Young Bull Crypto

Glossary

Aggressive Order

Aggressive orders are when a trader executes the order to buy or sell at market. They take place when spreads and depths are relatively low and they remove liquidity.

Average down

It is an ADVANCED method because you are adding to a losing position as you are presented with another setup.

Backtest

Backtesting evaluates the viability of a trading strategy by discovering how it would play out using historical data.

Bear market

A bear market occurs when price is continuously declining over a longer period of time. Price is making lower highs and selling pressure is bigger than buying pressure. Sentiment of the market can be negative.

Bull market

A bull market is the period when prices are generally rising. Price is making higher highs and buying pressure is bigger than selling pressure. The starting point is when retail traders are most pessimistic and ‘bearish’.

Bull Trap

It is a sign that is falsely showing a decreasing trend in an asset has reversed and is now heading upwards, when in fact it will continue to decline.

Compounding

When you are already in a trading setup and then another setup presents within the setup. If you take it, it means you compound. You would take this trade regardless – it is a trade itself.

Consolidation

Price is moving in a sideways range. It is a natural pattern from which it can break up or down though continuation of a trend is favoured.

Delta

Delta is a sum of aggressive trades. It shows us who was in control during that candle. To calculate the delta of a price we subtract the sells from the buys. Delta is either positive or negative.it helps us confirm the breakout instantly.

Downtrend

A downtrend is a series of lower highs and lower lows.

Laddering

You place multiple buy or sell orders when wanting to enter a trade setup and get an average entry price.

Liquidity

Liquidity refers to the ease with which an asset can be converted into ready cash without affecting its market price. Liquidity is extremely important without it you lose money. Naked POC This is where a POC from previous session (24 hour periods for Crypto) has not been tapped. It generally gives a bounce when approached for the first time but as always look for confluence.

Passive order

Passive orders add liquidity to markets. That are limit bid (buy) and ask (sell) orders which usually are not immediately executed.

Stop hunt

A strategy that attempts to force some traders out of their positions by pushing the price of an asset to a level where many would have chosen to set their stop-loss orders.

Swing trading

A style of trading where swing traders hold their position for some days or even weeks. Swing traders goal is to identify an overall trend and capture larger gains within it.

Scalp trade

A trading style that specializes in profiting off small price changes in a short period of time. It requires discipline and focus and good knowledge of TA.

Slippage

When something drops quickly and there is low liquidity you for instance have SL set at 5% but you get filled at 25%. Your loss is very big = rekt.

Spread

It is a difference between buy and sell (for instance buy bid is 25$, sell ask is 26$ – spread is 1$). You do not want to trade something with big spread because it means liquidity is low = you will lose money

Trend

The general direction of a market or asset’s price, essentially, momentum.

Uptrend

An uptrend is a series of higher highs and higher lows.

TERMS

AR

Automatic reaction (WYCKOFF distribution) A very sudden and very sharp price retracement (usually) back to the area of PSY. It is big and unexpected and it happens on high sell volume.

AR

Automatic rally (WYCKOFF accumulation) It occurs because of intense selling (SC). It does not take a lot of buying pressure for the price to rally up. It is also fuelled by shorts covering.

ATH

All time high An asset reaches its higher value ever recorded.

ATL

All time low An asset reaches its lowest value ever recorded.

ATR

Average True Range An indicator that measures volatility – it shows how much price moves on average during a certain TF.

BB

Bollinger Bands An indicator developed by John Bollinger. Bollinger Bands are composed of three bands: upper and lower band and a simple moving average in the middle. Bands measure deviation – they tighten together when market is quiet and widen when market is volatile. They determine oversold (buying opportunity) and overbought (selling opportunity) levels.

BC

Buying climax (WYCKOFF distribution) Buying volume reaches a climax (retail buying). There may also be some very bullish news accompanying this occurrence.

BE

Break even Neither a loss nor a win.

BTC

Bitcoin The first decentralised, digital cryptocurrency that enabled instant payments to anyone and anywhere in the world.

BU

Backup (WYCKOFF accumulation) Old highs of AR are being tested, price flips the resistance into support and moves up higher.

DEX

Decentralized Exchange Decentralized exchange is a cryptocurrency exchange which operates without a central authority. Trades occur directly between users (peer-to-peer) through an automated process.

DCA

Dollar cost averaging This is the strategy of investors – they place a certain (fixed) dollar amount into an asset on a regular basis (for instance every month)

DCB

Dead cat bounce A small, temporary recovery in a price of a declining asset. It is the most common retracement in bear market.

