Terminology Used in Structural Trading

 

ABCD

  • The basic framework for Harmonic pattern, where there's an impulse move followed by a retracement then an equal move to initial impulse move.  AB=CD has 100% equal move, ABCD extensions are 127.2% and 168.8%.

BALANCED PROFILE

  • The profile looks like a clear peak with the only two valleys at the top and bottom of the range.

BAT

  • Harmonic pattern that has less than 61.8% retracement of XA to form AB leg and completes at the 88.6% of XA.

BAT- Alternate

  • Harmonic pattern that ideally has 38.2% or less retracement of XA to form AB leg and completes at the 113% of XA.

B/O and B/D - Breakout and Breakdown

  • When a price is trading within a consolidation pattern, hitting a resistance or support and breaks through the area that was holding it within a parameter.  Breakout usually refers to a break to the upside, breakdown refers to a break to the downside.

BUTTERFLY

  • Harmonic pattern that ideally has 78.6% retracement of XA to form AB leg and completes at the 127.2% or 161.8%

B-SHAPE PROFILE

  • Thin volume at the top, large volume at the bottom, implies long liquidation (buyers selling to close their long positions).

CHANNEL

  • A pattern where price remains inside parameters of resistance and support, can be in a shape of a rectangle, uptrend channel or downtrend channel.

CHVN - Composite High Volume Node

  • A high volume node produced in a composite profile. Typically acts like a magnet that price is drawn to, has potential to stall or chop around this level.

CLVN - Composite Low Volume Node

  • A low volume node produced in a composite profile. Typically an initial rejection point, whether it bounces/rejects or pushes through.

COMPOSITE PROFILES

  • A composite profile is a volume profile that includes a large amount of data including multiple sessions, sometimes years.

CRAB

Harmonic pattern that has either 38.2% -  61.8% or 88.6% retracement of XA to form AB leg and completes at the 161.8% of XA.

DAILY PIVOT

  • A level in price calculated by the high, low and close of previous day. It gives a midpoint of previous day’s price action.

DAY TRADE

  • Trades that have entry and exit before the regular trading hours close.

DITM - Diddle In The Middle

  • A sentiment that price is chopping, most likely hovering at the VPOC (see TDV), typically if you diddle in the middle, you get piddle!

DIVERGENCE

  • When two or more indicators give conflicting directional signals.  For instance if price is making new highs, but volume is less and/or a momentum indicator making new lows, these are conflicting and signal awareness that a change of direction is possible.

5-0 PATTERN

  • Harmonic pattern that has a breach of swing low or high by 113% to 161.8%, followed by a retracement of XA leg between 161.8% to 224%, then retraces the CD leg 50%.

FIBONACCI RATIOS

GAP

  • Distance between close of previous day and open of current day, if derived during RTH, it's considered unfilled (aka price does not return to that level after the gap) until that level is revisited during RTH.

GARFLY

  • Harmonic pattern that has 61.8 % retracement of XA to form AB leg and completes at the 127.2% of XA.

GARTLEY

  • Harmonic pattern that has less than 61.8% retracement of XA to form AB leg and completes at the 78.6% of XA.

GLOBEX HOURS

  • The timeframe between the close and open of RTH (regular trading hours).  Sometimes referred to as After Hours or Overnight.

GRZ - GOLDEN RATIO ZONE

  • This zone is the space between the 38.2% and 61.8% Fibonacci ratios.

HARMONIC PATTERNS

  • Symmetrical moves, utilizing specific Fibonacci ratios, thus offering methodical, high probability entries and risk management strategies.

HG - Half Gap

  • Half way between the close of previous day and open of current day.

HIGH PROBABILITY

  • There are no guarantees in trading, but a high probability setup offers less risk when the setup fails.

HOD

  • High of day during RTH.

HVN -  High Volume Node

  • An area that both buyers and sellers find value in a session. Typically acts like a magnet that price is drawn to, has potential to stall or chop around this level.

IBH / IBL - Initial Balance High / Initial Balance Low

  • Initial balance high and low, represents the first hour range.  They also act as support and resistance levels throughout the day.

KEY LEVEL

  • Typically a level of confluence, not necessarily an harmonic rotational level.

LOD

  • Low of day during RTH.

LVN - Low Volume Node

  • A level that both buyers and sellers find minimal value. Typically an initial rejection point, whether it bounces/rejects or pushes through.

MCVPOC

  • A micro composite VPOC.

NMCVPOC - Naked Micro Composite Volume Point of Control

  • A micro composite VPOC level that has not been revisited since it was formed during a micro composite session, acts  like a gap.

MICRO COMPOSITE

  • A profile consisting of several days, so that it's larger than a single profile session but less than a composite profile.  Typically shows a range of several days and the area of value for those days aka MC VPOC.

NR7 - Narrow Range 7

  • The most narrow ranged day out of previous six days, this is a sign of contraction or market holding its breath, also implies an expansion or exhale imminent.

NVPOC - Naked Volume Point of Control

  • A VPOC level that has not been revisited since it was formed during a session, acts  like a gap.

O/N - Overnight

  • Also known as Globex hours

PB - Pull Back

  • Initial rejections of a target or level are considered pull backs but does not mean a shift in trend until proven otherwise, for me, this means taking out the 50 ema or 200 sma,

P-SHAPE PROFILE

  • Thin volume at the bottom, large volume at the top, implies short covering (sellers buying to close their short positions).

PRZ - Potential Reversal Zone

  • Potential Reversal Zone, an area of support or resistance that offers reversal probability.

ROTATION

  • A move from a low to high or high to low.

RTH - Regular Trading Hours

  • Regular trading hours.  For instance ES_F (S&P e-mini futures) RTH is 9:30 am to 4:15 EST, for equity stocks RTH is 9:30 am to 4:00 EST.

SHARK

  • Harmonic pattern that has a breach of swing low or high by 113% to 161.8%, followed by a retracement of XA leg either 88.6% or 113%.

SIGNIFICANT LEVEL

  • A reference of three points used in harmonic rotations forming first two legs, also referred to as the triangle points.

SL - SWORDLINES

  • A dear friend (Tyra) creates levels of important support and resistance we call Swordlines, how they are derived is proprietary, but she's kind enough to share them with Structural Trading Gold or Platinum members.

STP - Structural Trading Pesavento

  • A proprietary indicator used with Structural Trading methods, available to premium members or to purchase.

STR - Structural Trading Renko

A proprietary Renko Bar used with Structural Trading methods, available to premium members or to purchase.

TDV - That Dang VPOC

  • A sentimental term referencing that price is hovering at value and offers minimal to no edge in entering a position.  Side note, VPOC's are better targets than entries.

TLB - Trend line break

  • A trend line that acts as support or resistance that price breaks through.

VOLUME PROFILE

  • A means of measuring the amount of contracts exchanged between buyers and sellers at each price.

VPOC - Volume Point of Control

  • A level that both buyers and sellers accept as value, it's the area of heaviest volume for the session.

ZONES

  • An area that has confluence, whether it be Volume Profile levels, Harmonic Patterns, Fibonacci Ratios or all combined.