- **Abbreviations** - **Ail** - **Ais** - **B** - ==**Blshs**== - **Bo** - **C** - **Db** - **Dt** - **Ema** - **H** - **Hft** - **Hl** - **Hh** - **L** - **Lh** - **Ll** - **Mm** - **Ma** - **Mag** - **Mtr** - **O** - **Tr** - **Ttr** - ==**Tbtl**== - **Market In Trend Or Trading Range** - Markets Are Always Either In A Trend Or A Trading Range. - Trends Start With Breakouts, Then Transition Into Channels (Weak Or Strong), Then In Trading Ranges (Wide Or Narrow) - The Different Traits Are Traded Differently. - **Breakouts** - Every Trend Bar Is A Bo. - Bos Could Be A Single Bar Or Several Bars. - Bos Close At Or Near Their Highs And Higher Than Resistance Or The Highs Of Many Other Bars To Their Left. - Bos Fail 80% Of The Time, Resulting In Reversals. - Usually Traders Like To See Several Strong Bars In A Bo Before Deciding To Enter The Trade. - ==**Support And Resistance**== - ==Support And Resistance Are Areas Above Or Below Price Where Previous Price Action Results In Stopping Price From Continuing Within A Trend.== - **Abc Correction** - A 2 Legged Correction Within A Trend. - Typically, These Legs Are Sideways To Down In A Bull Trend, But The Down Direction Is Not A Requirement. Other Varieties Can Occur. - An Abc Correction Is A Minor Trend Reversal As They Occur Between Legs In A Trend. - Because This Type Of Correction Typically Has 2 Legs, We Can Identify The H1, H2 Or L1, L2 Signal Bars. - Traders Should Be Taking The H2/L2 Bars To Enter A Trade From A 2 Legged Correction. - Sometimes Corrections Have Only One Leg. - Also, The Leg Counting Can Be Subjective. Markets Are Never Precise. - **Always In Bull/Bear** - Always In Refers To The Nature Of The Current Market - If It Is Trending, The Market Is Always In. - This Means That Traders Who Need To Always Be In The Market, Should Be Looking At Entering. - Always In Does Not Exist When The Market Is In A Trading Range. - **Candle Types** - Trend Bars - Inside Bars - Tr On A Smaller Timeframe - Outside Bars - **Signal Bars/Entries** - Signal Bars Are The Bars Of A Pattern That Indicate A Trade Should Occur On The Next Bar. - The Next Bar Is Called An 'Entry' Bar. - **Scalping** - Scalping Refers To Not Holding Positions For More Than About 1-5 Bars. - Swing Trading Refers To Holding Positions Until The Trend Ends. - **Major Trend Reversal** - Major Trend Reversal Indicates That We Have Fully Terminated The Old Trend And We Are Now Trending In The Opposite Direction. - Often A Bo Is Required To Determine If A Reversal Is An Mtr. - If A Reversal Is Not Especially Strong, It Is A Minor Trend Reversal And Trader Can Expect Another Leg In The Direction Of The Trend Once The Pullback Is Over. - **Context** - The Bars To The 'Left' That Provide Information About The Current State Of The Market. - Understanding Context Is Critical In Making Decisions About When To Enter Or Exit Trades. - **Computers** - > 70% Of All Trading Is Done By Algorithms On Hft Computers.

Market States

Categories of market behavior, including Trend (consistent price movement) and Trading Range (oscillation between support and resistance).

Trend

A market state characterized by consistent upward or downward price movements.

Trading Range

A market state where prices oscillate between defined support and resistance levels without a clear direction.

Breakouts (BO)

Moments when the price moves beyond support or resistance levels, indicating the start of a new trend, but often failing to sustain.

Support

A price level where buying interest overcomes selling pressure, potentially halting a downward trend.

Resistance

A price level where selling interest prevails over buying, potentially halting an upward trend.

ABC Correction

A price movement pattern in trending markets consisting of three waves (A, B, C) that indicates potential reversals or continuations.

A Wave

The initial move against the trend in an ABC correction.

B Wave

The retracement phase in an ABC correction.

C Wave

The continuation of the trend in an ABC correction.

Always In

A trading philosophy advocating for continuous market engagement during trends to capitalize on momentum.

Candle Types

Different candlestick formations that provide insights into market sentiment, including trend bars, inside bars, and outside bars.

Trend Bars

Candles indicating strong price movements in one direction.

Inside Bars

Candles suggesting market consolidation and indecision.

Outside Bars

Candles that signal potential reversals by encompassing the range of the previous candle.

Signal Bars

Specific candlestick formations that indicate potential trade entries, characterized by strong closes and significant ranges.