The lowest price at which a seller is currently willing to sell shares.
Why it matters
The ask helps show the price you may have to pay if you want to buy immediately.
Example
If the best ask is ₱101.00, a buy order that crosses the spread may execute at or near ₱101.00, depending on available shares.
The highest price at which a buyer is currently willing to buy shares.
Why it matters
The bid shows where immediate buying interest currently sits.
Example
If the best bid is ₱100.80, a seller wanting immediate execution may need to sell at or near that level.
Market Mechanics
Bid-Ask Spread
#
The difference between the best bid and the best ask.
Why it matters
A wide spread increases trading friction and can make short-term strategies harder to execute efficiently.
Example
A ₱100.80 bid and ₱101.00 ask create a ₱0.20 spread.
Market Mechanics
Market Order
#
An order intended to execute immediately at the best available prices.
Why it matters
The final execution price is not guaranteed, especially in a fast or illiquid market.
Example
A market buy can fill across several ask prices if there are not enough shares available at the best ask.
Market Mechanics
Limit Order
#
An order that sets the highest price you are willing to pay when buying, or the lowest price you are willing to accept when selling.
Why it matters
A limit order gives more control over price, but it may not execute.
Example
A buy limit at ₱50.00 will not intentionally pay more than ₱50.00.
A chart element that summarizes the open, high, low and close for a chosen period.
Why it matters
Candlesticks make it easier to see how price moved during each time interval.
Example
A 15-minute candlestick contains the opening price, highest price, lowest price and closing price for one 15-minute interval.
The first traded price represented by a candle for its chosen timeframe.
Why it matters
The open is one of the two prices that define the candle body.
Example
On a 15-minute candle covering 9:30 to 9:45, the open is the first traded price represented in that interval.
The highest traded price represented by a candle during its timeframe.
Why it matters
The high shows the furthest price reached on the upside during the period.
Example
If price briefly trades at ₱52.20 and then falls back, ₱52.20 can still be the candle high.
The lowest traded price represented by a candle during its timeframe.
Why it matters
The low shows the furthest price reached on the downside during the period.
Example
If price briefly trades at ₱49.50 and recovers before the close, ₱49.50 can still be the candle low.
The last traded price represented by a candle for its chosen timeframe.
Why it matters
The close is important because it shows where the period finished after buyers and sellers interacted.
Example
A candle can trade well above resistance during the period but close back below it.
The area between a candle’s opening price and closing price.
Why it matters
The body helps show the net movement between the open and close.
Example
A long bullish body means the close finished well above the open.
The thin line above or below a candle body showing prices traded beyond the open and close.
Why it matters
Wicks can reveal rejection, volatility and failed attempts to hold higher or lower prices.
Example
A long upper wick can show that buyers pushed price higher but sellers forced it back before the candle closed.
A candle that closes above its opening price.
Why it matters
It shows that price finished the period higher than where it started, but it does not automatically mean the next candle will rise.
Example
If a candle opens at ₱50.00 and closes at ₱51.20, it is bullish.
A candle that closes below its opening price.
Why it matters
It shows that price finished the period lower than where it started, but one bearish candle is not automatically a sell signal.
Example
If a candle opens at ₱51.20 and closes at ₱50.40, it is bearish.
Candlestick Patterns
Doji
#
A candle where the open and close are at or very near the same price, leaving little or no real body.
Why it matters
A doji can show balance or hesitation between buyers and sellers, but its meaning depends heavily on location and context.
Example
A doji after a strong rally near resistance may deserve more attention than a doji in the middle of an ordinary sideways range.
Candlestick Patterns
Hammer
#
A candle with a relatively small body near the top of its range and a long lower wick.
Why it matters
It can show rejection of lower prices, especially after a decline or near a meaningful support area.
Example
Price sells off sharply during the candle, then buyers push it back near the top of the range before the close.
Candlestick Patterns
Shooting Star
#
A candle with a relatively small body near the bottom of its range and a long upper wick.
Why it matters
It can show rejection of higher prices, especially after an advance or near resistance.
Example
Price trades sharply higher during the candle but falls back before the close, leaving a long upper wick.
Candlestick Patterns
Engulfing Candle
#
A two-candle pattern where the real body of the second candle covers the real body of the previous candle.
Why it matters
It can show a strong shift in short-term control, but the surrounding trend, level and volume matter more than the name alone.
Example
A large bullish candle that opens below and closes above the body of the previous bearish candle is commonly called a bullish engulfing pattern.
The amount of time represented by each candle on a chart.
