ALL Terms for Trading Flashcards
(185 cards)
1
Q
What is Technical Analysis? (TA)
A
Analysis that is based solely on analysing the chart with technical tools and indicators.
2
Q
What is Market structure? (MS)
A
Market structure is basically a support and resistance level on the charts, swing highs, and swing lows. These are levels, which are easily identified. It is a trend-following tool that traders read and follow based on how the asset moves. It can be bullish or bearish.
3
Q
What is Fundamental analysis? (FA)
A
It is a method used by investors and traders to assess the intrinsic value of an asset by examining as many qualitative and quantitative factors as possible.
4
Q
What is Price action? (PA)
A
Price action is a trading technique that consists of analysing basic price movement across a time frame. PA traders read the market and make subjective trading decisions based on recent and actual price movements.
5
Q
What is Optimal Trade Entry? (OTE)
A
Fib pivots between 0.65 - 0-.79
6
Q
What does BSL stand for?
A
Buyside Liquidity
7
Q
What does SSL stand for?
A
Sellside Liquidity
8
Q
What does OB stand for?
A
Order Block
9
Q
What does BRK stand for?
A
Breaker
+BRK - Bullish Breaker
-BRK - Bearish Breaker
10
Q
What does FVG stand for?
A
Fair Value Gap
11
Q
What does LP stand for?
A
Liquidity Pool
12
Q
What does RR stand for?
A
Risk to reward
13
Q
What does MS stand for?
A
Market Structure
14
Q
What does BMS stand for?
A
Break of Market Structure
15
Q
What does SMS stand for?
A
Shift in Market Structure
16
Q
What does PDH stand for?
A
Previous Daily High
17
Q
What does PDL stand for?
A
Previous Daily Low
18
Q
What does DH stand for?
A
Daily High
19
Q
What does DL stand for?
A
Daily Low
20
Q
What does MH stand for?
A
Monthly High
21
Q
What does ML stand for?
A
Monthly Low
22
Q
What does LOKZ stand for?
A
London Kill Zone
23
Q
What does NYKZ stand for?
A
New York Kill Zone
24
Q
What does AMD stand for?
A
Accumulation, Manipulation, Distribution
25
What does SH stand for?
Stop Hunt
26
What does SL stand for?
Stop Loss
27
What does TP stand for?
Take Profit
28
What does BB stand for?
Breakerblock
29
What does BMS stand for?
Break in market structure
30
What does BOS stand for?
Break of structure
31
What does BTS stand for?
Buy to sell
32
What does DO stand for?
Daily open
33
What does DP stand for?
Decision point
34
What does EQH stand for?
Equal highs
35
What does EQL stand for?
Equal lows
36
What does FTA stand for?
First trouble area
37
What does HTF stand for?
Higher time frame
38
What does IMB stand for?
Imbalance
39
What does IMB stand for?
Imbalance
40
What does LTF stand for?
Lower time frame
41
What does MO stand for?
Monthly open
42
What does MS stand for?
Market structure
43
What does PDO stand for?
Previous daily open
44
What does POI stand for?
Point of interest
45
What does POC stand for?
Point of control
46
What does PWH stand for?
Previous weekly high
47
What does PWL stand for?
Previous weekly low
48
What does SC stand for?
Sponsored candle
49
What does SFP stand for?
Swing failure pattern
50
What does SMS stand for?
A shift in market structure
51
What does SnD stand for?
Supply & demand
52
What does STB stand for?
Sell to buy
53
What does TF stand for?
Time frame
54
What does WO stand for?
Weekly open
55
What does YO stand for?
Yearly open
56
What does CHoCH stand for?
Change of character
57
What does Inducement mean?
Engineered liquidity above/below a POI
58
What does A/B TPO stand for?
Above/below time point of control
It shows us the time spent above or below the time POC.
59
What does A/B VOL mean?
Above/below volume point of control
It shows us the volume above or below the POC.
60
What does ACR mean?
Average candle range
It says what the average candle size is during the day
61
What is an Aggressive order?
