Amateur Gap – A gap that fills on the same day. Most gaps fill on the same day usually within the first hour. See Gap, Professional Gap & Half Gap Fill.

Ambush Extensions – Extension (Long) are drawn from the recent high to the current high. Extension (Short) are drawn from the recent low to the current low. Ambush Extensions do measured moves as they go up (for Longs) and down (for Shorts).

Extensions serve two purposes: 1) You can make an entry from an Extension during a trend; and, 2) to watch them for a possible trend reversal.

Ambush Long – A trade entry that is determined by drawing from the lows to the highs.

Ambush Short – A trade entry that is determined by drawing from the highs to the lows.

Ambush Trade – A trade where you are in a trend and you will take an entry on a Fibonacci 50% retracement on a calculation from the Low to the High on Long; a High to the Low on a Short.
Clean Entry – when it honors the 50% (pierces 50% but not 61.8%)
Dirty Entry – when it pierces the 61.8%.
Entry – should be on the second tick (Don’t take the first High Tick; take the second).

Anchor Chart – The weekly chart is the base (anchor) chart to determine trend and the shorter term (time wise) chart (daily, hourly, etc.) is then either going with the trend or a counter trend. A father/son relationship:
The Weekly Chart is the Anchor to the Daily Chart
The Daily Chart is the Anchor to the 15-Minute Chart
The 15-Minute Chart is the Anchor to the Tick Chart

Anchor Point – A price level that has been determined to be a key point from which to draw a Fibonacci Retracement.

AS – Abbreviation for Ambush Short.

Bank – The Nasdaq Bank Index. It is watched mainly to observe money flow. The key concept is to not go against Bank. Different platforms use different symbols for the index; BANK, $BANKX and its symbol on Yahoo Finance is ^IXBK.

Bearish Divergence – Meaning the market should go up.

On the Tick chart it would be a line drawn above the 0 line from a high sloping lower. A Bearish Trendline.

A high tick and a high price are established and then a higher price is established without a higher tick – meaning the market should continue up until a new High Tick is established.

In a Bearish Divergence you should see new highs continue until you see a new high Tick.

Bears operate in High Ticks – Sell High Ticks.

In a Bearish Divergence you’ll continue to see new highs until a new High Tick is hit.

Bearish Trend Day – A day with Micro Fib’s Short holding, a series of lower measured moves; characterized by a Bullish Divergence and the Tick averaging below zero. See Bullish Trend Day & Trend Day.

Breath – The Relationship of the Advancing Issues to the Declining Issues. It usually is given as a ratio of the Positive to Negative (or Negative to Positive). It’s an indication of the direction of the market. Review the material on http://www.eminiaddict.com to learn the how to set it up. See Market Breath and Market Internals.

The Breath, Market Breath and Market Internals can be synonymous with each other.

Broken Trend – When a trend pierces the 61.8% Line.

Bullish Divergence – Meaning the market should go down.

On the Tick chart it would be a line drawn below the 0 line from a low sloping higher. A Bullish Trendline.

A low tick and a low price are established and then a lower price is established without a lower tick – meaning the market should continue down until a new Low Tick is established.

In a Bullish Divergence you should see new lows continue until you see a new low Tick.

Bulls operate in Low Ticks – Buy Low Ticks.

In a Bullish Divergence you’ll continue to see new lows until a new Low Tick is hit.

Bullish Trend Day – A day with Micro Fib’s Long holding, a series of higher measured moves; characterized by a Bearish Divergence and the Tick averaging above zero. See Trend Day & Bearish Trend Day.

Chop and Pop – A day where the market is chopping around with no definable direction and occasional pops in various directions with no follow through. See Trend Day, Non-Trend Day, Bearish Trend Day & Bullish Trend Day.

Daily Pivot – A price level determined by the High, Low and Close of the previous day.

A general rule is that near the beginning of the day the price will try to revert to the pivot, then bounce off the pivot the first time and break through the second time. During the close of the day; most of the time, in the last 15 minutes of the day the price will gravitate to the pivot for the next day.

DH – Abbreviation for David Halsey; the Emni Addict.

Dirty Ambush – When the price breaks the 61.8 line, then goes on to hit the -23%. Usually it is not a trade you’ve taken but the information is used in determining your next trade.

Doldrums – The time of day where the trading is the slowest and choppy. The lunch time period in New York from approximately 11:30am to 1:30pm, but the exact time can vary day-to-day. During you want to watch for the trend and potential entry. During the doldrums you can trade the 50% in the direction of the trend.