DOM

Depth of market It is a list/window that shows how many open limit buy and limit sell orders there are at different prices in real- time. Depth of market measures the liquidity of a particular market.

dVAH

Daily value area high

dVAL

Daily value area low

dPOC

Daily point of control

DYOR

Do your own research A term used for ‘warning’ people not to just blindly follow but research a coin/do TA etc. themselves.

EMA

Exponential moving average An exponential moving average measures trend directions over a period of time. It is a type of moving average that places a greater weight and significance on the most recent data points. It is a lagging indicator.

EW

Elliott Wave Elliott Wave theory is a theory developed by Ralph Nelson Elliott. He believed that stock markets (also applies on any other market) traded in repetitive patterns. He realized that stock prices move in waves and he also recognized “fractal” nature of markets and he analysed them in great detail. He discovered price patterns and began to look at how these repeating patterns could be used as predictive indicators of future market moves.

FA

Fundamental analysis It is a method used by investors and traders to assess the intrinsic value of an asset by examining as most qualitative and quantitative factors as possible.

FOMO

Fear of missing out Fear of missing out happens to many (especially newer) traders who do not have a strict discipline with taking trades. Crypto market is often driven by emotions rather than rationality, so FOMO is a huge issue in trading. Missing the profit you might make if you don’t buy a coin instantly regardless of its current price and the feeling of missing out could lead to entering trades without any thought. One should always have a trading plan – clear point of entry, clear point of invalidation and clear TP areas.

FUD

Fear, uncertainty, doubt FUD is believed to cause a drop in price of a ‘targeted’ asset. Very often the bad news is not even grounded in reality. Also, professional traders do not pay attention to fundamentals but simply read the chart which always makes sense itself.

GP

Golden pocket The Fibonacci ratios between .618 and .65

GTC

Good till Cancel A type of order (buy or sell) that remains active until either being filled or being cancelled by trader/investor.

H&S

Head and shoulders It is a top reversal pattern that consists of three peaks – the outside two are about the same in height and the middle one is the highest.

HH

Higher high Price forms a high that is higher than previous one.

HL

Higher low Price forms a low that is higher than previous one.

HODL

Hold Hold on for dear life. Some people believe in certain assets so much that they buy/accumulate a position and have no intention of selling it any time soon.

HTF

High time frame A 4 hour + time frame

HVC

High volume cluster An area where a large amount of volume has traded.

HVN

High volume node An area where a large amount of volume has traded.

IB

Initial Balance The price range of the first hour of the trading open.

iH&S

Inverse head and shoulders It is a bottoming pattern after a big sell off that consists of three peaks – the outside two are about the same in height and the middle one is the highest.

ITM

In-the-money option A call (put) option whose exercise price is below (above) the current price of the underlying asset.

LO

London open

LTF

Low time frame A 1 hour or lower time frame

LH

Lower high Price forms a high that is lower than previous one.

LL

Lower low Price forms a low that is lower than previous one.

LPS

Last point of support (WYCKOFF accumulation) After ‘jumping across the creek’ price retraces, flips resistance into support and bounces up showing SOS.

LPSY

Last point of supply (WYCKOFF distribution) Price rallies from support (usually SOW) into resistance on declining volume. Demand is weakening, LPSY represents exhaustion of demand. Price will not reach previous high (resistance area) due to weakness.

LVC

Low volume cluster An area where a small amount of volume has traded.

LVN

Low volume node An area where a small amount of volume has traded.

MA

Moving average A very popular indicator used by many traders. Moving average is a lagging indicator because it is based on (calculated from) past prices. It can help identify trend direction and can act as a support or resistance.

MACD

Moving average convergence/divergence MACD is a trend-following momentum indicator that shows the relationship between two moving averages of price. It is calculated by subtracting the 26 EMA from the 12 EMA. It is designed to reveal changes in momentum, strength, direction and duration of a trend in an asset’s price.

MM

Market maker An individual / financial institution / exchange that quotes both a buy and a sell price of an asset to provide a measure of liquidity.

mPOC

Monthly point of control

mVAH

Monthly value area high

mVAL

Monthly value area low

MS

Market structure Market structure is basically a support and resistance levels on the charts, swing highs, and swing lows. These are levels, which are easily identified. It is a trend following tool that traders read and follow based on how the asset moves. It can be bullish or bearish.

OB

Order block Order block is a different way to look at the supply and demand. It is the initial opposite move before the trend resumes making new highs or lows.

OBV

On balance volume OBV is the cumulative total of positive and negative volume. It is a leading indicator – volume leads price. OBV can be used for identifying divergences at tops and bottoms.

OF

Order flow Order flow is a form of data of the contracts sold and bought at a certain price that moves prices up and down.

OI

Open interest Open Interest represents the total number of contracts, including both net longs (buy) and net shorts (sell) positions.

