Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

TRADING TERMS > ALL Terms for Trading > Flashcards

ALL Terms for Trading Flashcards

1
Q

What is Technical Analysis? (TA)

A

Analysis that is based solely on analysing the chart with technical tools and indicators.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is Optimal Trade Entry? (OTE)

A

Fib pivots between 0.65 - 0-.79

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does BSL stand for?

A

Buyside Liquidity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does SSL stand for?

A

Sellside Liquidity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does OB stand for?

A

Order Block

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does BRK stand for?

A

Breaker
+BRK - Bullish Breaker
-BRK - Bearish Breaker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does FVG stand for?

A

Fair Value Gap

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does LP stand for?

A

Liquidity Pool

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does RR stand for?

A

Risk to reward

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does MS stand for?

A

Market Structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does BMS stand for?

A

Break of Market Structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does SMS stand for?

A

Shift in Market Structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does PDH stand for?

A

Previous Daily High

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does PDL stand for?

A

Previous Daily Low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does DH stand for?

A

Daily High

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does DL stand for?

A

Daily Low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What does MH stand for?

A

Monthly High

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What does ML stand for?

A

Monthly Low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does LOKZ stand for?

A

London Kill Zone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does NYKZ stand for?

A

New York Kill Zone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What does AMD stand for?

A

Accumulation, Manipulation, Distribution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What does SH stand for?

A

Stop Hunt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What does SL stand for?

A

Stop Loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What does TP stand for?

A

Take Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What does BB stand for?

A

Breakerblock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What does BMS stand for?

A

Break in market structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What does BOS stand for?

A

Break of structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What does BTS stand for?

A

Buy to sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What does DO stand for?

A

Daily open

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What does DP stand for?

A

Decision point

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What does EQH stand for?

A

Equal highs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What does EQL stand for?

A

Equal lows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What does FTA stand for?

A

First trouble area

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What does HTF stand for?

A

Higher time frame

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What does IMB stand for?

A

Imbalance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What does IMB stand for?

A

Imbalance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What does LTF stand for?

A

Lower time frame

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What does MO stand for?

A

Monthly open

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What does MS stand for?

A

Market structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What does PDO stand for?

A

Previous daily open

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What does POI stand for?

A

Point of interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What does POC stand for?

A

Point of control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What does PWH stand for?

A

Previous weekly high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What does PWL stand for?

A

Previous weekly low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

What does SC stand for?

A

Sponsored candle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What does SFP stand for?

A

Swing failure pattern

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What does SMS stand for?

A

A shift in market structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What does SnD stand for?

A

Supply & demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

What does STB stand for?

A

Sell to buy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

What does TF stand for?

A

Time frame

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What does WO stand for?

A

Weekly open

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

What does YO stand for?

A

Yearly open

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What does CHoCH stand for?

A

Change of character

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

What does Inducement mean?

A

Engineered liquidity above/below a POI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

What does A/B TPO stand for?

A

Above/below time point of control
It shows us the time spent above or below the time POC.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

What does A/B VOL mean?

A

Above/below volume point of control
It shows us the volume above or below the POC.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

What does ACR mean?

A

Average candle range
It says what the average candle size is during the day

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

What is an Aggressive order?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

What does ATH stand for?

A

All-time high
An asset reaches its highest value ever recorded.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

What does ATL stand for?

A

All-time low
An asset reaches its lowest value ever recorded.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What does ATR stand for?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

What is Back Testing?

A

Back Testing evaluates the viability of a trading strategy by discovering how it would play out using historical data.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

What does BE mean?

A

Break-even
Neither a loss nor a win.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

What does a Bear market mean?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

What does BT mean?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

What does BTC mean

A

Bitcoin
The first decentralised, digital cryptocurrency that enabled instant payments to anyone and anywhere in the world.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

What does BU mean?

