Crypto Trading Glossary

In TradingView, alerts can be set on price levels, indicator values, or custom Pine Script conditions. When triggered, they can send webhooks to platforms like TV-Hub to execute trades automatically. Alert types include price crossings, indicator thresholds (like RSI crossing 70), and strategy order fills. TradingView offers both one-time and recurring alerts, with the paid plans supporting more simultaneous active alerts.

Related: TradingView Alerts Setup Guide

Altcoins include Ethereum, Solana, Cardano, and thousands of other cryptocurrencies. Many traders use automated systems to trade altcoins against BTC or USDT pairs on exchanges like Binance and Bybit.

Exchange APIs allow trading platforms to place orders, check balances, and manage positions programmatically. TV-Hub uses exchange APIs to execute trades from your TradingView signals. Most exchanges provide REST APIs for order management and WebSocket APIs for real-time market data. API keys with specific permissions (trade, read-only, withdrawal) provide secure access without sharing your login credentials.

Related: API Key Setup Guide

Arbitrage opportunities exist when Bitcoin trades at $60,000 on one exchange but $60,100 on another. Speed is critical for arbitrage, which is why automated trading systems are commonly used.

When you place a market buy order, you'll typically pay the ask price. The difference between the bid and ask prices is called the spread.

ATH is often used as a psychological resistance level. Many traders set alerts when assets approach their ATH to catch potential breakouts.

ATL can indicate strong support levels or warn of a project in serious decline. It's important context when evaluating an asset's risk profile.

Automated trading removes emotional decision-making and operates 24/7 in the always-on crypto markets. Traders define entry/exit rules in TradingView using indicators or Pine Script strategies, then connect to execution platforms like TV-Hub for order routing. Benefits include consistent strategy execution, faster reaction times than manual trading, ability to monitor multiple trading pairs simultaneously, and elimination of psychological biases like fear and greed that often sabotage manual traders.

Related: Ultimate Guide to TradingView Automation

TradingView's Pine Script allows you to backtest strategies before deploying them live using years of historical market data. Key backtesting metrics include net profit, win rate, profit factor, maximum drawdown, and Sharpe ratio. Always validate your strategy across different market conditions (bull, bear, sideways) and multiple timeframes. Be aware of overfitting - a strategy that performs perfectly on historical data may fail in live trading if it's been over-optimized for past conditions.

Bear markets typically see prices decline 20% or more from recent highs. Traders can profit in bear markets by short selling or using inverse strategies.

When you place a market sell order, you'll receive the bid price. Understanding bid/ask dynamics helps traders minimize slippage.

Tight spreads indicate high liquidity and lower trading costs. Scalping strategies require tight spreads to be profitable.

Bollinger Bands expand during high volatility and contract during low volatility, creating a visual "squeeze" pattern that often precedes significant price moves. Price touching the upper band can signal overbought conditions, while touching the lower band suggests oversold conditions. Popular trading strategies include Bollinger Band bounces (mean reversion), breakouts from squeezes, and using bands as dynamic support/resistance levels. Combined with RSI or MACD, Bollinger Bands form powerful automated trading signals.

Trading bots can range from simple alert-based systems to complex AI-driven algorithms. Common bot types include grid bots, DCA bots, arbitrage bots, and signal-following bots. TV-Hub acts as a bridge between your TradingView signals and exchange execution, converting chart-based alerts into real trades within seconds. Unlike standalone bots with limited strategies, signal-based automation lets you leverage TradingView's 100+ built-in indicators, community scripts, or custom Pine Script strategies for unlimited trading logic flexibility.

Related: Beginner's Guide to Crypto Trading Bots

Breakouts often signal the start of a new trend. Traders set alerts at key levels to catch breakouts automatically.

Bull markets feature sustained price increases and high trading volumes. Long positions and trend-following strategies typically perform best in bull markets.

Candlestick patterns like doji, hammer, engulfing, and morning/evening star can signal potential reversals or continuations. TradingView offers extensive candlestick pattern recognition tools and Pine Script libraries for automated pattern detection. Understanding candle anatomy (body, upper wick, lower wick) and timeframe context is essential for accurate pattern interpretation. Japanese candlestick charting, developed centuries ago for rice trading, remains the most popular chart type among modern crypto traders.

Cold wallets (hardware wallets, paper wallets) provide maximum security for long-term holdings. Keep trading funds on exchanges and savings in cold storage.