OTM

Out-of-the-money Option A call (put) option whose exercise price is above (below) the current price of the underlying asset. OTM is the most aggressive option trading method with an extremely high profit and risk potential.

PA

Price action Price action is a trading technique that consists of analysing basic price movement across a time frame.  PA traders read the market and make subjective trading decisions based on the recent and actual price movements.

POC

Point of control The price at which the largest trading volume has been made over a period of time. It is a is big horizontal S/R line.

PS

Preliminary support (WYCKOFF accumulation) After a big selloff, substantial buying begins to provide a support. Preliminary support starts accumulation – it is the first bounce of the accumulation range.

PSY

Preliminary supply (WYCKOFF distribution) After a long robust uptrend, price becomes climactic and supported with rising volume. Larger (professional) interests begin to unload.

R:R

Risk:reward Risk to reward ratio shows how much profit a trader can potentially make if trade turns into winner and how much a trader can lose if trade turns into a loss. The R:R ratio should be at least 2:1, preferably 3:1.

RSI

Relative strength Index It is a lagging indicator used to measure strength or weakness of an asset. RSI is based on the closing prices of a recent trading period.

Sat

Satoshi The smallest sub-unit of Bitcoin. 1 Satoshi = 1/100.000.000 of a Bitcoin

SC

Selling climax (WYCKOFF accumulation) Heavy selling (especially by retail) occurs that is suddenly absorbed by professional interest. It does not require a lot of volume to push price back up (AR). Selling climax does not always have to occur on high sell volume though but it is better if it does.

SEC

Securities and Exchange Commission The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

SFP

Swing failure pattern Price takes out the high and closes back below the high OR price takes out the low and closes back above the low = SFP (it can be bullish or bearish)

SL 

Stop loss A stop loss order is placed to buy or sell an asset when the asset reaches a certain price to close a losing position. It is a must in trading. Literally no one only wins trades, losses are a very natural part of trading. There should be a clear invalidation and SL should ALWAYS be placed. Hard stop loss – it is placed in a an orderbook (mandatory for beginners and intermediate traders. Soft stop loss – it is only mental stop loss (requires discipline, only for professionals)

SMA

Simple Moving Average It is basically the average price over the specified period with equal weighting given to the price of each period.

SOS

Sign of Strength (WYCKOFF accumulation) Price moves up on increase of volume showing strength.

SOW

Sign of weakness (WYCKOFF distribution) Selling off on the very high volume towards support. Price weakness is obvious here and after reaching SOW price will go up for the final rally that sets up the conclusion of distribution.

S/R

Support/resistance A price area where price finds enough demand to bounce or reverse = support. A price area where there is a lot of supply and price finds it difficult to break through = resistance. The more times they are tested the weaker they become.

ST

Secondary test (WYCKOFF accumulation) Price revisits the area of SC, tests a demand and resistance flips into support. After this flip price makes a new high. To rekt as much retail as possible price is pushed down again for another ST, price SFP the lows and bounces back up.

ST

Secondary test (WYCKOFF distribution) Price revisits the area of BC, tests supply and support flips into resistance. After this flip price makes a new low.

TA

Technical analysis Analysis that is based solely on analysing the chart with technical tools and indicators.

TF

Time frame

TP

Take profit Take profit is an order that you place to (partially) close your position once it reaches a certain level of profit. One can have multiple TP points.

TPO

Time price opportunity It displays the amount of trading activity based on time, for each price level the market traded at for any given time period.

TR

Trading Range Trading range occurs when an asset consistently trades between a certain high and low price for a good amount of time. Top of the range is resistance and the bottom of the range is support.

TV

TradingView TradingView is a social platform for traders and investors. It is a very popular site for charting. There are free and paid programs, depending on one’s trading level and desires.

UT

Upthrust (WYCKOFF distribution) Price takes the high of the first push up (BC) on the lesser buy volume.

UTAD

Upthrust after distribution (WYCKOFF distribution) Price goes above resistance and previous peaks in the distribution trading range. Price rises with conviction and can stay above resistance for some days or even weeks. When price breaks down it heads back to support area. After UTAD price becomes weak to and through support and into confirmed downtrend. UTAD occurs only occasionally

VAH

Value area high Value area high is the highest price in the value area that is marked on the chart. It acts as a resistance when the price ranges within the range.

VAL

Value area low Value area low is the lowest price in the value area that is marked on the chart. It acts as a support when the price ranges within the range.

VWAP

Volume weighted average price VWAP incorporates price and volume, it is a S/R line. When price is above VWAP it is ‘above value’ and when it is below VWAP is it ‘below value’.

XBT ­

Bitcoin ticker for some exchanges