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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!


Standard Deviation Channel

A Technical Analysis tool based on the Linear Regression Trendine and the specified number of Standard Deviations. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.

It consists of three lines:

  1. Linear Regression Trendline
  2. Upper Channel Line
  3. Lower Channel Line
  • 68% of the prices will fall within the range of 1 standard deviation of the Linear Regression Trendline
  • 95% of the prices will fall within the range of 2 standard deviation2 of the Linear Regression Trendline
  • 99.7% of the prices will fall within the range of 3 standard deviations of the Linear Regression Trendline

Prices trading above or below the Channel Lines hint for a reversal.

Category: Technical Analysis

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