Consolidation often precedes significant price moves. Range-bound strategies or grid trading can be profitable during consolidation phases.

Copy trading allows beginners to follow experienced traders and learn by observing their strategies in action. TV-Hub supports copy trading through signal sources that followers can subscribe to, automatically mirroring trades with customizable position sizing. Key considerations include evaluating the signal provider's track record, understanding their risk management approach, and setting appropriate allocation limits. Social trading platforms have democratized access to professional trading strategies for retail investors.

Related: TV-Hub Copy Trading

Cross margin uses available balance from other positions to prevent liquidation. While it offers more flexibility, a single bad trade can affect your entire portfolio.

Day traders avoid overnight risk by closing positions before sleeping. Crypto markets run 24/7, making automation valuable for capturing opportunities around the clock.

DCA reduces the impact of volatility by spreading purchases over time, buying more units when prices are low and fewer when prices are high. It's a low-stress strategy popular with long-term investors and can be automated through scheduled orders or bot configurations. DCA eliminates the stress of trying to time the market and has historically outperformed lump-sum investing during volatile market conditions. Many exchanges and trading platforms offer automated DCA features for popular cryptocurrencies like Bitcoin and Ethereum.

Demo accounts let you test strategies risk-free using simulated funds with real market data and conditions. TV-Hub supports demo trading on Binance Testnet, Bybit Testnet, and OKX Demo environments to validate your automation before going live. This is essential for verifying your webhook setup, alert logic, position sizing, and risk management parameters without risking actual capital. Professional traders often run new strategies on demo for weeks before allocating real funds.

Related: Demo Trading with TV-Hub

Crypto derivatives include futures, options, and perpetual contracts. They allow traders to speculate on price without owning the underlying asset.

DEXs like Uniswap, SushiSwap, and PancakeSwap allow trading directly from your wallet without depositing funds to an exchange. They use automated market makers (AMMs) and liquidity pools instead of traditional order books. Benefits include self-custody, privacy, and access to new tokens. Drawbacks include higher gas fees (on Ethereum), potential slippage on large orders, and limited order types compared to centralized exchanges. DEX aggregators like 1inch find the best prices across multiple DEXs.

Bullish divergence occurs when price makes lower lows but RSI makes higher lows, suggesting potential reversal. It's a powerful signal used in many automated strategies.

Maximum drawdown is a key risk metric. A strategy with 50% max drawdown requires 100% gains just to break even. Always evaluate strategies by their drawdown, not just returns.

EMA reacts faster to price changes than SMA due to its exponential weighting formula. Popular EMAs include the 9, 21, 50, and 200-period, each serving different trading timeframes. EMA crossovers are commonly used in automated trading strategies - for example, the 9 EMA crossing above the 21 EMA generates bullish signals. The 200 EMA is widely watched as a major trend filter: price above suggests bullish bias, price below suggests bearish bias. EMA ribbons (multiple EMAs displayed together) help visualize trend strength.

Entry price determines your profit/loss calculation. TV-Hub allows you to specify exact entry conditions including limit prices and market orders.

Major centralized exchanges (CEX) include Binance, Bybit, OKX, Coinbase, and KuCoin, each with different features, fee structures, leverage options, and available trading pairs. Exchange selection depends on your location (regulatory access), preferred trading products (spot, futures, options), and liquidity needs. Decentralized exchanges (DEX) like Uniswap offer non-custodial trading but typically lack advanced order types. TV-Hub supports automated trading on all major centralized exchanges with API integration.

Related: Best Crypto Exchanges Comparison

Exit strategies include take profit targets, stop losses, trailing stops, and time-based exits. Having clear exit rules is essential for consistent automated trading.

Fiat currencies are used to buy crypto on exchanges. Many traders use stablecoins (USDT, USDC) as a fiat equivalent within the crypto ecosystem.

Orders can be fully filled, partially filled, or unfilled. TV-Hub notifies you via Telegram when your orders are filled.

FOMO often leads to buying at tops or chasing pumps. Automated trading removes emotional decisions by following predefined rules.

Related: Common Trading Mistakes to Avoid

FUD can cause panic selling and price drops. Technical analysis and automated trading help filter out emotional noise from the market.

Positive funding means longs pay shorts; negative means shorts pay longs. Extreme funding rates can indicate market sentiment and potential reversals.