Why it matters
The same stock can look very different on a 1-minute, 15-minute, daily or weekly chart.
Example
On a 5-minute chart each candle summarizes five minutes of trading; on a daily chart each candle summarizes one trading day.
The number of shares traded during a period.
Why it matters
Volume helps show how much participation is behind a price move.
Example
A breakout with much higher-than-normal volume may have broader participation than one occurring on very light volume.
Market Activity
Relative Volume (RVOL)
#
A comparison of current trading volume with a typical or reference volume for a comparable period.
Why it matters
Relative volume can help identify unusually active stocks.
Example
An RVOL of 2.0 means current volume is roughly twice the reference level being used.
Market Activity
Liquidity
#
How easily shares can be bought or sold without causing a large change in price.
Why it matters
Low liquidity can create wide spreads, poor fills and sudden jumps between prices.
Example
A heavily traded large-cap stock is normally easier to enter and exit than a stock that trades only occasionally.
A price area where buying has previously been strong enough to slow or reverse a decline.
Why it matters
Support identifies an area traders may watch for a reaction, but no support level is guaranteed to hold.
Example
If buyers repeatedly appear around ₱50, traders may describe that area as support.
Price Action
Resistance
#
A price area where selling has previously been strong enough to slow or reverse an advance.
Why it matters
Resistance is often watched for rejection or a possible breakout.
Example
If price repeatedly fails around ₱60, traders may treat that area as resistance.
A move through a clearly watched support, resistance or trading-range boundary.
Why it matters
A breakout may show changing price behaviour, but it still needs confirmation, context and risk control.
Example
A stock moves above a resistance area that has rejected price several times and then holds above it.
Price Action
False Breakout
#
A move beyond an important level that quickly fails and returns inside the previous range.
Why it matters
False breakouts are one reason traders often wait for confirmation rather than reacting to the first price touch.
Example
Price trades above resistance in the morning but soon falls back below it and remains there.
When price returns to a recently broken area to test whether it now acts as support or resistance.
Why it matters
A retest can help traders judge whether a breakout is holding.
Example
After breaking above ₱60 resistance, price returns toward ₱60 and then stabilizes.
A market structure generally characterized by rising swing highs and rising swing lows.
Why it matters
Recognizing the broader structure helps prevent treating every small pullback as a trend reversal.
Example
Price advances, pulls back while holding above the previous major low, and then makes another higher high.
A market structure generally characterized by falling swing highs and falling swing lows.
Why it matters
Recognizing a downtrend helps distinguish temporary rallies from a confirmed trend change.
Example
Price falls, rebounds to a lower high, then breaks to another lower low.
Price Action
Consolidation
#
A period where price trades within a relatively contained range instead of trending strongly higher or lower.
Why it matters
Consolidation can represent balance before a later expansion, but the eventual direction is not known in advance.
Example
A stock trades between ₱48 and ₱50 for several sessions after a strong move.
A predefined price or condition used to exit when the original trade idea is no longer valid.
Why it matters
Defining the stop before entering helps control the amount of capital at risk.
Example
A trader entering at ₱100 may decide the setup is invalid below ₱98.
Choosing how many shares to trade based on the amount of money you are willing to risk.
Why it matters
Position sizing connects the stop level to the actual peso risk of the trade.
Example
If risk per share is ₱2 and planned maximum risk is ₱500, the theoretical size is 250 shares before board-lot and execution constraints.
A comparison between the amount planned to be risked and the potential reward being targeted.
Why it matters
It helps traders evaluate whether the possible reward is reasonable relative to the downside they accept.
Example
Risking ₱1 to target ₱2 is commonly described as a 1:2 risk/reward relationship.
Trading Styles
Scalping
#
A very short-term trading style that aims to capture relatively small price movements, often over minutes.
Why it matters
Scalping requires strong liquidity, disciplined execution and close attention to spreads and transaction costs.
Example
A trader may use a 1-minute or 5-minute chart to manage a position lasting only several minutes.
Trading Styles
Day Trading
#
Opening and closing trading positions within the same trading day.
Why it matters
Day traders focus on intraday price action and normally avoid carrying the position overnight.
Example
A position opened after the market opens and closed before the same day’s close is a day trade.
Trading Styles
Swing Trading
#
A trading style that normally holds positions for several days or weeks to capture a larger price move.
Why it matters
Swing trading uses a longer timeframe than scalping or day trading and may tolerate wider price fluctuations.
Example
A trader enters after a breakout and holds while the stock remains in an established uptrend.
