Forex Trading Glossary – T
Tasuki Gap – Upside and Downside
(Candlestick Continuation Pattern)
In a bearish Tasuki Gap the market develops in a downtrend in which two long black days develop in succession. The second long black day gaps below the first on the open. These are then followed by a white day that opens within the body of the second black day (has gapped higher on open) and closes within the gap between the first and second days.
The impact of the second black day gapping lower and declining causes a day of profit taking and since this cannot penetrate higher than the gap between the first and second black days, it implies that there is sufficient impetus to reverse the trend.
In a bullish Tasuki Gap the market develops in an uptrend in which two long white days develop in succession. The second long white day gaps above the first on the open. These are then followed by a black day that opens within the body of the second white day (has gapped lower on open) and closes within the gap between the first and second days.
The impact of the second white day gapping higher and rallying causes a day of profit taking and since this cannot penetrate lower than the gap between the first and second white days, it implies that there is sufficient impetus to reverse the trend.
Technical Analysis
The study of historical currency price behavior, primarily through the use of charts, for the purpose of forecasting the direction of future prices.
Technical Indicator
Mathematical formulas applied to currency prices to provide information on their behavior for the purpose of forecasting future price action. Indicator results are usually plotted on currency charts.
Forex Trading Glossary – T
Tick
A market term for a Pip or Point.
Time Filters
Used to identify valid trendline penetrations and to eliminate false signals, known as “whipsaws”. Time filters require that prices break through a trendline by some predetermined time increment in order to signal a true trend reversal.
Trade Balance
The difference between the total value of a country’s imports and its exports.
Trade Deficit
When a country imports more goods and services than it exports.
Trade Entry (Dealing Rates)
The section on a trading screen that shows prices at which you can buy and sell currencies.
Trade Surplus
When a country exports more goods and services than it imports.
Trader’s Orders (Open Orders)
The section on a trading screen that shows unfilled trades left by a trader.
Trading Bands
Lines plotted in and around the price on the chart that form an envelope. Often used to identify near-term extreme price movements. Examples of Trading Bands are FXS-Adaptive Moving Average Bands, Bollinger Bands or Keltner Channels.
Trading Currency
– See Base Currency.
Trading Hours
In the Forex market, trading begins Monday morning in the Far East (7 PM EST, Sunday) and moves around the globe through various trading centers, until it closes Friday afternoon, at 3:00 pm EST in New York.
Trading Platform
Online currency trading software.
Trading Range
A sideways chart pattern, often a resting period for the market before resuming the original trend.
Trailing Stop
A technical tool for letting profits run. A moving level that trails price higher in an uptrend and lower in a downtrend. If long, a stop-loss order is adjusted higher by the trader as the trend advances. If short, the stop loss order is adjusted down as the market declines in price.
Transaction Cost
Brokerage fees.
Forex Trading Glossary – T
Trend
Trends occur when price moves consistently in one direction. If the direction is higher the trend is considered to be bullish. If the direction is lower, then the trend is considered to be bearish. However, in defining a trend it is important to ensure that price peaks and troughs are pointing in the same direction. Thus in a bullish trend price highs and lows should be moving higher. In a bearish trend the price highs and lows should be moving lower.
Trend Channel
Frequently price trends develop between two parallel trendlines, reacting at the channel highs and lows. Once the channel is broken the trend lines reverse influence – i.e. a channel support line, when broken becomes resistance and vice-versa. An approximate target for a price reaction will be the vertical width of the channel projected from the point of break-out.
Trend-Following
A trading technique where the trader looks for a major trend to begin and holds positions in the direction of the trend.
Trendless
Sideways price movement with no clear direction.
Trend Line
When a trend occurs, in many cases it is possible to draw support lines under an uptrend or resistance lines above a downtrend. It is considered that once these lines are broken that the trend has completed. This implies that it should result in a correction at the very least and possibly a reversal in the trend.
Trend Reversal
A change in the direction of market prices. Trend reversals often follow a 4-step pattern. The market makes a new high. The trendline is broken and the market makes an intermediate low. The next rally does not exceed the previous high. Prices subsequently break the previous low. Popular trend reversal patterns include Double and Triple Tops and Bottoms, and Head and Shoulders patterns.
Triangle
(Standard)
A period of price action where the market range narrows between two converging trend lines in the shape of a triangle. It is a corrective pattern and it is normal that price will resume the underlying trend once complete.
(Elliott Wave)
This is the same formation as in the standard triangle but Elliott applied a more rigid pattern definition, defining this as having five waves of three and developing between two converging trend lines.
Triangular Moving Average
A moving average in which each bar’s value is multiplied by a weight that increases in value at steady increments to a peak value, then declines to the first weight at equivalent increments. The sum of the weighted daily data is divided by the number of weights.
Triple Bottoms
A price pattern associated with a trend reversal. In a downtrend a triple bottom is a price chart with three significant price troughs at around the same price low. If the price closes lower than the prior price troughs the downtrend will likely resume. However if prices rise above the previous intermediate high, a trend reversal may be beginning.
Triple Three
(Elliott Wave)
This is an extended correction in which three ABC patterns occur with a Wave X separating each of them.
Triple Tops
A price pattern associated with a trend reversal. In an uptrend a triple top is a price chart with three significant price peaks at around the same price high. If the price closes higher than the prior price peaks the uptrend will likely resume. However if prices fall below the previous intermediate low, a trend reversal may be beginning.
Trough
Price low on a currency chart.
True Range
Developed by J. Welles Wilder. The largest of the following:
Today’s high minus today’s low
Today’s low minus yesterday’s close
Turnover
A term for trading volume or liquidity.
Two-Way Price
A quotation with both the bid and offer price.
Forex Trading Glossary – T
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