Financial Glossary
Quick definitions for the metrics and concepts you see in StockLrn.
Bollinger Bands
Volatility bands placed above and below a moving average, widening and narrowing with market volatility.
Fibonacci Retracement
Horizontal lines indicating potential support/resistance at key Fibonacci ratio levels.
Candlestick Patterns
Visual price patterns formed by one or more candlesticks that signal potential reversals or continuations.
Head and Shoulders
A bearish reversal chart pattern with three peaks—the middle peak (head) being the highest.
Double Bottom
A bullish reversal pattern where price tests a support level twice and then breaks higher.
Volume Profile
A chart study showing trading volume distributed across price levels rather than time.
Liquidity
How easily an asset can be bought or sold without affecting price.
Book Value
Net asset value calculated as total assets minus total liabilities.
P/E Ratio
Price-to-earnings ratio, a common valuation metric.
Price-to-Sales Ratio
A valuation metric comparing a company's stock price to its revenue per share.
EV/EBITDA
Enterprise value divided by EBITDA, used to compare companies regardless of capital structure.
Price-to-Book Ratio
Compares a stock's market price to its book value per share.
PEG Ratio
P/E ratio divided by expected earnings growth rate, adjusting valuation for growth.
Discounted Cash Flow
A valuation method that estimates present value of a company's future cash flows.
Intrinsic Value
The calculated true worth of an asset based on fundamental analysis.
Terminal Value
The estimated value of a business beyond the explicit forecast period in a DCF model.
Margin of Safety
The difference between a stock's intrinsic value and its market price, providing a buffer against error.
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