The forex industry is made up of so many definitions that it's easy to forget a few along the way. Do you know your Loonie from your Loti? Can you tell your Shooting Star from your Evening Star? Take the time to get to grips with forex jargon because understanding forex vocabulary is an important step in a trader’s journey.
Since no forex education can be complete without a glossary of basic forex terms, we've compiled one which explains key words and phrases in the simplest way possible. This way, you'll never be lost or confused with forex terminology!
A group of 20 countries represented at the highest level by heads of state/government and at the ministerial level by ministers of finance and central banks governors.
They meet to discuss global and economic issues.
The group consists of the following countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, United Kingdom, United States of America, The European Union (represented by the European Council).
A technical analysis tool developed by W. D. Gann. To draw a Gann Fan, attach the tool at a major bottom/top and drag the mouse to the necessary length.
The resultant Gann Fan consists of seven lines at the following angles:
Gann considered the 45 degrees line the most important line, where the market has some form of balance. Prices above the 45 degrees line indicate an uptrend, where below - a downtrend. During an uptrend, prices will find resistance at the lines above the 45 degrees line. When prices break below the 45 degrees line. then a possible reversal may be expected. Consequently, prices are expected to find support at the lines below the 45 degrees line.
Similarly, in a downtrend the lines above the 45 degrees line will act as resistance, where the lines below will be support.
A technical analysis tool developed by W. D. Gann. To draw a Gann Grid, attach the tool at an initial point on the chart. A second point is needed to set the cell grid size.
The resultant Grid consist of multiple lines at 45 degrees angle.
On the Gann Grid, there are three control points. By moving the first and the last points, the size of the grid cell may be set/modified. The middle point is used to move the Gann Grid on the chart keeping the dimensions intact.
Gann considered the 45 degrees line as the most important in representing long-term trendlines.
Based on Gann’s theory, prices:
A technical analysis tool developed by W. D. Gann. To draw an ascending Gann Line, attach the tool at a major bottom and drag the mouse to a higher bottom.
The resultant ascending trendline is drawn at an angle of 45 degrees.
To draw a descending Gann Line, attach the tool at a major top and drag the mouse to a lower top.
The resultant descending trendline is drawn at an angle of 45 degrees.
On the Gann Line, there are three control points. By moving the first and the last points the slope and the length of the line may change. By moving the middle point, the line may be moved without changing its slope and length.
According to Gann’s theory, prices:
It’s a technical analysis oscillator developed by Bill Williams. It consists of two histograms, above and below zero. The histogram above the zero line shoes the difference between the teeth (red line) and the jaw (blue line) of the Alligator. The histogram below the zero line show the difference between the lips (green line) and the teeth (red line) of the Alligator. A histogram bar is colored green when the value is greater than the previous bar’s value and in red color when the value is less than the previous bar’s value.
The Gator Oscillator helps to understand what the Alligator does:
Pound Sterling. The currency of United Kingdom of Great Britain and Northern Ireland, Guernsey, Isle of Man, Jersey. It is subdivided into 100 pence.