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.
Call
An option that gives you the right to buy the underlying instrument at a particular...
Candlestick
A type of bar chart, developed by the Japanese, in which the price range between...
Capitalization
The amount of money in the underlying stock of a company.
Channel Breakout
See "Breakout" definition.
Chaos Theory
A theory that physical systems generally move from stability to chaos. This theory has recently...
Climax Reversal
A sharp price decline following a sharp price increase. When a position is moving up,...
Commissions
Fees that you pay a broker to trade in the market.
Commodities
Physical products that are traded at a futures exchange. Examples of such products are grains,...
Congestive
Range See consolidation.
Consolidation
A pause in the market during which prices move in a limited range and do...
Contract
A single unit of a commodity or future. For example, a single unit or contract...
Core Equity
One of the three ways of measuring your equity. In this particular case, you subtract...
Credit Spread
An options trading strategy by which an investor buys one instrument and sells another related...