Glossary of trading terms
Wedge chart pattern
A wedge chart pattern is a chart formation resembling a wedge formed by a narrowing price range over time, either ascending or descending. In a wedge pattern two trend lines are moving in the same direction but narrowing in width. Eventually a breakthrough occurs to end the pattern.
- An ascending wedge features price highs which decrease incrementally while price lows increase incrementally. Ascending wedges typically conclude with a downside breakout, making them a bearish indicator
- A descending wedge features price declines which become incrementally smaller, concluding with an upside breakout, making the descending wedge pattern a bullish indicator
Whipsaw is a slang term used by traders to describe the condition of a highly volatile market in which sharp price movement is quickly followed by a sharp reversal. Often in a whipsaw market, the price jumps up and down with no apparent rhythm.
Wholesale prices measure the change in prices paid by retailers for finished goods, which are then sold at a markup by retailers to consumers. This means wholesale prices will typically rise and signal inflationary pressures occurring before that pressure is seen in rising headline retail costs. A rise in wholesale prices is most often caused by tariffs and international conflict affecting imports.
A working order is a term used for both stop-loss orders and take-profit orders, two order types that remain open on the market until their specified price is hit. The term ‘working’ order is used because unlike market orders which execute immediately, working orders stay open until end-of-day or good-till-canceled.
WSJ is an acronym for the Wall Street Journal, a daily financial newspaper based in New York City. The WSJ is published by Dow Jones & Company and produces the US Prime Rate, a national average based on short-term interest rates set by major banks.
The WSJ is regarded as a record of international financial and market news. The paper is one of the largest in the US by circulation and has won 38 Pulitzer Prizes since its founding in 1889.