📕Glossary

This glossary provides definitions for key terms used throughout ErkeScan and in cryptocurrency trading generally.

Platform-Specific Terms

AutoTrade Pro Signals: Professional trading signals generated by ErkeScan's proprietary algorithm, providing complete trade setups with entry, stop-loss, and take-profit levels.

Custom Alerts: User-configured notifications based on specific market conditions and parameters.

Net Volume Flow (NVF): ErkeScan's proprietary metric that measures the strength of buying versus selling pressure, used as the primary factor in signal star ratings.

Spaghetti Charts: Multi-line visualization tool for comparing multiple cryptocurrencies or sectors simultaneously.

Star Rating: A 1-5 star system indicating the strength and confidence level of AutoTrade Pro signals.

Trading Terminology

Open Interest (OI): The total number of outstanding derivative contracts that have not been settled. Increasing OI with price movement indicates new positions being opened.

Volume Delta: The difference between buying and selling volume, indicating potential price direction. Positive values suggest bullish pressure, negative values suggest bearish pressure.

Funding Rate: Periodic payments between long and short position holders in perpetual futures contracts to keep the contract price close to the index price.

Liquidity: The degree to which an asset can be quickly bought or sold without affecting its price significantly.

Market Capitalization: The total value of a cryptocurrency, calculated by multiplying the current price by the circulating supply.

Volatility: A measure of how much the price of an asset fluctuates over time.

Technical Analysis Concepts

Price Action: The movement of a security's price plotted over time, forming patterns that traders use to analyze markets and make trading decisions.

Support Level: A price level where a downtrend can be expected to pause due to a concentration of demand.

Resistance Level: A price level where an uptrend can be expected to pause due to a concentration of supply.

Breakout: When the price moves above a resistance level or below a support level with increased volume.

Divergence: When the price of an asset moves in the opposite direction of a technical indicator, potentially signaling a trend reversal.

Timeframes: Different time periods for analyzing price movements (5m, 15m, 1h, 8h, 1d), with shorter timeframes showing more detail and longer timeframes showing broader trends.

Cryptocurrency Market Terms

Layer 1 (L1): Base blockchain protocols that operate independently, such as Bitcoin, Ethereum, and Solana.

Layer 2 (L2): Scaling solutions built on top of Layer 1 blockchains to improve transaction speed and reduce costs.

DeFi (Decentralized Finance): Financial services provided through decentralized applications built on blockchain networks.

Meme Coins: Cryptocurrencies that originated from internet memes or have gained popularity through social media.

AI Tokens: Cryptocurrencies associated with artificial intelligence projects and platforms.

Gaming Tokens: Cryptocurrencies used within blockchain-based games and metaverse platforms.

Risk Management Terms

Stop-Loss: A predetermined price level at which a trader will sell to limit potential losses.

Take-Profit: A predetermined price level at which a trader will sell to secure profits.

Risk-Reward Ratio: The potential loss compared to the potential profit of a trade, expressed as a ratio (e.g., 1:3).

Position Sizing: Determining the appropriate amount of capital to allocate to a specific trade based on risk tolerance.

Diversification: Spreading investments across different assets to reduce risk exposure to any single asset.