Aggressive orders are when a trader executes the order to buy or sell at the market. They take place when spreads and depths are relatively low and they remove liquidity.
62
What does ATH stand for?
All-time high
An asset reaches its highest value ever recorded.
63
What does ATL stand for?
All-time low
An asset reaches its lowest value ever recorded.
64
What does ATR stand for?
Average True Range
An indicator that measures volatility – it shows how much price moves on average during a certain TF. Average down
It is an ADVANCED method because you are adding to a losing position as you are presented with another setup.
65
What is Back Testing?
Back Testing evaluates the viability of a trading strategy by discovering how it would play out using historical data.
66
What does BE mean?
Break-even
Neither a loss nor a win.
67
What does a Bear market mean?
A bear market occurs when the price is continuously declining over a longer period of time. Price is making lower highs and selling pressure is bigger than buying pressure. The sentiment of the market can be negative.
68
What does BT mean?
Buying tail
It is formed at the low of the TPO profile and signifies that a larger trader stepped in quickly to reject the price.
69
What does BTC mean
Bitcoin
The first decentralised, digital cryptocurrency that enabled instant payments to anyone and anywhere in the world.
70
What does BU mean?
Backup (WYCKOFF accumulation)
Old highs of AR are being tested, price flips the resistance into support and moves up higher.
71
What does a Bull trap mean?
It is a sign that is falsely showing a decreasing trend in an asset has reversed and is now heading upwards, when in fact it will continue to decline.
72
What does "Compounding" mean?
When you are already in a trading setup and then another setup presents itself within the setup. If you take it, it means you compound. You would take this trade regardless – it is a trade itself.
73
What does "Consolidation" mean?
Price is moving in a sideways range. It is a natural pattern from which it can break up or down though continuation of a trend is favoured.
74
What does CVD mean?
Cumulative volume delta
It is the running total of delta. CVD is adding and removing delta together – transactions occurring on the ask (buy) are added to the total, and those occurring on the bid (sell) are subtracted from the cumulative total.
75
What does DCA mean?
Dollar cost averaging
This is the strategy of investors – they place a certain (fixed) dollar amount into an asset on a regular basis (for instance every month)
76
What does DCB mean?
Dead cat bounce
A small, temporary recovery in a price of a declining asset. It is the most common retracement in bear market.
77
What does Delta mean?
Delta is a sum of aggressive trades. It shows us who was in control during that candle. To calculate the delta of a price we subtract the sells from the buys. Delta is either positive or negative, it helps us confirm the breakout instantly.
78
What does DEX mean?
Decentralized Exchange
Decentralized exchange is a cryptocurrency exchange which operates without a central authority. Trades occur directly between users (peer-to-peer) through an automated process.
79
What does DOM mean?
Depth of market
It is a list/window that shows how many open limit buy and limit sell orders there are at different prices in real- time. Depth of market measures the liquidity of a particular market.
80
What is a Double Distribution
It occurs when price gets acceptance into a larger row of SP’s between two distribution profiles. Double distribution cannot occur on the same day, but it can occur the next day or up to one week after.
81
What is a Downtrend
A downtrend is a series of lower highs and lower lows.
82
What is an Uptrend
An Uptrend is a series of higher highs and higher lows.
83
What is a dPOC
Daily point of control
84
What is a dVAH
Daily value area high
85
What is a dVAL
Daily value area low
86
What does DYOR mean?
Do your own research
87
What does EQ mean?
Equilibrium
Equilibrium is the state in which market supply and demand balance each other
88
What does EW mean
Elliott Wave
89
What does FOMO mean?
Fear of missing out
Fear of missing out happens to many (especially newer) traders who do not have strict discipline with taking trades. The Crypto market is often driven by emotions rather than rationality, so FOMO is a huge issue in trading. Missing the profit you might make if you don’t buy a coin instantly regardless of its current price and the feeling of missing out could lead to entering trades without any thought.
One should always have a trading plan – a clear point of entry, a clear point of invalidation and clear TP areas.
90
What does Fractal mean?
A fractal is a price action similar to a previous movement (history does not repeat but it does rhyme)
91
What does FUD mean?
