SECTION 1 — CANDLESTICK PATTERNS (FULL DEFINITIONS, ALPHABETIZED)
BULLISH ENGULFING Large green candle fully engulfs a smaller red candle, signaling decisive buyer takeover and reversing bearish momentum with strong orderflow confirmation.
DARK CLOUD COVER A bearish two-candle pattern where price gaps up then closes deep into prior green candle, showing abrupt seller dominance and early trend reversal probability.
DOJI A candle with nearly identical open and close that reflects equilibrium, indecision, or transitional orderflow ahead of volatility expansion.
DRAGONFLY DOJI A bullish doji with a long lower wick indicating aggressive rejection of lows and strong demand stepping in at a precise liquidity level.
EVENING STAR A three-candle bearish reversal sequence showing exhaustion, indecision, and a heavy selling follow-through confirming trend reversal.
FALLING THREE METHODS A bearish continuation pattern where small upward candles remain inside the prior impulse leg, showing controlled seller dominance before continuation.
GRAVESTONE DOJI A bearish doji with a long upper wick created by strong rejection of highs, exposing aggressive overhead supply and fading momentum.
HAMMER A bullish reversal candle with a long lower tail created by aggressive buying absorption at lows, signaling demand-strength and potential trend rotation.
HANGING MAN A bearish counterpart to the hammer forming at highs; long lower wick shows selling pressure penetrating the structure despite late recovery.
HARAMI A smaller candle contained fully inside the previous large candle, signaling momentum decay and potential shift in directional control.
INVERTED HAMMER A bullish reversal candle with a long upper wick at the bottom of a downtrend, showing buyers testing higher liquidity before reclaiming control.
LONG-LEGGED DOJI An extreme indecision candle with large wicks both directions, showing intense two-sided battle and impending volatility release.
MARUBOZU A candle with no wicks showing complete dominance by one side—buyers or sellers—indicating pure conviction and strong directional force.
MORNING STAR A bullish three-candle reversal structure showing downside exhaustion, transition, and aggressive upside confirmation.
PIERCING PATTERN A bullish reversal pattern where price gaps down then closes above midpoint of prior red candle, revealing strong buyer resurgence.
RISING THREE METHODS A bullish continuation pattern with controlled small pullbacks inside a strong impulse leg, confirming buyer dominance.
SHOOTING STAR A bearish reversal candle with long upper wick showing aggressive rejection of higher prices and weakening upside momentum.
SPINNING TOP Small-body candle with upper and lower wicks representing balanced indecision and reduced short-term conviction.
TWEZZER BOTTOM Two consecutive equal lows showing defended demand and strong buyer response at a repeated liquidity level.
TWEZZER TOP Two consecutive equal highs showing defended supply and strong seller response at repeated resistance.
SECTION 2 — MARKET STRUCTURE & PRICE ACTION
ACCUMULATION A controlled institutional buying phase where large players absorb sell pressure, form higher lows, and quietly build positions before an upside expansion.
AUCTION PROCESS The continuous probing of bid and ask liquidity where price seeks balance; transitions between equilibrium and imbalance determine market direction.
BACKSIDE TREND Trading against the primary trend where countertrend patterns have degraded edge, higher failure probability, and require superior timing.
BALANCE AREA A multi-candle zone of equilibrium where buyers and sellers transact actively around a fair-value center before directional repricing occurs.
BASING A rounded bottoming structure where repeated defended lows, reduced volatility, and subtle accumulation precede bullish transitions.
BEAR FLAG A countertrend upward or sideways consolidation within a downtrend, typically resolving lower when sellers resume control.
BEARISH ENGULFING A strong red candle completely overtaking a smaller green candle, demonstrating decisive seller dominance and momentum reversal.
BLOW-OFF TOP A parabolic, emotion-driven final surge upward that collapses violently after buyer exhaustion and aggressive selling.
BREAKDOWN A decisive breach below support where stops trigger, liquidity clears, and price accelerates into downside discovery.
BREAKOUT An upward thrust through resistance clearing supply and validated by increased volume, delta dominance, and continuation orderflow.
BULL FLAG A shallow consolidation following an upward impulse leg, typically resolving upward when structural support holds.
BULL TRAP A false break above resistance that quickly reverses, trapping longs and providing fuel for a downside move.
CANDLE RANGE The high-to-low distance of a candle, indicating volatility, aggression, and the degree of liquidity consumed in that interval.
