Trading Terminology (TJR / Justin Weirlin)

PMI - Purchasing Managers Index

An indicator of the economic health of the manufacturing/services sector within a country.

Under 50 on the PMI scale or low PMI

Contraction - we are declining

Over 50 on the PMI scale or high

Expansion - we're growing

Boom-Bust Cycle

A cycle we go in where ecnomic growth occurs and good things happen, followed by decline where bad things happen in the economy

What is PPI?

Producer Price Index (measures pricing in production costs)

Why is PPI Important?

It shows how much producers are paying for goods, and it can be used to predict CPI & PCE news (inflation news)

How does a higher PPI affect BTC?

It can cause some volatility in the market when it's released

How does CPI affect BTC

It can cause stronger volatiliy when released

What time does CPI, PPI, PCE, and other news come out?

8:30 AM - 10:00 AM on its respective date

What is CPI?

Consumer Price Index - Measures how much a consumer is paying for goods

What does a higher CPI mean?

Inflation is rising, bearish BTC at release

What does a lower CPI mean?

Inflation is lowering, bullish BTC at release

What is a good comparison for BTC?

Nasdaq

What is ISM and how does it affect BTC?

Measures production data of manufacturers

What is the daily trend and why is it important?

Shows if the market is bullish or bearish, and shows which way you should be looking (trend is your friend)

When are high impact news days (via ChatGPT)

The first week and mid-month

What does a no news day mean on high impact news weeks?

lower volume and volatiliy / consolidation days

What do news days mean on high impact news weeks?

Higher volatility and more volume

What is TJR's rule about trading on high impact news days?

No trading until after news comes out, see what the market does first

Asian Open & Close / London Open and Close / NY Open and Close

Asian - 6 PM / 3 AM

London - 2 AM / 11 AM

NY - 7 AM / 4 PM

Consolodation

The market just moving sideways with no intent of going bullish or bearish

Break of Structure (BOS)

A candle closing above a previous high or low

LTF / HTF

Low time frame / high time frame

LTF Times & HTF Times

1m/5m/15m & 1Hr/4Hr/1D

What is a reversal

When the trend flips the other way

A pullback

When the trend flips briefly and goes back moving in its normal direction

ltf reversal

a reversal on the 1m/5min/15min time frame

htf reversal

a reversal on the 1hr/4hr/1d time frame

Confluence

A confirming factor of your theory

Multiple confluences (ex: 3 confluences)

Multiple factos in your theory are lining up

HTF liquidity

obvious highs and lows on the 1hr/4hr/1d

LTF liquidity

obvious highs and lows on the 1min/5min/15min

What is liquidity

pending orders above or below highs and lows

What is a liquidity sweep

whe price wicks to the high or low to stop out orders and grab the liquidty to move in the other direction

Buy side liquidity

pending orders above highs

Sell side liquidity

pending orders below lows

What do equal highs signal?

High buy side liquidity

What do equal lows signal?

High sell side liquidity

What do previous day highs and lows signal?

Strong liquidity in those areas

Internal Liquidity

Highs and Lows on the 1min chart when my bias comes from the 5 min and 15 min

Internal Buy side liquidity

liquidity highs on the 1 min chart when my bias comes from the 5 min and 15 min

Internal Sell Side liquidity

Liquidity lows on the 1 min chart when my bias comes from the 5 min and 15 min

Internal Liquidity sweep

liquidity sweep on the 1 min chart when my bias comes from the 5 min and 15 min

Buy side liquidity sweep

When there's a liquidity sweep aboev market buys

Sell side liquidity sweep

when there's a liqudity sweep below market lows

Price Action

Chart movement

High price action

Candles are moving faster before closing

Low price action

Candles are moving slower before closing

Previous session highs and lows

The highs and lows in the session before yours (London session would be previous sesion if you're trading in NY)

What is the order of sessions starting with NY

NY, Asia, London, repeat

Equal Highs / Equal lows

Multiple wicks or closed candles at the same mkt cap

What do equal highs and lows show?

