Glossary
Candlestick
A chart bar showing the open, high, low and close prices for a period, with the range drawn as a wick.
A candlestick compresses a period of trading into one bar. The body spans the open to the close, and the wick shows the highest and lowest price reached in between.
The same data has to be read with its time frame attached. A day candle and a week candle can point in opposite directions, and neither is wrong. Most bad trades come from reading a short time frame and acting as if it were the longer one.
Candles describe what already happened and say nothing about why. Volume and the surrounding context carry more information than the shape of the bar itself.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.