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Trading Terminologies & Abbreviations With Examples
Trading Terminologies & Abbreviations With Examples
with Examples
OB (Order block)
OB or order block is the last opposing one or multiple close candles
before a strong directional move. The last sell Candle before the bullish
impulse move is called bullish order block and the last buy candle before
the bearish impulse move is called bearish order block.
AOI (Area of interest)
These are the areas where we expect the price will react and has the
possibility to reverse direction.
IMB (Imbalance)
Imbalance is an area of unequal market moves where there are only
buyers or only sellers exist in the market. It is inefficient or unhealthy
price action. It shows disequilibrium between Buyers/Sellers. So an
imbalance means unfair price action where the market will almost
always come back to fill. Here, the wicks do not fill each other (If they do
then it is healthy price action and not an imbalance). It is not mitigation.
So, the price doesn’t have to reverse from that point).
EQ (Equilibrium)
It means fair market value or 50%.
INF (Inefficiency)
It indicates the lack of buyers or sellers in price action, leaving
disequilibrium that eventually needs to be filled. If there’s a gap with a
large candle that’s the inefficiency of price.
LQ (Liquidity)
Liquidity simply means money or huge opposite orders to be filled to fuel
the movement of the market institutions.
IT (Institutional Trading)
There are several ways to identify institutional trading. These are:
ST – Secondary Test
UT – Upthrust
SC – Selling Climax
BC – Buying Climax
TR – Trading Range
PS – Preliminary Support
Other Abbreviations
BFI – Banks & Financial Institutions
PA – Price action
HH – Higher High
HL – Higher Low
LH – Lower High
LL – Lower Low
Fib – Fibonacci
TF – TF
MN – Monthly
W – Weekly
D – Daily
H4 – 4 hours
H1 – 1 hour
M15 – 15 minutes
M1 – 1 minute
MS – Market Structure
MOM – Momentum
R = Reward/percentage
M – Momentum
RR – Risk: Reward
TGT – Target
SL – Stop Loss
BE – Breakeven
SC – Sponsored candle
Liq – Liquidity
DD – Drawdown
Be – Bearish
Bu – Bullish
IT – Institutional Traders
CO – Composite Operators
TR – Trading Range
IT – Institutional Traders
CO – Composite Operators
LP – Liquidity Providers