Common Forex Terms/Terminology 4:
Gap Up:
Refers to the opening price of a trading day being higher than the previous day's closing price. This is usually seen as a positive market sentiment, indicating increased investor confidence and often considered a bullish signal.
Gap Down:
Refers to the opening price of a trading day being lower than the previous day's closing price. This is usually seen as a weak market sentiment, indicating decreased investor confidence and often considered a bearish signal.
One-Sided:
Refers to the price moving in a single direction, either rising or falling, or traders taking positions in a single direction, either buying or selling.
Oscillation:
Usually refers to the price fluctuating within a certain range without a clear trend. Oscillation can occur during an upward or downward movement, known as upward oscillation and downward oscillation, respectively.
Consolidation:
Refers to the price forming a relatively stable price range over a period of time, with a relatively small range of price fluctuations. Consolidation often occurs after significant price volatility, as market participants adopt a wait-and-see approach for new price trends. (Oscillation emphasizes volatility, while consolidation emphasizes relative stability.
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