Extended High – An Extended High is a move upward where using a Fibonacci from the Previous High to the New High to give a 50% retracement so you can enter on the upward movement.

Extended Low – An Extended Low is a move downward where using a Fibonacci from the Previous Low to the New Low to give a 50% retracement so you can enter on the downward movement.

Extension Long – Starts when a Bullish setup breaks the -23.5% and continues in an upward move. When a long trend (higher highs and higher lows) is developing this gives you an opportunity to enter into the long trend. The entry is based on an Extended High entry where you draw a fib from the prior high (stair step) to the current high, wait for the retracement and then take the entry.

Extension Short – Starts when a Bearish setup breaks the -23.5% and continues in an downward move. When a short trend (lower lows and lower highs) is developing this gives you an opportunity to enter into the short trend. The entry is based on an Extended Short entry where you draw a fib from the prior low (stair step) to the current low, wait for the retracement and then take the entry.

Extensions – See Ambush Extensions.

Fibonacci – Leonardo Fibonacci was an Italian mathematician born in the 12th century. He is known to have discovered the “Fibonacci numbers,” which are a sequence of numbers where each successive number is the sum of the two previous numbers.

If you are not familiar with Fibonacci then you should not trade this method without first becoming familiar with them. Review the material on http://www.eminiaddict.com to learn the method.

Fib’s – Slang meaning Fibonacci.

50% Line – The Fibonacci Line where an entry is taken. Also known as Half Way Back. See Negative 23.6% Line and 61.8% Line.

1st Target – The price point where you can sell part of the position to lock in a profit (to cover costs) and move your stop to break even. See Target and -23% Target.

Free Trade – An opportunity to get a First Target Hit and provide you with a trade with no risk. Usually taken on at least a 15 Minute 50% retracement. See Reduced Risk Trade.

An entry where you can to quickly recapture your expenses and then set a stop so that at least you won’t loose any money on the trade. When you sell a portion of the trade to cover expenses. Example: You have 3 contracts, once the price has moved 3 ticks you sell 1 contract to cover expense (thus making it a “free” trade); then move your stop to break even.

Front Running – An entry one to two ticks before the entry point.

Globex – The ES (Future) on a 24 hour basis. Use the. See Trading Hours Only & Twenty-Four (24) Hour Trading.

General rule is to use Charts on the 24 Hours unless you are looking for Half Way Back on the day.

Gap – At the open in the morning; it’s the difference between the 4:00pm close of the previous day and the 9:30am open. See Amateur Gap, Gap, Gap Fill, Half Gap Fill & Professional Gap.

A Gap is considered unfilled unless it fills during trading hours.

A Gap is open until it is filled. Example: A gap from 5 days ago that has not filled is still a valid gap. Generally they tend to fill within 5 to 15 days. However, a gap remains unfilled and should be monitored no matter how many days/months it takes until it fills.

Monday Gaps have the lowest probability of filling (though the probability is greater than 50%). The probability is unknown, so use caution on Monday Gaps – there are a number of unknown factors from the weekend.

Always use caution on the Monday after Options Expire – especially on the Gap.

Usually don’t trade against the Gap until it fills – especially if the fill is in the same direction as the larger trend.

Never trade against the Gap Fill.

A Gap can fill only during trading hours (a gap that fills during overnight trading is not considered filled).

If a Gap doesn’t fill in the morning, then there is a very high probability it will fill in the afternoon into the close.

Gap Fill – When, after the open in the morning, the current price is equal to the 4:00pm close of the previous day. The price fills. See Amateur Gap, Gap, & Professional Gap.

GF – Abbreviation for Gap Fill.

Half Gap Fill – A price point, after the open in the morning, half way between the 4:00pm close of the previous day and the 9:30am open. It is important because many times this is a point where many traders will take profits. See Amateur Gap, Gap, & Professional Gap.

Half Way Back – The 50% line on the Fibonacci 50% retracement. Floor traders coined the phrase as they would many times wait for “half way back” before they would make an entry, not realizing that they really were using a Fibonacci 50% retracement – but knew that it was a good point to make an entry.

Internals – Abbreviation for Market Internals.

Line In The Sand – A price point where one will be bullish or bearish. It is exactly as it sounds; if the tide (market) could wash in and take away that line. So, it’s a temporary point to work from.

