tied to global industrial output.

The price difference between the spot (cash) price of an underlying and its corresponding futures price.

The tendency of a futures price and its underlying spot price to meet as expiration nears, forcing the basis to zero at settlement.

One hundredth of one percentage point (0.01%) — the standard unit for quoting changes in interest rates, yields, and credit spreads.

A harmonic XABCD pattern with a deep AB retracement and a D point near 88.6% of XA — offering a tight stop and favorable risk/reward.

A sharp downward pole followed by a tight, slightly upward-drifting channel — a continuation setup that resolves lower once the flag breaks.

A sustained decline in prices of 20% or more from a recent high. Pessimism and selling pressure dominate.

A large bearish candle that completely wraps the prior bullish candle's body — supply takes control — a reversal warning at the top of an uptrend.

A large bullish candle followed by a small bearish candle inside the first — upside momentum is fading at the top of an uptrend.

A single long candle with no wick on the opening side — either a bullish open at the low or a bearish open at the high — an early-session dominance signal.

A standard index or rate used to evaluate investment performance — the S&P 500 is the most common equity benchmark.

A widely accepted reference price for a commodity that other grades, contracts, or products are priced against — WTI, Brent, Henry Hub, and COMEX gold are key examples.

A measure of a stock's volatility relative to the market. Beta > 1 means it moves more than the index; Beta < 1 means it moves less.

The highest price a buyer is willing to pay for a security right now. You sell at the bid.

The gap between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Crossing it is the minimum cost of an immediate trade.

Total bids received at a Treasury auction divided by the amount sold — a key gauge of demand strength for government debt.

An extreme, unpredictable, high-impact event that falls outside the range of normal expectations and is rationalised as predictable only in hindsight.

The foundational closed-form formula for pricing European options from spot, strike, time, interest rate, and volatility.