Technical Analysis Terms

Bollinger Bands are volatility bands placed above and below a moving average. They expand during high volatility and contract during low volatility, helping identify overbought/oversold conditions.

The Coppock Curve is a long-term momentum indicator that helps identify when a major downtrend may be bottoming.

Divergence occurs when price and an indicator move in opposite directions, hinting at weakening momentum.

Fractals are five-candle swing patterns that highlight potential reversal points by showing local highs or lows surrounded by opposing candles.

Gann angles are diagonal support and resistance lines based on fixed time-price ratios that help gauge trend strength and potential reversals.

Ichimoku Cloud is a comprehensive technical indicator providing support/resistance, trend direction, momentum, and trading signals through five components forming a dynamic cloud on charts.

Indicators are mathematical calculations based on price and volume that help identify trends, momentum, and potential reversals in forex trading.

Keltner Channels are volatility-based bands using an exponential moving average and Average True Range to identify trend direction, overbought/oversold conditions, and breakout opportunities.

MACD (Moving Average Convergence Divergence) shows the relationship between two moving averages, identifying trend direction, momentum, and potential reversals.

On-Balance Volume is a momentum indicator using cumulative volume flow to predict price changes, adding volume on up days and subtracting it on down days.

Pivot points are technical levels calculated from the previous period's high, low, and close, providing key support and resistance zones for the current trading session.

RSI (Relative Strength Index) is a momentum indicator measuring overbought/oversold conditions on a 0-100 scale. Above 70 is overbought, below 30 is oversold.

Sentiment indicators track trader positioning and market mood, helping spot crowded trades and potential reversals.

The Stochastic Oscillator compares a closing price to its recent range to highlight overbought and oversold conditions. Traders watch crossovers and divergence to spot momentum shifts before price turns.

Technical analysis uses price charts, patterns, and indicators to predict future price movements based on historical data and market psychology.

The VIX measures implied volatility for S&P 500 options and serves as a global fear gauge—rising during risk-off episodes that impact currency markets.