58 terms · A–Z
Every technical analysis term in the product — what it means, and how Lenzi applies it when reading your chart.
A condition where a key level holds despite deep price penetration and high volume — indicating institutional participants are actively defending the level by absorbing opposing order flow.
Lenzi identifies absorption during level analysis by examining how aggressively price tests a level and whether volume confirms institutional participation. See how Lenzi analyzes levels.
A volatility indicator that measures the average range of price movement over a specified period, accounting for gaps between sessions.
ATR is one of the indicators Lenzi uses during analysis, especially when assessing contraction and expansion regimes.
A price event where the market continues the existing trend by breaking the most recent swing extreme in the trend direction. Compare with CHOCH.
SpikeLens identifies when price commits beyond a key structural level, signaling trend continuation. See also Structure Break.
A price reaction where the market touches a support or resistance level with moderate penetration and reverses back in the direction of approach.
Lenzi classifies bounces during level behavior analysis based on how price reacts at the level.
A price event where a support or resistance level fails and price resolves on the opposite side from its approach direction.
SpikeLens marks breakdowns with red arrow markers during behavior analysis. Volume expanding on a breakdown indicates conviction; contracting volume suggests the break may be suspect.
A measure of how many stocks are participating in a market move, used to assess the health and sustainability of a trend.
Broad participation confirms trend strength; narrow breadth with rising prices warns of a fragile advance.
The fundamental building block of price charts showing open, high, low, close for a period. Specific patterns include doji, hammer, and engulfing candles.
Lenzi reads every candlestick's OHLC values to assess momentum, rejection, and directional intent as part of price action analysis.
A price event that signals a potential trend reversal by breaking against the existing trend — violating a swing point that should have held. Compare with BOS.
SpikeLens marks CHOCH events on the chart to highlight potential trend reversals at key structural levels. See also Structure Break.
When multiple independent technical signals align at the same price area — such as a support level coinciding with a moving average and a Fibonacci retracement.
Lenzi helps identify confluence by layering indicators, levels, and structure analysis on the same chart, making overlapping signals visually apparent. See how it works.
A period where price trades within a defined range with no clear directional bias, often after a strong move as the market digests gains or losses.
SpikeLens identifies consolidation during structure analysis and highlights the boundaries of the range. Consolidation often precedes an expansion move.
A volatility regime characterized by shrinking price ranges, declining ATR, and narrowing swings — often preceding a significant expansion move.
Lenzi identifies contraction during its volatility assessment, noting that tight ranges often precede significant moves.
A structural classification describing who owns the current price action — buyers, sellers, or neither.
Control describes who currently owns the chart — buyers, sellers, or neither. It is derived from market structure and trend analysis.
A confidence rating for a structural read, reflecting how clearly the evidence supports the classification.
Lenzi assigns a conviction level to every structure classification based on the clarity and consistency of the evidence.
When price makes a new high/low but an indicator (like RSI) does not confirm it — a warning that momentum may be weakening.
Lenzi checks for RSI divergence as part of momentum analysis — bullish divergence at support or bearish divergence at resistance strengthens the case for reversal.
A candlestick where open and close are nearly equal, signaling indecision between buyers and sellers.
Lenzi flags doji candles at key levels as potential reversal signals worth monitoring.
A reversal pattern where price tests a level twice and fails. Double tops form at resistance; double bottoms at support.
Lenzi identifies double formations by detecting repeated tests of the same price zone with declining momentum on the second touch. See also Head and Shoulders.
A moving average that gives more weight to recent prices, making it more responsive to new information than a simple moving average.
One of the five core indicators in SpikeLens. Lenzi computes and overlays EMAs on the chart and uses them as dynamic support/resistance references.
A two-candle reversal pattern where the second candle's body fully engulfs the first. Bullish engulfing appears at support; bearish engulfing at resistance.
A structural phase where impulse moves are shrinking, follow-through is failing, and the current trend is losing momentum — often preceding a transition or reversal.
Lenzi identifies exhaustion when the current trend shows signs of losing momentum and follow-through is diminishing.
A volatility regime characterized by growing price ranges, rising ATR, and increasing swing magnitudes — the opposite of contraction.
Lenzi considers the volatility environment when assessing how reliable price levels are and how to interpret new structures forming.
A price event where a level is initially broken but price quickly reclaims it — trapping traders who entered on the breakout. Related to liquidity sweeps.
SpikeLens identifies false breaks by analyzing whether price reclaims a support or resistance level after initially breaking through it.
