Rally

In the context of financial markets, the term rally is used to describe a rapid and sudden increase in the value of a market index or financial instrument. A rally is usually generated by a significant increase in demand for an asset.

Investor interest can also be influenced by market movers: e.g. the launch of a new product, economic indicators (such as inflation) or the fall of a government. Investor interest can lead a rally to last even several months.

The temporary rise in prices may be followed by a period of stability or by a reversal of the trend. In the latter case, the financial rally can easily turn into a bull trap: a false bullish movement, which does not change the general price trend.

The durability of a financial rally, therefore, depends strictly on the motives behind it.

Financial rallies can be detected using technical and fundamental analysis tools, i.e. by observing price charts and considering micro- or macro-economic factors, such as a company’s balance sheet or a state’s finances.

Correlated words

Indicator

An economic indicator compiles macro data, a key tool to evaluate investment opportunities and the economy’s health.

Parameters

Parameters are variables defining rules and conditions for trading operations, which vary by trading strategy.

Golden Cross

The Golden Cross, a key trading term, denotes the crossing of two moving averages. Learn how it can guide trading strategies on assets.

Average True Range (ATR)

The Average True Range (ATR) is an essential technical analysis indicator for investors seeking to measure market volatility.

Dividend

A Dividend is a share of profit distributed to shareholders of a company, usually paid periodically as a return on investment.

Diversification

Diversification in investment involves strategically including various assets with different characteristics to reduce portfolio risk.

Drawdown

Drawdown is a financial indicator measuring the decline from an asset's peak to its lowest point over a specified period, reflecting risk.

Floor price

The Floor price is the lowest price at which an asset, such as an NFT or stock, is currently available for purchase on the market.

Bitcoin Dominance

Bitcoin Dominance measures the proportion of Bitcoin's market capitalisation in relation to the total market cap of all cryptocurrencies.

Pair

In trading, a Pair involves two currencies exchanged against each other, commonly seen on cryptocurrency and forex exchanges.

Price action

Price action refers to the movement and behaviour of a financial instrument's price over time, used for predictive analysis in trading.

Relative Strength

Relative Strength is a technical analysis tool comparing the price performance of two cryptocurrencies to evaluate their market strength.

Breakout

A Breakout in trading occurs when the price surpasses a defined resistance or support level, leading to increased volatility and activity.

Bull Run

A Bull Run is a market phase marked by a sustained upward price trend, often reflecting widespread positive sentiment among investors.

Fakeout

A Fakeout in the market occurs when the actual price trend diverges from investor expectations, leading to mistaken trading decisions.

Market Mover

A Market Mover is a factor or event capable of significantly influencing a financial market's direction and price levels.

Mutual Funds

Mutual Funds pool capital from multiple investors to invest collectively in diversified portfolios of assets.

Bear Trap

A Bear Trap occurs in a bullish market, presenting a temporary downward price movement that can mislead investors.

Bull Trap

A Bull Trap is a deceptive upward price movement in a bearish market, giving the false impression of a market recovery.

Volatility

Volatility in finance refers to the extent of price fluctuations a financial instrument experiences over a period.

Supply and demand

Supply and demand are fundamental economic forces determining the price and availability of goods and services in the market.

Volume

Volume indicates the total amount of a cryptocurrency traded within a specific time frame, reflecting market activity.

Market Trend

Market Trend signifies the prevailing direction of financial markets, identified over a substantial duration for investment analysis.

Trading

Trading is buying and selling financial assets in markets to profit from price movements and market trends.

Stop Order

A Stop Order is a conditional trade tool in markets, allowing investors to buy or sell assets when prices reach a set level.

Slippage

Slippage is the variation between a trade's expected and executed price, often occurring in fast-moving or illiquid markets.

Support and resistance

Support and Resistance are technical analysis tools identifying price levels where an asset's price trend may pause or reverse.

ROI

ROI, or Return on Investment, quantifies the performance of an investment by comparing profits to its original cost.

Pump&Dump

Pump&Dump is a manipulative market strategy that artificially inflates cryptocurrency prices for the benefit of the initiators.

Prediction Market

Prediction markets are exchange-traded platforms that predict the outcomes of future events, reflecting market sentiment and speculations.

Order Book

The order book shows the demand and supply on an exchange, listing prices at which users are willing to buy and sell certain amounts.

Oracle

An Oracle is a blockchain mechanism providing external, verified data to smart contracts for accurate and reliable execution.

Moon

The term 'Moon' describes a rapid and significant surge in a cryptocurrency's price, indicating bullish market sentiment.

Market Order

A Market Order is executed instantly at the next available best market price for buying or selling cryptocurrencies.

Market Maker

Market Makers are intermediaries who buy and sell large quantities of an asset to facilitate its liquidity and ensure market depth.

Market Cap

Market Cap denotes the total market value of all circulating coins or tokens of a particular cryptocurrency.

Limit Order

A Limit Order is executed only when the cryptocurrency reaches a predetermined price, specifying exact buy or sell conditions.

Futures Contract

A Futures Contract is an agreement to buy or sell an asset at a predetermined price at a specified future date (hedging or speculation).

FUD

FUD (Fear, Uncertainty, and Doubt) describes a general sense of negativity or pessimism in the market, potentially affecting prices.

Circulating Supply

Circulating Supply refers to the number of cryptocurrency tokens or coins actively available for trading in the market.

Forex

The Forex (Foreign Exchange) Market is a global platform for trading fiat currencies, operating 24/7 with high liquidity.

FOMO

Fear Of Missing Out (FOMO) in trading and cryptocurrency contexts refers to the anxiety of missing profitable opportunities.

ETF

ETFs (Exchange-Traded Funds) are passively managed funds that replicate the performance of a benchmark index, offering broad market exposure.

Buy Wall and Sell Wall

Buy Wall and Sell Wall represent significant purchase or sale demands at a specific price in cryptocurrency trading.

Bull Market

A Bull Market is a period where prices consistently rise, often driven by investor confidence and economic optimism.

Break-Even point

The Break-even point is the financial state where total revenues equal total expenses, indicating neither profit nor loss.

Bid and Ask

In trading, 'Bid' and 'Ask' represent the prices at which buyers and sellers are willing to trade an asset in the order book.

Benchmark

A Benchmark is a standard or point of reference against which the performance of a financial instrument or market can be measured.

Bear Market

A Bear Market is a phase in the market characterized by declining asset prices and typically reflecting widespread pessimism.

ATH and ATL

ATH (All-Time High) and ATL (All-Time Low) represent a cryptocurrency's highest and lowest historical price points.

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