Crypto futures allow leverage trading, short selling, and hedging without owning the underlying asset. TV-Hub supports futures trading on Binance Futures, Bybit, OKX, and other derivatives exchanges. Futures contracts can be dated (with an expiration date) or perpetual (no expiry). Settlement can be in the underlying asset (coin-margined) or stablecoins (USDT-margined). Understanding contract specifications, margin requirements, and liquidation mechanics is essential before trading futures.

Related: Connect TradingView to Binance Futures

Gas fees vary by network congestion. Ethereum can have high fees during peak times, while other chains like Solana offer lower costs.

Grid trading profits from price oscillation within a defined range by placing multiple buy and sell orders at preset intervals (the "grid"). It works best in sideways, ranging markets where price bounces between support and resistance. Key parameters include grid spacing, number of grid levels, and position size per level. Grid bots can be automated with TradingView alerts or dedicated bot platforms. The strategy accumulates profits from many small trades but can suffer significant drawdowns if price breaks out of the expected range.

Originally a typo for "hold," HODL became a crypto meme. HODLers buy and hold through volatility, contrasting with active traders.

Exchange wallets and mobile wallets are hot wallets. They're convenient for trading but more vulnerable to hacks than cold storage.

TradingView offers hundreds of built-in indicators plus custom Pine Script indicators. Common types include trend, momentum, volume, and volatility indicators.

Isolated margin limits your maximum loss to the margin allocated to that specific position. It's safer for managing multiple positions independently.

TradingView alerts send JSON data to webhooks. TV-Hub parses JSON payloads containing trade parameters like symbol, side, quantity, and price.

KYC typically requires government ID, proof of address, and sometimes a selfie. Most major exchanges require KYC for full trading access and withdrawals.

Low latency is crucial for scalping and high-frequency strategies. TV-Hub offers fast execution endpoints (1-3 seconds) for time-sensitive trades.

10x leverage means a 1% price move equals 10% gain or loss on your invested capital. High leverage amplifies both profits and losses, requiring strict risk management including stop losses and position sizing. Crypto exchanges offer leverage from 2x up to 125x or more. Beginners should start with low leverage (2-5x) and understand that higher leverage increases liquidation risk. Many professional traders use lower leverage (3-10x) to avoid forced liquidations during volatile market swings.

Limit orders provide price control but may not fill if the market doesn't reach your price. They typically have lower fees than market orders.

Liquidation occurs when losses exceed your margin and the exchange forcibly closes your position to prevent negative balance. The liquidation price depends on your entry price, leverage, and margin mode (isolated or cross). Use stop losses and appropriate leverage to avoid liquidation - many traders set stops well before the liquidation price. Partial liquidation (reducing position size) may occur before full liquidation on some exchanges. TV-Hub can send alerts when positions approach liquidation price, giving you time to add margin or close manually.

High liquidity means tight spreads and easy order fills. BTC/USDT on major exchanges has excellent liquidity, while small altcoins may have poor liquidity.

Going long means buying an asset expecting to sell it later at a higher price. In futures, you profit when price rises above your entry.

MACD shows the relationship between two EMAs (typically 12 and 26 periods) with a signal line (9-period EMA of MACD). Crossovers and histogram patterns are commonly used signals in automated trading systems. Bullish signals include MACD crossing above the signal line and histogram bars turning positive. MACD works best in trending markets and can generate false signals during consolidation. Many traders combine MACD with RSI or moving averages for confirmation.

Maker orders rest on the book until filled. Exchanges reward makers with lower fees (often 0.02% vs 0.04% for takers) because they provide liquidity.

Initial margin is required to open a position; maintenance margin must be maintained to keep it open. Falling below maintenance margin triggers liquidation.

When you receive a margin call, you should either add more collateral or reduce position size to avoid liquidation.

Market cap helps compare relative sizes of cryptocurrencies. Large caps (BTC, ETH) are generally less volatile than small caps.

Market orders guarantee execution but not price. They're useful when speed is more important than getting the exact price.

Moving averages smooth price data to identify trends. The 50 and 200 period MAs are widely watched, with their crossover known as the "Golden Cross" or "Death Cross."

OCO is commonly used to set both a take profit and stop loss simultaneously. When one triggers, the other is automatically cancelled.

The order book shows market depth and potential support/resistance levels. Large orders can indicate institutional interest or potential price walls.

RSI above 70 is traditionally considered overbought. Overbought conditions can persist in strong trends, so use additional confirmation.

