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 price charting technique independent of time. It is plotted as a series of connected vertical lines. The thickness and direction of the lines, reflect the price action:
A buy signal is generated when price moves above the most recent high whereas a sell signal is in place when it moves below the last low.
Riel. The currency of Cambodia. It is subdivided into 10 kak or 100 sen.
A Japanese candlestick pattern signaling a bearish reversal. During the course of an uptrend, a long black candle gaps below the previous white Marubozu and then declines lower closing at the low of the session, demonstrating strong bearish power.