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Forex Glossary

The Industry's Most Important Terms Explained

The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!


Cyclic Principles

Cycle Theory is based on the following principles:

  • Summation – Price movement is the sum of all active cycles
  • Harmonicity – Neighboring (cycle) waves are related by the number 2 (i.e. double or half)
  • Synchronicity – Cycle waves of different lengths have the tendency to bottom at the same time
  • Proportionality – Cycles with longer time spans (periods) should have proportionally higher amplitudes
  • Variation – states that the previous principles are just tendencies as opposed to hard rules
  • Nominality – A set of harmonically related cycles affect all markets

Category: Technical Analysis

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