RSI below 30 is traditionally considered oversold. Oversold conditions may present buying opportunities but can also indicate a continuing downtrend.

Paper trading is essential for testing strategies before risking real capital, especially when learning automated trading or deploying new algorithms. TV-Hub supports paper trading through demo accounts on exchanges like Binance Testnet, Bybit Testnet, and OKX Demo. Unlike pure simulation, exchange testnets replicate real market conditions including order books and execution mechanics. Track your paper trading results for at least 2-4 weeks across different market conditions before going live with real funds.

Perpetuals use funding rates (periodic payments between longs and shorts) to keep contract prices anchored to the spot market. They're the most popular derivative product in crypto, offering continuous trading without the settlement dates and rollover costs of traditional futures. Perpetual swaps on Bitcoin and Ethereum dominate crypto derivatives volume. Major exchanges like Binance, Bybit, and OKX offer perpetual contracts with leverage up to 100x or more.

Pine Script (currently at version 5) enables custom indicators, strategies, and alerts on TradingView. It's a domain-specific language designed for technical analysis, making it easier to learn than general programming languages. Pine Script strategies can be backtested with historical data and then deployed live using alert conditions that trigger webhooks to execute trades via TV-Hub. The TradingView community has published thousands of free Pine Script indicators and strategies that can be adapted for your trading style.

Developers can integrate TV-Hub trade commands directly into Pine Script strategies using the alert_message parameter. Simply paste your buy, sell, and close commands from the TV-Hub command builder into your strategy code, then use the {{strategy.order.alert_message}} placeholder in your alert to execute trades automatically when signals trigger.

Related: Pine Code Integration Guide

Track both realized PnL (closed trades) and unrealized PnL (open positions). Regular PnL analysis helps identify which strategies are working.

Position sizing is crucial for risk management. Many traders risk 1-2% of their portfolio per trade. TV-Hub allows dynamic position sizing in your trade commands.

Price action traders analyze candlestick patterns, support/resistance, and chart formations. It's a clean approach that works on any timeframe.

Resistance levels are identified from previous price highs. A break above resistance often signals bullish momentum and can trigger automated buy signals.

Risk management includes position sizing, stop losses, portfolio diversification, leverage control, and emotional discipline. It's arguably more important than entry timing for long-term trading success. Core principles include never risking more than 1-2% of your portfolio on a single trade, using stop losses on every position, and maintaining sufficient cash reserves. Automated trading systems excel at enforcing risk rules consistently, removing the emotional temptation to override safety measures during volatile markets.

Related: 12 Trading Mistakes to Avoid

A 1:3 risk/reward means risking $100 for potential $300 profit. With good R:R, you can be profitable even with less than 50% win rate.

ROI = (Current Value - Initial Investment) / Initial Investment x 100%. It's a standard metric for comparing investment performance.

RSI above 70 suggests overbought conditions; below 30 suggests oversold. RSI divergences (when price and RSI move in opposite directions) can signal powerful reversal opportunities and are popular in automated strategies. The standard 14-period RSI works well, but shorter periods (7) increase sensitivity while longer periods (21) reduce noise. RSI can also identify trend strength - readings consistently above 50 indicate bullish momentum, while readings below 50 suggest bearish pressure.

Scalpers hold positions for seconds to minutes, making dozens or hundreds of trades daily to accumulate small profits. Success requires low latency execution, tight spreads, and high liquidity trading pairs like BTC/USDT on major exchanges. TV-Hub offers fast execution endpoints (1-3 second latency) for scalping strategies based on TradingView alerts. Scalping demands strict discipline, quick decision-making, and well-defined entry/exit rules - making it ideal for automation since bots execute without hesitation or emotional interference.

Shorting involves borrowing and selling an asset, then buying it back at a lower price. Futures and margin trading enable shorting on most exchanges.

Trading signals can come from indicators, patterns, or external sources. TV-Hub converts TradingView alert signals into executed trades on your exchange.

Slippage occurs during high volatility, low liquidity, or when trading large position sizes relative to order book depth. Limit orders and high-liquidity trading pairs (BTC/USDT, ETH/USDT) minimize slippage. Factor expected slippage into your strategy's backtesting performance - real results are often 0.1-0.5% worse than backtests due to execution costs. Fast execution platforms like TV-Hub help reduce slippage by minimizing the time between signal and order placement.

SMA is slower than EMA but less prone to false signals. The 200-day SMA is widely watched as a major trend indicator.

