Fibonacci Trading Glossary A-EFibonacci Trading Glossary A-E




What is the ABC Pattern?

The ABC pattern is identified by the Elliott wave theory and refers to a 3-wave (A, B, C) countertrend price movement.


What is Accumulated Distribution?

The term accumulated distribution refers to the case that an ETF reinvests income and dividends back into the fund.


What is Arbitrage?

Arbitrage is a popular trading practice and refers to buying and selling an asset at the same time in order to profit from the price difference between two exchanges or two brokers.


What is the Arms Index or TRIN?

The Arms Index or else TRading INdex (TRIN) refers to a stock market indicator (advance/decline stocks). A TRIN reading greater than 1.0 indicates a bearish market, a TRIN reading less than 1.0 indicates a bullish market.


What are Asset Classes?

The term refers to different classes of financial instruments. These classes share common characteristics such as exchanges, regulation or behavior in general. The asset classes include equities, energies, metals, currencies, etc.


What is Automated Trading?

Automated trading means opening and closing trade positions automatically via the use of complex algorithms. These algorithms are incorporated in computer software code and are often called Expert Advisors (EAs) or Robots.

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What means Back-Testing?

Backtesting is a process of evaluating and optimizing trading strategies based on historical data.


What is a Base and the Counter Currency?

In Forex trading, each pair includes two different currencies. The first currency is called the base currency and the second is called the counter currency.


What is Beta?

Beta is a volatility measure of an asset when compared to its sector or to the wider market.


What is Brent Crude Oil?

Brent Crude Oil is a benchmark for oil traded around the globe. The Crude Oil is traded on the LIFFE exchange (London, UK).


What is a Broker?

A broker is a financial company that places orders in the market on behalf of its clients.

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What is a Candlestick Formation?

Candlesticks are price formations that form an advanced communicational bridge between global traders and markets.

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What are the CFD Contracts?

CFD means Contract for Difference, and it is a type of financial derivative.

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What are Commodity Dollars?

The commodity dollars refer to commodity-correlated currencies such as the Australian Dollar (with Gold), the New Zealand Dollar (with Metals), and the Canadian Dollars (with Oil).


What is the Concentration Ratio?

The concentration ratio of an industry refers to the size of the market leaders compared to the total size of the industry.


What is the Correlation Coefficient?

A correlation coefficient is a statistical term and it is used to indicate if two financial assets are correlated to its other.


What is Currency Peg?

A currency peg refers to a governmental monetary policy of fixing the exchange rate of the domestic currency against a foreign currency or gold.





What is Dark Pool?

Dark pools are private exchanges that offer anonymous trading to institutional investors.


What is the Debt Ratio?

The debt ratio refers to how much debt a firm is holding compared to the value of assets it holds.


What is Delta?

Delta or else Hedge Ratio (in options trading) refers to the relation of a price movement and its underlying asset. For example, the relation of the Apple share price and a call option contract on Apple.


What is a Doji?

Doji is a popular Japanese candlestick pattern.

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What is the Dow Theory?

The Dow theory is a popular stock market theory. Charles Dow initially used his theory to develop the Dow Jones Industrial Index. According to the Dow Theory, there are three main market forces determining every movement: (i) Master Trend (ii) Secondary Reactions (iii) Daily Fluctuations




What is the Elliott Wave Theory?

The Elliott wave theory is a technical analysis method used for explaining the behavior of Financial Markets. Each and every important number of Elliott wave theory is also a Fibonacci number.

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Fibonacci Trading Glossary A-E

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Fibonacci mathematics aims to reveal the hidden proportionality of market behavior. Find Fibonacci trading tools and tutorials:

» Fibonacci Retracement Tool

» Fibonacci Extensions Tool

» Combining Fibonacci with S&R

» Combining Fibonacci with Major TA Tools

» MT4 MT5 Fibonacci Indicators

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