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Vocabulary

This section defines key terms and concepts commonly used in trading and cryptocurrency.

Marketcap (CAP)​

Market capitalization, or market cap, is the total value of all the tokens of a particular cryptocurrency that are currently in circulation. It is calculated by multiplying the current price of a single token by the total number of tokens in circulation. Market cap provides a snapshot of a cryptocurrency's relative size and market significance.

Fully Diluted Marketcap (FDV)​

The fully diluted market cap assumes that all of a cryptocurrency's total token supply is issued and in circulation. This differs from the regular market cap, which only considers the current circulating supply.

Marketcap Rank (RANK)​

Market cap rank refers to the position of a cryptocurrency relative to others based on its market cap. It is a ranking system that orders assets from highest to lowest market cap.

Time Period Abbreviations (WTD, MTD, QTD, YTD)​

Several abbreviations are used to represent different time frames: WTD (Week to Date): The period from the start of the current week (usually Monday) to the current day. MTD (Month to Date): The period from the start of the current month to the current day. QTD (Quarter to Date): The period from the start of the current quarter (3 months, e.g. Q1 is Jan-Mar) to the current day. YTD (Year to Date): The period from the start of the current calendar year (Jan 1) to the current day.

Simple Moving Average (SMA)​

A Simple Moving Average (SMA) is an arithmetic moving average calculated by adding recent prices and dividing by the number of time periods. It helps smooth out price volatility and can be used to identify trends.

Trading Above Simple Moving Average 10 (ADMA-10)​

When the current price is trading above its SMA-10, it indicates a short-term uptrend and is considered a bullish signal. Conversely, when price falls below the SMA-10, it suggests a downtrend and is seen as bearish.

Trading Above Simple Moving Average 50 (ADMA-50)​

When the current price is trading above its 50-day SMA, it indicates an intermediate-term uptrend and is considered a bullish signal. This suggests that the price has been trending higher over the past 2-3 months and that buying pressure is increasing.

Shakeout​

A shakeout is a situation where many traders or investors exit their positions, often due to false signals or market panic, causing a sharp price decline. This typically weeds out less committed holders, leaving the asset primarily with more dedicated investors.

Upcoming Catalyst​

An upcoming catalyst is an anticipated event or news that is expected to significantly impact an asset's price, such as product launches, partnerships, or other announcements.

Liquid Assets​

In cryptocurrency, liquid assets are digital tokens or coins that can be rapidly converted into cash or other cryptocurrencies with minimal impact on their market price.

Last updated on by taika