The trader’s lingo can be a strange language when you’re just getting started, so hopefully this list helps you learn the topics we discuss on Discord and in my videos.

• 5 day – Refers to the 5 ema on a daily time frame.

• 9 day – Refers to the 9 ema on a daily time frame.

• Basing – Multiple candles holding above a support level or below a resistance level, usually with long wicks, indicating buyers or sellers are defending the level.

• Bounce – When a security rises in price after down trending for a  period of time.

• Breadth – The amount of volume flowing into stocks advancing higher minus the amount of volume flowing into stocks declining. This refers to how bullish or bearish the market is that particular day and is referenced as a ratio. (ie: 2:1 or -3:1)

• Bull & Bear Trap – A reversal in price that forces traders to exit positions with unexpected losses because other market participants failed to support the intended direction of price.

• Choppy – Refers to messy price action where obvious trends are not apparent .

• Confirmation – The act of waiting for price to confirm the desired direction before executing your trade.

• Consolidation – A resting period for a trending security in which price moves sideways, usually accompanied by lower trading volume. These are periods where investors and traders find acceptance with the new price levels of the security.

• Cost Basis – The price at which your position is valued.

• Cover – The act of closing a short position which requires the trader to buy back the shares borrowed, or “cover” their position.

• Delta -  Expresses the amount of price change an option will see based on the price of the underlying security (e.g., stock).

• Dip - Refers to a security declining in price, or “dipping” lower. The term coined “buy the dip” which refers to traders buying the security as it declines in price.

• Edge – A unique set of criteria that gives a trader the highest probability of success in the market. 

• Fade – when a security that has gapped up or down moves opposite of the gap, essentially filling some of the gap, if not all of it.

• Fib – A technical drawing tool that uses two extreme points on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.

• Flag – Refers to a chart pattern in which a security is resting before the trend continues.

• Gamma - The rate of change for an option’s delta based on a single-point move in the delta’s price.

• Gap – when a security opens higher than the previous days close (gap up) or opens lower than the previous days close (gap down).

• Hammer – A candle shape with a small body and long wick that indicates a potential reversal in price.

• Implied Volatility - A metric that captures the market's view of the likelihood of changes in a given security's price.

• Internals – refers to market internals which provides a look under the hood of the stock market, providing insight to the level of strength or weakness.

• Liquidity – Describes the degree to which an asset can be quickly bought or sold at desirable price points.

• LOD/HOD – low of the day / high of the day.

• Long – When a trader opens a position by buying shares or contracts of a security, thereby profiting if the security increases in value.

• Macro Breakout – when a security breaks above or below a long-term resistance or support level on high volume. Macro refers to a longer time frame, such as daily or weekly. These are generally long lasting and powerful moves.

• Mid-range – When a security is trading at a midway point between a support and resistance level. This is typically a poor area to open new trades because it offers very little edge to the trader.

• Momentum – A key element for many trading strategies which refers to the rate of acceleration of a security's price or volume—that is, the speed at which the price is changing. This defines a momentum traders edge in the market.

• Option – Financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.

• OTM / ITM – Refers to option contracts out of the money (OTM) or in the money (ITM).

• Position – Refers to an open trade and includes how many shares or contracts you have and your cost basis.

• Pivot – Significant price level established when a security fails to penetrate it to the up or downside, thus the trend “pivots” direction.

• Pivot Point Indicator – A technical indicator that plots levels of support and resistance based off the average of the high, low and closing prices from the previous trading day.

• Pullback – A temporary reversal in the price action of a security.

• Red to Green – When a security advances over the opening price after initially selling off.

• Rejection – When a security fails to break above resistance or below support.

• Resistance – Refers to a price point that a security struggles exceed, creating a ceiling or level of resistance.

• Rug Pull – also called a liquidation break; refers to a sudden and rapid sell off that seems to occur out of nowhere.

• Scalping – A style of trading that involves very short duration trades profiting from small price changes in the security.

• Security – Financial instrument with monetary value that entitles the holder to ownership in part of a company (stock) or other related investment.

• Short – When a trader opens a position by selling borrowed shares of a security. The term is broadly used to describe a position that makes money when a security declines in value.

• Slippage – The money lost when executing a trade with a wide spread between the buyers and sellers.

• Spread (bid/ask) – Refers to the price gap between the buyers and sellers of a security or investment.

• Squeeze – When a stock price moves higher as short sellers are forced to close their position. This can lead to a rapid move higher in the stocks price as more and more short sellers buy back shares to cover their position.

• Support – Refers to a price point that a security struggles to fall below, creating a floor or level of support.

• Tape – Refers to the time & sales, which is visually represented as a flowing stream of buy and sell orders on a security.

• Theta -  Refers to the rate of decline in the value of an option over time, or time decay.

• Underlying – Represents the assets from which derivatives such as options derive their value (ex: stocks).

• Volatility – Measures the amount and speed at which price moves up or down.

• Volume – Refers to the amount of units traded on a security during a specific time frame. This could be shares of a stock or the number of option contracts traded.