Key horizontal levels (23.6%, 38.2%, 50%, 61.8%) derived from the Fibonacci sequence, used to identify potential support and resistance during a retracement.
Lenzi can reference Fibonacci levels when analyzing pullback depth and confluence with other support/resistance zones.
A price discontinuity where a candle opens significantly above or below the prior close, creating a visible void on the chart.
Lenzi identifies gap locations and tracks whether they get filled, acting as potential support or resistance.
A bullish reversal candlestick with a long lower wick and small body near the top, indicating buying pressure absorbed a selloff.
Lenzi identifies hammer patterns at support zones as evidence of buying pressure rejection. See also sharp rejection.
A three-peak reversal pattern with a higher middle peak. The inverse version signals bullish reversal at support. Related to double tops/bottoms.
Lenzi validates head-and-shoulders patterns by checking volume decline across peaks and neckline proximity.
A swing high that exceeds the previous swing high — one of the defining features of an uptrend. Paired with higher lows.
SpikeLens tracks the sequence of higher highs (and higher lows) to classify uptrend control during structure analysis.
A swing low that is above the previous swing low — confirming that buyers are defending progressively higher prices in an uptrend. Paired with higher highs.
The last higher low is the invalidation level in an uptrend. If price closes below it, the structural read changes.
A strong, directional price move that establishes the dominant trend direction — characterized by large candle bodies and expanding range.
SpikeLens analyzes the character of price moves to assess trend health. Weakening impulses may signal exhaustion.
The specific price level at which a structural thesis is proven wrong — every analytical read should define one. Often tied to the last swing point.
Lenzi draws invalidation levels as dashed lines on the chart, marking where the current structural read would be proven wrong.
A price level where significant buying or selling has historically occurred, making it likely to influence future price action. Includes support and resistance.
SpikeLens identifies key levels through its support/resistance detection and behavior analysis, measuring how price has interacted with each level historically.
The pattern of how price interacts with a specific level over time — whether it is respected (sharp rejections), contested (mix of holds and breaks), or broken.
Lenzi analyzes how price has interacted with each key level historically to assess its reliability. Behaviors include bounces, absorption, and breakdowns.
A price move that briefly pushes through an obvious level to trigger stop-loss orders or breakout entries, then reverses — effectively ‘sweeping’ the liquidity resting at that level.
Lenzi considers liquidity sweeps during structural analysis. A spike into a level with instant rejection reads differently than a sustained grind through it. Related to false breaks.
A swing high that fails to reach the previous swing high — one of the defining features of a downtrend. Paired with lower lows.
SpikeLens uses the sequence of lower highs (and lower lows) to classify downtrend control. The last lower high is the invalidation level in a downtrend.
A swing low that falls below the previous swing low — confirming that sellers are pushing prices progressively lower in a downtrend. Paired with lower highs.
SpikeLens tracks the sequence of lower lows to confirm downtrend continuation.
A momentum indicator that shows the relationship between two exponential moving averages, consisting of the MACD line, signal line, and histogram.
One of the five core indicators in SpikeLens. Lenzi renders MACD in a dedicated sub-pane with autoscale and a reference line at zero. Watch for divergence between MACD and price.
The overall framework of swing highs and swing lows that defines the trend, direction, and phase of a market — the foundational layer of technical analysis.
Structure analysis is SpikeLens's primary analytical playbook, classifying the chart's directional bias, momentum phase, and confidence level. Learn how Lenzi reads structure.
An institutional supply/demand zone, typically the last candle before a strong directional move. Often overlaps with support or resistance.
Lenzi identifies order blocks as high-probability reaction zones where institutional buying or selling previously occurred. Related to liquidity sweeps.
Conditions where an asset's price has moved too far too fast relative to recent history, as measured by oscillators like RSI.
Lenzi uses RSI thresholds (above 70 = overbought, below 30 = oversold) as part of momentum context, but never treats them as standalone buy/sell signals. Watch for divergence in overbought/oversold territory.
The process of confirming or challenging a chart pattern by examining the quality of the structure, volume, and follow-through — rather than blindly trusting the pattern shape.
One of SpikeLens's core value propositions. Lenzi acts as a second opinion, validating whether a pattern you see is structurally sound or potentially a trap. See the prompt book for validation prompts.
A classification of where price is within its current structural story — describing whether momentum is building, sustaining, or fading. Related to exhaustion and impulse.
