Trading Glossary

Average Directional Index — measures the strength of a trend, not its direction. Values above 25 suggest a trending market; below 20 suggests a ranging/choppy market.

Average True Range — the average size of a stock's daily range over N periods (usually 14). Used to size stops, targets and position sizes proportional to a stock's typical volatility.

Bands plotted at ±2 standard deviations around a 20-period SMA. A narrow band width ('squeeze') signals low volatility and often precedes a bigger move — direction is still determined by price action.

Price decisively moves through a significant level (resistance, trendline, range high). A 'clean' breakout usually requires above-average volume; low-volume breakouts are prone to reversal.

A pattern formed by one or more price candles (Hammer, Engulfing, Doji, Morning Star, etc.) that reflects the balance between buyers and sellers over that interval. Most useful as confirmation at key support/resistance levels.

AIShare's composite 0–100 reading produced by weighting all scoring factors. It is an educational aid for ranking setups, not a forecast or a recommendation.

The opposite of a Golden Cross: the short-period moving average (e.g. 50-day) falls below the long-period moving average (e.g. 200-day), suggesting a bearish regime.

When price moves in one direction but an oscillator (RSI, MACD, Stochastic) moves in the opposite direction. Often interpreted as early evidence the current trend is losing strength — confirmation from price action is still required.

Exponential Moving Average — a moving average that weights recent prices more heavily than older ones, so it reacts faster than a simple moving average (SMA).

A bullish chart event where a shorter moving average (typically the 50-day) crosses above a longer one (typically the 200-day). It is read as a regime shift from bearish to bullish — not a direct buy/sell instruction.

Moving Average Convergence Divergence — a momentum indicator built from the difference between two EMAs (typically 12 and 26) and a 9-period signal line. The histogram shows how momentum is expanding or fading.

A condition, typically flagged by momentum oscillators such as RSI above 70, where an asset has risen quickly and may be due for a pause or pullback. It is not the same as 'time to short'.

A condition where an asset has fallen sharply and momentum readings (e.g. RSI below 30) reach extremes — a context to watch for a bounce, not a guaranteed reversal.

The ratio between how much you stand to lose (entry to stop) and how much you stand to gain (entry to target). A 1:2 setup risks ₹1 to potentially make ₹2.

Relative Strength Index — a 0-to-100 momentum oscillator. Classic zones: below 30 (oversold), above 70 (overbought). Useful for timing within a trend, not for calling reversals on its own.

Simple Moving Average — the arithmetic mean of the last N closing prices. Smoother than an EMA but slower to respond to new data.

A period of unusually low volatility — for example, a Bollinger Band width below 4% of price. Signals a potential explosive move; traders wait for a breakout with volume before acting.

A momentum oscillator that compares the latest close to the high-low range over a lookback period (default 14). Produces %K and %D lines used to spot overbought/oversold conditions — especially useful in ranging markets.

A pre-planned exit price placed against a position to cap losses if price moves the wrong way. AIShare examples use ATR-based stops (typically 1.5× ATR from entry) rather than fixed percentages.

Support is a price zone where buying interest has repeatedly halted declines; resistance is a zone where selling has capped advances. The more times a level is tested cleanly, the more significant it becomes.

A stop that is moved in the direction of the trade as price moves favourably, locking in a portion of unrealised profit without capping upside.

A sustained directional bias in price. An uptrend shows higher highs and higher lows; a downtrend shows lower highs and lower lows. Most swing-trading strategies work best when a trend is already established.

Today's volume divided by the average volume over a lookback window (AIShare uses 20 sessions). Values above 1.5× flag above-average conviction; values below 0.5× suggest moves lack participation.