GLOSSARY OF TERMS


asymmetrical risk-rewards:
a risk-reward proposition where low-risk entries in the small intraday timeframes coincide with higher timeframe reward potential

asynchronous: not belonging to the same period of time; in trading, an example would be to take an entry and risk on an intraday timeframe to trade it into a daily timeframe and reward potential.

"disruptive" technology: a term that describes the dynamic creative/destructive process brought about by certain types of technological innovation and change. Trader-Alert has disruptive potential because we transmit analysed information as opposed to raw, pre-analysed price information; we deliver live, high-level technical analysis quick enough to be useful to active traders.

gestalt: An integreated perceptual structure or unity conceived as functionally more than the sum of its parts.

go flat: to close out an open position

go long: to initiate a buy-side position anticipating selling that position at higher prices

go short: to initiate a sell-side trade anticipating buying back the that position at lower prices.

ideal trade location: a low-risk entry that has higher timeframe potential and is situated such that it is relatively immune to a premature stop-out due to market noise.

Initiating order: any order which opens a new position.

leveraged trading: See "Defining Leverage"

liquidation: the closing out of an open positon whether short or long

local price action: the price relationships & entry tactics of immediate importance to a trade set-up you are stalking liquidating order: any order which closes out or partially closes an open position

macro-analysis: big picture technical analysis; applied to daily and weekly timeframes

market noise: erratic price action not easily resolved into cause & effect

micro-analysis: the analysis of local daily price action measured against macro-price action; or the localized intraday price action measured against a daily timeframe context

stalking a trade: the process of identifying if the price action is setting up a trade according to your trading plan, and then executing the trade; also we consider the the stalking process to be the intersection of the G-Model and the L-Model (these models are defined in the Our Edge area)

trade cycle: a series of actions that proceed from the pre-entry (or stalking phase) to actual trade initiation; then to various phases of trade management, finally terminating when the position is completely closed out.

trend dynamics: visit http://www.trend-dynamics.com