Market Breath – Looking at the relationship of the Advancing Issues to the Declining Issues to determine the market’s direction. It’s more extensive than just looking at the ratio of the Breath; you need to observe its change during the day and refer to the Tick and other indicators to see how the market is doing. How is the market “Breathing”? See Breath and Market Internals.

The Breath, Market Breath and Market Internals can be synonymous with each other.

Market Internals – The Relationship of the Breath, Tick, Bank, Participation and various Fib Levels to determine the market’s direction The overall look to determine what the market is doing. See Breath and Market Breath.

The Breath, Market Breath and Market Internals can be synonymous with each other.

Measured Move – A Micro Fib that completes its move by hitting the -23.6%. Then followed by another Micro Fib that completes its move. A series of moves in the same direction, including minor pull backs. Many times termed as a series of higher highs and higher lows for an up trend; and, a series of lower highs and lower lows for a down trend.

Measured Move – Bearish – Defined by Bearish Fib’s (usually Micro) holding their 50% to 61.8% retracement and achieving the 23.6% target. A series of lower highs and lower lows.

Measured Move – Bullish – Defined by Bullish Fib’s (usually Micro) holding their 50% to 61.8% retracement and achieving the 23.6% target. A series of higher highs and higher lows.

Micro Move – Short term Moves made in a few seconds to an hour; usually done over a period of several minutes and on a 233 Tick Chart.

Micro Scalp – A trade that is short term (in time) that runs about 4 tick bars or longer. It can be traded, but it is more useful for the purpose of helping to determine trend and trend breaks.

Negative 23% Line – The Fibonacci Line where profit is taken. It’s also completes the move. A point where many traders will reverse their position. See 50% Line and 61.8% Line.

Negative 23% Target – The price point where the trade is considered complete and time to lock in a profit. See Target and 1st Target.

New High Tick – When the Price is a new High when the Tick also hits an extreme of 800 to 1,000. When a Tick over 1,000 occurs – it very well could mean that is the High of the Day and won’t be breached.

New Low Tick – When the Price is a new Low when the Tick also hits an extreme of -800 to -1,000. When a Tick under -1,000 occurs – it very well could mean that is the Low of the Day and won’t be breached.

NHT – Abbreviation for New High Tick.

NLT – Abbreviation for New Low Tick.

Non-Trend Day – A day where the trend cannot be determined. Bullish and Bearish Fib’s break and no direction can be determined. Usually a very difficult day to trade, where Scalp Trades maybe the only trade. See Trend Day, Bullish Trend Day & Bearish Trend Day.

Participation – A determination of how much traders are “participating” in the market. It takes time to learn how to qualify it because it’s a combination of experience of watching the Tape, volume & breath.

Pivot – A pivot is a price point for a change in direction. However, for the most part when we talk about the Pivot we are usually talking about the Daily Pivot(s). See Daily Pivot.

Professional Gap – A gap that does not fill, the idea being that the professionals bought and held. However, you don’t really know for certain it is a Professional Gap until the end of the day close. See Amateur Gap.

Professional Gaps usually will continue from the opening.

Reduced Risk Trade – At trading strategy where upon entry you set a -6 point stop and when the price moves to +6 you then move your stop point to +2 so at worst you will break even. The style is demonstrated on the Infinity Platform.

An entry that can be made on a 50% retracement where you can expect a good reward to risk on the trade.

Road Map – The Road Map is a phrase to identify the trade as follows: The Road Map is the Ambush Trade (Chart and Fib set up) along with the Tick, Time & Sales which are the Address. Meaning you need both to determine your direction and entry.

Also, the Road Map is to follow the larger trend to give you an indication for the smaller trend. Find the State (larger time frame), the City (entry time frame) and the Street (smaller time frame).

Scalp Trade – A quick trade for a small profit.

Second (2nd) Tick Rule – Once a High (Low) Tick with corresponding High (Low) Price is established you take the next High (Low) Tick for an entry.

If the 2nd low tick is lower than the first, but we don’t get lower low on the charts, that's a bullish divergence and visa versa.

Short Covering – Results in prices going higher. The effect of traders in short positions having to sell their position because the price is going higher. It feeds upon itself; as more shorts covering causing prices to go higher it cause more traders who are short to also cover their position.

61.8% Line – The Fibonacci Line where trend is broken. It also is a point to base a stop off of (usually 2 ticks away from the line). See Negative 23.6% Line and 50% Line.

Stop – Price point where you get out of a trade usually with a small loss. It varies with traders; the importance is to have one and stick to it. Some traders base their stop off the 61.8% line, others will use 6 ticks from the entry.

