Glossary of Technical Analysis-banner-imageDictionary

Glossary of Technical Analysis


Accumulation: The name given to the situation where cryptocurrencies are in a narrow price range without following periodic uptrends or downtrends.


Backtesting: It refers to testing a strategy on historical data.

Bear Market: A term used for all financial markets, meaning that prices are in a downtrend. Although it is not clearly acknowledged, the reason why it is called a bear is said to be that bears attack and drop their enemies by swinging their claws down.

Bear Trap: A negative trend appearance with false bearish movement.

Bollinger Bands: A very popular technical indicator that measures the price volatility of a financial instrument.

Bottom: The lowest reached by the price of a cryptocurrency.

Breakout: Breakouts in uptrend or downtrend channels.

Bull Market: A bull market is a term used for all financial markets, like a bear market. Unlike a bear market, a bull market means that prices are in an uptrend. The reason why it is called a bull is said to be that bulls attack their enemies with their horns and throw them up.


Candlestick: A type of chart that is created based on open price, close price, highest and lowest values in price movements.

Close Price: The final value at the end of a certain period.

Correction: It is the short-term market movement in which price movements perform in the opposite direction.


Descending Top: It means that each peak in price is lower than the previous peak in price.

Doji: A candlestick chart pattern, which is seen at the bottom or on the top, showing hints of trend reversals.

Double Bottom: The bottom formation where the price reaches two consecutive times and turns into an uptrend.

Double Top: The top formation where the price reaches two consecutive times and turns into a downtrend.

Dow Theory: The theory stating that market movements consist of primary trends, accumulation and secondary trends.


Elliott Wave: The technical analysis method explaining every movement in the market with wavelengths and timescales.


Fibonacci: The geometrical ratio between prices. It is often used in technical analysis to determine retracement levels. It is associated with the golden ratio.

Fractal: Repetitions of movements that are often seen in the market. It is also called formation.


Gap: Gaps formed in charts as a result of rapid step-up of price movements.


Head and Shoulders Pattern: It marks the end of an uptrend. It is a technical analysis formation that predicts a trend reversal in the time period it occurs.

Historical Data: The data set consisting of the opening, closing, highest and lowest price values of the instruments in the market.


Indicator: Statistics used to measure current conditions and predict financial or economic trends.

Inside Candle: The type of candlestick formed between the opening and closing values of the previous candlestick.


Limit Order: An order made to trade an asset at a specified price or better. A buy limit order can only be executed at the limit price or at a lower price. A sell limit order can only be executed at the limit price or at a higher price.

Long: Buying and storing cryptocurrency considering that its value will increase.

Cycles: The fractal structures that the market follows.


MACD Indicator: A trend-following momentum indicator showing the relationship between two exponential moving averages (EMAs) of prices. It is calculated by subtracting the 26-day EMA from the 12-day EMA. The signal lines on the MACD indicator are used as triggers for buy and sell signals. The MACD indicator was developed by Gerald Appel in the 1970s.

Market Order: The order that matches the closest buy or sell order in the market.

Mismatch: A mismatch can be positive or negative. It is a negative mismatch when the price of a financial asset rises, but there is a decrease in the indicator, and the opposite is a positive mismatch.

Moving Averages: The average obtained by taking a certain number of price data and dividing it by the total number of price data.


Oscillator: A type of indicator that detects correction levels within the trend while prices move horizontally in markets where a trend has not yet occurred.

Overbought: It indicates a rise in the RSI level as a result of high momentum buying.

Oversold: It indicates a drop in the RSI level as a result of high momentum selling.


Peak: The highest value reached by a price in a certain time frame.


Relative Strength Index (RSI): A performance momentum indicator used in technical analysis to evaluate overbought or oversold conditions of an asset.

Resistance: The levels that are likely to stop or slow down the rise when the prices are rising. It can be evaluated as a selling point by technical analysts.

Retest: The price movement to the previous support or resistance level with a corrective action.


Short: On the contrary of a long position, it means selling considering that the value of the relevant crypto currency will decrease.

Starting Price: The first transaction value in a certain time period.

Stop Loss: A type of order to sell when the price of a cryptocurrency reaches a predetermined level.

Support: The first points where prices are expected to hold while falling. These points can be determined by various technical analysis tools. It is the price level at which the bull market players buy assets.


Take Profit: A type of order that is placed for a point above the current price and allows you to close your position profitably at that level.

Trend: The direction of an asset in a specific period of time. If the asset you track descends within a certain range, it is called a downtrend, and if it ascends within a certain range, it is called an uptrend.

Trend Channel: A corridor of change consisting of two parallel lines showing the current trend in the market.


Volatility: The variation in the price of a financial asset over a period of time. Volatility is at high levels when uncertainty is high. It is usually calculated using variance and standard deviation.