ABC Wave
A term used in Elliott Wave that describes a simple correction after a trending move. It is comprised of three-wave (waves A, B and C) forming a corrective or countertrend price movement.
Account Balance (Account Information)
The section of a trading screen that shows the amount of money in a trader’s account, including net profit or loss of any open positions.
Account Information (Account Balance)
The section of a trading screen that shows the amount of money in a trader’s account, including net profit or loss of any open positions.
Adaptive Techniques
These represent the alternative to fixed parameter techniques. Most indicators will include look back periods in their calculation. By considering factors such as adjustments in recent volatility, or the error between the forecasted price and real price, mathematical algorithms can be used to continually adjust formula weights to smooth the price series.
Adverse Excursion
Developed by John Sweeney, adverse excursion reviews past trades and scans for the largest open loss and typical open loss occurring in a trading system. This information can be used to determine stop loss points.
All or None
A limit price order that instructs the broker to fill the whole order at the stated price or not at all.
Alternation
(Elliott Wave)
Alternation is one of Elliott’s observations. He noticed that it was common that if Wave 2 in an impulsive wave is short and fast, then Wave 4 is sideways (flat) and slow. If Wave 2 retraces a large percentage of Wave 1 then Wave 4 will tend to be a shallow retracement.
Andrews Method
Also known as the Andrews pitchfork and developed by Dr. Alan Andrews, this is a technique for identifying upper and lower parallel lines for a trend. By identifying key first moves in a trend and the correction, a potential trend channel can be drawn.
Ascending Triangle
A pattern of corrective trading that develops between two converging lines where the support line is rising and the resistance line is horizontal. This pattern is generally described as a continuation pattern but can also be a reversal pattern.
Ask (Offer)
The price at which a dealer or trader is willing to sell a currency; also the price at which a trader can buy a currency.
Ask Price/ Ask Rate
The price at which a currency is offered for sale (as in bid/ask spread).
Ask Size
The number of lots being offered for sale at the ask rate.
Aussie
A market term for the Australian Dollar.