TRW Crypto Trading - Termi…

GLOSSARY
Accumulation
The market phase in which smart money buys their
coins.

Altcoin / Alt
Any cryptocurrency that isn’t Bitcoin.

ATH
All-time High.

Bear Market
A period where the prices are seeing a long term
downtrend.

Bear Trap
The opposite of the above - designed to trap sellers
instead of buyers.

Bid/ Ask
A Bid is a buy order, and an Ask is a Sell order. Think
of it like an auction, where a Bid is the price somebody
wants to pay for the asset, and an Ask is the price
somebody wants to sell their asset for.

Bounce
When a coin, or the market itself, starts to go up after a
down move.

Breakout
A Breakout is a price movement that pierces the upper
or lower boundaries of a trading range.

Bull Market
A market where prices are seeing a continuous
uptrend, leading to new highs being created over a
sustained period.

Bull Trap
When large player(s) buy aggressively, causing price
to rise sharply. Traders think that this is a Breakout and
they start to buy. The large player then flips bias, and
starts selling large amounts into these new buyers,
pushing the prices down, liquidating many
overleveraged traders.

Chop / Choppy
A period where the price is moving sideways with no
clear direction, usually causing traders to change their
mind frequently and lose money.

Consolidation
A period where the price is ranging in a well-defined
region. This is a period of indecision and generally
leads to a volatile movement in either direction.

Confirmation
Traders often look for more than one signal to confirm
their opinion on the price direction of a coin.
Confirmation refers to a subsequent signal that
validates or reinforces the traders opinion on where
the coin is heading.

Correction / Pullback
Also known as a ‘pullback’, a correction is a fall in price
after making a new peak or an upwards rally.

Day Trading
Taking a position in the market (buying or selling, long
or short) and exiting it the same day.

Demand
An area or level with significant buying interest/
support.

Downtrend
Opposite of uptrend, price here makes lower highs and
lower lows.

Distribution
The market phase in which smart money sells their
coins.

Dump / Crash / Nuke

Price goes down rapidly.

Exchange (Centralised / CEX)

An online marketplace which allows buying and selling
of BTC and Altcoins through a centralised company
who custody your assets. E.g. Coinbase, Binance.

Exchange (Decentralised / DEX)

An online marketplace hosted on a blockchain which
allows buying and selling of BTC and Altcoins in a
trustless manner (no middle man). You retain custody
of your assets. E.g. Uniswap, Sushiswap

EV
Expected Value. A term used in probabilistic thinking
when estimating potential returns of a trade.

Fade

To take a position that is counter to the current trend of

a coin. The position is established at the end of an up
or down leg.

Fiat
Currencies that have value because they are minted
by a central bank. Examples include USD, GBP, EUR.

Flat / Get Flat

To close out a position and remain neutral.

FOMO- Fear Of Missing Out

That feeling you get when the market pumps and
you’re not in a long trade. Learn to ignore it.

FUD
Fear, Uncertainty and Doubt. A term used to
describe negative news articles or other information
about a coin or project.

Front Running
Taking a position in a coin based on non-public
information such as an impending transaction by
another person in the same or related coin.

HTF
Shorthand for High Time Frame - referring to a
candlestick chart on a longer term basis (Daily, Weekly
etc.)

KYC
KYC stands for "know your customer." Many
jurisdictions have KYC regulations, which require
verification of new customers when joining an
exchange before they can buy or sell crypto.

Leverage
The extra amount of asset bought or sold, over your
capital limit.
E.g. If you want to go long $10000 worth of Bitcoin with
an account balance of $1000, you would have to use
leverage of 10x. Leverage opens you up to risk of
liquidation on sudden price moves.

Long / Going Long / Long Trade

A buy order to open a position on perpetual futures.
‘Buy’ and ‘Long’ are often used interchangeably.

Liquidity
The measure of how much demand and supply (bids
and asks) there is on the order books for a particular
coin. A high liquidity coin has many available buyers
and sellers at the same time.

Limit Order
An order will execute at a predefined price, if the
market reaches that price.

LTF
Shorthand for Low Time Frame - referring to a
candlestick chart on a near term basis (5min, 30min, 1
hour etc.)

Liquidation
When you are stopped out of your position because
the trade went in the opposite direction and your
margins are not sufficient to carry the trade anymore.

Market Cap
Current supply (number of coins available) multiplied
by current price of said coin.

Market Maker
A professional dealer or person with trading privileges
on an exchange who has an obligation to buy when
there is an excess of sell orders and to sell when there
is an excess of buy orders.

Market Order
An order to buy or sell at the current best price
available, executed immediately.

Margin / Initial Margin

The amount of funds required to open a leveraged
trade.
E.g. If you want to open a position of $10000 with a
leverage of 5X, your margin
requirement would be $2000.
2000 x 5 = $10000

Maintenance Margin
Maintenance margin is the amount of account balance
(collateral value) required to avoid a margin call. If your
balance falls below the maintenance margin, your
positions will be liquidated. Note that Margin and
Maintenance Margin are not the exact same number.
Always check your specific exchange for the required
% of maintenance margin.

Moon/Mooning
When a coin ‘moons’, that means it rises sharply in
value. For example, a crypto trader could talk about
how an altcoin is going "to the moon!"

NY
New York.

OHLC
Open, high, low and close. Refers to candlestick
charts.

Open Interest
Open Interest (OI) is the total number of derivatives
contracts currently open for a particular asset. OI is
calculated by adding the total number of longs and
shorts.

Overbought
A technical opinion that the market price has risen too
steeply and too fast in relation to underlying
fundamental factors.

Oversold
A technical opinion that the market price has declined
too steeply and too fast in relation to underlying
fundamental factors.

PA / Price Action
Analysis of the basic price movements to generate
trade entry and exit signals that ignores fundamentals
and focuses solely on what price is telling us.