SpikeLens classifies market phase by analyzing how recent price moves relate to each other within the trend.
When a support level breaks and becomes resistance, or a resistance level breaks and becomes support — a fundamental concept in technical analysis.
SpikeLens detects polarity flips during level behavior analysis, identifying when a level has changed its role.
Determining how many shares or contracts to trade based on risk tolerance. Closely tied to stop loss placement and risk/reward ratio.
Lenzi can help frame position sizing by defining the distance between entry and stop loss relative to your risk parameters.
The study of raw price movement — open, high, low, close, and volume — without relying on lagging indicators. Focuses on candle patterns, wicks, and body sizes.
Lenzi reads price action as one of its analytical perspectives, examining rejection wicks, exhaustion patterns, and momentum at key levels.
A price level where selling pressure has historically been strong enough to halt or reverse upward price movement. The counterpart of support.
SpikeLens automatically detects resistance levels and draws them on the chart. Lenzi analyzes how price behaves at each resistance through its level behavior playbook. A broken resistance can become support via polarity flip.
A temporary price movement against the prevailing trend — a pullback in an uptrend or a rally in a downtrend — before the trend resumes. See also Fibonacci Retracement.
SpikeLens analyzes retracements in the context of the broader trend to assess whether momentum is holding or weakening.
The ratio of potential loss to potential gain on a trade, calculated from entry to stop loss vs. entry to take profit.
Lenzi calculates and visualizes risk/reward ratios when you define entry, stop, and target levels on your chart. See also position sizing.
A momentum oscillator that measures the speed and magnitude of recent price changes on a 0-100 scale. Traditionally, readings above 70 indicate overbought conditions and below 30 indicate oversold.
One of the five core indicators in SpikeLens. Lenzi renders RSI in a dedicated sub-pane with reference lines at 30 and 70. Watch for divergence between RSI and price.
A forceful price reaction at a level characterized by minimal penetration, prominent wicks, and strong follow-through in the opposite direction.
Lenzi identifies sharp rejections during level analysis, noting them as strong signals about a level's significance.
A technical indicator that calculates the arithmetic mean of a set number of past closing prices, creating a smoothed line that follows the trend. Compare with EMA.
Lenzi may reference moving averages as additional context during analysis.
A predefined price level where a trade is exited to limit losses. Placement is closely tied to invalidation and risk/reward.
Lenzi suggests logical stop loss placements based on structure — below swing lows for longs, above swing highs for shorts. See also position sizing.
A generic term for any event where price violates a key swing point — encompassing both BOS (trend continuation) and CHOCH (potential reversal).
SpikeLens has a dedicated SMC Structure Breaks playbook that identifies and annotates BOS and CHOCH events with horizontal levels and markers on the chart.
A price level where buying pressure has historically been strong enough to halt or reverse downward price movement. The counterpart of resistance.
SpikeLens automatically detects support levels and draws them on the chart. The behavior of price at support — bounce, absorption, or breakdown — tells a story about the level's strength.
A local price extreme — either a swing high (local peak) or swing low (local trough) — that defines the structure of price movement. See higher highs, higher lows, lower highs, lower lows.
Lenzi requires sufficient confirmed swing data before attempting any structural classification.
A predefined price level where profits are captured. Typically placed at resistance (for longs) or support (for shorts). Paired with stop loss to define risk/reward.
Lenzi identifies take-profit zones at key resistance (for longs) or support (for shorts) levels, adjusted for the current volatility regime.
A structural state where the prior trend's control has been invalidated but a new directional pattern has not yet been confirmed — an unresolved period between regimes.
Transition resolves when a new directional pattern is confirmed. Often follows an exhaustion phase or a CHOCH event.
The general direction of price movement over time, defined by the sequence of swing highs and swing lows — uptrend (HH+HL), downtrend (LH+LL), or sideways (range).
Trend classification is a core component of Lenzi's structure analysis. It is determined primarily by swing structure, not indicators.
The current state of market volatility — contraction (shrinking ranges), expansion (growing ranges), stable (consistent ranges), or transitioning between states.
SpikeLens assesses the current volatility environment using ATR and what it means for your analysis.
The study of trading volume to confirm or challenge price moves — rising volume on a breakout suggests conviction, while declining volume on a rally warns of weak participation.
Lenzi examines whether trading volume at a level is elevated (suggesting active participation) or subdued (suggesting passive interaction).
Lenzi uses every term in this glossary when analyzing your actual chart — structure, levels, volume, and volatility in one read.
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