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.
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.
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.
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. If the support level is broken, it can lead to a breakout to the downside, signaling potential further decline.
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.