Indikora Trading Glossary
Indikora's trading glossary covers the indicators, strategies, and concepts you'll encounter when reading crypto signals — with concrete examples and how each idea shows up inside the Indikora platform.
Indicator
- RSI (Relative Strength Index) — Momentum oscillator on a 0–100 scale that flags overbought (>70) or oversold (<30) conditions.
- MACD (Moving Average Convergence Divergence) — Trend-momentum indicator: difference between 12 and 26-period EMAs, plotted with a 9-period signal line.
- Bollinger Bands — Volatility envelope: a 20-period SMA flanked by two bands at ±2 standard deviations.
- EMA (Exponential Moving Average) — Moving average that weights recent prices more heavily — reacts faster than a simple moving average.
- ATR (Average True Range) — Wilder's 14-period average of true ranges — a pure measure of how volatile an asset has been.
- Stochastic Oscillator — Momentum oscillator comparing the latest close to its high-low range over N periods.
- Divergence (RSI / MACD) — When price makes a new extreme but the indicator doesn't — a leading signal of trend exhaustion or reversal.
- Support and Resistance — Horizontal price levels where buying or selling pressure has historically reversed price.
- Trend (Uptrend, Downtrend, Sideways) — The dominant direction of price over a given timeframe: up, down, or sideways (consolidation).
- Volume — The number of units (coins or contracts) traded in a given period — a direct measure of market participation.
Strategy
- Breakout — A decisive close beyond a key support, resistance, or consolidation pattern — usually with volume confirmation.
- FOMO (Fear Of Missing Out) — The emotional urge to buy an asset already rallying because you fear missing further gains — the #1 retail trap.
- FUD (Fear, Uncertainty, Doubt) — Negative market sentiment from rumor or bad news that creates emotional sell pressure.
- HODL (Hold On for Dear Life) — Buy-and-hold investment style — keep crypto through volatility instead of trading short-term moves.
- Limit Order — An order to buy below current price or sell above it — only executes at your specified price or better.
- Market Order — An order to buy or sell immediately at the best available price in the order book.
- Spot Trading — Trading the actual asset (you own the coins) — no leverage, no liquidation, no expiry.
- Futures Contract — A derivative contract tracking an asset's price — used for leverage, shorting, and hedging.
- Funding Rate — Periodic payment between long and short perpetual-futures holders that keeps contract price tied to spot.
Market
- Bull Market — A sustained period of rising prices, broad optimism, and increasing investor participation.
- Bear Market — A sustained downtrend of 20%+ from recent highs, characterized by widespread pessimism.
- Volatility — The magnitude of price swings over time — high volatility means bigger and faster moves.
Risk
- Stop Loss — A pre-set order that closes a losing position automatically once price reaches a defined level.
- Take Profit — A pre-set order that closes a winning position automatically once price reaches a defined target.
- Leverage — Borrowed capital that multiplies position size — and proportionally multiplies both gains and losses.
- Risk/Reward Ratio (R:R) — The ratio of potential loss (to stop) versus potential gain (to target) on a single trade.
- Liquidation — Forced position close by the exchange when losses consume all posted margin — common with high leverage.
Asset
- Altcoin — Any cryptocurrency other than Bitcoin — short for 'alternative coin'.
- Stablecoin — Crypto designed to track a fiat currency (usually USD) at 1:1 — used as cash equivalent on exchanges.