Dictionary: K

K-fold cross-validation

Cross-validation that divides data into k equal parts, training on k minus 1 of them and testing on the remaining one, k times over.

Kagi chart

A Japanese chart of vertical lines that change thickness when price breaks the prior swing, showing supply and demand shifts without time.

Kelly criterion

A formula for the bet size that maximizes long-run growth given your win rate and payoff ratio; full Kelly is far too aggressive for most traders.

Keltner channel

A channel drawn a multiple of average true range above and below an exponential moving average, giving smoother bands than Bollinger Bands.

Key rate duration

Sensitivity of a bond or portfolio to a change in one specific point on the yield curve, holding the rest of the curve fixed.

Kicker pattern

Two candles of opposite colour separated by a gap at the open, with no overlap, usually caused by news that repriced the asset.

Kijun-sen

The Ichimoku baseline, the midpoint of the highest high and lowest low over the last twenty-six periods, treated as the medium-term equilibrium.

Kill switch

An emergency control that immediately disconnects a trading system, cancels its working orders and blocks new ones, independent of the system it is stopping.

Kiwi

The New Zealand dollar, named after the bird on the one-dollar coin, and the pair NZD/USD.

Kumo

The shaded area between the two senkou spans, used as a zone of support and resistance and as a visual trend filter.

Kurtosis

A measure of how much of a distribution's variance comes from rare extreme moves. High kurtosis means calm most days and violent ones occasionally.

KYC (Know Your Customer)

Identity-verification requirements brokers and exchanges must complete before letting you trade, driven by anti-money-laundering law.

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