Crypto trading terms in plain English

A price level where a coin has historically stopped falling and bounced back up. Traders expect buyers to step in here, which often makes the price reverse or pause before continuing down.

A price level where a coin has historically struggled to break above. Sellers tend to dominate at this level, so the price often pulls back until enough demand builds to push through.

When the price moves decisively past a support or resistance level. Traders see breakouts as a signal that a new trend is starting, often with increased volume confirming the move.

A move that looks like a breakout but quickly reverses back inside the previous range. Fakeouts trap traders who entered early and are a common source of losses.

A bearish reversal pattern with three peaks — a higher middle peak (the head) flanked by two lower peaks (the shoulders). It suggests an uptrend is losing strength and may reverse downward.

A bearish pattern where the price hits the same resistance level twice and fails to break through. It suggests buyers are exhausted and a downward move is likely.

A bullish pattern where the price tests the same support level twice and bounces both times. It suggests sellers are exhausted and an upward move is likely.

A bullish continuation pattern that looks like a teacup — a rounded bottom followed by a small downward drift (the handle) before a breakout. It typically signals more upside ahead.

A bullish pattern formed by a flat top resistance and rising lower lows. It usually breaks upward when buyers finally overwhelm the resistance.

A bearish pattern formed by a flat bottom support and falling lower highs. It usually breaks downward when sellers finally push through the support.

A consolidation pattern where highs get lower and lows get higher, compressing into a point. The breakout direction is neutral until it happens — volume usually confirms which way it goes.

A bearish pattern where both highs and lows trend upward but converge, signaling weakening momentum. It typically breaks downward.

A bullish pattern where both highs and lows trend downward but converge. Selling pressure is exhausting and a breakout to the upside is expected.

A short consolidation after a strong directional move, resembling a flag on a pole. It usually continues in the same direction as the initial move.

A small symmetrical triangle that forms after a sharp move. Like a flag, it signals a brief pause before the trend continues in the same direction.

A price moving between two parallel trendlines — one support, one resistance. Channels can slope up, down, or sideways and give traders clear levels to buy and sell.

Relative Strength Index — a momentum indicator that measures how overbought or oversold an asset is on a scale of 0 to 100. Readings above 70 suggest overbought (possible pullback); below 30 suggest oversold (possible bounce).

Moving Average Convergence Divergence — a trend-following indicator that compares two moving averages. When the MACD line crosses above its signal line it's bullish; crossing below is bearish.

The average price of an asset over a set number of periods, redrawn every period. Smooths out noise and shows the overall trend direction.

Simple Moving Average — the arithmetic mean of closing prices over a given number of periods. Commonly used with 50, 100, and 200-period settings as trend references.

Exponential Moving Average — like a SMA but gives more weight to recent prices. Reacts faster to price changes, which is why short-term traders prefer it.

Three lines plotted around price: a middle moving average and upper/lower bands based on standard deviation. When bands are tight, volatility is low; when price touches the outer bands, a reversal or breakout is often near.

The total amount of an asset traded in a period. Rising volume confirms the strength of a move; low volume makes moves less trustworthy.

Volume-Weighted Average Price — the average price an asset has traded at through the day, weighted by volume. Traders use it as a fair-value benchmark and as dynamic support or resistance.

Horizontal lines drawn at key ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) between a swing high and low. Traders use these as likely reversal levels during pullbacks.

A momentum indicator comparing a closing price to its range over time, plotted 0-100. Readings above 80 suggest overbought; below 20 suggest oversold.

When price moves one way but an indicator (like RSI or MACD) moves the other. Divergences often warn that the current trend is losing strength and may reverse.

When a short-term moving average (usually the 50-day) crosses above a long-term one (usually the 200-day). It's a widely-watched bullish signal for the longer-term trend.

When a short-term moving average crosses below a long-term one (typically 50-day below 200-day). It's a bearish signal warning of extended downside.

Average True Range — measures how much an asset typically moves over a given period. Traders use it to set stop losses that account for normal volatility.

A Japanese indicator that shows support, resistance, trend direction, and momentum all at once using several lines and a shaded 'cloud'. Price above the cloud is bullish; below is bearish.

An order that executes immediately at the best available price. Fast, but you can get worse fills than expected (slippage) in fast-moving or thin markets.

An order to buy or sell only at a specific price or better. It won't execute until the market reaches your price, so it's slower but gives you price control.

An order that automatically sells your position if the price drops to a set level. Used to limit losses on a losing trade. Often written as 'SL'.

An order that automatically closes your position once it hits a target profit level. Often written as 'TP'. Removes the need to watch the chart and locks in gains.

A stop loss that triggers a limit order instead of a market order. Gives price control at the risk of not filling at all if the market gaps through your level.

A stop loss that moves with the price as it goes in your favor. Lets profits run while automatically tightening protection as the trade works.