Fear, uncertainty, doubt
FUD is believed to cause a drop in the price of a ‘targeted’ asset. Very often the bad news is not even grounded in reality. Also, professional traders do not pay attention to fundamentals but simply read the chart which always makes sense itself
92
What does GP mean?
Golden pocket
The Fibonacci ratios between .618 and .65
A type of order (buy or sell) that remains active until either being filled or cancelled by trader/investor
93
What does HH mean?
Higher high
Price forms a high that is higher than previous one
94
What does HL mean?
Higher low
Price forms a low that is higher than previous one
95
What does LH mean?
Lower high
Price forms a high that is lower than previous one
96
What does LL mean?
Lower low
Price forms a low that is lower than previous one
97
What does H&S mean?
Head and shoulders
It is a top reversal pattern that consists of three peaks – the outside two are about the same in height and the middle one is the highest
98
What does HTF mean?
High time frame
A 4 hour + time frame
99
What does HVC mean?
High volume cluster
An area where a large amount of volume has traded
100
What does HVN mean?
High volume node
An area where a large amount of volume has traded
101
What does IB mean?
Initial Balance
The price range of the first hour of the trading open
102
What does IB H mean?
Initial balance high
103
What does IB L mean?
Initial balance low
104
What is an Iceberg Order?
They are used by really good traders to fill their very big positions. It will only show part of the order visible – the order is bigger than it looks like (it keeps on getting refilled). You want to get the order filled with nobody knowing.
105
What does ITM mean?
In-the-money option
A call (put) option whose exercise price is below (above) the current price of the underlying asset
106
What does OTM mean?
Out-of-the-money Option
A call (put) option whose exercise price is above (below) the current price of the underlying asset. OTM is the most aggressive option trading method with an extremely high profit and risk potential
107
What does Laddering mean?
You place multiple buy or sell orders when wanting to enter a trade setup and get an average entry price
108
What is a Ledge?
Ledges are the same as poor highs and poor lows but formed inside of the TPO chart. Two or more TPO blocks at the same price create a ledge
109
What is Liquidity?
Liquidity refers to the ease with which an asset can be converted into ready cash without affecting its market price. Liquidity is extremely important without it you lose money
110
What does LO mean?
Londen open
111
What does LTF mean?
Lower time frame
A 1 hour or lower time frame
112
What does LVC mean?
Low volume cluster
An area where a small amount of volume has traded
113
What does LVN mean?
Low volume node
An area where a small amount of volume has traded
114
What does MA mean?
Moving average
A very popular indicator used by many traders. Moving average is a lagging indicator because it is based on (calculated from) past prices. It can help identify trend direction and can act as a support or resistance
115
What does MM mean?
Market maker
An individual / financial institution / exchange that quotes both a buy and a sell price of an asset to provide a measure of liquidity
116
What is a mPOC?
Monthly point of control
117
What is a mVAH?
Monthly value area high
118
What is a mVAL?
Monthly value area low
119
What does nPOC mean?
Naked Point of Control
This is where a POC from previous session (24 hour periods for Crypto) has not been tapped. It generally gives a bounce when approached for the first time but as always look for confluence
120
What does OBV mean?
On balance volume
OBV is the cumulative total of positive and negative volume. It is a leading indicator – volume leads price. OBV can be used for identifying divergences at tops and bottoms
121
What does OF mean?
Order flow
Order flow is a form of data of the contracts sold and bought at a certain price that moves prices up and down
122
What does OI mean?
Open interest
Open Interest represents the total number of contracts, including both net longs (buy) and net shorts (sell) positions
123
What does OTM mean?
Out-of-the-money Option
A call (put) option whose exercise price is above (below) the current price of the underlying asset. OTM is the most aggressive option trading method with an extremely high profit and risk potential
124
What is a Passive Order?
Passive orders add liquidity to markets. That are limit bid (buy) and ask (sell) orders which usually are not immediately executed
125
What does pdEQ mean?
Previous day Equilibrium
0.5 fib retracement from previous day’s swing high to swing low
126
What does pdPOC mean?
