Definition: The average price of an asset over a specific number of periods, recalculated as new data arrives. Example: A 50-day MA smooths daily price swings to reveal the medium-term trend.

Definition: A trend-following indicator that shows the relationship between two moving averages. Example: When the MACD line crosses above the signal line, it may indicate upward momentum.

Definition: A volatility indicator consisting of a moving average and two bands set at standard deviations above and below it. Example: Price touching the upper band may signal overbought conditions or high volatility.

Definition: The total amount of an asset traded during a given period. Example: A price breakout accompanied by high volume is often considered more reliable.

Definition: A situation where price moves in one direction while an indicator moves in the opposite direction. Example: Price makes a new high, but RSI makes a lower high—this bearish divergence may signal a reversal.

Definition: A condition where an asset’s price has risen too quickly and may be due for a correction. Example: An RSI above 70 is traditionally considered overbought territory.

Definition: A condition where an asset’s price has fallen sharply and may be due for a bounce. Example: An RSI below 30 often signals oversold conditions.

Definition: A smoothed version of an indicator, used to generate buy or sell signals when crossed. Example: In MACD, the signal line crossing above the MACD line can indicate a buy opportunity.

Definition: An indicator that reacts to price changes after they occur, confirming trends rather than predicting them. Example: Moving averages are lagging because they are based on past prices.

Definition: An indicator designed to predict future price movements before they happen. Example: RSI can signal momentum shifts before price reverses, acting as a leading indicator.

Definition: Using multiple indicators or signals together to increase confidence in a trading decision. Example: You wait for both RSI divergence and a MACD crossover before entering a trade.

Definition: A decentralized, open-source blockchain platform with smart contract functionality that acts as a global, programmable computer. Example: Developers use Ethereum to build decentralized lending platforms instead of relying on traditional bank servers.