P&L / PnL
Profit & Loss. What a trader has made or lost in a
given timeframe.

Position Trade
Taking a position in the market over a period of
multiple weeks or even months.

Pump and Dump

A "pump and dump" is a type of market manipulation
where a market participant—or several—work together
to inflate the price of an asset so they can sell it when
its value is artificially high.

Pump / Rip
Price goes up rapidly.

Rekt
The term "rekt" is crypto trader slang for "wrecked."
Basically, it means that a trader lost substantial
amounts of money.

Resistance
An area/line where traders expect the price to stop
moving up and reverse downwards.

Rally
An upward trend leading to an increase in price of the
coin.

Range / Ranging
The difference between the high and low price of a
coin during a given time period. Ranging means we
are going up and down with no clear trend.

Risk
How much you will lose if your trade fails.

Reward
How much your trade will return if it wins.

RR
Risk reward, shorthand for how much profit you stand
to make per unit of risk.

Scalping / Scalp Trade

Taking a position on a very short timeframe (minutes)
aiming to capture a fast profit on a move.

Selling off
When a coin is going down and the thought is that it
will continue to do so.

Slippage
The difference between estimated fill price for a trade
and the amount paid due to market conditions, poor
execution etc.

Swing Trade
Taking a position in the market over a period of 2-7
days.

Short / Shorting / Short Trade

A sell order to open a position on perpetual futures.
‘Sell’ and ‘Short’ are often used interchangeably.

Short Squeeze
When those that are short have to cover (close their
position) to avoid excessive losses. Leads to a
seemingly unexplainable up move.

Spread
The difference between the price sellers are willing to
sell at (best ask/offer) and buyers are willing to buy at
(best bid). There always exists a spread on
exchanges, the more liquidity an exchange has, the
lower the spread will be.

Supply
An area or level with significant sell orders.

Stop-Loss
An order that is triggered when price goes
above/below a set price. Used to limit losses when a
trade goes against expectation.

Support
A support is an area/line where traders expect the
price to hold above or bounce back up from.

Sweep
Where price goes above or below a consolidation
range and reverses back into the range. “Sweep the
lows” or “sweep the highs” typically refers to a price
move designed to hit the stop-losses of traders.

The Tape / Reading the Tape

Known as Time and Sales – this is the list of trades
that have been executed on a particular coin. Tells you
the price the trade went off at and the number of
contracts/ coins that were traded.

Token
A digital token is a unit of a digital currency, such as a
bitcoin. Interchangeable with ‘coin’.

Time Frame
The time spread of each candlestick in a chart.
Common time periods are 5min, 30 min, 1Hour, 4
Hour, Daily etc.

Trend
The general direction, either upward or downward, in
which prices has been moving.

Trendline
In charting, a line drawn across the bottom or top of a
price chart indicating the direction or trend of price
movement. If up, the trendline is called bullish; if down,
it is called bearish.

Uptrend
When price is making higher highs and higher lows
over a given timeframe.

Volatility
The percentage movement in price of an asset over a
specific time period.

Volume
Total number of coins or contracts traded in a particular
time period.

Whale
The term "whale" is used to describe a trader who
makes sizable bets. Market participants with the ability
to execute very large transactions can potentially
manipulate the market.

NON-CRYPTO
CPI
Consumer Price Index. A monthly data release that
analyses and estimates Inflation as it relates to
consumers spending habits.

DXY
The ticker for the US Dollar index

ES
The ticker (stock symbol) for S&P 500 Futures, which
can be bought and sold through the Chicago
Mercantile Exchange.

FOMC / FOMC Meeting

Federal Open Market Committee. A group of members
representing US reserve banks who meet to decide on
monetary policy.

Federal Reserve / Fed

The board sets Fed policy regarding monetary policy
(interest rates, credit, etc.), and monitors the economic
health of the country.

Inflation
The rate at which the general level of prices for goods
and services in an economy is rising.

NQ
The ticker (stock symbol) for Nasdaq 100 Futures,
which can be bought and sold through the Chicago
Mercantile Exchange.

PPI
Producer Price Index. A monthly data release that
analyses and estimates Inflation through the prices
domestic producers receive for their output.

SEC
Securities & Exchange Commission. The Federal
regulatory agency established in 1934 to administer
Federal securities laws.

Tradfi
Shorthand for “traditional finance” and refers to the
legacy stock, bonds, currency markets etc. (Example:
S&P500)

TIME
UTC
Coordinated Universal Time - the timezone used for
crypto charting.

Daily Open / Asia Open - UTC 00:00

The start of a new daily session, and new daily candle
on the charts. Also when the Asian markets begin to
open (Mon - Fri)

Weekly Open - UTC 00:00 on Monday AM

The start of a new week, and a new weekly candle on
the charts.

NY Open – 9:30A.M (New York Time)

When the NYSE (New York Stock Exchange) opens
for the trading session. Mon - Fri excluding public
holidays.

NY Close - 4:00 P.M (New York Time)

When the NYSE (New York Stock Exchange) closes
for the trading session. Mon - Fri excluding public
holidays.

London Open - 8:00 A.M (London Time)

When the LSE (London Stock Exchange) opens for the
trading session. Mon - Fri excluding public holidays.

London Close - 4:30 P.M (London Time)

When the LSE (London Stock Exchange) closes for
the trading session. Mon - Fri excluding public
holidays.

CME Open – 6:00 P.M (New York Time) every

Sunday (excluding holidays)
When the US futures markets open for pre-market
trading. This is important as there are BTC and ETH
futures on the CME.

Candlestick abbreviations
M1 = 1 minute candle

M5 = 5 minute candle

H1 = 1 hour candle

H4 = 4 hour candle

1D = 1 day candle