Terminology
If you have trouble understand some of the terms or shortforms we have used in this website, here is the place to find out what they mean.
If you could not find a particular term that you cannot find the explanation here, feel free to drop us a line at info@daytradingbias.com
(Listing in alphabetical order)
3 Pushes
3 short thursts in the same direction yet price does not gain much ground in that direction. A reliable pattern pointing to short term exhaustion and that a pullback is likely. Detailed explanation can be found in this article
AH (After Hours)
After Hours is the trading session outside of RTH. Most of the time the liquidity during AH is not very good, making erratic price movements more likely.
BIL Trade (Brother-in-law Trade)
A clear directional change is happening and initial impulse move has already started. Yet, the market pulled back magically and stuck there for a while before the market can continue to move in the direction set by the impulse move. That pullback happened as if someone is doing a favour for his/her brother-in-law to jump [...]
Bull Flag
Consolidation that drift down slowly after an up swing. A bullish continuation pattern. The bearish version of bull flag is a bear flag. You can find detail explanation of the bear flag in this article
DB (Double Bottom)
Classic chart pattern pointing to potential moves to higher price level. Its bearish version is called double top. Detail description of Double Top can be found here.
DT (Double Top)
Classic chart pattern pointing to potential moves to lower price level. Detail description of the pattern can be found here.
Falling Wedge (Downside Wedge)
A Wedge in chart often points to weaknesses in current expansion direction. It is a common reversal setup. A Falling Wedge is a chart formation with lower high and lower low prints from swing to swing, where the high points can often be connected by a straight line (but not a necessary condition), and so [...]
FBO (False Break Out)
A price spike thru an important price level and then immediately snap back and bounded by the price level again. For example, a stock can spike through its 20-week highest close intraday and then snap back down below that 20-week highest close. By end of the day the stock closing significantly lower. This is called [...]
HS (Head and Shoulder)
Head and Shoulder is a classic chart pattern that has been used abusively by many people or amateur chartists. There is only one form of HS that has statistical significance. Left shoulder is a swing high coming off an uptrend. After a pullback the market resume its rally to a new high yet stalled at [...]
IHS (Inverse Head and Shoulder)
Inverse Head and Shoulder is the upside down chart pattern of Head and Shoulder. Contrary to popular subjective usage or description, IHS should not have its right shoulder dropping below the low of the left shoulder. The neckline should be very much a horizontal line. All other subjective ways of drawing IHS do not have [...]
MA (Moving Average)
Various kind of moving averages. Just a generic term to refer to the use of MA.
MM (Market Maker)
Trader or bot whose primary function / objective is to profit from the orderflow of a market. For some market, the privilege of being a market maker also comes with certain responsibilities like providing bid / ask within a range from the last traded price so that orderly price movement can be maintained in time [...]
MM (Measured Move)
Measured move is a highly structured price movement that consists of 2 swings in the same direction with a pause in-between. Detailed explanation can be find in this article
OR (Open Range)
Open range for a timeframe is the range established during the initiation process in STOPD. It is a yardstick good for measuring the price behaviour dynamically. For example, for intraday trading purpose, the E-mini S&P and other US stock market indices have their OR established within the first 30 minutes to an hour. For Forex, [...]
It has many names as it is discovered and rediscovered again and again by different people. When you see a move, say an up move, retracements are expected. If a retracement low does not tag the previous swing high or an important reference price level from a breakout, within a very small range like a [...]