CAPITULATION Panic-driven mass selling where forced liquidation exhausts sellers and creates conditions for sharp reversal.
CHASING Entering trades late into extended moves, increasing risk of reversal and reducing reward-to-risk expectancy.
CHOP A low-trend, overlapping price environment characterized by failed breakouts, mixed signals, and poor directional edge.
CONFLUENCE Overlapping independent signals (levels, orderflow, indicators) aligning to significantly increase probability of the trade outcome.
CONSOLIDATION A balanced range where neither buyers nor sellers dominate, typically preceding a strong breakout or breakdown.
CONTINUATION Resumption of the prevailing trend after a controlled pullback confirms ongoing orderflow dominance.
CONTROL CANDLE A large candle whose high/low boundaries dominate near-term price behavior until decisively violated.
CORRECTIVE LEG A countertrend move retracing part of an impulse leg, resetting premium/discount zones ahead of continuation.
CROSSCURRENTS Conflicting signals across timeframes or correlated assets causing indecision, inconsistent follow-through, or choppy trade conditions.
DEEP PULLBACK A substantial retracement into trend structure indicating potential weakening of dominant trend forces.
DEMAND ZONE A historically significant area where institutional buying absorbed supply, producing strong reactions on retest.
DEVIATION Movement extending far beyond expected ranges or volatility norms, often resulting in sharp mean reversion.
DISTRIBUTION A topping structure where institutions unwind long positions, producing lower highs and supply-heavy orderflow before markdown.
DIVERSION Hidden order routing or execution behavior that obscures institutional intent and alters surface-level orderflow signals.
DOUBLE BOTTOM A pattern of two equal lows signaling firm demand and a potential bullish reversal.
DOUBLE TOP A pattern of two equal highs reflecting strong overhead supply and increased likelihood of bearish reversal.
DOWNTREND A structural pattern of lower highs and lower lows demonstrating organized and sustained seller dominance.
DRIFT A slow, low-volatility movement in trend direction, often during midday or low-liquidity sessions.
DYNAMIC SUPPORT Adaptive support formed by EMA, VWAP, trendlines, or moving averages that adjust with evolving price structure.
EQUILIBRIUM A fair-value zone where buying and selling pressure offset, typically followed by a disorderly move when imbalance returns.
EXHAUSTION A final thrust in trend direction where aggressive orders fail to extend price, signaling momentum collapse.
EXPANSION A surge in volatility marking the beginning of price discovery and directional dominance after prolonged compression.
EXTENSION A move beyond prior swing extremes or Fibonacci projections that confirms continuation strength.
FALSE BREAK A deceptive breach of a level lacking follow-through, trapping traders and reversing direction quickly.
FEAR CANDLE A large volatility candle formed by panic selling, often marking capitulation and impending reversal.
FIB EXTENSION Fibonacci projection levels beyond 100% identifying continuation targets and trend leg strength.
FIB GOLDEN POCKET A high-probability reversal zone centered around 61.8–65% retracement where algorithms frequently respond.
FIB RETRACEMENT Fibonacci pullback zones (38.2%, 50%, 61.8%) used to time entries in continuation structures.
FIB TARGET ZONE Structured Fibonacci extension levels used to plan exits during trend continuation.
FIRST PULLBACK ENTRY The earliest high-probability continuation entry following a breakout that confirms a trend shift.
FULCRUM LEVEL A decisive pivot point where orderflow resolves direction by shifting control from one side to the other.
GAMMA EXPOSURE Options-driven hedging pressure that mechanically amplifies price movement near key strike zones.
GAMMA SQUEEZE Rapid upward movement caused by dealers buying futures/shares to hedge short gamma as price rises.
GAP A price void between sessions where no transactions occurred, representing imbalance and future magnet behavior.
GAP FILL Price returning to fill a prior gap as the market rebalances inefficient repricing.
GARTLEY PATTERN A harmonic, Fibonacci-based reversal pattern identifying exhaustion and potential trend change zones.
HALF-BACK RETRACEMENT A 50% pullback where psychological equilibrium and inventory rebalancing naturally occur.]
HIGHER HIGH A structural swing high exceeding the previous high, confirming bullish progression.
HIGHER LOW A structural rising trough showing earlier buyer intervention and sustained trend strength.
