Glossary – F

Falling Three Methods: A bearish continuation pattern consisting of a long red candle that is followed by three small candles, each fully contained within the range of the high and low of the first candle. The fifth day candle then closes at a new low, continuing the downtrend.

falling three methods

Falling Wedge: A bullish pattern that begins wide at the top and contracts as price action moves lower toward a resistance breakout. More on the Falling Wedge.

falling wedge

Fibonacci Numbers: The Fibonacci number sequence is 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144,… The sequence is constructed by adding the previous two numbers to create the third. The ratio of any number to the next is 61.8%, which is a popular Fibonacci retracement ratio, also known as the “Golden Ratio.” The inverse of 61.8 percent is 38.2 percent, also a popular Fibonacci retracement ratio. It is the ratio of the Fibonacci sequence that is important and valuable, not the actual numbers in the sequence. More on Understand Fibonacci.

Flag: A continuation pattern that generally lasts less than three weeks and resembles a parallelogram that slopes against the prevailing trend. The flag represents a minor pause in a dynamic price trend.

FOMO: Fear Of Missing Out. The anxious feeling that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on social media.

Fundamental Analysis: Market analysis that relies on supply and demand data from the economy as opposed to focusing on charts and market indicators for a technical analysis.

FURU: A fake “guru.” May very well be a 16 year old kid. Do some research before subscribing to paid services. FURUs tend to post fake trades, always reword or backtrack to make themselves look correct to their subs, and post charts/alerts late or after the move is over (only reiterate their alert and how all their subscribers made millions from the move.) Often their profiles or websites are decorated with expensive cards, stacks of cash, models, boats, etc. as a means of marketing. “Trade like this and you can have all this stuff.” See through the bullshit.

Futures: Financial contracts that obligate the buyer to purchase an asset (or the seller to sell an asset), whether it be a physical commodity or financial instrument, at a predetermined future date and price. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets.


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