Shows there's still liquidity sitting in that area

Draw on liquidty

Price is moving towards liquidity

What can show a draw on liquidity?

Equal highs or lows,

Bullish closure

a bullish cancle is closing near or at the high

Bearish closure

a bearish candle is closing near or at the low

Doji Candle

A candle with a small body and big wicks

Drake candle

A candle with a big wick

What does it mean when tjr says "Price is printing"

Price is pushing heavily in one direction

HTF Bias

The bias on the 1hr/4hr/1d

Intra Day

trading on the low time frames

Backtesting

Using your strat on the rewind setting to see if it works

What is risk management?

Setting responisble posotion sizes, stop losses, and daily loss limits

Why is risk management important?

it keeps you composed and allows you to make good decisions and relax before trading and while in a trade

What is a discoutnt?

Looking for a cheaper entry for more profit

What is a buy-now?

Aping into the play when you get your edge without waiting for a discount

When is a good time to take discount?

When price is moving towards a known support area

When is it a good time to take a buy now?

When you don't see an opportunity for a discoun

What does fractile mean?

A distinct htf move will impact ltf moves

The Power of 3 Concept

We are always either in accumulatiom, manipulatioon, or distribution

Accumulation

Smart money gaining capital to go in a direction

What does accumulation signal?

Smart money is buying in the accumulation phase and preparing to send it somwhere

What is manipulation?

A fake move where smart money grabs buy side liquidity or sell side liquidity and goes in the other direction

How can I verify manipulation?

If price touches buy side liquidity or sell side liquidity and goes in the opposite direction

What is a stop hunt?

When price closes at bsl or ssl liquidity and goes in the opposite direction

Is a stop hunt a form of manipulation?

Yes

What is a good way to verify manipulation and why do these show manipulation?

Look for manipulation on htf (ex: fvg, ob, bos) It's showing manipulation because price is fractile

What is distribution?

Smart money taknig its orders after accumulating through accumulation and manipulation

What is displacement?

Smart money making obvious moves such as a lq sweep on low ssl and going long

What is continuation

The market continuing in its current trend

fvg

a set of 3 candles where the wicks from the top and bottom candles create a gap

how do i know if a fvg is bullish or bearish

if the middle candle is bullish or bearish

what validates a bullish fvg (when is it being respected)

when candles close below the fvg and price goes down

what happens when a bullish fvg is respected

price moves down

is a fvg valid if it's not respected?

no. no. no. no

ifvg

a fvg that gets disrespected in the current trend and shows a change of trend

what is trend / order flow

the direction of the chart. bullish or bearish

why are fvg and ifvg important

it's a powerful confluence that shows if the trend is in continuation or reversal

how do i indetify BOS?

a closed candle above or below luqidity highs or lows

What's your next step after seeing a BOS

Look for a continuation or a reversal

what time frames do fvg and ifvg happen on?

every single time frame

what words should ALWAYS be connected to "fvg" or"ifvg" to help identify the trend

Bullish or bearish. Ex - bullish fvg / bearish fvg / bullish ivg / bearish ifvg

What is an order block?

The candle or candles that come before a BOS

How many candles can an order block be?

however many candles are consistently going in the direction prior to the BOS

what term do you add to OB's?

bullish / bearish

Imagine this: 2 candles down, 2 candles up, and a reversal to the down side

Which candle(s) is the order block

the last 2 candles up

What does a daily fvg show?

There could be manipulation on the ltf

what shows an OB being respected or disrespected? (EXCEPT AN SMT DIVERGENCE)

If price wicks or closes below OB = disrespected

If price wicks or closes above an OB = respected

what shows a BB being respected or disrespected? (EXCEPT AN SMT DIVERGENCE)

If price wicks or closes above a BB = disrespected

If price wicks or closes below the BB = respected

Which is a stronger validation a wick or a closed candle? Are wicks still valid?

Closed candles are stronger but wicks still show info.