Glossary Of Terms

ADR: an indicator that tracks average daily range of a currency.

Book a profit: closing all positions and taking a profit (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 the
stops.

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

Correction: the lowering of price.

Cross pairs: pairs comprised of majors other than the US dollar.

Dealing spread: the difference in pips, between the bid and the ask. (The cost of
doing business).

Extended stop hunt: price is extended beyond the normal 25 to 50 PIP stop hunt;
occurs when traders refuse to commit their funds.

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

High/Low board: the board used by the market makers to track the high and low
of the day.

High/Low marker: an indicator that tracks yesterday’s high and low and plots it on
today's chart

HOD: high of the day; the highest point on a chart in a 24-hour period.

Holding the level: price will consolidate in a tight range; used to accumulate
contracts.

I-LOD: initial low of the day; the low of the day that is set during Asian market
hours.

I-HOD: initial high of the day; the high of the day that is set during the Asian market
hours.

LOD: low of the day; the lowest point on a chart in a 24-hour period.

Long position: the act of buying.

M top: a type of stop hunt used to trap the traders and validate retail orders.
(Appears at the HOD).

Market maker spread: the distance between the I-HOD and the I-LOD. (Less than
50 pips is ideal).

Market maker trend: the real trend of the market, different than that of what
retail traders see and
perceive.
Market maker: the group of people that have power and influence over the
market, they have a huge equity base, control over the media, and influence in the
political arena.

Market Sentiment: a feeling or belief that the market will behave a certain way,
perpetuated by news and Geo political events, is not based on truth, and has no
bearing on how the market will actually perform.

Net change: the difference between the opening price and the current market
price.

On the board: having an open position.

Open float: the amount of equity tied up to manage your positions. (Can be
negative or positive).

Peak formation: the highest point on the chart. (Can occur intraday and intra-
week).

Reset: (Trend Reset) the market maker will make a pullback to book a profit, but
needs to continue with the current trend direction to achieve the larger goal.

Rise: the increase in price.

Scratch: A trade that doesn’t produce so you take what is given and close it.

Session: the time the dealers are active in their respective market. (Approximately
6 hours in duration).

Shift bar/candle: the candle used to trap the traders at the higher and lower
levels.

Short position: the act of selling.

Stop hunt: an aggressive move by the market maker to trigger the stops of all
traders.
Straight away: a trade use by the market maker to create margin call and damage
the traders account.

Swap/premium: interest charges that accrue for holding an open position past the
settlement time.(Usually 5pm NYC, but varies by dealer/broker).

TDI: (Trader’s Dynamic Index) an indicator developed by Dean Malone, used in

conjunction with the market maker pattern.

Time mapping: the action of matching your broker’s server time to our indicators.

Trading zone: the area where it is safe to enter a trade. (Needs to be within 15 to
20 pips off of the HOD and LOD).
Trend: the slow, steady movement of price in a unidirectional swing until the
targets are achieved.

V bottom: a type of stop hunt that does not present a second leg. (Forms the LOD).

V top: a type of stop hunt that does not present a second leg. (Forms the HOD).
©2007, Steve Mauro, Beat the Market Maker, Inc.
W bottom: a type of stop hunt used to trap the traders and validate retail orders.
(Appears at the LOD).
Vector: a rapid change in price, in any direction. (An anomaly on the chart).