HISTORICAL VOLATILITY A backward-looking measure of price fluctuation magnitude quantifying volatility regime.
IMBALANCE A rapid directional move leaving thinly auctioned zones that markets often revisit for balance.
IMPULSE LEG A strong directional price segment serving as the foundation for structural analysis and Fibonacci measurement.
INSIDE BAR A candle contained entirely within the prior candle’s range, signaling compression and upcoming expansion.
INTERMARKET ANALYSIS Evaluating correlated instruments to confirm trend strength or detect divergence risk.
INTRADAY BIAS Session-level directional tendency determined by VWAP, opening drive, and structure alignment.
INVENTORY The implied long/short exposure of market participants based on orderflow, volume, and structural behavior.
KICKER CANDLE A powerful momentum candle that decisively invalidates opposing structure and confirms directional reversal.
KILL ZONE A high-liquidity timing window (London open, New York open) where institutions initiate dominant directional moves.
LEG A continuous directional movement forming a trend sequence and defining structural progression.
LINEAR REGRESSION A statistical best-fit line representing directional slope and deviation extremes for trend or reversion setups.
LONG SETUP A structurally validated bullish scenario supported by orderflow, momentum, and trend alignment.
LOW FLOAT A security with limited tradable shares producing unstable, high-volatility, squeeze-prone moves.
LOW TICK An extreme tick reading showing maximal selling pressure, often preceding exhaustion and reversal.
MIDLINE The central axis of a channel or range where price frequently reverts before committing to direction.
MINI BREAK A subtle early breakout preceding a larger expansion, offering early trend-entry opportunity.
MOMENTUM BURST A rapid surge of aggressive orderflow producing immediate directional acceleration.
MOMENTUM DIVERGENCE Misalignment where price makes new extremes but momentum fails to confirm, signaling weakening trend integrity.
MOVING AVERAGE A smoothed price indicator revealing trend direction and dynamic support/resistance behavior.
MULTI-TIMEFRAME ANALYSIS Aligning higher and lower timeframe structure to increase directional probability and reduce noise.
OPEN DRIVE A strong immediate-direction move after the open showing institutional conviction and dominant session bias.
OPEN RANGE The initial high/low range after open establishing immediate support, resistance, and breakout potential.
OUTSIDE BAR A wide-range bar breaking both the prior bar’s high and low, signaling aggressive orderflow imbalance.
OVERBOUGHT A condition where price is extended above value, increasing probability of mean reversion or corrective movement.
OVERSOLD A condition where price is extended below value, increasing probability of bounce or corrective movement.
PATIENCE BAR A large volatility bar that demands confirmation before entry due to increased risk of immediate reversal.
PB (PULLBACK) A controlled retracement against trend offering opportunity for continuation entries.
PIVOT HIGH A swing high where upward progress stalls and reverses under selling pressure.
PIVOT LOW A swing low where downward progress stalls and reverses under buying pressure.
PREMIUM Price above equilibrium where short opportunities become more favorable.
PRE-MARKET Thin-liquidity early session where preliminary structure and volatility form before RTH (regular trading hours).
PRICE DISCOVERY The market-driven process of probing liquidity to determine fair value and directional intention.
RANGE CONTRACTION Tightening intraday volatility signaling indecision before a major expansion.
RANGE EXPANSION A breakout from compression into strong directional discovery driven by fresh liquidity.
REJECTION WICK A long wick indicating aggressive counterpressure that rejects continuation attempts at a key level.
REVERSAL A complete directional shift validated by exhaustion, structural breaks, and failed retests of prior trend levels.
STRUCTURE BREAK A decisive violation of swing highs/lows confirming a change in trend or market regime.
SUPPLY ZONE A region of prior institutional selling where overhead supply creates strong rejection.
SUPPORT A level where demand consistently absorbs supply, producing bounces and maintaining trend structure.
SECTION 3 — ORDER FLOW, MICROSTRUCTURE & EXECUTION
ABSORPTION Passive liquidity absorbs aggressive orders at a level, halting continuation and revealing institutional defense, accumulation, or intent to reverse orderflow.
AGGRESSIVE ORDER A market order crossing the spread immediately, consuming liquidity and expressing urgency, conviction, or forced execution pressure.
ANCHOR BAR The reference candle used to set anchored VWAP or contextual frameworks, marking the precise point institutional control or displacement emerged.
