forex lingo

7/25/2019 Forex Lingo

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Glossary Of TermsADR: an indicator that tracks average daily range of a currency.

Book a prot: closing all positions and taking a prot (you can book a loss).

Brinks trade: a type of trade that uses a timing element as part of the setup.

Candle Spike: an aggressive candle used to shift the trading zone and trigger thestops.

Consolidation: any area where price appears to chop. In reality, market makers arebuilding positions.

Correction: the lowering of price.

Cross pairs: pairs comprised of maors other than the !" dollar.

Dealing spread: the di#erence in pips, between the bid and the ask. ($he cost ofdoing business).

Extended stop hnt: price is e%tended beyond the normal &' to ' I stop hunt*occurs when traders refuse to commit their funds.

Gap Time: the changeover between sessions in which one market maker transfersinstructions to the +oncoming dealer.

!igh"#o$ %oard: the board used by the market makers to track the high and lowof the day.

!igh"#o$ marker& an indicator that tracks yesterdays high and low and plots it ontoday-s chart

!OD: high of the day* the highest point on a chart in a &/hour period.

!olding the le'el: price will consolidate in a tight range* used to accumulatecontracts.

()#OD: initial low of the day* the low of the day that is set during 0sian markethours.

()!OD: initial high of the day* the high of the day that is set during the 0sian markethours.

#OD: low of the day* the lowest point on a chart in a &/hour period.

#ong position: the act of buying.


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* top: a type of stop hunt used to trap the traders and validate retail orders.(0ppears at the 123).

*arket maker spread: the distance between the I/123 and the I/423. (4ess than' pips is ideal).

*arket maker trend: the real trend of the market, di#erent than that of whatretail traders see andperceive.


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*arket maker: the group of people that have power and in5uence over themarket, they have a huge e6uity base, control over the media, and in5uence in thepolitical arena.

*arket Sentiment: a feeling or belief that the market will behave a certain way,perpetuated by news and 7eo political events, is not based on truth, and has no

bearing on how the market will actually perform.

+et change: the di#erence between the opening price and the current marketprice.

On the %oard& having an open position.

Open ,oat: the amount of e6uity tied up to manage your positions. (8an benegative or positive).

-eak formation: the highest point on the chart. (8an occur intraday and intra/week).

Reset: ($rend 9eset) the market maker will make a pullback to book a prot, butneeds to continue with the current trend direction to achieve the larger goal.

Rise: the increase in price.

Scratch: 0 trade that doesnt produce so you take what is given and close it.

Session: the time the dealers are active in their respective market. (0ppro%imately hours in duration).

Shift %ar"candle: the candle used to trap the traders at the higher and lowerlevels.

Short position: the act of selling.

Stop hnt: an aggressive move by the market maker to trigger the stops of alltraders.Straight a$ay& a trade use by the market maker to create margin call and damagethe traders account.

S$ap"premim: interest charges that accrue for holding an open position past thesettlement time.(!sually 'pm ;alone, used inconunction with the market maker pattern.

$ime mapping: the action of matching your brokers server time to our indicators.

Trading .one: the area where it is safe to enter a trade. (;eeds to be within ?' to& pips o# of the 123 and 423).


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Trend: the slow, steady movement of price in a unidirectional swing until thetargets are achieved.

/ %ottom: a type of stop hunt that does not present a second leg. (@orms the 423).

/ top: a type of stop hunt that does not present a second leg. (@orms the 123).

A&B, "teve >auro, Ceat the >arket >aker, Inc.


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0 %ottom: a type of stop hunt used to trap the traders and validate retail orders.(0ppears at the 423).


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/ector: a rapid change in price, in any direction. (0n anomaly on the chart).

forex lingo

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