A

Backup (WYCKOFF accumulation)
Old highs of AR are being tested, price flips the resistance into support and moves up higher.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

What does a Bull trap mean?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

What does “Compounding” mean?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

What does “Consolidation” mean?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

What does CVD mean?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

What does DCA mean?

A

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
Q

What does DCB mean?

A

Dead cat bounce
A small, temporary recovery in a price of a declining asset. It is the most common retracement in bear market.

77
Q

What does Delta mean?

A

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
Q

What does DEX mean?

A

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
Q

What does DOM mean?

A

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
Q

What is a Double Distribution

A

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
Q

What is a Downtrend

A

A downtrend is a series of lower highs and lower lows.

82
Q

What is an Uptrend

A

An Uptrend is a series of higher highs and higher lows.

83
Q

What is a dPOC

A

Daily point of control

84
Q

What is a dVAH

A

Daily value area high

85
Q

What is a dVAL

A

Daily value area low

86
Q

What does DYOR mean?

A

Do your own research

87
Q

What does EQ mean?

A

Equilibrium
Equilibrium is the state in which market supply and demand balance each other

88
Q

What does EW mean

A

Elliott Wave

89
Q

What does FOMO mean?

A

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
Q

What does Fractal mean?

A

A fractal is a price action similar to a previous movement (history does not repeat but it does rhyme)

91
Q

What does FUD mean?

A

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
Q

What does GP mean?

A

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
Q

What does HH mean?

A

Higher high
Price forms a high that is higher than previous one

94
Q

What does HL mean?

A

Higher low
Price forms a low that is higher than previous one

95
Q

What does LH mean?

A

Lower high
Price forms a high that is lower than previous one

96
Q

What does LL mean?

A

Lower low
Price forms a low that is lower than previous one

97
Q

What does H&S mean?

A

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
Q

What does HTF mean?

A

High time frame
A 4 hour + time frame

99
Q

What does HVC mean?

A

High volume cluster
An area where a large amount of volume has traded

100
Q

What does HVN mean?

A

High volume node
An area where a large amount of volume has traded

101
Q

What does IB mean?

A

Initial Balance
The price range of the first hour of the trading open

102
Q

What does IB H mean?

A

Initial balance high

103
Q

What does IB L mean?

A

Initial balance low

104
Q

What is an Iceberg Order?

A

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
Q

What does ITM mean?

A

In-the-money option
A call (put) option whose exercise price is below (above) the current price of the underlying asset

106
Q

What does OTM mean?

A

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
Q

What does Laddering mean?

A

You place multiple buy or sell orders when wanting to enter a trade setup and get an average entry price

108
Q

What is a Ledge?

A

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
Q

What is Liquidity?

A

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
Q

What does LO mean?

A

Londen open

111
Q

What does LTF mean?

A

Lower time frame
A 1 hour or lower time frame

112
Q

What does LVC mean?

A

Low volume cluster
An area where a small amount of volume has traded

113
Q

What does LVN mean?

A

Low volume node
An area where a small amount of volume has traded

114
Q

What does MA mean?

A

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
Q

What does MM mean?

A

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
Q

What is a mPOC?

A

Monthly point of control

117
Q

What is a mVAH?

A

Monthly value area high

118
Q

What is a mVAL?

A

Monthly value area low

119
Q

What does nPOC mean?

A

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
Q

What does OBV mean?

A

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
Q

What does OF mean?

A

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
Q

What does OI mean?

A

Open interest
Open Interest represents the total number of contracts, including both net longs (buy) and net shorts (sell) positions

123
Q

What does OTM mean?

A

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
Q

What is a Passive Order?

A

Passive orders add liquidity to markets. That are limit bid (buy) and ask (sell) orders which usually are not immediately executed

125
Q

What does pdEQ mean?

A

Previous day Equilibrium
0.5 fib retracement from previous day’s swing high to swing low

126
Q

What does pdPOC mean?

A

Previous day point of control

127
Q

What does pdVAH mean?

A

Previous day value area high

128
Q

What does pdVAL mean?