ANCHOR VWAP VWAP calculated from a chosen event (open, swing, news) revealing evolving institutional cost basis and directional bias with time-adjusted precision.
ASK STACK Layered passive sell liquidity on DOM showing where institutions intend to absorb buy aggression or cap upward movement.
BID STACK Layered passive buy liquidity on DOM showing where institutions intend to absorb sell aggression or defend key demand levels.
BID-ASK SPREAD Distance between highest bid and lowest ask; tight spreads indicate deep liquidity while wide spreads signal volatility, thin markets, or reduced participation.
BLOCK TRADE Large institutional transaction executed off-exchange to avoid price impact; highlights major position changes or hedging adjustments.
DARK POOL Non-public venue allowing institutions to transact large volume anonymously, shielding intent from lit markets.
DARK POOL PRINT A recorded dark-pool execution showing hidden accumulation/distribution occurring outside visible orderflow.
DELTA IMBALANCE A decisive skew toward aggressive buyers or sellers, revealing which side dominates immediate tape pressure and microstructure.
DISPLACEMENT A powerful one-direction impulse where aggressive orderflow overwhelms liquidity, signaling true imbalance and trend ignition.
DOM (DEPTH OF MARKET) Real-time orderbook displaying visible bid/ask liquidity layers, revealing liquidity depth, absorption, spoofing, and actionable imbalance zones.
DRAWDOWN Peak-to-trough equity decline reflecting realized/unrealized losses and psychological load from adverse sequence exposure.
DYING LIQUIDITY Vanishing resting orders on DOM increasing slippage, volatility risk, and potential for sudden directional bursts.
FAILURE SWING A failed attempt to make a new high/low where momentum collapses, indicating structural weakness and early reversal signals.
FILL PRICE Actual execution price of an order influenced by liquidity availability, volatility, queue priority, and slippage.
FOOTPRINT CHART A candle chart displaying bid/ask volume and delta at each price level to reveal micro-imbalances, absorption, and institutional intent.
FRONT-RUNNING Entering ahead of expected large orders to profit from anticipated direction, often based on liquidity patterns or algorithmic triggers.
HFT (HIGH-FREQUENCY TRADING) Sub-millisecond algorithmic trading exploiting microstructure inefficiencies, queue priority, and liquidity gaps.
HIGH TICK Extreme upward tick reading indicating peak buying aggression, often marking exhaustion or a turning point.
HVN (HIGH-VOLUME NODE) A price level of dense traded volume representing strong auction acceptance, acting as a magnet and value anchor.
ICEBERG DETECTION Identifying hidden institutional orders via repeated prints at a level with minimal displayed liquidity, revealing masked size.
ICEBERG ORDER A large institutional order showing only a small visible portion while concealing full size in the orderbook.
INSIDE ASK Aggressive buy orders absorbed by passive sellers above the ask, signaling overhead supply and potential reversal.
INSIDE BID Aggressive sell orders absorbed by passive buyers below the bid, signaling defended demand and potential reversal.
IOC ORDER (IMMEDIATE-OR-CANCEL) Order that executes instantly against available liquidity or cancels the remainder, used to probe orderbook depth.
LAYERED LIQUIDITY Strategically placed stacks of resting orders used to defend levels, shape auction flow, or manipulate orderflow perception.
LEVEL 2 (L2) Quote display showing full market-maker and ECN depth beyond top-of-book liquidity.
LIQUIDITY AREA A region dense with resting orders or stops where price reactions are statistically significant.
LIQUIDITY GAP A thin-liquidity zone enabling fast acceleration and increased slippage risk when price passes through.
LIQUIDITY GRAB A deliberate sweep beyond structural levels to trigger stop orders and harvest liquidity for institutional entry.
LIQUIDITY POOL A cluster of stop-losses or pending orders institutions target to acquire size with minimal slippage.
LIQUIDITY VACUUM A zone where resting liquidity evaporates, allowing price to surge uncontrollably through empty orderbook space.
LIMIT ORDER Passive order resting at a specific price, offering control over execution price while reducing slippage exposure.
MAGNET LEVEL A price level repeatedly attracting price due to volume concentration, auction memory, or institutional activity.
MANIPULATION Intentional distortion of orderflow using spoofing, fake walls, liquidity pulls, or engineered traps to mislead participants.
MARKET MAKER Liquidity provider quoting two-sided markets, managing inventory risk, and stabilizing spreads while adjusting quotes algorithmically.
