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Act/react- action/reaction principle (extended moves come back to their mean)

 

 

Ask (or Offer) – The price that people are willing to sell at. On the right side of the box.

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Bamboo - chart pattern formation - sideways market with color alternating bars

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BO - breakout
 

Bid – The price that people are willing to buy  at. On the left side of the box. 

Breakout (BO)- A Breakout is a price movement that pierces the upper or lower boundaries of a trading range.

Confirmation - Traders often look more than one signal to confirm their opinion on the price direction of a security. Confirmation refers to

                          a subsequent signal that validates or reinforces the traders opinion on where the issue is heading

Cover – To close out a short position.

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EBO - early breakout (anticipated breakout)

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EOD - end of day

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EOM - end of month (be aware that at last and first day of the month both the open and the close 30 min can vastly differ from

                                    regular trading behavior )

 

ETRI - early triangle (anticipated triangle breakout )

Fade - To take a position that is counter to the current trend of a stock. The position is established at the end of an up or down leg.
 
Get Flat – To close out a long position.

 

H&S - head and shoulders (reversal chart pattern)

HOD - high of the day

Intraday High & Low – The high and low for that day 

Intraday Support & Resistance – The support and resistance levels for that day

Liquidity - Describes the level to which a security can be traded without significantly affecting price. A liquid security can undergo a high

                  volume of trading without a significant change in price.

LOD-low of the day

Market Order - An order to buy or sell a security at whatever price is obtainable at the time

Opening Price - The price (or price range) recorded during the period designated by the exchange as the official opening.

Opening - The period at the beginning of the trading session officially designated by the exchange during which all transactions are

                  considered made "at the opening."

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P&L – Profit & Loss. What a trader has made or lost in a given day.

POI– Point of Interest

Position – The side that you are in a trading instrument. What you are holding; either short or long.

Pullback – When a stock is strong (going up) and comes off (goes down) a little bit. The thought is that it will probably go back up again

                   at some point.

Range - The difference between the high and low price of a commodity, futures, or option contract during a given period​

Scalping – When a trader takes small profits and trades quickly in and out of a position

Selling off – When a stock or the futures are going down and the thought is that it will continue to do so.

Slippage - a failure to meet expectation with regard to the execution of an order. Slippage also describes the difference between

                  estimated transaction costs for a trade and the amount paid due to market conditions, poor execution etc.

Spread – The difference between the bid and the ask.

Short Squeeze - When those that are short have to cover to avoid excessive losses. Leads to a seemingly inexplicable up move.

Stop Loss Order – This is an order that becomes a market order when a particular price level is reached. A sell stop is placed below

                                the market a buy stop is placed above the market.

S/R-support resistance

Swing Trading - Trading in a time frame of one to four days. Swing Traders attempt to exploit short-term price momentum.

 

Tape - Level 2 screen showing bid and ask and inside and the amounts of contracts offered at these levels

            (also at times refereed to as dome,L2,matrix,ABV)

TD-trend day

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Tick - The minimum fluctuation/movement (up or down) in the price of a security.
 

TL-trend line

Trend – The pattern a stock is following. It is best NOT to fight the trend.

 

TRI - triangle (chart pattern formation)

Volatility—The amount of price movement in a given stock

Volume – Total number of contracts traded as of that point in the day.



Times: ( NY TIME ZONE )

Pre market – Trading between 8:00 and 9:30 A.M.

Morning session (opening session) – Trading between 9:30 and 11:15 A.M.

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Expiry - Currency options are typically set to expire at the New York expiry 10 A.M. (or the Tokyo expiry 3 p.m. Tokyo time)

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The Fix – London Closing Time 11:00 A.M. (4PM LONDON)

Doldrums – Trading between 11:15 A.M. and 2:15 P.M.

Afternoon Session - Trading between 2:15 and 4:00 P.M.

After-hours – Trading between 4:00 and 8:00 P.M.