A

Previous day value area low

129
Q

What does pmPOC mean?

A

Previous month point of control

130
Q

What does pmVAH mean?

A

Previous month value area high

131
Q

What does pmVAL mean?

A

Previous month value area low

132
Q

What does POC mean?

A

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
Q

What is a Poor High / Low?

A

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
Q

What does Pulling mean?

A

Removing orders from the orderbook

135
Q

What does pwPoc mean?

A

Previous week point of control

136
Q

What does pwVAH mean?

A

Previous week value area high

137
Q

What does pwVAL mean?

A

Previous week value area low

138
Q

What does RF mean?

A

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
Q

What does R:R mean?

A

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
Q

What does RSI mean?

A

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
Q

What does Sat mean?

A

Satoshi
The smallest sub-unit of Bitcoin. 1 Satoshi = 1/100,000,000 of a Bitcoin

142
Q

What is a Scalp Trade?

A

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
Q

What does SEC mean?

A

Securities and Exchange Commission
The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

144
Q

What does SFP mean?

A

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
Q

What does SL mean?

A

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
Q

What is a Hard stop loss?

A

It is placed in an orderbook (mandatory for beginners and intermediate traders

147
Q

What is a Stop loss

A

It is only mental stop loss (requires discipline, only for professionals)

148
Q

What is a Slippage?

A

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
Q

What is a SP?

A

Single Print
They are like a wick on a candle stick but in the middle of the price action

150
Q

What is a Spoofed Order?

A

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
Q

What is Spread?

A

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
Q

What is S/R?

A

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
Q

What is Stacking?

A

Adding to the orderbook limit orders

154
Q

What is a Stop Hunt?

A

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
Q

What is Swing Trading?

A

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
Q

What does TF mean?

A

Time frame

157
Q

What does TP mean?

A

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
Q

What does TPO mean?

A

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
Q

What does TR mean?

A

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
Q

What does a Trend mean?

A

The general direction of a market or asset’s price, essentially, momentum.

161
Q

What does TV mean?

A

TradingView

162
Q

What does TVAH mean?

A

Time value area high

163
Q

What does TVAL mean?

A

Time value area low

164
Q

What does VAH mean?

A

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
Q

What does VAL mean?

A

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
Q

What does VWAP mean?

A

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
Q

What does wPOC mean?

A

Weekly point of control

168
Q

What does wVAH mean?

A

Weekly value area high

169
Q

What does wVAL mean?

A

Weekly value area low

170
Q

What does ARA mean?

A

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
Q

What does ARE mean?

A

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
Q

What does BC mean?

A

Buying climax (WYCKOFF distribution)
Buying volume reaches a climax (retail buying). There may also be some very bullish news accompanying this occurrence.

173
Q

What does BU mean?

A

Backup (WYCKOFF accumulation)
Old highs of AR are being tested, price flips the resistance into support and moves up higher.

174
Q

What does LPS mean?

A

Last point of support (WYCKOFF accumulation)
After ‘jumping across the creek’ price retraces, flips resistance into support and bounces up showing SOS.

175
Q

What does LPSY mean?

A

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
Q

What does PS mean?

A

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
Q

What does PSY mean?

A

Preliminary supply (WYCKOFF distribution)
After a long robust uptrend, price becomes climactic and supported with rising volume. Larger (professional) interests begin to unload.

178
Q

What does SC mean?

A

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
Q

What does SOS mean?

A

Sign of Strength (WYCKOFF accumulation)
Price moves up on increase of volume showing strength.

180
Q

What does SOW mean?

A

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
Q

What does ST mean?

A

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
Q

What does S/T mean?

A

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
Q

What does UT mean?

A

Upthrust (WYCKOFF distribution)
Price takes the high of the first push up (BC) on the lesser buy volume.

184
Q

What does UTAD mean?

A

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
Q

What is XBT?

A

Bitcoin ticker for some exchanges

TRADING TERMS (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions