Pullback

/in , /by

A pullback is a temporary reversal in the price of a currency, asset or security from recent peaks that occur within a continuing uptrend.

QE

/in , /by

Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term security in order to spur economic activity. In response to the economic shutdown caused by the COVID-19 pandemic, on March 15, 2020, the U.S. Federal Reserve announced a quantitative easing program that amounted to over $700 billion.

Rate cut

/in , /by

Central banks cut interest rates when the economy slows down in order to spur economic activity and growth.

Rate hike

/in , /by

A hike in interest rates boosts the borrowing costs for the U.S. government, fueling an increase in the national debt.

Relative Strength Index (RSI)

/in , /by

Relative strength is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

Resistance

/in , /by

A resistance is a price point on a chart where the probabilities favor a pause or reversal of an uptrend.

Retest

/in , /by

A retest refers to prices that reversed direction after a break of a resistance or support area and returned to the previous breakout level.

Reversal

/in , /by

A reversal is a change in the price direction of a currency or financial instrument. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside.

Short

/in , /by

Taking a short position means SELL. In Forex, going short means that a trader is selling the base currency and buying the quote currency. For example, if we go short or sell GBP/USD, we sell pounds (GBP) and buy U.S. dollars (USD).

Short Squeeze

/in , /by

A short squeeze occurs when a currency or other asset jumps sharply higher, forcing short-sellers to bail out to cut their losses. Short sellers are being squeezed out of their positions, usually at a loss.