MARKET ORDER Aggressive order executing instantly at best available price, consuming liquidity and signaling immediate commitment.
MARKET PROFILE A time-based distribution chart showing time spent at each price, defining value areas, auction shape, and structural symmetry.
MARKET STRUCTURE The arrangement of swing highs/lows, break levels, and displacement patterns determining directional bias and regime.
MARKET SWEEP (SWEEP ORDER) A high-velocity multi-level market order removing liquidity across several price tiers, revealing urgency and often institutional participation.
MFI (MONEY FLOW INDEX) A volume-weighted momentum oscillator showing whether capital is flowing into or out of an instrument.
MICRO PULLBACK A tiny, shallow retracement within a strong trend, indicating complete dominance by the controlling side.
MINI BREAK A subtle breakout preceding a major thrust, offering early entry into emerging imbalance before full expansion.
MOMENTUM BURST A sudden surge of aggressive orders generating sharp directional acceleration and volatility expansion.
MVWAP (MOVING VWAP) VWAP recalculated continuously across rolling windows, mapping evolving institutional cost levels across sessions.
NQ (NASDAQ-100 E-MINI FUTURES) High-beta, high-volatility futures contract tracking NASDAQ-100; preferred for momentum and orderflow trading.
ES (S&P 500 E-MINI FUTURES) Highly liquid futures contract offering orderly trend structure influenced by broad institutional flows.
NY OPEN The New York session open, characterized by institutional repositioning, liquidity injections, and early trend determination.
OBV (ON-BALANCE VOLUME) Cumulative volume indicator showing whether total volume is supporting price movement or diverging beneath it.
OCO ORDER (ONE-CANCELS-OTHER) Bracket order where one side cancels upon the execution of the other, enforcing structured risk logic.
OPEN INTEREST Total active contracts in futures/derivatives representing participation, conviction, and confirmation of trend strength.
ORDER BLOCK An institutional accumulation/distribution footprint containing unfilled orders that generate sharp reactions on retest.
ORDERFLOW Real-time interaction of aggressive and passive orders revealing immediate market intent, quality of participation, and internal trend strength.
OSO ORDER (ORDER-SENDS-ORDER) Conditional automation where executing one order triggers a secondary order for scaling, hedging, or risk control.
OUTSIDE BAR A candle breaking both prior high and prior low, signaling strong volatility and directional imbalance.
PATIENCE BAR A large spike bar requiring confirmation before entry due to heightened trap risk or absorption presence.
POC (POINT OF CONTROL) Price with the greatest traded volume, acting as the session’s value anchor and dominant magnet.
POSITION SIZING Allocating size according to volatility, stop distance, expectancy, and total risk budget to ensure long-term survivability.
RISK-ON A regime where capital rotates into high-beta, growth-oriented instruments, strengthening bullish flows.
RISK-OFF A defensive regime where capital exits risk assets, increasing volatility and strengthening downside flows.
SCALPING FRAMEWORK A microstructure-driven execution strategy using DOM, footprint, tape, and ultra-tight timing to extract small repeatable gains.
SLIPPAGE Execution at a worse price than expected due to volatility, thin liquidity, or sudden displacement.
SPOOFING Placing large visible orders with no intent to fill to manipulate market perception and then canceling them ahead of execution.
STOP CONSOLIDATION Accumulation of stop orders around obvious structural levels, forming exploitable liquidity pockets.
STOP RUN A targeted sweep through clustered stop levels to trigger forced orders, unlock liquidity, and facilitate institutional fills.
SWEEP ORDER A large aggressive market order clearing multiple price levels instantaneously, forcing directional expansion.
TAPE READING Interpretation of print size, speed, sequencing, and aggression on Time & Sales to anticipate immediate directional shifts.
TIME & SALES Real-time sequenced record of executed trades revealing aggression, participation, and momentum quality.
TTM (TRADE THE MARKET) SQUEEZE A volatility compression condition where Bollinger Bands contract inside Keltner Channels, signaling imminent explosive expansion.
TTM WAVE Multi-wave momentum tool highlighting continuation pressure versus exhaustion through color-coded wave intensity.
VALUE AREA The 70% volume distribution zone representing session fair value and balance.
VALUE AREA HIGH Upper boundary of the value area functioning as resistance or breakout threshold depending on acceptance.
