Glossary
Trading terms, explained simply.
The most important terms around the gold market and Goldcheck – compact and easy to understand.
- XAUUSD
- The trading symbol for gold against the US dollar. It indicates the price of one troy ounce of gold in US dollars and is the main instrument that Goldcheck analyses.
- Market Bias
- The market’s overall directional assessment – bullish (rising), neutral (sideways) or bearish (falling). Goldcheck derives the bias from the interplay of multiple data sources.
- Confidence
- A percentage value indicating how clearly the current data supports a particular bias. High confidence means the signals are in agreement – not a guarantee of success.
- Trade Setup
- A concrete trading suggestion consisting of Entry, Stop-Loss, Take-Profit and R:R. It describes where a trade could be opened, hedged and closed at a profit.
- Entry
- The suggested entry price for a trade.
- Stop-Loss (SL)
- A predefined price at which a position is automatically closed in order to limit the loss. A central tool of risk management.
- Take-Profit (TP)
- A predefined price at which a position is automatically closed at a profit.
- R:R
- Risk-reward ratio (R:R). It relates the potential gain to the loss being risked. An R:R of 1:2 means two units of potential gain per unit of risk.
- Long / Short
- A long position profits from rising prices, a short position from falling ones. Goldcheck labels every setup accordingly.
- Support & Resistance
- Price levels at which the market tends to stop or reverse. Support sits below the current price, resistance above it. Goldcheck shows them as “levels” on the chart.
- Risk Score
- An assessment of a setup’s risk, typically from 0 (low) to 10 (high). It helps to gauge how aggressive a setup is.
- Scenario
- A possible future price path with an associated probability – e.g. Long-Continuation, Range or Reversal. Goldcheck shows several scenarios instead of a single prediction.
- Scalping / Day trading
- Short-term trading styles. Scalpers hold positions for seconds to minutes, day traders usually close their positions within the same trading day.
- DXY (US Dollar Index)
- Measures the strength of the US dollar against a basket of currencies. Because gold is quoted in USD, gold often moves inversely to the DXY.
- bond yields
- The interest paid on government bonds, above all US Treasuries. Rising real yields make non-yielding gold relatively less attractive, and vice versa.
- economic calendar
- An overview of market-moving events (e.g. interest-rate decisions, inflation and labour-market data). Goldcheck rates them by their expected impact.
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