Faith & Futures University AP2 Week 1 Vocabulary

Vocabulary flashcards covering all 37 terms from Week 1 of Faith & Futures University AP2.

Price action

The movement of price over time and the record it leaves on the chart: what buyers and sellers actually did, candle by candle.

Candle

One piece of the record for one stretch of time: where price opened, how high it went, how low it went, and where it closed.

First-hand

Information the market gives you directly, with nothing calculated in between. Price is the only first-hand thing on a chart.

Derived

Anything calculated from price after the fact. Every indicator is derived, a tool built on the source and always a step behind it.

Indicator

A line or number a platform calculates from price or volume. Useful as confirmation once you can read price yourself; a crutch if it does the reading for you.

Dialect

One way of reading price action, and every named strategy is one. The dialects are the many; price action is the one language.

The filter

Learning what to ignore: which few things on a chart matter for the trade in front of you. AP2 adds one to every concept you own from AP1.

Strategy

Your standing edge, the repeatable reason you are willing to risk money. It is the why, and it can be true all session.

Edge

A reason to act that, repeated many times, comes out ahead more often than it comes out behind.

Setup

The specific, pre-defined moment your strategy says to act. It is the when, and it is true for a few candles.

Playbook

Your written trading manual: your strategy, setups, rules, and routine, built from your own trading experience. It is specific to you as a trader.

Hunch

A strategy with no setup. You have a reason, but no trigger, so you act on feeling.

Gamble

A setup with no strategy. You see a shape that looks like something, but there is no standing edge behind it.

Journal

The record of what happened. It records the trades, observations, and experiences that help you understand and refine your process.

The Read

How you read a chart to find a trade: which way, where, when.

The Trade

The four questions you answer to take a trade: where might price react, what tells me to act, where am I wrong, and where do I get paid.

Fit

The overlap between your strategy, your instrument, and you. Your real edge lives there, not in the strategy alone.

Instrument

The specific futures market you trade. In this course: ES, MES, NQ, MNQ, GC, and MGC.

Heat

The pressure a position puts on you while it is open: how far and how fast price can move against you, and the pressure that movement creates.

Temperament

How you tend to behave under pressure: what a loss does to you, how you handle speed, how you respond to waiting, and when you are clear-headed.

Personal limits

The rules built around you: how many trades you take, how many losses end your session, and which hours you trade.

Lean

The way you currently tilt toward an instrument or session before your own data has fully spoken. A working choice, not a verdict.

Instrument lean

The instrument you currently believe fits the heat you can hold, with a sentence explaining why.

Session lean

The time of day you currently believe fits your life and your ability to think clearly.

Trade Log

The raw record of each trade: the level, trigger, stop, grade, result, rule adherence, and what you felt before the click.

Build Page

The weekly space where you review what happened, notice patterns, reflect on yourself, and test what may eventually become a rule.

Distilling loop

Log the evidence → spot the pattern → write the rule. The mechanism that turns experience into a repeatable trading process.

Evidence

Something about a trade that you can point to on the page. It is written before memory has a chance to clean it up.

Pattern

Something that happens more than once for a reason you can name.

Noticing

A pattern worth watching but not yet proven enough to become a rule.

Rule

A decision made in advance. It has a condition and an action, and your Trade Log can tell you whether you followed it.

The seam

The question that decides where something belongs: Is this about one trade, or about me across many? One trade goes in the Trade Log. A conclusion across many trades eventually moves into the Playbook.

Paper

A practice account with pretend money running on real, live prices. Also called sim, simulator, or practice account. This is where every trade in this course is placed.

Process

The sequence you run on every trade: mark the level, wait for the trigger, place the stop, take the target, and log it. This is what paper can measure.

Automatic

A step you can perform without having to stop and decide to do it. The test is simple: could you do it while distracted? Moving a rule from decide to do is the product of the lab.

The Chart Lab

The week's homework: one chart assignment with numbered steps and one deliverable, built around the Rep.

The Rep

The week's single practice focus, done daily inside the Chart Lab. It is never a test. This week, it is What Did Price Do?, the day template each module added one line to.