Every trading term, explained with a diagram.
Options moneyness, moving averages, momentum indicators, volatility, price action, candlestick patterns — written the way we wish someone had explained them to us, with the formula worked out in real numbers and a diagram instead of a wall of text.
Momentum Indicators
RSI Explained: How the Relative Strength Index Works
RSI is a 0–100 momentum oscillator built from the size of recent gains versus recent losses, used to flag when a move may be overextended.
MACD Explained: Line, Signal Line and Histogram
MACD tracks the relationship between a fast and a slow EMA to show shifts in trend momentum, using a MACD line, a signal line, and a histogram.
Price Action
Support and Resistance Explained
Support and resistance are price areas where past buying or selling pressure was strong enough to stall or reverse a move — zones traders expect to matter again.
Fibonacci Retracement Explained
Fibonacci retracement levels mark where a pullback inside a larger trend has historically found buyers or sellers, based on ratios derived from the Fibonacci sequence.