VALUE AREA LOW Lower boundary of the value area functioning as responsive demand or breakdown trigger.
VOLUME PROFILE A horizontal volume-at-price distribution identifying HVNs, LVNs, POC migration, and true value development.
VWAP Volume-weighted institutional fair value guiding mean-reversion, continuation, and liquidity flow interpretation.
VWAP BANDS Deviation envelopes around VWAP indicating whether price is statistically stretched or reverting to value.
WICK ABSORPTION Wick formed when aggressive orders are absorbed by deep passive liquidity, exposing institutional interest.
WICK FAILURE A wick unable to reverse price and immediately overrun, proving aggressive dominance and continuation strength.
ZERO PRINT Executed trade at zero tick change indicating neutral orderflow or temporary pause in momentum.
PART 4 INDICATORS, SYSTEMS & STATISTICAL TOOLS (IQ-300 ENHANCED)
ACCELERATION BANDS Volatility envelopes expanding with price velocity to identify breakout conditions and early trend acceleration far earlier than lagging indicators.
ADX (AVERAGE DIRECTIONAL INDEX) Measures trend strength independent of direction; rising ADX confirms strong imbalance, falling ADX indicates weakening participation or chop.
ANCHOR VWAP TOOL VWAP anchored to a chosen event (open, swing, news) mapping institutional cost basis and value migration across the session.
ARMS INDEX (TRIN) Market breadth indicator comparing advancing/declining volume versus advancing/declining issues to reveal internal market pressure.
ATR (AVERAGE TRUE RANGE) Core volatility metric measuring expected price movement; foundational for dynamic stops, scaling, and risk-adjusted sizing.
BOLLINGER BANDS Standard-deviation bands around a moving average identifying volatility expansion, compression, and statistically stretched conditions requiring reversion or continuation logic.
CCI (COMMODITY CHANNEL INDEX) Momentum oscillator measuring deviation from statistical mean to detect early cycle turns and impending exhaustion.
CHAIKIN MONEY FLOW (CMF) Volume-weighted accumulation/distribution indicator showing underlying inflow/outflow pressure beneath price structure.
CHAIKIN OSCILLATOR Momentum of accumulation/distribution cycles, identifying strengthening or weakening pressure before it appears in price.
CORRELATION COEFFICIENT Statistical measure of directional alignment between assets, confirming intermarket strength or revealing divergence risk.
DEMARK SEQUENTIAL Trend-exhaustion indicator using bar counting logic to identify when trends are mathematically overextended and vulnerable to reversal.
DETRENDED PRICE OSCILLATOR (DPO) Removes longer-term trend influence to highlight near-term cycles and oscillatory turning conditions.
DONCHIAN CHANNELS Highest-high/lowest-low channel system used to identify pure breakout entries and mechanical trend-following signals.
EMA (EXPONENTIAL MOVING AVERAGE) Weighted moving average emphasizing recent price, providing faster trend detection and dynamic support/resistance.
FIB EXTENSION Fibonacci-based projection levels beyond 100% identifying continuation targets and measuring impulse-leg strength.
FIB RETRACEMENT Fibonacci pullback zones (38.2–61.8%) defining statistically high-probability reaction points in trend structures.
FIB TARGET ZONE Fibonacci extension cluster (100–161.8%) defining structured exit zones for trend continuation trades.
FIB TIME ZONES Vertical Fibonacci-based timing projections identifying recurring cycle intervals and probable inflection windows.
FISHER TRANSFORM Statistical transformation converting price into a Gaussian distribution to identify extremely sharp reversal points.
GANN FAN Angular support/resistance grid projecting future turning points based on geometric price-time relationships.
GOLDEN POCKET High-probability Fibonacci retracement cluster (61.8–65%) often defended algorithmically as a major reversal zone.
HEIKIN ASHI Smoothed candlestick method filtering noise to reveal underlying trend direction with minimal false turns.
HMA (HULL MOVING AVERAGE) Low-lag moving average that reacts faster than traditional EMAs while maintaining smoothness for trend identification.
ICHIMOKU CLOUD Multi-component system defining trend, equilibrium, momentum, and future support/resistance in a single visual framework.
KELTNER CHANNEL ATR-based channel identifying pullback zones, breakout pressure, and trend quality via volatility-normalized envelopes.
KST (KNOW SURE THING) Multi-timeframe momentum oscillator combining several rates-of-change to produce composite trend strength confirmation.
