Chart terms, plainly written
47 of them: candlesticks, chart patterns, indicators and the ideas underneath every read. Each one says what it is, what it may suggest, and — the part most glossaries leave out — where it fails.
Concepts
- Support and resistancePrices that have mattered before
Prices that have mattered before
- Trend structureHigher highs and higher lows, or the reverse
Higher highs and higher lows, or the reverse
- Breakout and retestPrice clears a level, then comes back to it
Price clears a level, then comes back to it
- InvalidationThe price that proves you wrong
The price that proves you wrong
- Risk-to-rewardDistance to target versus distance to stop
Distance to target versus distance to stop
- Position sizingHow much, given where the stop is
How much, given where the stop is
- Liquidity sweepA push through an obvious level, then straight back
A push through an obvious level, then straight back
- ConfluenceSeveral independent reasons pointing the same way
Several independent reasons pointing the same way
- Timeframe alignmentChecking the bigger chart agrees
Checking the bigger chart agrees
- No tradeThe setup is not there
The setup is not there
- GapA jump with no trading in between
A jump with no trading in between
Candlesticks
- DojiOpen and close nearly equal: indecision
Open and close nearly equal: indecision
- HammerLong lower wick, small body up top
Long lower wick, small body up top
- Shooting starLong upper wick, small body at the bottom
Long upper wick, small body at the bottom
- Bullish engulfingAn up candle that swallows the previous down candle
An up candle that swallows the previous down candle
- Bearish engulfingA down candle that swallows the previous up candle
A down candle that swallows the previous up candle
- MarubozuFull body, almost no wicks: one-sided period
Full body, almost no wicks: one-sided period
- Spinning topSmall body, wicks both sides
Small body, wicks both sides
- Morning starDown candle, small pause, up candle
Down candle, small pause, up candle
- Evening starUp candle, small pause, down candle
Up candle, small pause, down candle
- Inside barA candle contained entirely by the one before it
A candle contained entirely by the one before it
Chart patterns
- Ascending triangleFlat ceiling, rising floor
Flat ceiling, rising floor
- Descending triangleFlat floor, falling ceiling
Flat floor, falling ceiling
- Symmetrical triangleBoth boundaries converging
Both boundaries converging
- Head and shouldersThree peaks, the middle one highest
Three peaks, the middle one highest
- Double topTwo failed attempts at the same high
Two failed attempts at the same high
- Bull flagSharp move up, tight drift down
Sharp move up, tight drift down
- RangePrice oscillating between two levels
Price oscillating between two levels
- TrendlineA sloped line joining successive highs or lows
A sloped line joining successive highs or lows
- Volatility contractionSuccessively smaller bars
Successively smaller bars
- Double bottomTwo failed attempts at the same low
Two failed attempts at the same low
- Bear flagSharp move down, tight drift up
Sharp move down, tight drift up
- WedgeBoth boundaries sloping the same way, converging
Both boundaries sloping the same way, converging
Indicators
- RSIMomentum on a 0-100 scale
Momentum on a 0-100 scale
- MACDDifference between two moving averages
Difference between two moving averages
- EMA and SMAAveraged price, smoothed
Averaged price, smoothed
- Bollinger BandsA moving average plus volatility envelopes
A moving average plus volatility envelopes
- VolumeHow much actually traded
How much actually traded
- VWAPAverage price weighted by volume
Average price weighted by volume
- ATRTypical range per period
Typical range per period
- Fibonacci retracementHorizontal levels drawn across one move
Horizontal levels drawn across one move
Meme coins
- Market cap chartThe axis is total value, not the price of one token
The axis is total value, not the price of one token
- Not enough chartToo little price has printed to read anything from
Too little price has printed to read anything from
- Launch spikeA near-vertical first move, then a long fade
A near-vertical first move, then a long fade
- Pool liquidityHow much can be sold before the price moves against you
How much can be sold before the price moves against you
- What a rug looks like afterwardsA vertical drop to near zero, with no recovery
A vertical drop to near zero, with no recovery
- Why most of these are no tradeThe honest answer to a young chart is usually nothing
The honest answer to a young chart is usually nothing
Every term here is also in the app, with a diagram beside it and a puzzle that makes you call the level yourself before it shows you the answer. See the Academy, or the questions people ask first.
Get ChartPeak
Photograph a chart and get an AI technical analysis back in about 12 seconds: trend, bias, support and resistance, entry, exit and risk — or a plain no-trade.