One-Cancels-the-Other — two linked orders where executing one cancels the other. Commonly used to set both a take profit and stop loss at the same time.

Borrowing from an exchange to open a larger position than your own capital allows. Amplifies both gains and losses — 10x leverage means a 10% move wipes out your collateral.

A bet that the price will go up. You profit if the asset's price rises from where you entered and lose if it falls.

A bet that the price will go down. You borrow the asset to sell it, planning to buy it back cheaper — you profit if the price falls and lose if it rises.

The collateral you put up to open a leveraged position. If the trade goes against you and your margin gets too low, the position can be liquidated.

When your leveraged position is forcibly closed because losses consumed your margin. You lose your collateral — often written as 'getting liq'd'.

Holding a coin long-term through ups and downs instead of trading it. Originally a typo of 'hold' in a 2013 Bitcoin forum post, now used to describe a buy-and-hold strategy.

Fear Of Missing Out — the urge to buy into a rally because the price is surging. FOMO buys often happen near local tops and lead to losses.

Fear, Uncertainty, and Doubt — negative news, rumors, or commentary that scares people into selling. Sometimes real, sometimes spread intentionally to drive prices down.

Do Your Own Research — a disclaimer posted with crypto calls meaning the author isn't giving financial advice. You should verify claims and understand risks yourself.

Not Financial Advice — a legal-sounding disclaimer crypto traders use to say their posts shouldn't be treated as professional investment guidance.

A person or entity holding a very large amount of a coin. Whale trades can move prices significantly, so traders watch on-chain data to track what they're doing.

A scheme where insiders hype a coin to pump its price, then sell (dump) into the buying frenzy. Late buyers are left with heavy losses when the coin collapses.

When developers of a crypto project suddenly abandon it and run off with investors' money, often by draining the liquidity pool. Common in shady DeFi and memecoin launches.

Any cryptocurrency other than Bitcoin. Tends to be more volatile than BTC and often moves in bigger swings both up and down.

A cryptocurrency pegged to a stable asset like the US dollar (e.g. USDT, USDC). Used to park value without converting back to fiat, and as a trading pair on exchanges.

Decentralized Finance — financial services (lending, trading, yield) built on smart contracts instead of banks. Users interact directly with protocols via their wallets.

Centralized Finance — traditional crypto exchanges and services where a company holds your funds and executes trades on your behalf. Easier to use but you don't control your keys.

Decentralized Exchange — a platform like Uniswap where users trade directly with each other via smart contracts. No signup, you control your funds the whole time.

Centralized Exchange — platforms like Binance or Coinbase that hold user funds and match orders on their own books. More liquidity, but you trust them with your money.

The fees paid to execute transactions on a blockchain like Ethereum. Fees rise when the network is busy and fall when it's quiet.

The difference between the price you expected and the price you actually got filled at. Worse on thin markets, big orders, or fast-moving prices.

A sustained period of rising prices and optimistic sentiment. In crypto, bull markets can be extreme — Bitcoin often gains several multiples while altcoins go further.

A sustained period of falling prices and pessimistic sentiment. Crypto bear markets are brutal — coins commonly drop 80%+ from their peaks.

The total value of a coin's circulating supply (price × number of coins). Gives a sense of a coin's size relative to others.

Total Value Locked — the dollar value of assets deposited into a DeFi protocol. A higher TVL usually means more trust and usage.

Annual Percentage Yield — the yearly return on a deposit including compounding. Stated APYs in DeFi can be volatile and often drop as more capital enters.

Self-executing code deployed on a blockchain that runs automatically when its conditions are met. The foundation of DeFi, NFTs, and most crypto apps.

When a project sends free tokens to wallet addresses that meet certain criteria — often past users or early supporters. A common way to launch new tokens.

A slang term for a low-quality or scammy cryptocurrency with no real utility. Usually launched to pump and dump rather than build anything lasting.

A cryptocurrency based on a meme, joke, or internet culture rather than a product (e.g. DOGE, SHIB). Price is driven by community hype, not fundamentals.

Someone who holds their position through heavy volatility without selling. The opposite of paper hands — treated as a badge of honor in crypto culture.

Someone who sells at the first sign of trouble. Usually used as an insult toward traders who dump during a dip and miss the eventual recovery.

Short for degenerate — a trader who takes extreme risks, often on memecoins or high leverage. Used as both an insult and a self-description in crypto Twitter.

To buy a coin without doing much research, usually because of hype or momentum. 'Aping in' is the act of taking a position on vibes rather than analysis.

A small coin that someone thinks could 10x, 100x, or more. High risk, high reward — most moonshot bets fail, but occasional wins are huge.

All-Time High — the highest price an asset has ever reached. Breaking ATH is bullish since there are no previous holders in loss left to sell.