Glossary






1chbo,1cb

The first break of a channel move. This is usually expected to fail and is a signal to enter in the direction of the channel

1tf,5tf

1 tick failure. Price goes 1 tick beyond prior bar triggering the trade and proceeds to take out stop. Similarly 5tf, 9tf

1PB

The first pullback in a day or the first pullback after 1Rev

1Rev

The first reversal of the day. Also see OR

OR

Opening Reversal, A reversal after a trend move attempt in the first hour.

1L,2L

1 legged move, 2 legged move

A2

A second attempt to reverse a pullback move near the ema. A second failed attempt to reverse the trend and therefore a continuation signal. If its too far from the ema it may not qualify to be an A2
A22

A second entry for an A2, taken perhaps because the first signal required a large stop or had a large overlap.

H1

The first time a bar ticks above the high of a previous bar in a down move. First attempt to reverse a down move.

fH1

The price falls below the bar that gave an H1, thus failing its attempt to reverse the down move.

fH1 MM

In a hard down trend, if the bar that gave an H1 and its previous bar (signal) were weak, the failed H1 is likely to give a measured move from the begin of the move to the failure.

H2

Second time a bar ticks above previous bar in a down move after the H1 and fH1

L1,fL1,L2

Inverse of H1,fH1,H2 in an up move.

MM

Measured move. A 1:1 move expected due to certain price action. For example, price is likely to go 2 points above a breakout bar thats 2 points long.

BO

Breakout. Price has moved beyond a price action barrier such as swing high, ema, trendline, etc.

BP

Breakout pullback. Price pulls back often back inside the price action barrier that was broken.

fBO

A failed breakout. Most first attempts to breakout fail.

DP

A pullback that gives a long entry after a double bottom or a short entry after a double top

WP

A three legged pullback. This is similar to A2

TL

Trendline. A line connecting swing lows in an up move or swing highs in a down move. Can also be a parallel line drawn to TCL.

TCL

A line connecting swing highs in an up move or swing lows in a down move. Can also be a parallel line drawn to the TL

G

Gap bar. The first bar in a down move whose high is below ema or first bar in an up move whose low is above ema. If this bar is bullish in a bear move, its a buy signal and vice versa.

G2

If the G fill attempt fails, a second G bar is G2. This is a higher probability trade.

i, o

inside bar, outside bar

ii

an inside bar inside another inside bar (also iii and so on)

LL, HH

A Lower Low, a Higher High

mW

micro Wedge; a TCL of bars rather than swings

PB

pullback.

oio, ud

Outside inside outside bar reversal, up down bar reversal, etc.

TTR

Tight trading range.Overlapping price movement that reverses back and forth after moving a tick or two beyond the previous attempt.

BW

Barb wire. Three or more horizontal bars with at least one being a doji. Similar to TTR.

W

Wedge. Three pushes up with the third push overshooting a trend channel line or at least touching it. A reversal signal makes it a W reversal

W1P

The first pullback that allows an entry in the new direction after a W reversal

6 comments:

  1. where can we find this indicators in your chart ??

    ReplyDelete
  2. Thanks for the descriptions. Considering context are you able to add further action item descriptions based upon your experience as to what one would do when an item above happens such as: ii in a spike, channel or range.

    Thanks

    ReplyDelete
    Replies
    1. A great simplification is coming, which will make a lot of the items above clearer

      Delete
  3. Hi Cadaver,
    really enjoy your posted material. I came across your site only a couple of months ago, but have since been reading your analyses consistently twice a week. Keep it up, you provide a great service to the individual trader! Best, rein

    ReplyDelete
  4. Why did you stop writing this blog Many of us miss your writings

    ReplyDelete
  5. This comment has been removed by the author.

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