LINEAR REGRESSION Best-fit statistical line modeling trend slope and deviation extremes to define reversion, breakout, and overextension.
MACD (MOVING AVERAGE CONVERGENCE DIVERGENCE) Measures momentum shifts via EMA convergence/divergence; detects acceleration, exhaustion, and trend transitions.
MARKET BREADTH INDEX Measures aggregate participation across market components to validate index trends or reveal hidden internal weakness.
MEAN REVERSION BAND Statistical band showing how far price deviates from its mean, identifying reversion-favored or continuation-favored conditions.
MFI (MONEY FLOW INDEX) Volume-weighted momentum oscillator showing relative inflow or outflow pressure to reveal hidden accumulation/distribution.
MOVING AVERAGE RIBBON Layered moving averages revealing compression, alignment, or transitions within multi-speed trend environments.
OBV (ON-BALANCE VOLUME) Cumulative volume-flow measure revealing whether volume is confirming or contradicting price movement.
PARABOLIC SAR Trend-continuation/reversal indicator plotting dynamic trailing stops based on parabolic time-price relationships.
PIVOT INDICATORS Daily/weekly/monthly pivot zones functioning as structural reaction points where liquidity concentrates and institutional orderflow responds.
QQE (QUANTITATIVE QUALITATIVE ESTIMATION) Smoothed RSI-based system detecting trend momentum shifts, volatility expansion, and directional commitment.
REGRESSION CHANNEL Trend channel drawn around regression line marking mean, upper, and lower deviation zones for breakout or reversion signals.
ROC (RATE OF CHANGE) Measures velocity of price change to detect momentum surges, stalling, or impending trend reversal.
RSI (RELATIVE STRENGTH INDEX) Momentum oscillator analyzing gain/loss velocity to detect divergence, failure swings, and hidden strength/weakness before price confirms.
SMA (SIMPLE MOVING AVERAGE) Evenly weighted moving average defining broad trend structure and smoothing volatility for long-term context.
STOCHASTIC OSCILLATOR Compares price to recent range to detect exhaustion points, overbought/oversold conditions, and early turning behavior.
SUPERTREND ATR-based dynamic trend indicator flipping bias when volatility-adjusted thresholds are breached with directional confirmation.
TERMINAL PRICE SWING (TPS) Sharp, end-of-leg exhaustion movement signaling likely reversal once final thrust loses orderflow support.
TRIX Triple-smoothed EMA momentum indicator detecting trend acceleration and reducing noise significantly.
TTM SQUEEZE Volatility contraction signal where Bollinger Bands compress inside Keltner Channels, forecasting explosive directional expansion.
TTM WAVE Multi-wave oscillator mapping underlying continuation pressure versus exhaustion dynamics using color-coded wave frequency.
ULCER INDEX Downside-focused volatility metric measuring depth/duration of drawdowns to quantify risk beyond typical volatility measures.
VOLUME OSCILLATOR Difference between fast and slow volume averages exposing shifts in participation intensity.
VWAP (VOLUME-WEIGHTED AVERAGE PRICE) The primary institutional fair-value benchmark weighting each price by volume, defining core mean-reversion and trend-bias dynamics.
VWAP BANDS Adaptive deviation envelopes around VWAP indicating statistical extension, institutional reversion zones, or continuation strength.
WMA (WEIGHTED MOVING AVERAGE) Moving average applying increasing weight to recent data, offering faster trend detection than SMA.
Z-SCORE Standard-deviation measure showing statistical distance from mean; essential for identifying overextension and mean-reversion signals.
PART 5 RISK MANAGEMENT, EXECUTION STRATEGY & TRADING PSYCHOLOGY
ADVERSE EXCURSION Maximum unrealized loss during a trade revealing structural weakness or poor entry quality before resolution.
ANCHOR VWAP STRATEGY A system using anchored VWAP levels as dynamic support/resistance and institutional value zones for entry, stop, and target logic.
BEHAVIORAL DISCIPLINE The trader’s ability to follow process, control impulses, and maintain rule-based execution under stress.
BLACK SWAN A highly improbable, extreme-impact event that invalidates conventional risk assumptions and causes nonlinear market behavior.
CAPITULATION Panic-driven surrender by participants causing vertical moves and marking exhaustion and high probability of reversal.
DRAWDOWN Peak-to-trough equity reduction measuring exposure to adverse sequences and emotional strain.
