Van Tharp Institute Glossary

The Van Tharp Institute Glossary is a comprehensive resource designed to help traders and investors understand the essential terminology and concepts related to trading psychology, systems development, and market analysis. Whether you’re a beginner or an experienced trader, this glossary offers clear definitions and insights into the principles that Dr. Van Tharp championed. By providing a deeper understanding of key terms, the glossary aims to enhance your knowledge and support your journey toward consistent and profitable trading. Explore the glossary to unlock the language of trading success.

B

Backtesting

The process of testing a trading strategy on prior time periods, usually with just one...

Band Trading

A style of trading in which the instrument being traded is thought to move in...

Bearish

Of the opinion that the market will be going down in the future.

Best-case Example

A situation that represents the best of possible outcomes. Many books show you illustrations of...

Bias

The tendency to move in a particular direction. This could be a market bias, but...

Bid-ask Spread

The spread market makers offer to potential investors who want to open a position with...

Blue-chip

Companies Top-rated companies.

Breakout

A move up from a consolidation or band of sideways movement.

Bullish

Of the opinion that the market will be going up in the future.

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