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Forex & PipAlert glossary
Plain definitions for trading terms, plus how each idea shows up in Channels and Signals on PipAlert.
- ABC correctionAn ABC correction is a three-wave counter-trend (or consolidating) structure: A, B, then C.
- AnnouncementAn Announcement is a non-Signal Channel Message such as rules or commentary, still scoped by Audience.
- AudienceAudience is who a Message is for on a Channel: free Subscribers, paid Subscribers, or both.
- Break evenBreak even is moving stop loss to entry (or beyond) so a stop exits near flat. On PipAlert it is a move-stop Progress Action.
- BreakoutA breakout is price leaving a triangle, channel, or trendline—often used as entry confirmation.
- ChannelA Channel is a PipAlert place where a Signal Provider publishes Signals for Subscribers who joined through a Package.
- Complex correctionA complex correction chains simpler patterns with X waves—double threes (W-X-Y) or triple threes (W-X-Y-X-Z).
- ConfluenceConfluence is multiple technical reasons aligning at one price zone, often used to justify entries or targets.
- Corrective waveA corrective wave counters the larger trend—often zigzags, flats, triangles, or combinations.
- Currency pairA currency pair is the instrument being traded (for example EURUSD): base currency versus quote currency.
- DivergenceDivergence is price making a new extreme while momentum fails to confirm—common into late wave 5.
- DrawdownDrawdown is the drop from equity peak to trough. It shows how painful a losing period was for an account or strategy.
- Economic CalendarThe Economic Calendar is the chronological list of Economic Events traders watch for volatility and timing.
- Elliott WaveElliott Wave analysis maps price into motive and corrective waves. It is a framework Signal Providers may use—not a guarantee.
- Ending diagonalAn ending diagonal is a converging motive pattern often seen late in a trend (wave 5 or C) that can mark exhaustion.
- Expanded flatAn expanded flat is a flat where B overshoots A's origin and C usually extends beyond A's end.
- Fibonacci clusterA Fibonacci cluster is where several Fib levels from different swings converge in one price zone.
- Fibonacci extensionFibonacci extension projects upside or downside targets beyond a completed swing using ratios such as 1.618.
- Fibonacci retracementFibonacci retracement marks pullback depths of a prior move using ratios such as 38.2%, 50%, and 61.8%.
- Flat correctionA flat is an A-B-C correction where B retraces deeply into A and C often retests or exceeds A's extreme.
- ImportanceImportance ranks how much an Economic Event tends to move markets: none, low, medium, or high.
- Impulse waveAn impulse wave is a five-wave move with the larger trend, with strict overlap and length rules traders use for invalidation.
- Invalidation levelAn invalidation level is where the setup or wave count fails; stops are often placed beyond it.
- Leading diagonalA leading diagonal is a wedge-like motive pattern that can begin a larger move (often wave 1 or A).
- LeverageLeverage multiplies exposure versus account cash. It raises profit and loss per pip; PipAlert does not set your broker's leverage.
- Lot sizeLot size is the volume of a forex trade. Standard, mini, and micro lots scale how much each pip is worth.
- MarginMargin is collateral your broker holds for leveraged trades. Running out of margin can close positions early.
- Motive waveA motive wave moves with the larger trend—either a standard impulse or a diagonal.
- Multi-timeframe analysisMulti-timeframe analysis uses higher timeframes for trend and lower timeframes for entry timing.
- PackageA Package is how you join a Channel: free (no charge) or paid (purchase for a term).
- PipA pip is the standard unit of price movement in forex. Most pairs move in 0.0001 increments; yen pairs use 0.01.
- Position sizingPosition sizing sets lot size from account risk, stop-loss pips, and pip value so a losing trade stays within your plan.
- Progress ActionA Progress Action advances a live Signal: take-profit hits, move stop loss, stoploss hit, or Close.
- Risk-reward ratioRisk-reward compares stop-loss distance to take-profit distance. It helps you judge whether a Signal's payoff matches your plan.
- SignalA Signal on PipAlert is a structured trade setup Message: pair, order type, entry, stop loss, and take-profits, with status from Progress Actions.
- Signal ProviderA Signal Provider owns a Channel, sets Packages, and publishes Signals for Subscribers.
- Signal StatusSignal Status is pending, active, profit, or loss—derived from order type and Progress Actions.
- SlippageSlippage is fill price differing from the expected price, especially in fast or thin markets.
- SpreadSpread is the gap between bid and ask. It is a trading cost that can widen around news and affect stop-loss risk.
- Stop lossA stop loss is the protective exit price on a trade. PipAlert Signals always include one so Subscribers can see planned risk.
- SubscriberA Subscriber has joined a Channel through a free or paid Package and can read its Messages.
- Support and resistanceSupport and resistance are price zones where buying or selling pressure has often appeared before.
- Take-profitA take-profit is a profit target on a trade. PipAlert Signals may publish tp1, tp2, and tp3 levels that Progress Actions can mark as hit.
- Trade IdeaA Trade Idea is a Channel Message with a thesis or watch item—not a full structured Signal setup.
- Trend channelA trend channel is parallel chart lines guiding swings—not the same thing as a PipAlert Channel.
- TrendlineA trendline links swing highs or lows and is used for structure, breakouts, and retests.
- Triangle patternAn Elliott triangle is a sideways A-B-C-D-E correction that often resolves with a breakout after wave E.
- Wave alternationAlternation suggests wave 2 and wave 4 often differ in shape—one sharp, one sideways.
- Wave degreeWave degree is the fractal timescale of a count—larger degrees contain smaller nested waves.
- Wave equalityWave equality is the tendency for related legs (such as wave 5 vs wave 1, or Y vs W) to match in length.
- Wave extensionA wave extension is an elongated motive leg, most often wave 3 stretching to 1.618 or 2.618 of wave 1.
- ZigzagA zigzag is a sharp A-B-C correction, often 5-3-5, that can also appear as double or triple combinations.