structure
Bias
The directional lean of the chart.
Bias is the current directional read based on structure, zones, momentum, and context. It is not a command to enter.
Bullish bias can still mean wait if price is extended or risk is unclear.
Glossary
Chart-reading terms in plain English.
Use this glossary to understand the language behind Chart Coach feedback. These terms support education and review, not trade instructions.
market
Timeframe
The candle duration used for analysis.
A timeframe controls how much market movement each candle represents. Lower timeframes react faster and often contain more noise.
M15 can show an entry sequence while H4 gives the broader structure.
risk
Risk/reward
The relationship between planned risk and potential reward.
Risk/reward compares the distance to invalidation with the distance to a realistic target area.
If the stop is 30 pips and the first target zone is 45 pips away, the ratio is 1:1.5.
risk
Stop loss
The exit point if the idea is wrong.
A stop loss is the planned protective exit for a trade idea. It should sit beyond the area that invalidates the setup.
For a long idea, a stop often sits below the structure level that should hold.
risk
Invalidation
The condition that proves the setup wrong.
Invalidation is the exact price action or level where the trade idea no longer makes sense.
A bullish pullback idea is invalidated if price closes below the demand zone that should defend it.
session
Session
A major market activity window.
Sessions describe when different regions are most active. Forex commonly references Tokyo, London, New York, and overlap periods.
London open often brings more liquidity than late off-hours trading.
structure
Market structure
The sequence of highs, lows, and breaks.
Market structure shows whether price is forming higher highs and lows, lower highs and lows, or a range.
Higher highs and higher lows suggest buyers are defending pullbacks.
execution
Setup checklist
A pre-trade condition list.
A setup checklist forces the trader to confirm context, zone, invalidation, and risk before considering action.
If three of five conditions are missing, the clean decision is usually to wait.
execution
No-trade zone
An area where risk or clarity is poor.
A no-trade zone is a price area where the setup is unclear, risk is compressed, or price is in the middle of a range.
Mid-range entries often have weak invalidation and poor reward distance.
market
Liquidity
Where orders and participation cluster.
Liquidity refers to available orders and common stop areas. Price often moves toward visible highs, lows, and session extremes.
Equal highs can attract liquidity before price decides direction.
market
Volatility
How strongly price is moving.
Volatility describes the size and speed of price movement. High volatility can expand opportunity and risk at the same time.
News spikes can create volatility that makes stops unreliable.
structure
Support
An area where buyers previously reacted.
Support is a zone where demand has previously appeared. It should be treated as an area, not an exact guaranteed line.
A support zone may be useful only if price reacts and risk is defined.
structure
Resistance
An area where sellers previously reacted.
Resistance is a zone where supply has previously appeared. It can fail if structure changes.
A break and hold above resistance can change the context.
structure
Break of structure
A meaningful high or low is broken.
A break of structure happens when price pushes beyond a prior swing level enough to suggest control may be shifting.
Breaking a lower high can be early evidence that selling pressure is weakening.
execution
Confirmation
Extra evidence before action.
Confirmation is additional evidence that supports a plan, such as rejection, structure shift, or candle close behavior.
A zone touch alone is weaker than a zone touch plus rejection and a structure break.
structure
Pullback
A temporary move against the main leg.
A pullback is a retracement within a broader move. It can create better risk if structure remains intact.
In an uptrend, a pullback into demand may be cleaner than chasing highs.
structure
Range
Price rotating between boundaries.
A range forms when price repeatedly reacts between support and resistance without clear directional expansion.
Range middle is often a no-trade zone because reward is limited both ways.
execution
Spread
The gap between buy and sell quotes.
Spread is the difference between bid and ask. Wider spreads increase execution cost and can distort stops.
Spreads often widen around rollover or major news.
risk
Position size
How much exposure a trade uses.
Position size determines how much money is at risk for a given stop distance.
The same stop distance can risk very different amounts depending on lot size.
risk
Drawdown
A decline from an account peak.
Drawdown measures how far an account has fallen from its previous high. It is a risk-control metric, not a failure label.
Reducing size during drawdown can protect decision quality.
market
Catalyst
An event that can change volatility.
A catalyst is a scheduled or unexpected event that can move price quickly, such as CPI, central bank decisions, or earnings.
A clean setup can become untradeable if it sits minutes before high-impact news.
execution
Confluence
Multiple reasons supporting one read.
Confluence means independent pieces of evidence point to a similar conclusion. It should improve discipline, not create overconfidence.
Structure, session liquidity, and a clean zone can create confluence.
structure
Trend
A sustained directional condition.
A trend is a sequence where price keeps expanding in one direction and defending pullbacks.
A trend weakens when pullbacks deepen and breaks stop following through.
structure
Retest
Price revisits a broken area.
A retest happens when price returns to a level or zone after breaking it. The reaction matters more than the touch.
A broken resistance zone may retest as support if buyers defend it.