40 essential trading terms — from pip to hash-chain — explained in plain language, with no promises and no empty jargon. Use the search or browse A to Z.
Average Directional Index — an indicator that measures trend strength on a 0-100 scale, without indicating direction. Readings above 25 usually signal a relevant trend; below 20, a ranging market. TraderClub.ai's AI uses ADX as a strength filter before validating a signal.
Average True Range — an indicator that measures an asset's average volatility over a given period. It doesn't indicate direction: it indicates how much price typically moves. Widely used to size stops in proportion to current volatility.
An indicator made of three lines: a central moving average and two standard-deviation bands above and below. Tight bands indicate volatility compression; price touching the outer bands indicates an extended move.
Basis points: 1 bps equals 0.01%. The standard unit for measuring changes in interest rates, fees and costs — 25 bps is 0.25%. It removes ambiguity when talking about small percentages.
The point where a trade has neither profit nor loss. Moving the stop to breakeven means placing it at the entry price, removing the remaining risk of the running trade.
A chart representation showing a period's open, close, high and low in a single “candle”. Candlestick patterns (engulfing, doji, hammer) are among the oldest readings in technical analysis, created in 18th-century Japan.
Multiple independent signals pointing in the same direction at once — for example, EMA, RSI, MACD and ADX aligned. TraderClub.ai's AI only issues a signal when there is real indicator confluence, and every signal ships with a confidence score.
A mode where the trades of a trader or a system are automatically replicated in the copier's account. On TraderClub.ai, copying runs inside your own MT5, within risk limits you define. Copy trading involves risk — past results do not guarantee future results.
Trades opened and closed on the same day, with no overnight position. It removes opening-gap risk, in exchange for requiring faster decisions within the session.
The percentage drop between a peak and the following trough in an equity curve. A 20% drawdown requires a 25% gain just to get back to the starting point. It is the central risk metric of any trading history.
A program that runs inside MetaTrader and executes orders automatically according to defined rules. TraderClub.ai's EA runs on your machine or VPS and only executes orders digitally signed (HMAC) by the platform.
Exponential Moving Average — a moving average that gives more weight to recent prices. It reacts faster than the simple average and is used to identify trend direction and dynamic support and resistance levels.
The account's total value in real time: balance plus the floating result of open positions. It is the true measure of capital — free margin and risk limits are calculated on top of it.
A sentiment index that summarizes market psychology on a scale from fear to greed. Extreme readings often accompany price excesses and are used as a contrarian thermometer — never as a standalone signal.
A tool that projects support and resistance levels based on Fibonacci sequence ratios (38.2%, 50%, 61.8%…). Traders use retracements to map likely correction zones inside a trend.
A jump on the chart between one period's close and the next one's open, with no trading in between. Common after weekends and strong news. Gaps can jump over stops, executing the order at the next available price.
A structure where each record stores the hash (cryptographic fingerprint) of the previous record, forming a chain. Altering any past item breaks the entire chain, which makes the history verifiable. It is the foundation of TraderClub.ai's public track record.
A position opened to offset the risk of another — for example, selling an asset correlated with one you hold long. The goal is to reduce exposure, not to seek direct profit.
An emergency control that immediately halts all automated execution. On TraderClub.ai, the kill-switch pauses the EA instantly — and final control belongs to the user, who can also turn the robot off inside MT5.
A mechanism that lets you open positions larger than your deposited capital, using margin as collateral. 1:100 leverage means controlling 100 units for every 1 of margin. It amplifies gains and losses in the same proportion — the main risk factor in forex.
How easily an asset can be bought or sold without moving its price. Liquid markets, like the major forex pairs, have tighter spreads and more precise execution.
The standard volume unit in forex: 1 lot = 100,000 units of the base currency. Mini lots (0.1) and micro lots (0.01) shrink the size — and the risk — of each trade.
Moving Average Convergence Divergence — an indicator that compares two exponential moving averages to map momentum and trend changes. Crossovers between the MACD line and the signal line are among the classic entry and exit readings in technical analysis.
The amount locked by the broker as collateral to keep a leveraged position open. If equity falls below the required margin, a margin call happens and positions can be force-closed.
The most widely used retail forex trading platforms in the world, provided free of charge by brokers. They support charts, indicators and robots (EAs). MT5 is the current generation, with more timeframes, assets and features.
Analysis that confirms the same move across different time windows (for example, M15, H1 and H4). It reduces false signals by requiring the lower timeframe's reading to align with the higher timeframe's context.
The smallest standard price move of a currency pair — usually the fourth decimal place (0.0001). In yen pairs (like USD/JPY), a pip is the second decimal place (0.01). It is the unit used to measure moves, spreads and results in forex.
The ratio between what you risk (distance to the stop) and what you aim for (distance to the target). A 1:2 R:R risks 1 to seek 2. Mathematically, with a favorable R:R a strategy can end up positive even with a win rate below 50%.
Relative Strength Index — a 0-100 oscillator measuring the speed and magnitude of recent price changes. Readings above 70 suggest overbought conditions; below 30, oversold. It is one of the indicators in the confluence behind the platform's signals.
A very high-frequency trading style that seeks small gains from moves lasting minutes or seconds. It demands low spreads, fast execution and strict stop discipline.
The difference between the requested price and the price at which the order was actually executed. It appears in moments of high volatility or low liquidity and mostly affects market orders.
The difference between an asset's buy price (ask) and sell price (bid). It is the immediate cost of opening a trade and the main revenue source for many brokers. Tight spreads indicate a liquid market; wide spreads, an illiquid or volatile one.
An order that automatically closes a position when price reaches a pre-defined loss level. It is the basic risk-management tool: it caps the maximum loss of each trade without depending on a manual reaction.
Price levels where buying (support) or selling (resistance) has historically halted the move. Breakouts and retests of these levels are among the most watched signals in technical analysis.
A style that holds positions for days or weeks, aiming to capture the “waves” of a larger move. It depends less on the real-time screen and more on context analysis in higher timeframes.
An order that automatically closes a position when price reaches the defined profit target. Together with the stop loss, it fixes the trade's risk-reward ratio before the trade even starts.
The prevailing direction of price over a given period: up (higher highs and lows), down (lower ones) or sideways. Trading with the trend is one of the oldest principles in technical analysis.
A measure of how intensely price varies over a period. High volatility brings more opportunity and more risk in equal measure; indicators like ATR help quantify it.
The percentage of winning trades over the total. On its own it misleads: a high win rate with poor risk-reward can lose money, and a modest win rate with favorable R:R can win. Always read win rate and R:R together.
An architecture where the platform never holds the user's money or credentials: capital stays at the broker and execution runs on the trader's own machine. It is TraderClub.ai's model — the EA operates in your MT5 and your broker password never passes through the platform's servers.