Spot trading involves owning the actual asset, unlike derivatives. It's simpler with no leverage risk, making it suitable for beginners.

Stop losses protect against catastrophic losses and are essential for risk management in both manual and automated trading. Types include stop market (executes immediately at best price), stop limit (places a limit order when triggered), and trailing stop (follows price movement). TV-Hub supports setting stop losses as part of your trade commands, including percentage-based and fixed-price stops. Professional traders always define their stop loss before entering a trade, calculating position size based on acceptable loss per trade.

Support levels form at previous price lows. A break below support often signals bearish momentum. Traders often place buy orders near support.

Swing traders aim to catch "swings" between support and resistance. It requires less screen time than day trading while being more active than investing.

Take profit orders lock in gains automatically without requiring constant monitoring of your positions. TV-Hub supports multiple take profit levels for partial position exits - for example, selling 50% at +5%, 25% at +10%, and 25% at +15%. This scaling-out approach secures profits while leaving room for larger gains. Common take profit strategies include fixed percentage targets, support/resistance levels, Fibonacci extensions, and indicator-based exits like RSI reaching overbought levels.

Taker orders execute immediately against existing limit orders. Taker fees are typically higher than maker fees.

TV-Hub's Telegram bot lets you trade from your phone, receive instant fill notifications, and monitor positions. It's perfect for traders on the go.

Related: Telegram Trading Guide

Testnets let you practice without risking real money. TV-Hub supports Binance Testnet, Bybit Testnet, and OKX Demo for risk-free strategy testing.

Lower timeframes show more detail but more noise; higher timeframes show cleaner trends. Multi-timeframe analysis helps confirm signals.

TradingView offers powerful multi-asset charting, 100+ built-in technical indicators, Pine Script for custom strategies, and webhook alerts that enable automated trading. With over 50 million users, it's the world's largest social trading network with shared ideas, indicators, and strategies. Free plans include basic charting and alerts (via email), while paid plans unlock more indicators per chart, simultaneous alerts, and webhook functionality. TV-Hub connects TradingView to your exchange for automated execution, making it possible to trade without watching charts 24/7.

Related: Ultimate TradingView Automation Guide

TradingView strategies differ from indicators in that they can simulate trades and generate performance metrics like net profit, win rate, and drawdown. The built-in Strategy Tester displays detailed backtesting results including equity curves and trade lists. For automated parameter optimization, the TradingView Strategy Finder Chrome extension tests every combination automatically to find optimal settings, with features like net profit search, drawdown filters, smart mode for large test ranges, and CSV export.

TradingView offers dedicated strategy alerts that can be processed by TV-Hub for automated execution. We provide an open-source boilerplate strategy template that makes integration easy - simply add the TV-Hub input settings section to your existing strategy, and it automatically generates buy, sell, and close trade commands triggered via alerts.

Trailing stops lock in profits as price moves in your favor while protecting against reversals. They're ideal for capturing extended trends without setting fixed targets that might exit too early. Configuration options include percentage-based (e.g., 5% below the highest price) or fixed amount (e.g., $100 below peak). Trailing stops work particularly well in trending markets but can be stopped out by normal volatility during consolidation. Many traders use ATR-based trailing stops that adapt to current market volatility.

Unrealized PnL changes with price fluctuations. It only becomes realized (actual) profit or loss when you close the position.

High volatility means larger price swings and more trading opportunities, but also higher risk. Crypto is generally more volatile than traditional markets.

Volume confirms price moves - high volume breakouts are more significant. Volume spikes can indicate institutional activity or major market events.

VWAP is used as a benchmark for trade execution quality. Price above VWAP suggests bullish sentiment; below suggests bearish.

TradingView webhooks send HTTP POST requests with JSON data to a specified URL when alerts trigger. TV-Hub provides webhook endpoints that parse the payload and execute the corresponding trade on your connected exchange within seconds. The webhook message can include dynamic variables from TradingView like current price, indicator values, and strategy signals. Webhooks are the backbone of automated trading, replacing manual order entry with instant, error-free execution. While webhooks require a paid TradingView plan, TV-Hub also supports email-based alerts for free plan users.

Related: Webhook Setup Guide

Whale movements can cause significant price swings. On-chain analysis tools track whale wallets to anticipate potential market moves.

Long wicks indicate rejection of prices. A long lower wick suggests buying pressure; a long upper wick suggests selling pressure.