EMPIRICAL EDGE A statistically verified advantage proven over large sample size, robust across market regimes.
ENTRY TRIGGER Specific signal confirming entry timing (orderflow shift, structure break, candle signal) that validates a setup.
EXPECTED VALUE (EV) The statistical profitability of a strategy calculated as probability × reward minus probability × risk.
FADING Countertrend strategy entering against extended moves using exhaustion, imbalance shifts, or mean reversion logic.
FIXED STOP A predetermined stop price independent of volatility, increasing risk of arbitrary stop-outs in expanding markets.
HEAT MAP A visualization of risk exposure, volatility, or open position pressure across instruments or accounts.
HIGH-RISK ZONE Volatility or structural environment where outcome variance widens, reducing expectancy and requiring reduced size.
KILL ZONE High-liquidity, high-volatility time windows (London open, NY open) where institutions deploy size and initiate trend legs.
LONG LIQUIDATION Forced selling from long positions under stress, accelerating downside movement and volatility.
NEGATIVE EXPECTANCY A strategy with mathematically losing outcomes over time due to poor structure, timing, or risk control.
PATTERN FAILURE A failed pattern where price violates expected continuation behavior, often leading to sharp reversal.
PATTERN RECOGNITION Skill of identifying recurring structural behaviors, transitions, and setups yielding statistical advantage.
PORTFOLIO HEAT Total risk exposure across all open positions reflecting system-wide vulnerability.
POSITION SIZING Determining trade size based on volatility, stop distance, EV, and overall risk budget.
PREMIUM/DISCOUNT FRAMEWORK Market-structure model evaluating whether price trades above (premium) or below (discount) fair value for optimal trade selection.
PROBABILISTIC ENTRY Entry logic based on statistical likelihood rather than prediction, using repeated patterns and controlled risk.
PULLBACK ENTRY Trend-following entry during a controlled retracement aligned with orderflow and momentum.
RETEST FAILURE A failed attempt to retake a broken level confirming directional momentum and validating trend continuation.
RISK BUDGET Maximum allowable risk allocated per session/week, preventing overexposure and emotional escalation.
RISK-REWARD RATIO (RRR) Ratio comparing potential reward to risk per trade, shaping expectancy and sizing logic.
RUNNER POSITION Portion of a trade left open to capture extended trend continuation after partial profit-taking.
SCALPING FRAMEWORK Micro-execution strategy using orderflow/tape precision to extract small, frequent gains.
STATE MANAGEMENT Regulation of emotional and cognitive state to maintain execution quality under stress.
STOP CONSOLIDATION Clustered stop zones around predictable price levels representing exploitable liquidity pockets.
STOP RUN Intentional sweep through stop zones triggering forced liquidity to fuel trend continuation or institutional entry.
STRUCTURAL STOP Stop placement behind meaningful structural swing levels rather than arbitrary points.
TILT Emotional deterioration following losses or stress leading to degraded decision-making and rule violation.
TRAILING STOP A dynamic stop that moves with price to lock in gains while preserving trend exposure.
TRADE EXPECTANCY Long-term average result of a trading system combining win rate and risk-reward outcomes.
VOLATILITY COMPRESSION STRATEGY A strategy exploiting low-volatility contraction phases anticipating explosive expansion.
VOLATILITY STOP Stop placement informed by volatility (ATR), allowing protection from normal noise while guarding against adverse movement.
VWAP REVERSION STRATEGY A strategy exploiting stretched deviations from VWAP, anticipating mean reversion to institutional fair value.
WIN RATE Percentage of trades that close profitably; must be contextualized with risk-reward to evaluate system quality.
WORKING AVERAGES Active use of moving averages as dynamic decision systems for bias, structure, and entry filtering.
1. NQ — NASDAQ-100 Futures
NQ tracks 100 major NASDAQ companies, mostly large-cap tech. It moves fast, is highly volatile, and includes names like Apple, Microsoft, Nvidia, Amazon, Meta, and Google.
2. YM — Dow Jones Futures
YM tracks the 30 Dow Jones industrial stocks, mainly blue-chip, slower-moving companies such as Boeing, Goldman Sachs, McDonald's, Apple, and Caterpillar.
NQ = 100 stocks, tech-heavy, fastest mover.
YM = 30 stocks, blue-chip-heavy, slowest mover.
