Bearish Three Outside Down

Three Outside Down is a three candlestick bearish reversal pattern. The pattern occurs in an uptrend and begins with a candle in the direction of the trend. The second candle’s real body engulfs the first days body. The third candle closes lower than the previous candle.

Wave59

Wave59 RT contains extremely powerful techniques that can give you a real edge when trading the financial markets. From genetic algorithms to composite cycle prediction techniques, this software contains some of the most advanced algorithms ever applied to the financial markets.

Curtis Faith

Curtis Faith is a notable participant of Richard Dennis’ fabled Turtle Trader experiment. He is the author of Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders (2007) and Inside the Mind of the Turtles: How the World’s Best Traders Master Risk.

Bucket Shop

Describes a brokerage facility that books (takes the opposite side of) retail customer orders without actually having them executed on an exchange. The term comes from the practice of placing an order in a bucket rather than transmitting it to an exchange as a broker would normally do. Bucket Shops were popular during the 1920’s … Read more

Market Maker

A professional securities dealer or person with trading privileges on an exchange who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders. By maintaining an offering price sufficiently higher than their buying price, these firms are compensated for the risk … Read more

Black Swan

The term Black Swan is derived from the philosophical idea that if all the data shows that there are only white swans, this does not prove that black swans do not exist. Popularized by Nassim Nicholas Taleb, a former trader, Black Swan is used to describe a unanticipated event or discovery whose occurence was not predictable … Read more

Big Mac Price Index

Introduced in September 1986 by the Economist magazine, the Big Mac Index has achieved notoriety as a financial indicator. The Index is a humerous guide to whether currencies are at their “correct” level – based on the theory of purchasing-power parity (PPP). Purchasing-power parity (PPP) is a theory stating that eventually, exchange rates should move … Read more

Slippage

Broadly speaking, slippage refers to a failure to meet expectation with regard to the execution of an order. Slippage reflects the extent to which an orders fill price differs negatively from the price level at which it was entered. For example if a sell stop loss order was placed at 1.2762 in the eur/usd and … Read more