Glossary

Trading range: a market that is trading in a range is a market which has no obvious direction (trend), it is basically moving up and down within a price range, not being able to break out to new highs or new lows.

Support: a price level under the current market price. When the market will move down to a support level, more buyers will enter the market - and by that they are "supporting" the price from moving under the support level. You can recognize support levels as places the market keep bouncing up from, not being able to penetrate under. When a support level is finally broken, it might indicate more down movement is ahead.

Resistance: A price level above the current market price. When the market will move up to meet the resistance level, more sellers will enter the market creating a price ceiling, pushing the price back down. You can recognize resistance levels as places the market keep bouncing down from, not being able to break above. When a resistance level is finally broken it might indicate more up movement is ahead.

Overbought (over buying - too much buying): When a currency pair is said to be overbought, it means its price in the market is fundamentally too high, and a correction to the downside should take place.

Many times when the price of the market is moving sharply up in a short period of time, it will be overbought.

Oversold (over selling - too much selling): When a currency pair is said to be oversold, it means its price in the market is fundamentally too low and a correction to the upside should take place.

Many times when the price of the market is moving sharply down in a short period of time, it will be oversold.