Trading and charting glossary

Plain-language definitions of charting, backtesting and market terms used in TradingLead.

• Moving Average (SMA): Meaning, Formula and UseWhat a moving average is, how the simple moving average (SMA) is calculated, how traders read it, common periods, pitfalls and how to add it on TradingLead.
• EMA (Exponential Moving Average): Formula and UseWhat an exponential moving average (EMA) is, its formula, how traders read 9/20/50/200 EMAs, common pitfalls and how to add an EMA on TradingLead charts.
• RSI (Relative Strength Index): Meaning and FormulaLearn what RSI is, how the Relative Strength Index is calculated, how to read 70/30 levels and divergence, common pitfalls, and how to add RSI on TradingLead.
• MACD Indicator: Meaning, Formula and SettingsWhat MACD is, how the MACD line, signal line and histogram come from EMAs (12, 26, 9), how traders read crossovers, pitfalls and how to add it on TradingLead.
• VWAP (Volume Weighted Average Price) ExplainedWhat VWAP is, how volume weighted average price is calculated and resets daily, how intraday traders in India use it, pitfalls and how to add it on TradingLead.
• Supertrend Indicator: Formula, Settings and UseWhat the Supertrend indicator is, how it uses ATR and a multiplier (10, 3), how traders read flips, common pitfalls and how to add it on TradingLead charts.
• Bollinger Bands: Formula, Settings and How to ReadWhat Bollinger Bands are, how the 20-period SMA and 2 standard deviation bands are calculated, squeezes, band walks, pitfalls and adding them on TradingLead.
• What Is a Stock Screener?A stock screener filters a list of stocks by rules on price, volume or indicators such as RSI. Learn how screeners work and how TradingLead's screener runs.
• What Are Support and Resistance?Learn support and resistance as chart-analysis concepts, mark levels or zones in TradingLead, and avoid treating historical reactions as guaranteed signals.
• What Is a Candlestick Chart?Learn what a candlestick chart shows, how open, high, low and close relate to each candle, and how to inspect supported instruments in TradingLead.
• What Is a Chart Timeframe?Understand candle timeframes, TradingLead's minute presets and custom intervals, daily to monthly views, session boundaries and second-chart limitations.
• What Is Bar Replay?Bar replay reveals historical candles step by step. Learn how TradingLead separates chart playback from virtual trading and strategy backtesting.
• What Is Drawdown in Trading?Drawdown is the fall in account equity from a peak to a later low. Learn how max drawdown is calculated and how TradingLead reports it in backtests.
• What Is Heikin Ashi?Understand Heikin Ashi's smoothed candles, how they differ from ordinary price candles, and the limits of using this supported TradingLead chart view.
• What Is Paper Trading?Paper trading uses virtual funds and simulated orders. Understand TradingLead replay practice, fill assumptions, costs and device-local accounts.
• What Is Profit Factor in Trading?Profit factor divides total profit from winning trades by total loss from losing trades. Learn how to read it and how TradingLead computes it after fees.
• What Is Slippage in Trading?Slippage is the gap between the price you expect and the price you get. Learn why it matters in backtests and how TradingLead models it in bps or ticks.
• What Is the Sharpe Ratio?The Sharpe ratio measures return per unit of volatility. Learn the formula, its pitfalls, and why TradingLead requires explicit sampling assumptions first.
• What Is Walk-Forward Analysis?Walk-forward analysis tunes a strategy on one window and tests it on the next unseen one, repeatedly. Learn how it works and how to run it on TradingLead.
• What Is Win Rate in Trading?Win rate is the share of closed trades that made money. Learn the formula, why it misleads without payoff size, and how TradingLead counts wins after fees.