Swing Low – A term used in technical analysis that refers to the troughs reached by an indicator or an asset's price. A swing low is created when a low is lower than any other point over a given time period. Successively lower swing lows indicate that the underlying asset is in a downtrend, while higher lows mean it is in an uptrend. See Measured Move.

Swing High – A term used in technical analysis that refers to the peak reached by an indicator or an asset's price. A swing high is formed when the high of a price is greater than a given number of highs positioned around it. A series of consecutively higher swing highs indicates that the given asset is in an uptrend. See Measured Move.

Swing Trade – A trade (long or short) where you anticipate the trade to last 10 to 14 days (8 to 12 trading days). A swing trade will start out as a scalp (though you may have plans to make it a Swing Trade).

Tape – The Time & Sales. It’s displayed on the right side of screen as Green (Ask) and Red (Bid) when traded. The name comes from when the brokerage houses had feeds from the Trading Floor to their “Ticker Tape” Machine.

When reading the tape it depends upon the current trend. The volume (large contracts) make a difference.

Note: The Green Price is the Ask (higher price); the Red Price is the Bid (lower price).

Tape To Tick Relationship – This is what they are:
Green Price on the Tape on a High Tick = Covering
Green Price on the Tape on a Low Tick = Buying
Red Price on the Tape on a High Tick = Shorting
Red Price on the Tape on a Low Tick = Selling
See Tick to Tape Relationship.

Target – The price point where you plan to lock in a profit. See 1st Target and Negative 23% Target.

3:45 Trade – A trade put on 15 minutes before the market closes. This trade is done when the current price is far away from Tomorrow’s Pivot and heading toward the pivot. Also other factors need to be considered – a break in the trend, internals diverging, usually a non-trending day, and more.

TOS – Abbreviation for Think Or Swim; one of the trading platforms that traders use.

TS – Abbreviation for TradeStation; one of the trading platforms that traders use.

Trading Hours Only – The time the ES (Futures) is traded on the floor; New York time 9:30am to 4:00pm. See Globex.

Use Trading Hours Only if it is easier to see.

Tick – The Tick Indicator is the difference between the number of stock currently up ticking and the number of stocks currently down ticking. A tick is one trade. It is a vital indicator to watch. If you’re not familiar with the Tick then you must review the material on http://www.eminiaddict.com to learn about it. Also, http://www.movethemarkets.com/blog/2007/01/23/b... has some good information on the subject. See New High Tick, New Low Tick & Tick Entry.

Tick is also slang for a point movement; i.e. “It’s only moved one Tick since I bought it.”

Bulls operate in Low Ticks – Bears operate in High Ticks.

Buy Low Ticks – Sell High Ticks.

IMPORTANT POINT – If you have just one rule to follow:
Don’t Buy at the High Tick and Don’t sell at the Low Tick – though every bone in your body will want to do that!

You want to make entry/exits by Buying (or Short Covering) on the Low Tick and Selling (or going Short) on the High Tick – i.e. buy the low ticks and sell the high ticks.

Tick Entry – When the Tick hits a high and the price comes into the 50% on the Fib that is when you want to enter short. When the Tick hits a low and the price comes into the 50% on the Fib that is when you want to enter long.

Tick to Tape Relationship – This is what they are:
High Tick with Green Tape = Higher
High Tick with Red Tape = Lower
Low Tick with Green Tape = Higher (Buyers)
Low Tick with Red Tape = Lower (Sellers)
See Tape to Tick Relationship.

Trend Day – A day where the trend can be determined to be going in a direction by the series of Measured Moves. See Bullish Trend Day & Bearish Trend Day.

An Up Trending Day is when a High Tick along with a High Price is established and then Higher Prices happen without High Ticks; expecting the market to continue upward until a new High Tick and High Price is made. A Down Trending Day is when a Low Tick along with a Low Price is established and then Lower Prices happen without Low Ticks; expecting the market to continue downward until a new Low Tick and Low Price is made.

Trend Reversal – When a High Tick happens after a prior High Tick (with a High Price) but there is not a new High Price, expect the trend to go lower. The Opposite: When a Low Tick happens after a prior Low Tick (with a Low Price) but there is not a new Low Price, expect the trend to go higher.

Twenty-Four (24) Hour Trading – The Globex. See Globex & Trading Hours Only.

-23% Line –See Negative 23% Line.

-23% Target –See Negative 23% Target.