Glossary of crypto trading terms
Short, plain definitions of the words used on Tralyzer and in crypto trading generally.
- Average entry price
- The price you paid on average across all filled buy steps, weighted by how much you bought at each.
- Bear market
- A long period of falling prices.
- Breakout
- A move that closes beyond a support or resistance level, often with higher volume.
- Bull market
- A long period of rising prices.
- Candle
- One bar on a chart showing the open, high, low and close price for a timeframe such as 15 minutes or 1 hour.
- Divergence
- When price and an indicator move in different directions, for example a new price high with a lower RSI.
- Futures
- Contracts that follow a coin’s price without owning the coin, usually with leverage, and allow going short.
- Leverage
- Borrowed exposure that multiplies both gains and losses. 10x leverage turns a 1% move into a 10% gain or loss.
- Limit order
- An order to buy or sell at a set price or better; it waits until the market reaches that price.
- Liquidation
- When a leveraged position loses so much that the exchange closes it automatically.
- Liquidity
- How easily a coin can be bought or sold without moving its price much.
- Long
- A trade that gains when the price rises.
- Market order
- An order to buy or sell at once at the best price available.
- Overbought
- A reading, often RSI above 70, suggesting the price rose fast and may pause or pull back.
- Oversold
- A reading, often RSI below 30, suggesting the price fell fast and may pause or bounce.
- Position size
- How much money is in a trade. Best set from the distance to the stop loss and the loss you accept.
- Pullback
- A short move against the main trend before it continues.
- Resistance
- A price above the market where selling has stopped rises before.
- Risk-reward ratio
- The possible gain of a trade compared with its possible loss, for example 2:1.
- Short
- A trade that gains when the price falls; on Tralyzer, short signals are for futures only.
- Slippage
- The difference between the price you expected and the price you got, common in fast markets.
- Spot
- Buying and selling the coin itself, with no leverage.
- Staged entry
- Buying a trade in several parts at different prices. Tralyzer uses three steps of up to 10%, 30% and 60%.
- Stop loss
- An order that closes a trade automatically at a set loss.
- Support
- A price below the market where buying has stopped falls before.
- Take profit
- An order that closes a trade at a set gain. On Tralyzer this is the sell price.
- Timeframe
- The period each candle covers, such as 15 minutes, 1 hour or 4 hours.
- Trend
- The general direction of the price: up, down or sideways.
- USDT
- Tether, a stablecoin meant to stay at 1 US dollar. Tralyzer quotes every market against it.
- Volatility
- How much and how fast a price moves.
- Volume
- How much of a coin was traded in a period. Moves on high volume are usually more reliable.