Part 3 Terminology Glossary Flashcards
Institution
A large financial entity, such as a bank or hedge fund, involved in trading or investing in financial markets.
ioi
An abbreviation for “inside/outside inside,” referring to a bar with a higher high and lower low than the previous bar.
Ledge
Ledge: A price level where significant buying or selling pressure has accumulated, often leading to a breakout or reversal.
Leg
Likely
Top of Form
Long
A trading position that benefits from an increase in price.
Lot
A standardised unit of trading volume in financial markets.
Lower High
A price bar with a high point lower than the high point of the previous bar.
Lower Low
A price bar with a low point lower than the low point of the previous bar.
Low 1, 2, 3, or 4
Price bars with low points relative to a specified number of previous bars.
Major Trend Line
A significant line drawn on a price chart connecting major highs or lows, indicating the direction of the prevailing trend.
Major Trend Reversal
A significant change in the direction of the prevailing trend.
Measuring Gap
Measuring Gap: A price gap used to estimate the potential price target of a subsequent price move.
Measured Move in Bear Trend
A projected price movement in a bearish market based on a previous price swing.
Measured Move in Bull Trend
A projected price movement in a bullish market based on a previous price swing.
Melt-up
A rapid and substantial increase in market prices.
Micro
A term used to describe very small or short-term price movements or patterns.
Meltdown
A rapid and severe decline in market prices.
Micro Measuring Gap
A small price gap used to estimate the potential price target of a subsequent price move within a very short-term timeframe.
Micro Double Top
A bearish reversal pattern characterised by two consecutive highs at a very short-term timeframe.
Micro Double Bottom
A bullish reversal pattern characterised by two consecutive lows at a very short-term timeframe.
Micro Channel
A narrow price channel indicating low volatility and minimal price movement.
Micro Trend Line Breakout
The breach of a trend line drawn on a very short-term timeframe, indicating a potential change in price direction.