Previous day point of control
127
What does pdVAH mean?
Previous day value area high
128
What does pdVAL mean?
Previous day value area low
129
What does pmPOC mean?
Previous month point of control
130
What does pmVAH mean?
Previous month value area high
131
What does pmVAL mean?
Previous month value area low
132
What does POC mean?
Point of control
The price at which the largest trading volume has been made over a period of time. It is a is big horizontal S/R line
133
What is a Poor High / Low?
A poor high is a profile with no ST and a poor low is a profile with no BT. If there is no ST for example, you expect the high to be taken out, to either move up higher or for a SFP to create a ST
134
What does Pulling mean?
Removing orders from the orderbook
135
What does pwPoc mean?
Previous week point of control
136
What does pwVAH mean?
Previous week value area high
137
What does pwVAL mean?
Previous week value area low
138
What does RF mean?
Rotation factor
Each 30-minute column is given a score or +1 or -1 and the rotation factor is the overall number which shows us which way the market attempted to push
139
What does R:R mean?
Risk:reward
Risk to reward ratio shows how much profit a trader can potentially make if trade turns into winner and how much a trader can lose if trade turns into a loss. The R:R ratio should be at least 2:1, preferably 3:1
140
What does RSI mean?
Relative strength Index
It is a lagging indicator used to measure strength or weakness of an asset. RSI is based on the closing prices of a recent trading period
141
What does Sat mean?
Satoshi
The smallest sub-unit of Bitcoin. 1 Satoshi = 1/100,000,000 of a Bitcoin
142
What is a Scalp Trade?
A trading style that specializes in profiting off small price changes in a short period of time. It requires discipline and focus and good knowledge of TA.
143
What does SEC mean?
Securities and Exchange Commission
The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
144
What does SFP mean?
Swing failure pattern
Price takes out the high and closes back below the high OR price takes out the low and closes back above the low = SFP (it can be bullish or bearish)
145
What does SL mean?
Stop loss
A stop loss order is placed to buy or sell an asset when the asset reaches a certain price to close a losing position. It is a must in trading. Literally no one only wins trades, losses are a very natural part of trading. There should be a clear invalidation and SL should ALWAYS be placed.
146
What is a Hard stop loss?
It is placed in an orderbook (mandatory for beginners and intermediate traders
147
What is a Stop loss
It is only mental stop loss (requires discipline, only for professionals)
148
What is a Slippage?
When something drops quickly and there is low liquidity you for instance have SL set at 5% but you get filled at 25%. Your loss is very big = rekt
149
What is a SP?
Single Print
They are like a wick on a candle stick but in the middle of the price action
150
What is a Spoofed Order?
A fake order – somebody places an order but has no intention to get it filled. When price comes to the order it disappears – you are fooling newer traders
151
What is Spread?
It is a difference between buy and sell (for instance buy bid is 25$, sell ask is 26$ – spread is 1$). You do not want to trade something with big spread because it means liquidity is low = you will lose money
152
What is S/R?
Support/resistance
A price area where price finds enough demand to bounce or reverse = support.
A price area where there is a lot of supply and price finds it difficult to break through = resistance.
The more times they are tested the weaker they become.
153
What is Stacking?
Adding to the orderbook limit orders
154
What is a Stop Hunt?
A strategy that attempts to force some traders out of their positions by pushing the price of an asset to a level where many would have chosen to set their stop-loss orders
155
What is Swing Trading?
A style of trading where swing traders hold their position for some days or even weeks. Swing traders goal is to identify an overall trend and capture larger gains within it.
156
What does TF mean?
Time frame
157
What does TP mean?
Take profit
Take profit is an order that you place to (partially) close your position once it reaches a certain level of profit. One can have multiple TP points.
158
What does TPO mean?
Time price opportunity
It displays the amount of trading activity based on time, for each price level the market traded at for any given time period.
159
What does TR mean?
Trading Range
Trading range occurs when an asset consistently trades between a certain high and low price for a good amount of time. Top of the range is resistance and the bottom of the range is support.
