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Trading glossary
Plain-English definitions of the chart and risk terms that new traders run into first. Each entry is short and practical and links to the next idea.
Confluence
Confluence is when several independent signals agree at the same price. A trader who waits for confluence wants more than one reason before entering a trade.
Read the definition →Consolidation
Consolidation is a phase where price moves sideways in a fairly tight range. Buyers and sellers are balanced and neither side is in control.
Read the definition →Liquidity sweep
A liquidity sweep is a quick move where price pokes through an obvious level and then moves back. The level is one where many stop orders tend to sit. Traders also call it a stop run.
Read the definition →Market structure
Market structure is the pattern of swing highs and swing lows that price leaves behind as it moves. It tells you whether a market is trending up or trending down or moving sideways.
Read the definition →Price channel
A price channel is a pair of parallel trendlines that contain price as it moves up or down or sideways. The lower line acts as a floor and the upper line acts as a roof.
Read the definition →Risk-reward ratio
The risk-reward ratio compares the amount you risk on a trade with the amount you aim to gain. A ratio of 1 to 2 means you risk 1 to try to make 2.
Read the definition →Stop-loss
A stop-loss is an order that closes a trade when price reaches a level you chose in advance. It limits how much one trade can lose.
Read the definition →Support and resistance
Support is a price area where buyers have stepped in before and price has paused or turned up. Resistance is an area where sellers have stepped in and price has paused or turned down.
Read the definition →Trend continuation
A trend continuation trade enters in the direction of an existing trend after a pullback. The trader joins the move instead of trying to call its end.
Read the definition →Trendline
A trendline is a straight line that connects two or more swing lows in an uptrend or two or more swing highs in a downtrend. It shows the pace and direction of a trend.
Read the definition →Wedge pattern
A wedge is a chart pattern where two trendlines slope in the same direction and move closer together. Price is squeezed into a tighter and tighter range until it breaks out.
Read the definition →Where to start
New to charts? Read these four in order.
How to use this glossary
- One idea per page. Each entry defines a term and shows how to use it and lists common mistakes.
- Original wording. CCF wrote each entry for beginners.
- Concepts and not calls. Entries explain ideas. They do not recommend a trade or forecast a price.
Pair the terms with the free tools. The risk reward calculator and position size calculator turn the ideas into numbers. The trading journal template helps you track what you do.
Frequently asked questions
What is a trading glossary?
It is a list of trading terms with plain-language definitions. Each CCF entry explains one idea and shows how it fits into a chart read or a trade plan.
Where should a beginner start?
Start with market structure so you can name what a chart is doing. Then read support and resistance and stop-loss and the risk-reward ratio. Those four give you a base for planning a trade.
Do these entries tell me what to trade?
No. They explain concepts and do not recommend any trade or predict any price. Trading involves risk including loss of principal.
Are the definitions the same everywhere?
Traders use some terms loosely and different sources draw the lines in different places. CCF entries explain the common meaning and say where traders disagree.
How often is the glossary updated?
CCF adds entries over time and reviews them as it publishes new education. Each page shows its last updated date.
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CCF was founded by Joshua Montoya and Marty Cooney as equal co-founders. Last updated November 3, 2026.
Educational content only. CCF provides general education about digital assets, trading and investing. These entries explain concepts and do not suggest any trade. It is not individualized financial, investment, legal or tax advice and CCF does not guarantee any outcome or return.