Explore essential crypto and trading terms in one place, from indicators like RSI and MACD to concepts like bullish momentum, breakouts, and volatility.
A breakout occurs when the price of a crypto asset moves above resistance or below support with strong momentum, signaling the start of a potential new trend.
Bullish momentum describes a strong upward trend in price action, driven by increased buying pressure and positive sentiment signaling strength in the market.
Bearish momentum refers to strong and sustained downward price movement in a crypto asset, signaling increasing selling pressure and market weakness.
Buyers are market participants who place purchase orders, aiming to acquire an asset at a specific price. Their actions influence price movement and demand strength.
Consolidation refers to a period when a crypto asset trades within a tight price range, showing little directional movement as buyers and sellers reach temporary equilibrium.
A downtrend is a market condition where the price of an asset consistently moves lower over time, forming lower highs and lower lows, signaling ongoing selling pressure.
Lower highs occur when the price forms a peak lower than the previous one, signaling weakening bullish momentum and a potential continuation of a downtrend.
Lower lows occur when price forms a new bottom below the previous one, signaling increased selling pressure and the continuation of a downtrend in the market.
Liquidity is the ability to quickly buy or sell a crypto asset without causing significant price changes, ensuring efficient trading and narrow bid‑ask spreads.
An order book is a live list of buy and sell orders for a crypto asset, showing price levels, quantities, and market depth, essential for understanding liquidity and price pressure.
Resistance is a price level where a crypto asset tends to stop rising due to increased selling pressure, often leading to a pullback or reversal.
Sellers are market participants who place orders to offload a crypto asset, contributing to supply and often causing price to stall or decline.
Support is a price level where a crypto asset tends to stop falling and may bounce upward due to increased buying interest or historical demand.
A trend reversal occurs when the direction of a market trend changes, shifting from bullish to bearish or from bearish to bullish. It signals a potential turning point in price action.
Volatility refers to the degree of price fluctuation in a crypto asset over a period. High volatility signals larger swings, while low volatility indicates stability.
Volume refers to the total amount of an asset traded over a given period. It helps traders assess market strength, confirm trends, and detect momentum shifts in crypto.