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Glossary — O
OBV (On-Balance Volume)
A cumulative volume indicator that adds volume on up days and subtracts it on down days. Rising OBV confirms bullish price action; divergence between OBV and price can signal reversals.
Open
The first price at which an asset traded during a given time period. In candlestick charts, the open is one edge of the candle body.
Opening Marubozu
A candlestick with no shadow on the opening side — no lower shadow on a bullish candle or no upper shadow on a bearish candle. Shows strong conviction from the open but some profit-taking by the close.
Order Block
In Smart Money Concepts, the last opposing candle before a strong impulsive move. This area represents where institutional orders were placed and often acts as a zone for price to return to.
Outside Bar
A candle whose range (high to low) completely engulfs the range of the previous candle. Signals a volatility expansion and potential trend change, especially at key support/resistance levels.
Overbought
A condition where an asset's price has risen too far too fast, making it vulnerable to a pullback. Often identified by RSI above 70 or price extended beyond Bollinger Bands.
Oversold
A condition where an asset's price has fallen too far too fast, making it ripe for a bounce. Often identified by RSI below 30 or price below lower Bollinger Band.
On Neck Pattern
A bearish two-candle continuation pattern where a bullish candle closes right at the low of the prior bearish candle. The bounce is completely absorbed by the prior bearish momentum.
Overtrading
Taking too many trades, often due to boredom, FOMO, or the desire to recover losses. Overtrading increases transaction costs, reduces selectivity, and typically degrades performance.
Options
Financial derivatives giving the right (but not obligation) to buy (call) or sell (put) an asset at a specified price before expiration. Options can be used for directional bets, hedging, or income generation.
Order Flow
The stream of buy and sell orders entering the market. Order flow analysis examines the depth and imbalances of orders to anticipate short-term price direction.