160
What does a Trend mean?
The general direction of a market or asset’s price, essentially, momentum.
161
What does TV mean?
TradingView
162
What does TVAH mean?
Time value area high
163
What does TVAL mean?
Time value area low
164
What does VAH mean?
Value area high
Value area high is the highest price in the value area that is marked on the chart. It acts as a resistance when the price ranges within the range.
165
What does VAL mean?
Value area low
Value area low is the lowest price in the value area that is marked on the chart. It acts as a support when the price ranges within the range.
166
What does VWAP mean?
Volume weighted average price.
VWAP incorporates price and volume, it is a S/R line. When price is above VWAP it is ‘above value’ and when it is below VWAP is it ‘below value’.
167
What does wPOC mean?
Weekly point of control
168
What does wVAH mean?
Weekly value area high
169
What does wVAL mean?
Weekly value area low
170
What does ARA mean?
Automatic rally (WYCKOFF accumulation)
It occurs because of intense selling (SC). It does not take a lot of buying pressure for the price to rally up. It is also fuelled by shorts covering.
171
What does ARE mean?
Automatic reaction (WYCKOFF distribution)
A very sudden and very sharp price retracement (usually) back to the area of PSY. It is big and unexpected and it happens on high sell volume.
172
What does BC mean?
Buying climax (WYCKOFF distribution)
Buying volume reaches a climax (retail buying). There may also be some very bullish news accompanying this occurrence.
173
What does BU mean?
Backup (WYCKOFF accumulation)
Old highs of AR are being tested, price flips the resistance into support and moves up higher.
174
What does LPS mean?
Last point of support (WYCKOFF accumulation)
After ‘jumping across the creek’ price retraces, flips resistance into support and bounces up showing SOS.
175
What does LPSY mean?
Last point of supply (WYCKOFF distribution)
Price rallies from support (usually SOW) into resistance on declining volume. Demand is weakening, LPSY represents exhaustion of demand. Price will not reach previous high (resistance area) due to weakness.
176
What does PS mean?
Preliminary support (WYCKOFF accumulation)
After a big selloff, substantial buying begins to provide a support. Preliminary support starts accumulation – it is the first bounce of the accumulation range.
177
What does PSY mean?
Preliminary supply (WYCKOFF distribution)
After a long robust uptrend, price becomes climactic and supported with rising volume. Larger (professional) interests begin to unload.
178
What does SC mean?
Selling climax (WYCKOFF accumulation)
Heavy selling (especially by retail) occurs that is suddenly absorbed by professional interest. It does not require a lot of volume to push price back up (AR).
Selling climax does not always have to occur on high sell volume though but it is better if it does.
179
What does SOS mean?
Sign of Strength (WYCKOFF accumulation)
Price moves up on increase of volume showing strength.
180
What does SOW mean?
Sign of weakness (WYCKOFF distribution)
Selling off on the very high volume towards support. Price weakness is obvious here and after reaching SOW price will go up for the final rally that sets up the conclusion of distribution.
181
What does ST mean?
Secondary test (WYCKOFF distribution)
Price revisits the area of BC, tests supply and support flips into resistance. After this flip price makes a new low.
To rekt as much retail as possible price is pushed down again for another ST, price SFP the lows and bounces back up.
182
What does S/T mean?
Secondary test (WYCKOFF accumulation)
Price revisits the area of SC, tests a demand and resistance flips into support. After this flip price makes a new high.
To rekt as much retail as possible price is pushed down again for another ST, price SFP the lows and bounces back up.
183
What does UT mean?
Upthrust (WYCKOFF distribution)
Price takes the high of the first push up (BC) on the lesser buy volume.
184
What does UTAD mean?
Upthrust after distribution (WYCKOFF distribution)
Price goes above resistance and previous peaks in the distribution trading range. Price rises with conviction and can stay above resistance for some days or even weeks. When price breaks down it heads back to support area. After UTAD price becomes weak to and through support and into confirmed downtrend.
UTAD occurs only occasionally
185
What is XBT?
Bitcoin ticker for some exchanges
