Reference
Trading Glossary
Short explanations of common terms used in gStockly charts, Insights and scanner conditions.
Price and volume
| OHLC | Open, High, Low and Close of a bar. |
|---|---|
| Countervalue | Approximate traded monetary value, commonly estimated from typical price multiplied by volume. |
| VWAP | Volume-weighted average price. It gives more weight to prices that traded with more volume. |
| Relative volume | Current volume compared with an average volume reference. |
Trend and momentum
| SMA / EMA | Simple and exponential moving averages. EMA reacts more quickly to recent price changes. |
|---|---|
| RSI | Relative Strength Index, a momentum oscillator. High or low values are context, not a standalone trade signal. |
| ADX | Average Directional Index, a measure of trend strength rather than trend direction. |
| Bollinger position | Where price sits within the Bollinger Bands range. |
Volatility and risk
| ATR | Average True Range, a measure of typical price movement over a period. |
|---|---|
| Bollinger width | The width between the upper and lower bands; a proxy for relative volatility. |
| Drawdown | Decline from a previous peak to a subsequent low. |
| Risk/Reward | Potential reward divided by planned risk between entry and stop. |
Definitions are educational. Their usefulness depends on timeframe, market regime, liquidity and the rest of the analysis.