R — Trading Terms Starting With R
Explore trading terms beginning with R, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with R
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Range
A range is a market condition where price moves between identifiable support and resistance without establishing a sustained trend. Traders may use the boundaries for mean-reversion or wait for a confirmed breakout.
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Resistance is a price area where selling pressure has previously slowed or stopped upward movement. It may be formed by prior highs, supply zones, moving averages, or psychological levels.
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A retracement is a temporary move against the prevailing trend. It may be measured using percentages, structure, moving averages, or Fibonacci levels.
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Return on investment, or ROI, measures profit or loss relative to the amount invested. It is usually expressed as a percentage and helps compare different investments.
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A reversal is a change in market direction, such as from an uptrend to a downtrend or from a downtrend to an uptrend. It should be distinguished from a temporary pullback.
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Risk per trade is the amount or percentage of account equity a trader is willing to lose if the stop loss is reached. It is a core position-sizing input.
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Risk-reward ratio compares the planned loss with the potential profit of a trade. A 1:2 ratio means risking one unit to target two units.
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An R-multiple expresses a trade result relative to the initial risk. It allows trades with different position sizes and markets to be compared on the same scale.
Read full definitionRelative Strength Index
The Relative Strength Index, or RSI, is a momentum indicator that measures the speed and magnitude of recent price changes on a scale from 0 to 100.
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