Trading Glossary

A momentum oscillator that measures the speed and magnitude of price changes on a scale of 0 to 100. Readings above 70 suggest an asset may be overbought, while readings below 30 suggest it may be oversold. TradeAI calculates RSI automatically for every chart scan.

A trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD line crossing above the signal line is considered bullish, while crossing below is bearish. TradeAI detects MACD crossovers in real time.

A volatility indicator consisting of a middle band (simple moving average) and two outer bands set at standard deviations above and below. When price touches the upper band, the asset may be overbought; when it touches the lower band, it may be oversold.

A widely used indicator that smooths out price data by calculating the average price over a specific number of periods. Common types include Simple Moving Average (SMA) and Exponential Moving Average (EMA). TradeAI tracks multiple moving average periods simultaneously.

Support is a price level where buying pressure tends to prevent further decline, while resistance is a level where selling pressure tends to prevent further advance. TradeAI automatically identifies key support and resistance levels on every scanned chart.

A reversal pattern consisting of three peaks — a higher peak (head) between two lower peaks (shoulders). A head and shoulders top signals a bearish reversal, while an inverse head and shoulders signals a bullish reversal.

A bearish reversal pattern formed when price reaches a high point twice with a moderate decline between the two highs. The pattern is confirmed when price breaks below the support level between the two peaks.

A bullish reversal pattern formed when price hits a low point twice with a moderate rally between the two lows. The pattern is confirmed when price breaks above the resistance level between the two troughs.

A continuation pattern formed by converging trendlines. Ascending triangles are generally bullish, descending triangles are bearish, and symmetrical triangles can break in either direction. TradeAI identifies all three triangle types.

A candlestick pattern where the opening and closing prices are virtually equal, creating a cross or plus sign shape. Doji candles signal market indecision and can indicate a potential reversal, especially after a strong trend.

A bullish reversal candlestick pattern with a small body at the top and a long lower shadow at least twice the length of the body. It forms during a downtrend and signals that buyers are starting to overpower sellers.

A two-candle reversal pattern where the second candle's body completely engulfs the first candle's body. A bullish engulfing occurs at the bottom of a downtrend, while a bearish engulfing occurs at the top of an uptrend.

A tool that uses horizontal lines to indicate areas of support or resistance at the key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, and 78.6%) before the price continues in the original direction. TradeAI calculates Fibonacci levels automatically.

The study of trading volume to confirm trends and chart patterns. Rising volume during a price advance confirms bullish momentum, while rising volume during a decline confirms bearish momentum. Volume divergences can signal potential reversals.

A straight line drawn on a chart connecting two or more price points that serves as a line of support or resistance. An upward trendline connects rising lows, while a downward trendline connects falling highs.

A price movement through an identified level of support or resistance, often accompanied by increased volume. Breakouts can signal the start of a new trend and are a key component of TradeAI's profit signal generation.

A temporary reversal in the direction of a prevailing trend. Pullbacks are often seen as buying opportunities in an uptrend or selling opportunities in a downtrend, provided the overall trend remains intact.

A predetermined price level at which a trader exits a losing position to limit potential losses. TradeAI includes suggested stop-loss levels with its profit signals to help you manage risk effectively.